2016-03-23                     House Journal                      Page 1909
oil, subject to certain nomination provisions, which the State would                                                            
take in-kind from lessees on the North Slope. The deliveries of royalty                                                         
oil under the agreement with Tesoro have an estimated start date of                                                             
August 1, 2016, and continue until July 31, 2021. The royalty oil                                                               
would be sold to Tesoro at a price in the agreement calculated to equal                                                         
or exceed the value that the State would obtain for the royalty oil if it                                                       
was taken in-value. The agreement includes provisions to support                                                                
employment of state residents and in-state processing.                                                                          
                                                                                                                                
This bill is the culmination of diligent analysis and public process that                                                       
are imperative for responsible resource stewardship. The Department                                                             
of Natural Resources and the Alaska Royalty Oil and Gas                                                                         
Development Advisory Board (Board) considered the fiscal,                                                                       
economic, societal, and environmental impacts and benefits of the                                                               
agreement. The Department of Natural Resources issued a Final Best                                                              
Interest Finding and Determination on the agreement that included                                                               
analysis of the factors for the sale of royalty oil in AS 38.05.183 and a                                                       
detailed response to public comments received on the sale.                                                                      
Additionally, the Board held a public hearing on the sale. In                                                                   
accordance with AS 38.06.050, the Board voted to approve a written                                                              
recommendation and report on March 15, 2016, recommending                                                                       
legislative approval of the agreement. A copy of the Final Best Interest                                                        
Finding and Determination with the proposed agreement as Exhibit 1,                                                             
the Board resolution recommending approval, and the report of the                                                               
Board required by AS 38.06.070(c) are available from the Department                                                             
of Natural Resources.                                                                                                           
                                                                                                                                
This bill would allow the State to obtain the maximum value for its                                                             
royalty oil. I urge your prompt and favorable action on this measure.                                                           
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor"                                                                                                                       
                                                                                                                                
                           UNFINISHED BUSINESS                                                                               
                                                                                                                                
HB 62                                                                                                                         
Representative Kreiss-Tomkins moved and asked unanimous consent                                                                 
to withdraw the following: