Legislature(2013 - 2014)

2014-03-18 Senate Journal

Full Journal pdf

2014-03-18                     Senate Journal                      Page 2045
SB 138                                                                                                                        
Senators Gardner, Ellis, French, Wielechowski offered Amendment                                                                 
No. 5:                                                                                                                          
                                                                                                                                
Page 55, following line 28:                                                                                                     
     Insert a new bill section to read:                                                                                         
"* Sec. 61. The uncodified law of the State of Alaska is amended by                                                           
adding a new section to read:                                                                                                   
     LIMIT ON COSTS. The commissioner of natural resources may                                                                  
not agree to reimburse TransCanada Alaska Development Inc. or an                                                                
affiliate of TransCanada Alaska Development Inc. for its costs, as                                                              
described in the December 12, 2013, Memorandum of Understanding                                                                 
between TransCanada Alaska Company, LLC, Foothills Pipe Lines                                                                   
Ltd., TransCanada Alaska Development Inc., and the State of Alaska,                                                             
if the final investment decision enabling the North Slope natural gas                                                           
project is not made because the state is the only party to the project                                                          
that does not agree to go forward with the project."                                                                            
                                                                                                                                
Page 56, line 4:                                                                                                                
     Delete "61"                                                                                                                
     Insert "62"                                                                                                                
                                                                                                                                
Page 56, line 7:                                                                                                                
     Delete "secs. 62 and 63"                                                                                                   
 Insert "secs. 63 and 64"                                                                                                       
                                                                                                                                
Senator Gardner moved for the adoption of Amendment No. 5.                                                                      
Senator Fairclough objected.                                                                                                    
                                                                                                                                
                                                                                                                                

2014-03-18                     Senate Journal                      Page 2046
The question being: "Shall Amendment No. 5 be adopted?" The roll                                                                
was taken with the following result:                                                                                            
                                                                                                                                
CSSB 138(FIN) am                                                                                                                
Second Reading                                                                                                                  
Amendment No. 5                                                                                                                 
                                                                                                                                
YEAS:  5   NAYS:  15   EXCUSED:  0   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Ellis, French, Gardner, Stedman, Wielechowski                                                                            
                                                                                                                                
Nays:  Bishop, Coghill, Dunleavy, Dyson, Egan, Fairclough, Giessel,                                                             
Hoffman, Huggins, Kelly, McGuire, Meyer, Micciche, Olson, Stevens                                                               
                                                                                                                                
and so, Amendment No. 5 failed.                                                                                                 
                                                                                                                                
Senators Wielechowski, Ellis, French, Gardner offered Amendment                                                                 
No. 6:                                                                                                                          
                                                                                                                                
Page 1, line 7, following "on gas;":                                                                                          
     Insert "relating to an option for the state to acquire an                                                                
ownership interest in a North Slope natural gas project;"                                                                     
                                                                                                                                
Page 15, following line 30:                                                                                                     
     Insert a new bill section to read:                                                                                         
"* Sec. 16. AS 38.05 is amended by adding a new section to read:                                                              
          Sec. 38.05.023. State option to acquire an ownership                                                                
     interest in a North Slope natural gas project. (a) An agreement                                                          
     or contract associated with a North Slope natural gas project that                                                         
     includes an option for the state to acquire an ownership interest in                                                       
     a gas pipeline or gas treatment plant may not require the state to                                                         
     exercise the option before the final investment decision is made to                                                        
       commence the construction of a North Slope natural gas project.                                                         
          (b)  In this section, "gas pipeline" and "gas treatment plant"                                                        
     have the meanings given in AS 31.25.390."                                                                                  
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 17, line 24:                                                                                                               
     Delete "sec. 17"                                                                                                           
     Insert "sec. 18"                                                                                                           
                                                                                                                                

2014-03-18                     Senate Journal                      Page 2047
Page 21, line 16:                                                                                                               
     Delete "sec. 27"                                                                                                           
     Insert "sec. 28"                                                                                                           
                                                                                                                                
Page 25, line 9:                                                                                                                
     Delete "sec. 30"                                                                                                           
     Insert "sec. 31"                                                                                                           
                                                                                                                                
Page 31, line 18:                                                                                                               
     Delete "sec. 37"                                                                                                           
     Insert "sec. 38"                                                                                                           
                                                                                                                                
Page 53, lines 24 - 25:                                                                                                         
     Delete "sec. 23"                                                                                                           
     Insert "sec. 24"                                                                                                           
                                                                                                                                
Page 56, line 4:                                                                                                                
     Delete "16, 17, 23 - 27, 29, 30, 37, 39, and 55 - 61"                                                                      
     Insert "16 - 18, 24 - 28, 30, 31, 38, 40, and 56 - 62"                                                                     
                                                                                                                                
Page 56, line 6:                                                                                                                
     Delete "Section 38"                                                                                                        
     Insert "Section 39"                                                                                                        
                                                                                                                                
Page 56, line 7:                                                                                                                
     Delete "secs. 62 and 63"                                                                                                   
     Insert "secs. 63 and 64"                                                                                                   
                                                                                                                                
Senator Wielechowski moved for the adoption of Amendment No. 6.                                                                 
Senator Coghill objected.                                                                                                       
                                                                                                                                
The question being: "Shall Amendment No. 6 be adopted?" The roll                                                                
was taken with the following result:                                                                                            
                                                                                                                                
CSSB 138(FIN) am                                                                                                                
Second Reading                                                                                                                  
Amendment No. 6                                                                                                                 
                                                                                                                                
                                                                                                                                
                                                                                                                                
                                                                                                                                

