04/02/2001 10:17 AM House O&G

HB 9 - STRANDED GAS DEVELOPMENT PROJECT                                                                                       
                                                                                                                                
CHAIR OGAN  announced that the  first order of business  would be                                                               
HOUSE BILL  NO. 9, "An  Act amending the standards  applicable to                                                               
determining  whether  a  proposed new  investment  constitutes  a                                                               
qualified  project  for  purposes  of  the  Alaska  Stranded  Gas                                                               
Development Act; and providing for an effective date."                                                                          
                                                                                                                                
Number 0065                                                                                                                     
                                                                                                                                
CHAIR  OGAN turned  to a  memorandum drafted  by Jack  Chenoweth,                                                               
Assistant  Revisor, Legislative  Counsel,  Legislative Legal  and                                                               
Research Division, Legislative  Affairs Agency, [which addresses]                                                               
a  discussion  regarding  the   legislature's  powers  under  the                                                               
Stranded Gas Development Act.   The short answer [embodied in Mr.                                                               
Chenoweth's memorandum] is that  the legislature cannot negotiate                                                               
the  terms,  but  would  have the  final  decision  to  authorize                                                               
execution  or withhold  authorization to  execute the  agreement.                                                               
This  conflicts  with  testimony  from the  commissioner  of  the                                                               
Department of  Revenue who indicated  that the  legislature would                                                               
have the ability to negotiate.                                                                                                  
                                                                                                                                
[HB 9 was held over.]