00CS FOR SENATE CONCURRENT RESOLUTION NO. 3(RES) am H                                                                     
01 Urging the Attorney General of the State of Alaska to use every appropriate                                             
02 resource and due diligence to defend the state's interests in the civil action filed                                    
03 against the state challenging the 1996 revisions of the Northstar unit leases, and                                      
04 respectfully requesting the Superior Court of the State of Alaska to give                                               
05 expeditious consideration to the matter.                                                                                
06 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
07  WHEREAS a majority of Alaskans support safe and responsible oil development in                                         
08 the state and the jobs it creates for Alaskans; and                                                                     
09  WHEREAS development of other oil fields in Alaska has resulted in thousands of jobs                                    
10 throughout this state and the United States; and                                                                        
11  WHEREAS Prudhoe Bay production is declining by approximately 10 percent a year;                                        
12 and                                                                                                                     
13  WHEREAS Alaskans recognize that oil production from the North Slope is declining                                       
14 and new development is needed to create new jobs in the state and to bring additional revenue                           

01 to the state; and                                                                                                       
02  WHEREAS, the commissioner of natural resources negotiated revisions to existing                                        
03 Northstar unit leases between the state and BP Exploration (Alaska), Inc.; the lease revisions                          
04 have the effect of expediting the development of the Northstar field and ensure oil production                          
05 under a new payment system; and                                                                                         
06  WHEREAS, last year, the legislature overwhelmingly approved legislation, ch. 139,                                      
07 SLA 1996, authorizing the commissioner of natural resources to revise the Northstar unit oil                            
08 and gas leases; and                                                                                                     
09  WHEREAS the legislature and British Petroleum, the lessee's parent company, have                                       
10 acknowledged the importance of a strong commitment to Alaska-hire, Alaska-build, and                                    
11 Alaska-buy in the development of the Northstar field; and                                                               
12  WHEREAS British Petroleum, honoring its voluntary commitments, has already hired                                       
13 many residents and companies holding state business licenses; and                                                       
14  WHEREAS a civil action was recently filed in the superior court challenging the 1996                                   
15 revisions of the Northstar unit leases; and                                                                             
16  WHEREAS, in response to dislocations arising from the filing of the court challenge,                                   
17 the Attorney General has publicly commented that the state has asked the court to expedite                              
18 consideration and resolution of the litigation; and                                                                     
19  WHEREAS the legislature recognizes the grave effects this challenge to the revisions                                   
20 of the Northstar leases are having on the development of the Northstar field and the potential                          
21 effect this challenge may have on Alaska's future resource development policy;                                          
22  BE IT RESOLVED that the Alaska State Legislature urges the Attorney General of                                         
23 the State of Alaska to use every appropriate resource and due diligence to defend the state's                           
24 interests in this civil action challenging the 1996 amendment of the Northstar unit leases; and                         
25 be it                                                                                                                   
26  FURTHER RESOLVED that the legislature respectfully requests the Superior Court                                         
27 in which this litigation is filed and scheduled for hearing to expedite consideration of the                            
28 pending litigation.