2014-03-18                     Senate Journal                      Page 2048
YEAS:  7   NAYS:  13   EXCUSED:  0   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Egan, Ellis, French, Gardner, Olson, Stedman, Wielechowski                                                               
                                                                                                                                
Nays:  Bishop, Coghill, Dunleavy, Dyson, Fairclough, Giessel,                                                                   
Hoffman, Huggins, Kelly, McGuire, Meyer, Micciche, Stevens                                                                      
                                                                                                                                
and so, Amendment No. 6 failed.                                                                                                 
                                                                                                                                
Senators Wielechowski, Ellis, French, Gardner offered Amendment                                                                 
No. 7:                                                                                                                          
                                                                                                                                
Page 1, line 7, following "on gas;":                                                                                          
     Insert "relating to contracts associated with a North Slope                                                              
natural gas project;"                                                                                                         
                                                                                                                                
Page 15, following line 30:                                                                                                     
     Insert a new bill section to read:                                                                                         
"* Sec. 16. AS 38.05 is amended by adding a new section to read:                                                              
          Sec. 38.05.023. Agreements and contracts associated with                                                            
     a North Slope natural gas project. (a) An agreement or contract                                                          
     associated with a North Slope natural gas project to which the                                                             
     state is a party must require that a party to the agreement or                                                             
     contract that has an equity interest of five percent or more in the                                                        
     Alaska liquefied natural gas project or a component of the Alaska                                                          
     liquefied natural gas project expand the Alaska liquefied natural                                                          
     gas project or a component of the Alaska liquefied natural gas                                                             
     project in reasonable engineering increments when there is                                                                 
     sufficient commercial interest in the expansion. The requirement                                                           
     to expand in this subsection is subject to the limitation that a party                                                     
     is not required to pay a cost of expansion that increases the tariff,                                                      
     cost of service, or cost of transportation, as applicable to that part                                                     
     of the North Slope natural gas project that is expanded, by more                                                           
     than 15 percent.                                                                                                           
          (b)  In this section,                                                                                                 
              (1)  "Alaska liquefied natural gas project" has the                                                               
     meaning given in AS 31.25.390;                                                                                             
              (2)  "component" means a gas pipeline, gas treatment                                                              
     plant, liquefied natural gas plant, marine terminal, Point Thomson                                                         
     unit gas transmission line, or Prudhoe Bay unit gas transmission                                                           
     line, as those parts of the Alaska liquefied natural gas project are                                                       
     described in AS 31.25.390;                                                                                                 

2014-03-18                     Senate Journal                      Page 2049
              (3)  "cost of expansion" means the cost to a party of                                                             
     expanding the Alaska liquefied natural gas project or a component                                                          
     of the Alaska liquefied natural gas project when an expansion is                                                           
     required under an agreement or contract."                                                                                  
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 17, line 24:                                                                                                               
     Delete "sec. 17"                                                                                                           
     Insert "sec. 18"                                                                                                           
                                                                                                                                
Page 21, line 16:                                                                                                               
     Delete "sec. 27"                                                                                                           
     Insert "sec. 28"                                                                                                           
                                                                                                                                
Page 25, line 9:                                                                                                                
     Delete "sec. 30"                                                                                                           
     Insert "sec. 31"                                                                                                           
                                                                                                                                
Page 31, line 18:                                                                                                               
     Delete "sec. 37"                                                                                                           
     Insert "sec. 38"                                                                                                           
                                                                                                                                
Page 53, lines 24 - 25:                                                                                                         
     Delete "sec. 23"                                                                                                           
     Insert "sec. 24"                                                                                                           
                                                                                                                                
Page 56, line 4:                                                                                                                
     Delete "16, 17, 23 - 27, 29, 30, 37, 39, and 55 - 61"                                                                      
     Insert "16 - 18, 24 - 28, 30, 31, 38, 40, and 56 - 62"                                                                     
                                                                                                                                
Page 56, line 6:                                                                                                                
     Delete "Section 38"                                                                                                        
     Insert "Section 39"                                                                                                        
                                                                                                                                
Page 56, line 7:                                                                                                                
     Delete "secs. 62 and 63"                                                                                                   
     Insert "secs. 63 and 64"                                                                                                   
                                                                                                                                
Senator Wielechowski moved for the adoption of Amendment No. 7.                                                                 
Senator Coghill objected.                                                                                                       
                                                                                                                                

2014-03-18                     Senate Journal                      Page 2050
The question being: "Shall Amendment No. 7 be adopted?" The roll                                                                
was taken with the following result:                                                                                            
                                                                                                                                
CSSB 138(FIN) am                                                                                                                
Second Reading                                                                                                                  
Amendment No. 7                                                                                                                 
                                                                                                                                
YEAS:  5   NAYS:  15   EXCUSED:  0   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Ellis, French, Gardner, Hoffman, Wielechowski                                                                            
                                                                                                                                
Nays:  Bishop, Coghill, Dunleavy, Dyson, Egan, Fairclough, Giessel,                                                             
Huggins, Kelly, McGuire, Meyer, Micciche, Olson, Stedman, Stevens                                                               
                                                                                                                                
and so, Amendment No. 7 failed.                                                                                                 
                                                                                                                                
Senators Gardner, Ellis, French, Wielechowski offered Amendment                                                                 
No. 8:                                                                                                                          
                                                                                                                                
Page 13, line 18, following "paragraph":                                                                                    
     Insert "(A)"                                                                                                           
                                                                                                                                
