CSHCR 17(RES): Expressing the legislature's support for sale of a portion of Alaska's North Slope natural gas for electrical generation to power data centers within the North Slope Borough.
00 CS FOR HOUSE CONCURRENT RESOLUTION NO. 17(RES) 01 Expressing the legislature's support for sale of a portion of Alaska's North Slope natural 02 gas for electrical generation to power data centers within the North Slope Borough. 03 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 WHEREAS the State of Alaska has vast proven reserves of natural gas located on the 05 North Slope within the North Slope Borough; and 06 WHEREAS the need for electricity in the United States is increasing due in part to the 07 demands of the Internet; and 08 WHEREAS Netricity, L.L.C., an Alaska limited liability company, has proposed to 09 purchase natural gas from the State in order to use that natural gas to generate electricity in 10 the North Slope Borough to power nearby data centers that would service the demands of the 11 Internet; and 12 WHEREAS the establishment of data centers in the North Slope Borough would 13 create jobs for construction of modules in Anchorage and Nikiski; and 14 WHEREAS the operation of a power plant and data centers in the North Slope 15 Borough would bring economic and social benefit to the State; and 16 WHEREAS the establishment of data centers within the North Slope Borough would
01 provide substantial added value to Alaska's natural gas resources; and 02 WHEREAS AS 38.05.183 mandates that any sale of the state's oil and gas royalty 03 "shall be by competitive bid" unless the commissioner of natural resources 04 (1) determines, in writing with specific findings and conclusions, that the best 05 interest of the state does not require competitive bidding or that no competition exists; and 06 (2) gives notice to the Alaska Royalty Oil and Gas Development Advisory 07 Board; and 08 WHEREAS AS 38.05.183 mandates that, if the commissioner determines to sell 09 royalty oil or gas noncompetitively, the commissioner shall consider the criteria in 10 AS 38.05.183(e) and AS 38.06.070; and 11 WHEREAS 11 AAC 03.010 mandates that, before the sale of royalty gas is 12 completed, whether by competitive bid or not, the commissioner shall make a public finding 13 that the sale is in the best interests of the state; and 14 WHEREAS AS 38.06.050 requires that, before any long-term, substantial sale of the 15 state's oil or gas may be made, the sale must be reviewed by the Alaska Royalty Oil and Gas 16 Development Advisory Board, and the board must issue a written recommendation to the 17 legislature about the sale; and 18 WHEREAS AS 38.06.055 requires that, before any long-term, substantial sale of the 19 state's oil or gas may be made, the sale must be approved by the legislature; 20 BE IT RESOLVED that the Alaska State Legislature supports the sale of a portion of 21 the state's royalty natural gas from Alaska's North Slope, at a competitive, reasonable price, to 22 allow for electrical generation within the North Slope Borough to power data centers located 23 proximately to an electrical generation facility in that borough; and be it 24 FURTHER RESOLVED that the Alaska State Legislature requests that the 25 commissioner of natural resources determine in a written finding whether the state's royalty 26 share of North Slope natural gas must be competitively bid at this time, and, if it must, 27 conduct a competitive sale; and be it 28 FURTHER RESOLVED that the Alaska State Legislature requests that, if the 29 commissioner of natural resources determines that the state's royalty share of North Slope 30 natural gas need not be competitively bid, the commissioner 31 (1) enter into negotiations with Netricity, L.L.C., or another qualified
01 purchaser, for the sale of the state's royalty share of North Slope natural gas consistent with 02 the procedures and policies set out in AS 38.05.183, AS 38.06, and 11 AAC 03; and 03 (2) by the first day of the Second Regular Session of the Twenty-Second 04 Alaska State Legislature, present the legislature with either a contract for the sale of the North 05 Slope royalty gas for approval or a report explaining why the state should not sell its royalty 06 gas.