HCR 19: Relating to the sale of state royalty gas.

00HOUSE CONCURRENT RESOLUTION NO. 19 01 Relating to the sale of state royalty gas. 02 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 WHEREAS the state owns land located on the North Slope that contains vast proven 04 reserves of oil and natural gas and that has the potential for discovery of additional reserves 05 of oil and natural gas; and 06 WHEREAS the legislature has the constitutional obligation to provide for the use, 07 development, and conservation of all natural resources belonging to the state for the maximum 08 benefit of its people; and 09 WHEREAS in furtherance of that obligation, the legislature has provided for the 10 issuance of oil and gas leases to develop the North Slope oil and gas reserves; and 11 WHEREAS the state's oil and gas leasing statutes require that the state receive a 12 minimum royalty share of 12.5 percent of all oil and gas production from the leases; and 13 WHEREAS all citizens of the state have received tremendous additional benefits from 14 the sale of oil produced from North Slope leases, including permanent fund payments,

01 royalties, economic stimuli, substantial employment, and a tax base, which have benefited all 02 people of the state; and 03 WHEREAS, although the state would receive tremendous additional benefits from the 04 production and sale of North Slope gas, the North Slope lessees have neither sold nor entered 05 into contracts to sell North Slope gas; and 06 WHEREAS under its North Slope leases, the state has a right to take its 12.5 percent 07 royalty share in-kind and sell that share on its own behalf; and 08 WHEREAS by entering into long-term contracts with potential purchasers for the 09 future sale of the state's royalty gas, the state would aid in the development of a gas 10 transportation system and the production and sale of North Slope gas reserves, thereby 11 benefiting all the people of the state; and 12 WHEREAS the export of North Slope gas to Pacific Rim countries would reduce our 13 nation's trade deficit with those countries; and 14 WHEREAS the export of natural gas would aid the national economy by stimulating 15 economic growth and employment, and contributing additional revenue to the federal 16 government; 17 BE IT RESOLVED that the Alaska State Legislature supports and endorses the 18 governor's efforts to sell worldwide, under long-term contracts, the majority of the gas to 19 which the state is entitled as its royalty share from North Slope leases.