Page 13, line 20, following "contract;":                                                                                    
     Insert "and                                                                                                            
                   (B)  must include a provision that requires that                                                         
          each party to the agreement or contract pay, in proportion                                                        
          to the party's ownership interest in the North Slope                                                              
          natural gas project, the costs of infrastructure south of 68                                                      
          degrees North latitude that are directly related to the                                                           
          North Slope natural gas project; in this subparagraph,                                                            
          "costs of infrastructure" includes the costs of                                                                   
          construction, improvement, and maintenance of roads,                                                              
          bridges, port facilities, and utilities;"                                                                         
                                                                                                                                
Page 15, line 12, following "paragraph":                                                                                        
     Insert "(A)"                                                                                                               
                                                                                                                                
Page 15, line 14, following "contract;":                                                                                        
     Insert "and                                                                                                                
  (B)  must include a provision that requires that each party to                                                                
the agreement or contract pay, in proportion to the party's ownership                                                           
interest in the North Slope natural gas project, the costs of                                                                   

2014-03-18                     Senate Journal                      Page 2051
infrastructure south of 68 degrees North latitude that are directly                                                             
related to the North Slope natural gas project; in this subparagraph,                                                           
"costs of infrastructure" includes the costs of construction,                                                                   
improvement, and maintenance of roads, bridges, port facilities, and                                                            
utilities;"                                                                                                                     
                                                                                                                                
Senator Gardner moved for the adoption of Amendment No. 8.                                                                      
Senator Coghill objected.                                                                                                       
                                                                                                                                
The question being: "Shall Amendment No. 8 be adopted?" The roll                                                                
was taken with the following result:                                                                                            
                                                                                                                                
CSSB 138(FIN) am                                                                                                                
Second Reading                                                                                                                  
Amendment No. 8                                                                                                                 
                                                                                                                                
YEAS:  5   NAYS:  15   EXCUSED:  0   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Egan, Ellis, French, Gardner, Wielechowski                                                                               
                                                                                                                                
Nays:  Bishop, Coghill, Dunleavy, Dyson, Fairclough, Giessel,                                                                   
Hoffman, Huggins, Kelly, McGuire, Meyer, Micciche, Olson,                                                                       
Stedman, Stevens                                                                                                                
                                                                                                                                
and so, Amendment No. 8 failed.                                                                                                 
                                                                                                                                
Senators Wielechowski, Ellis, French, Gardner offered Amendment                                                                 
No. 9:                                                                                                                          
                                                                                                                                
Page 47, line 15:                                                                                                               
     Delete "a new subsection"                                                                                                  
     Insert "new subsections"                                                                                                   
                                                                                                                                
Page 47, line 23:                                                                                                               
     Delete "or gas"                                                                                                            
                                                                                                                                
Page 48, line 1:                                                                                                                
     Delete "or gas"                                                                                                            
                                                                                                                                
Page 48, lines 2 - 3:                                                                                                           
     Delete "or gas"                                                                                                            
                                                                                                                                

2014-03-18                     Senate Journal                      Page 2052
Page 48, lines 8 - 9:                                                                                                           
     Delete "or gas"                                                                                                            
                                                                                                                                
Page 48, line 17:                                                                                                               
     Delete "or gas"                                                                                                            
                                                                                                                                
Page 48, line 18:                                                                                                               
     Delete "or gas"                                                                                                            
                                                                                                                                
Page 48, following line 22:                                                                                                     
     Insert a new subsection to read:                                                                                           
  "(i) For purposes of (h) of this section, for a well that                                                                     
produces both oil and gas, the portion of the costs attributable to oil                                                         
incurred to explore for, develop, or produce an oil and gas deposit is a                                                        
fraction the numerator of which is the production of oil expressed in                                                           
BTU equivalent barrels and the denominator of which is the total                                                                
production of oil and gas expressed in BTU equivalent barrels."                                                                 
                                                                                                                                
Senator Wielechowski moved for the adoption of Amendment No. 9.                                                                 
Senator Coghill objected.                                                                                                       
                                                                                                                                
The question being: "Shall Amendment No. 9 be adopted?" The roll                                                                
was taken with the following result:                                                                                            
                                                                                                                                
CSSB 138(FIN) am                                                                                                                
Second Reading                                                                                                                  
Amendment No. 9                                                                                                                 
                                                                                                                                
YEAS:  4   NAYS:  15   EXCUSED:  0   ABSENT:  1                                                                               
                                                                                                                                
Yeas:  Ellis, French, Gardner, Wielechowski                                                                                     
                                                                                                                                
Nays:  Bishop, Coghill, Dunleavy, Dyson, Egan, Fairclough, Giessel,                                                             
Hoffman, Huggins, Kelly, McGuire, Meyer, Micciche, Stedman,                                                                     
Stevens                                                                                                                         
                                                                                                                                
Absent:  Olson                                                                                                                  
                                                                                                                                
and so, Amendment No. 9 failed.                                                                                                 
                                                                                                                                
Senators Ellis, French, Gardner, Wielechowski offered Amendment                                                                 
No. 10:                                                                                                                         
                                                                                                                                

2014-03-18                     Senate Journal                      Page 2053
Page 25, line 8, following "project":                                                                                       
     Insert "; the commissioner shall ensure that a contract                                                                
negotiated under this paragraph does not authorize payments in                                                              
lieu of taxes to a municipality"                                                                                            
                                                                                                                                
Page 26, line 15, following "project":                                                                                          
 Insert "; the commissioner shall ensure that a contract negotiated                                                             
under this paragraph does not authorize payments in lieu of taxes to a                                                          
municipality"                                                                                                                   
                                                                                                                                
Senator Ellis moved for the adoption of Amendment No. 10. Senator                                                               
Coghill objected.                                                                                                               
                                                                                                                                
The question being: "Shall Amendment No. 10 be adopted?" The roll                                                               
was taken with the following result:                                                                                            
                                                                                                                                
CSSB 138(FIN) am                                                                                                                
Second Reading                                                                                                                  
Amendment No. 10                                                                                                                
                                                                                                                                
YEAS:  5   NAYS:  15   EXCUSED:  0   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Egan, Ellis, French, Gardner, Wielechowski                                                                               
                                                                                                                                
Nays:  Bishop, Coghill, Dunleavy, Dyson, Fairclough, Giessel,                                                                   
Hoffman, Huggins, Kelly, McGuire, Meyer, Micciche, Olson,                                                                       
Stedman, Stevens                                                                                                                
                                                                                                                                
and so, Amendment No. 10 failed.                                                                                                
                                                                                                                                
Senators Gardner, Ellis, French, Wielechowski offered Amendment                                                                 
No. 11:                                                                                                                         
                                                                                                                                
Page 1, line 12, following "Revenue;":                                                                                        
     Insert "relating to the review by the Regulatory Commission of                                                           
Alaska of a precedent agreement or related contract for an in-                                                                
state natural gas pipeline;"                                                                                                  
                                                                                                                                
Page 24, following line 1:                                                                                                      
     Insert a new bill section to read:                                                                                         
"* Sec. 30. AS 42.08.320(e) is amended to read:                                                                               
          (e) The [IF A PRECEDENT AGREEMENT OR RELATED                                                                      
     CONTRACT IS NOT ARM'S LENGTH, THE] commission shall                                                                        
     determine whether the precedent agreement or related contract is                                                           

2014-03-18                     Senate Journal                      Page 2054
     just and reasonable using the standards applied under                                                                  
     AS 42.06.140 [NORMALLY APPLIED UNDER AS 42.06.140.                                                                     
     IF THE COMMISSION IS REVIEWING A PRECEDENT                                                                                 
     AGREEMENT UNDER (c)(2) OF THIS SECTION, THE                                                                                
     COMMISSION MAY CONSIDER THE IN-STATE NATURAL                                                                               
     GAS PIPELINE CARRIER'S APPROVED RECOURSE                                                                                   
     TARIFF, INCLUDING THE COST DATA UNDERLYING THE                                                                             
     TARIFF]. When considering whether to approve a contract as just                                                            
     and reasonable under this subsection, the commission shall                                                                 
        consider the consequences of failing to approve the contract."                                                         
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 25, line 9:                                                                                                                
     Delete "sec. 30"                                                                                                           
     Insert "sec. 31"                                                                                                           
                                                                                                                                
Page 31, line 18:                                                                                                               
     Delete "sec. 37"                                                                                                           
     Insert "sec. 38"                                                                                                           
                                                                                                                                
Page 56, line 4:                                                                                                                
     Delete "29, 30, 37, 39, and 55 - 61"                                                                                       
     Insert "29 - 31, 38, 40, and 56 - 62"                                                                                      
                                                                                                                                
Page 56, line 6:                                                                                                                
     Delete "Section 38"                                                                                                        
     Insert "Section 39"                                                                                                        
                                                                                                                                
Page 56, line 7:                                                                                                                
     Delete "secs. 62 and 63"                                                                                                   
 Insert "secs. 63 and 64"                                                                                                       
                                                                                                                                
Senator Gardner moved for the adoption of Amendment No. 11.                                                                     
Senator Coghill objected.                                                                                                       
                                                                                                                                
The question being: "Shall Amendment No. 11 be adopted?" The roll                                                               
was taken with the following result:                                                                                            
                                                                                                                                
                                                                                                                                

2014-03-18                     Senate Journal                      Page 2055
                                                                                                                                
CSSB 138(FIN) am                                                                                                                
Second Reading                                                                                                                  
Amendment No. 11                                                                                                                
                                                                                                                                
YEAS:  5   NAYS:  15   EXCUSED:  0   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Ellis, French, Gardner, Hoffman, Wielechowski                                                                            
                                                                                                                                
Nays:  Bishop, Coghill, Dunleavy, Dyson, Egan, Fairclough, Giessel,                                                             
Huggins, Kelly, McGuire, Meyer, Micciche, Olson, Stedman, Stevens                                                               
                                                                                                                                
and so, Amendment No. 11 failed.                                                                                                
                                                                                                                                
Senators Wielechowski, Ellis, French, Gardner offered Amendment                                                                 
No. 12:                                                                                                                         
                                                                                                                                
Page 28, line 8, through page 29, line 25:                                                                                      
     Delete all material and insert:                                                                                            
"* Sec. 35. AS 43.55.011(f) is repealed and reenacted to read:                                                                
          (f) Except for oil subject to (i) of this section of this section,                                                    
     the provisions of this subsection apply to oil produced from each                                                          
     lease or property within a unit or nonunitized reservoir that has                                                          
     cumulatively produced 1,000,000,000 barrels of oil by the close of                                                         
     the most recent calendar year and from which the average daily oil                                                         
     production from the unit or nonunitized reservoir during the most                                                          
     recent calendar year exceeded 100,000 barrels. Notwithstanding                                                             
     any contrary provision of law, a producer may not apply tax                                                                
     credits to reduce its total tax liability under (e) of this section for                                                    
     oil produced from all leases or properties within the unit or                                                              
     nonunitized reservoir below 15 percent of the total gross value at                                                         
     the point of production of that oil. If the amount of tax calculated                                                       
     by multiplying the tax rate in (e) of this section by the total                                                            
     production tax value of the oil under (e) of this section produced                                                         
     from all of the producer's leases or properties within the unit or                                                         
     nonunitized reservoir is less than 15 percent of the total gross                                                           
     value at the point of production of that oil, the tax levied by (e) of                                                     
     this section for that oil is equal to 15 percent of the total gross                                                        
     value at the point of production of that oil."                                                                             
                                                                                                                                
Page 35, line 24:                                                                                                               
     Delete "and gas"                                                                                                           
     Insert "[AND GAS]"                                                                                                         
                                                                                                                                

2014-03-18                     Senate Journal                      Page 2056
Page 35, lines 25 - 29:                                                                                                         
     Delete "greatest of                                                                                                        
                        (i)  zero;                                                                                              
                        (ii)  zero percent, one percent, two percent, three                                                     
              percent, or four percent, as applicable, of the gross value                                                       
                at the point of production of the oil and gas"                                                                 
     Insert "greater [GREATEST] of                                                                                          
                        (i)  15 percent of the gross value at the point of                                                  
              production of the oil [ZERO;                                                                                  
                        (ii)  ZERO PERCENT, ONE PERCENT, TWO                                                                    
              PERCENT, THREE PERCENT, OR FOUR PERCENT,                                                                          
              AS APPLICABLE, OF THE GROSS VALUE AT THE                                                                          
              POINT OF PRODUCTION OF THE OIL AND GAS]"                                                                          
                                                                                                                                
Page 35, line 31:                                                                                                               
     Delete "(iii)"                                                                                                             
     Insert "(ii) [(iii)]"                                                                                                  
                                                                                                                                
Page 37, line 17:                                                                                                               
     Delete "greatest"                                                                                                      
     Insert "greater"                                                                                                       
                                                                                                                                
Page 37, lines 18 - 20:                                                                                                         
     Delete "zero;                                                                                                          
                        (ii) zero percent, one percent, two percent,                                                        
              three percent, or four percent, as applicable,"                                                               
     Insert "15 percent"                                                                                                    
                                                                                                                                
Page 37, line 24:                                                                                                               
     Delete "(iii)"                                                                                                         
     Insert "(ii)"                                                                                                          
                                                                                                                                
Page 39, lines 19 - 20:                                                                                                         
     Delete ", (5)(B)(ii), and (7)(A)(ii)"                                                                                  
                                                                                                                                
Page 39, line 21:                                                                                                               
     Delete "AS 43.55.011(f)(1) or (2)"                                                                                     
     Insert "AS 43.55.011(f) as that subsection read on                                                                     
December 31, 2013,"                                                                                                         
                                                                                                                                

2014-03-18                     Senate Journal                      Page 2057
Page 39, line 23:                                                                                                               
     Delete "AS 43.55.011(f)(1) or (2)"                                                                                     
     Insert "AS 43.55.011(f) as that subsection read on                                                                     
December 31, 2013,"                                                                                                         
                                                                                                                                
Page 56, following line 3:                                                                                                      
     Insert a new bill section to read:                                                                                         
"* Sec. 62. The uncodified law of the State of Alaska is amended by                                                           
adding a new section to read:                                                                                                   
     RETROACTIVITY. The repeal and reenactment of                                                                               
AS 43.55.011(f) by sec. 35 of this Act, and the amendment to                                                                    
AS 43.55.020(a)(5)(B) by sec. 40 of this Act are retroactive to                                                                 
January 1, 2014."                                                                                                               
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 56, line 7:                                                                                                                
     Delete "secs. 62 and 63"                                                                                                   
 Insert "secs. 63 and 64"                                                                                                       
                                                                                                                                
Senator Wielechowski moved for the adoption of Amendment No. 12.                                                                
Senator Coghill objected.                                                                                                       
                                                                                                                                
The question being: "Shall Amendment No. 12 be adopted?" The roll                                                               
was taken with the following result:                                                                                            
                                                                                                                                
CSSB 138(FIN) am                                                                                                                
Second Reading                                                                                                                  
Amendment No. 12                                                                                                                
                                                                                                                                
YEAS:  5   NAYS:  14   EXCUSED:  0   ABSENT:  1                                                                               
                                                                                                                                
Yeas:  Ellis, French, Gardner, Stedman, Wielechowski                                                                            
                                                                                                                                
Nays:  Bishop, Coghill, Dunleavy, Egan, Fairclough, Giessel,                                                                    
Hoffman, Huggins, Kelly, McGuire, Meyer, Micciche, Olson, Stevens                                                               
                                                                                                                                
Absent:  Dyson                                                                                                                  
                                                                                                                                
and so, Amendment No. 12 failed.                                                                                                
                                                                                                                                
Senators French, Ellis, Gardner, Wielechowski offered Amendment                                                                 
No. 13:                                                                                                                         
                                                                                                                                

2014-03-18                     Senate Journal                      Page 2058
Page 13, line 19, following "party":                                                                                        
     Insert                                                                                                                     
                   "(A)  must include a provision that requires the                                                         
          parties to the contract to negotiate, before construction, a                                                      
          project labor agreement to the maximum extent permitted                                                           
          by law; in this subparagraph, "project labor agreement"                                                           
          means a comprehensive collective bargaining agreement                                                             
          between the licensee or its agent and the appropriate labor                                                       
          representatives to ensure expedited construction with                                                             
          labor stability for the project by qualified residents of the                                                     
          state;                                                                                                            
                   (B)"                                                                                                     
                                                                                                                                
Page 15, line 12, following "party":                                                                                            
     Insert                                                                                                                     
                   "(A)  must include a provision that requires the                                                             
          parties to the contract to negotiate, before construction, a                                                          
          project labor agreement to the maximum extent permitted by                                                            
          law; in this subparagraph, "project labor agreement" means a                                                          
          comprehensive collective bargaining agreement between the                                                             
          licensee or its agent and the appropriate labor representatives                                                       
          to ensure expedited construction with labor stability for the                                                         
          project by qualified residents of the state;                                                                          
                   (B)"                                                                                                         
                                                                                                                                
Senator French moved for the adoption of Amendment No. 13.                                                                      
Senator Coghill objected.                                                                                                       
                                                                                                                                
The question being: "Shall Amendment No. 13 be adopted?" The roll                                                               
was taken with the following result:                                                                                            
                                                                                                                                
CSSB 138(FIN) am                                                                                                                
Second Reading                                                                                                                  
Amendment No. 13                                                                                                                
                                                                                                                                
YEAS:  6   NAYS:  14   EXCUSED:  0   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Egan, Ellis, French, Gardner, Olson, Wielechowski                                                                        
                                                                                                                                
Nays:  Bishop, Coghill, Dunleavy, Dyson, Fairclough, Giessel,                                                                   
Hoffman, Huggins, Kelly, McGuire, Meyer, Micciche, Stedman,                                                                     
Stevens                                                                                                                         
                                                                                                                                

2014-03-18                     Senate Journal                      Page 2059
and so, Amendment No. 13 failed.                                                                                                
                                                                                                                                
Senator Coghill called the Senate. The call was satisfied.                                                                      
                                                                                                                                
Senators Gardner, Ellis, French, Wielechowski offered Amendment                                                                 
No. 14:                                                                                                                         
                                                                                                                                
Page 13, line 18, following "project;":                                                                                       
     Insert "the commissioner shall provide public notice and the                                                           
opportunity to comment on a proposed agreement or contract to                                                               
which the state is a party for at least 90 days before submitting the                                                       
proposed agreement or contract to the legislature for approval;"                                                            
                                                                                                                                
Page 15, line 11, following "project;":                                                                                         
     Insert "the commissioner shall provide public notice and the                                                               
opportunity to comment on a proposed agreement or contract to which                                                             
the state is a party for at least 90 days before submitting the proposed                                                        
agreement or contract to the legislature for approval;"                                                                         
                                                                                                                                
Senator Gardner moved for the adoption of Amendment No. 14.                                                                     
Senator Coghill objected.                                                                                                       
                                                                                                                                
The question being: "Shall Amendment No. 14 be adopted?" The roll                                                               
was taken with the following result:                                                                                            
                                                                                                                                
CSSB 138(FIN) am                                                                                                                
Second Reading                                                                                                                  
Amendment No. 14                                                                                                                
                                                                                                                                
YEAS:  5   NAYS:  15   EXCUSED:  0   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Ellis, French, Gardner, Stedman, Wielechowski                                                                            
                                                                                                                                
Nays:  Bishop, Coghill, Dunleavy, Dyson, Egan, Fairclough, Giessel,                                                             
Hoffman, Huggins, Kelly, McGuire, Meyer, Micciche, Olson, Stevens                                                               
                                                                                                                                
and so, Amendment No. 14 failed.                                                                                                
                                                                                                                                
Senators Wielechowski, Ellis, French, Gardner offered Amendment                                                                 
No. 15:                                                                                                                         
                                                                                                                                
Page 1, line 7, following "on gas;":                                                                                          

2014-03-18                     Senate Journal                      Page 2060
     Insert "relating to disputes related to a North Slope natural gas                                                        
project;"                                                                                                                     
                                                                                                                                
Page 15, following line 30:                                                                                                     
     Insert a new bill section to read:                                                                                         
"* Sec. 16. AS 38.05 is amended by adding a new section to read:                                                              
          Sec. 38.05.023. Disputes related to a North Slope natural                                                           
     gas project. An agreement or contract associated with a North                                                            
     Slope natural gas project to which the state is a party must                                                               
                   (A)  prohibit arbitration of a dispute related to the                                                        
          agreement or contract;                                                                                                
                   (B)  state that the agreement or contract shall be                                                           
          governed by and construed in accordance with the laws of the                                                          
          state, not including the state's choice of law provisions, and                                                        
         subject to federal law that is applicable in the state; and                                                           
                   (C)  require than any action related to the agreement                                                        
          or contract be brought in a state court that has jurisdiction                                                         
          over the claim."                                                                                                      
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 17, line 24:                                                                                                               
     Delete "sec. 17"                                                                                                           
     Insert "sec. 18"                                                                                                           
                                                                                                                                
Page 21, line 16:                                                                                                               
     Delete "sec. 27"                                                                                                           
     Insert "sec. 28"                                                                                                           
                                                                                                                                
Page 25, line 9:                                                                                                                
     Delete "sec. 30"                                                                                                           
     Insert "sec. 31"                                                                                                           
                                                                                                                                
Page 31, line 18:                                                                                                               
     Delete "sec. 37"                                                                                                           
     Insert "sec. 38"                                                                                                           
                                                                                                                                
Page 53, lines 24 - 25:                                                                                                         
     Delete "sec. 23"                                                                                                           
     Insert "sec. 24"                                                                                                           

2014-03-18                     Senate Journal                      Page 2061
Page 56, line 4:                                                                                                                
     Delete "16, 17, 23 - 27, 29, 30, 37, 39, and 55 - 61"                                                                      
     Insert "16 - 18, 24 - 28, 30, 31, 38, 40, and 56 - 62"                                                                     
                                                                                                                                
Page 56, line 6:                                                                                                                
     Delete "Section 38"                                                                                                        
     Insert "Section 39"                                                                                                        
                                                                                                                                
Page 56, line 7:                                                                                                                
     Delete "secs. 62 and 63"                                                                                                   
 Insert "secs. 63 and 64"                                                                                                       
                                                                                                                                
Senator Wielechowski moved for the adoption of Amendment No. 15.                                                                
Senator Coghill objected.                                                                                                       
                                                                                                                                
The question being: "Shall Amendment No. 15 be adopted?" The roll                                                               
was taken with the following result:                                                                                            
                                                                                                                                
CSSB 138(FIN) am                                                                                                                
Second Reading                                                                                                                  
Amendment No. 15                                                                                                                
                                                                                                                                
YEAS:  5   NAYS:  15   EXCUSED:  0   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Ellis, French, Gardner, Micciche, Wielechowski                                                                           
                                                                                                                                
Nays:  Bishop, Coghill, Dunleavy, Dyson, Egan, Fairclough, Giessel,                                                             
Hoffman, Huggins, Kelly, McGuire, Meyer, Olson, Stedman, Stevens                                                                
                                                                                                                                
and so, Amendment No. 15 failed.                                                                                                
                                                                                                                                
Senators French, Ellis, Gardner, Wielechowski offered Amendment                                                                 
No. 16:                                                                                                                         
                                                                                                                                
Page 1, line 7, following "on gas;":                                                                                          
     Insert "relating to marketing and marine shipping contracts                                                              
for natural gas transported in a North Slope natural gas project;"                                                            
                                                                                                                                
Page 15, following line 30:                                                                                                     
     Insert a new bill section to read:                                                                                         
"* Sec. 16. AS 38.05 is amended by adding a new section to read:                                                              
          Sec. 38.05.023. Marketing and marine shipping contracts.                                                            

2014-03-18                     Senate Journal                      Page 2062
     The commissioner shall make an agreement or contract to which                                                              
     the state is a party for the marketing or marine shipment of natural                                                       
     gas transported in a North Slope natural gas project available to                                                          
     the public and to the legislature at the same time that contracts                                                          
     authorized under AS 38.05.020(b)(11) are submitted to the                                                                  
     legislature for approval."                                                                                                 
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 17, line 24:                                                                                                               
     Delete "sec. 17"                                                                                                           
     Insert "sec. 18"                                                                                                           
                                                                                                                                
Page 21, line 16:                                                                                                               
     Delete "sec. 27"                                                                                                           
     Insert "sec. 28"                                                                                                           
                                                                                                                                
Page 25, line 9:                                                                                                                
     Delete "sec. 30"                                                                                                           
     Insert "sec. 31"                                                                                                           
                                                                                                                                
Page 31, line 18:                                                                                                               
     Delete "sec. 37"                                                                                                           
     Insert "sec. 38"                                                                                                           
                                                                                                                                
Page 53, lines 24 - 25:                                                                                                         
     Delete "sec. 23"                                                                                                           
     Insert "sec. 24"                                                                                                           
                                                                                                                                
Page 56, line 4:                                                                                                                
     Delete "16, 17, 23 - 27, 29, 30, 37, 39, and 55 - 61"                                                                      
     Insert "16 - 18, 24 - 28, 30, 31, 38, 40, and 56 - 62"                                                                     
                                                                                                                                
Page 56, line 6:                                                                                                                
     Delete "Section 38"                                                                                                        
     Insert "Section 39"                                                                                                        
                                                                                                                                
Page 56, line 7:                                                                                                                
     Delete "secs. 62 and 63"                                                                                                   
 Insert "secs. 63 and 64"                                                                                                       

2014-03-18                     Senate Journal                      Page 2063
Senator French moved for the adoption of Amendment No. 16.                                                                      
Senator Coghill objected.                                                                                                       
                                                                                                                                
The question being: "Shall Amendment No. 16 be adopted?" The roll                                                               
was taken with the following result:                                                                                            
                                                                                                                                
CSSB 138(FIN) am                                                                                                                
Second Reading                                                                                                                  
Amendment No. 16                                                                                                                
                                                                                                                                
YEAS:  4   NAYS:  16   EXCUSED:  0   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Ellis, French, Gardner, Wielechowski                                                                                     
                                                                                                                                
Nays:  Bishop, Coghill, Dunleavy, Dyson, Egan, Fairclough, Giessel,                                                             
Hoffman, Huggins, Kelly, McGuire, Meyer, Micciche, Olson,                                                                       
Stedman, Stevens                                                                                                                
                                                                                                                                
and so, Amendment No. 16 failed.                                                                                                
                                                                                                                                
Senators French, Ellis, Gardner, Wielechowski offered Amendment                                                                 
No. 17:                                                                                                                         
                                                                                                                                
Page 13, line 19, following "party":                                                                                        
     Insert                                                                                                                     
                   "(A)  may not include a provision relating to the                                                        
          tax rate applicable to the oil and gas production tax under                                                       
             AS 43.55 as it relates to the production of oil; and                                                          
                   (B)"                                                                                                     
                                                                                                                                
Page 15, line 12, following "party":                                                                                            
     Insert                                                                                                                     
                   "(A)  may not include a provision relating to the tax                                                        
          rate applicable to the oil and gas production tax under                                                               
          AS 43.55 as it relates to the production of oil; and                                                                  
                   (B)"                                                                                                         
                                                                                                                                
Page 25, line 8, following "project":                                                                                       
     Insert "; the commissioner shall ensure that a contract                                                                
negotiated under this paragraph does not include a provision                                                                
relating to the tax rate applicable to the oil and gas production tax                                                       
under AS 43.55 as it relates to the production of oil"                                                                      

2014-03-18                     Senate Journal                      Page 2064
Page 26, line 15, following "project":                                                                                          
 Insert "; the commissioner shall ensure that a contract negotiated                                                             
under this paragraph does not include a provision relating to the tax                                                           
rate applicable to the oil and gas production tax under AS 43.55 as it                                                          
relates to the production of oil"                                                                                               
                                                                                                                                
Senator French moved for the adoption of Amendment No. 17.                                                                      
Senator Coghill objected.                                                                                                       
                                                                                                                                
The question being: "Shall Amendment No. 17 be adopted?" The roll                                                               
was taken with the following result:                                                                                            
                                                                                                                                
CSSB 138(FIN) am                                                                                                                
Second Reading                                                                                                                  
Amendment No. 17                                                                                                                
                                                                                                                                
YEAS:  7   NAYS:  13   EXCUSED:  0   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Bishop, Ellis, French, Gardner, Hoffman, Stedman,                                                                        
Wielechowski                                                                                                                    
                                                                                                                                
Nays:  Coghill, Dunleavy, Dyson, Egan, Fairclough, Giessel, Huggins,                                                            
Kelly, McGuire, Meyer, Micciche, Olson, Stevens                                                                                 
                                                                                                                                
and so, Amendment No. 17 failed.                                                                                                
                                                                                                                                
CS FOR SENATE BILL NO. 138(FIN) am was automatically in third                                                                   
reading.                                                                                                                        
                                                                                                                                
The question being: "Shall CS FOR SENATE BILL NO. 138(FIN) am                                                                   
"An Act relating to the purposes, powers, and duties of the Alaska                                                              
Gasline Development Corporation; relating to an in-state natural gas                                                            
pipeline, an Alaska liquefied natural gas project, and associated funds;                                                        
requiring state agencies and other entities to expedite reviews and                                                             
actions related to natural gas pipelines and projects; relating to the                                                          
authorities and duties of the commissioner of natural resources relating                                                        
to a North Slope natural gas project, oil and gas and gas only leases,                                                          
and royalty gas and other gas received by the state including gas                                                               
received as payment for the production tax on gas; relating to the tax                                                          
on oil and gas production, on oil production, and on gas production;                                                            
relating to the duties of the commissioner of revenue relating to a                                                             
North Slope natural gas project and gas received as payment for tax;                                                            

2014-03-18                     Senate Journal                      Page 2065
relating to confidential information and public record status of                                                                
information provided to or in the custody of the Department of Natural                                                          
Resources and the Department of Revenue; relating to apportionment                                                              
factors of the Alaska Net Income Tax Act; amending the definition of                                                            
gross value at the 'point of production' for gas for purposes of the oil                                                        
and gas production tax; clarifying that the exploration incentive credit,                                                       
the oil or gas producer education credit, and the film production tax                                                           
credit may not be taken against the gas production tax paid in gas;                                                             
relating to the oil or gas producer education credit; requesting the                                                            
governor to establish an interim advisory board to advise the governor                                                          
on municipal involvement in a North Slope natural gas project;                                                                  
relating to the development of a plan by the Alaska Energy Authority                                                            
for developing infrastructure to deliver affordable energy to areas of                                                          
the state that will not have direct access to a North Slope natural gas                                                         
pipeline and a recommendation of a funding source for energy                                                                    
infrastructure development; establishing the Alaska affordable energy                                                           
fund; requiring the commissioner of revenue to develop a plan and                                                               
suggest legislation for municipalities, regional corporations, and                                                              
residents of the state to acquire ownership interests in a North Slope                                                          
natural gas pipeline project; making conforming amendments; and                                                                 
providing for an effective date" pass the Senate?" The roll was taken                                                           
with the following result:                                                                                                      
                                                                                                                                
CSSB 138(FIN) am                                                                                                                
Third Reading - Final Passage                                                                                                   
                                                                                                                                
YEAS:  15   NAYS:  5   EXCUSED:  0   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Bishop, Coghill, Dunleavy, Dyson, Egan, Fairclough, Giessel,                                                             
Hoffman, Huggins, Kelly, McGuire, Meyer, Micciche, Olson, Stevens                                                               
                                                                                                                                
Nays:  Ellis, French, Gardner, Stedman, Wielechowski                                                                            
                                                                                                                                
and so, CS FOR SENATE BILL NO. 138(FIN) am passed the Senate.                                                                   
                                                                                                                                
Senator Coghill moved and asked unanimous consent that the vote on                                                              
the passage of the bill be considered the vote on the effective date                                                            
clauses. Senator French objected.                                                                                               
                                                                                                                                
The question being: "Shall the effective date clauses be adopted?" The                                                          
roll was taken with the following result:                                                                                       
                                                                                                                                

2014-03-18                     Senate Journal                      Page 2066
                                                                                                                                
CSSB 138(FIN) am                                                                                                                
Effective Date Clauses                                                                                                          
                                                                                                                                
YEAS:  16   NAYS:  4   EXCUSED:  0   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Bishop, Coghill, Dunleavy, Dyson, Egan, Fairclough, Giessel,                                                             
Hoffman, Huggins, Kelly, McGuire, Meyer, Micciche, Olson,                                                                       
Stedman, Stevens                                                                                                                
                                                                                                                                
Nays:  Ellis, French, Gardner, Wielechowski                                                                                     
                                                                                                                                
and so, the effective date clauses were adopted.                                                                                
                                                                                                                                
Senator Coghill moved and asked unanimous consent that the Finance                                                              
Committee Letter of Intent offered on page 1958 be adopted as a                                                                 
Senate Letter of Intent. Without objection, the Senate Letter of Intent                                                         
was adopted.