SB 221: "An Act establishing the Alaska Liquefied Natural Gas Development Authority, a public corporation, and providing for its structure, management, responsibilities, and operation."
00 SENATE BILL NO. 221 01 "An Act establishing the Alaska Liquefied Natural Gas Development Authority, a public 02 corporation, and providing for its structure, management, responsibilities, and 03 operation." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 06 to read: 07 FINDINGS AND INTENT. (a) The legislature finds that 08 (1) Alaska's North Slope contains vast proven reserves of natural gas that have 09 been known for at least 25 years but have never been developed; 10 (2) these gas resources have never been offered for sale to Asian, West Coast, 11 Mexican, or Hawaiian markets as liquefied natural gas (LNG); 12 (3) these markets have recently expressed an interest in receiving a proposal 13 from Alaska for the purchase of Alaska gas as LNG; 14 (4) if developed, these natural gas resources represent substantial economic
01 benefits to Alaskans in jobs, state revenue, and domestic use and associated industrial use 02 within the state; 03 (5) the producers that have leased Alaska gas all have competing projects 04 vying for the same markets, creating a conflict of interest for them in advancing the sales of 05 Alaska gas as LNG; 06 (6) Yukon Pacific Corporation has obtained the permits and export 07 authorizations necessary for an LNG project and have pledged them to the Municipal Gas 08 Pipeline Authority, operating as a port authority, to facilitate the development of the project; 09 (7) there is sufficient gas for both an LNG project and an overland pipeline 10 route to the contiguous states of the United States; 11 (8) the Municipal Gas Pipeline Authority offers substantial tax benefits that 12 improve the economics of an LNG export project; and 13 (9) ownership of the pipeline and associated facilities has the potential to 14 provide substantial revenues to the state and the Alaska permanent fund. 15 (b) It is the intent of this Act to create the Alaska Liquefied Natural Gas Development 16 Authority for the purpose of developing, constructing, and managing and operating a gas 17 pipeline from the North Slope of Alaska to Valdez, including liquefaction and marine port 18 terminal facilities. 19 * Sec. 2. AS 41 is amended by adding a new chapter to read: 20 Chapter 41. Alaska Liquefied Natural Gas Development Authority. 21 Article 1. Establishment of the Authority. 22 Sec. 41.41.010. Establishment of the authority. (a) There is established the 23 Alaska Liquefied Natural Gas Development Authority, the purpose of which is to 24 provide one or more of the following services and functions in order to bring natural 25 gas from the North Slope to market as liquefied natural gas, including 26 (1) the acquisition and conditioning of North Slope natural gas; 27 (2) the design and construction of the pipeline system; 28 (3) the operation and maintenance of the pipeline system; 29 (4) the design, construction, operation, and maintenance of a tidewater 30 liquefaction facility for natural gas; and 31 (5) the acquisition of natural gas market share sufficient to ensure the
01 long-term feasibility of the pipeline system project. 02 (b) The authority is a public corporation and an instrumentality of the state 03 within the Department of Revenue. 04 (c) The authority has a legal existence independent of and separate from the 05 state. 06 (d) The acquisition of natural gas from the North Slope and its delivery to 07 tidewater for shipment to market by the authority is an essential government function 08 of the state. 09 (e) The authority may not be terminated as long as it has bonds, notes, or other 10 obligations outstanding. 11 Sec. 41.41.020. Authority governing body. (a) The authority shall be 12 governed by a board of directors consisting of the following of seven members: 13 (1) three state senate appointees, of whom 14 (A) two shall be appointed by the senate president; and 15 (B) one shall be appointed by the senate minority leader; 16 (2) three state house of representatives appointees, of whom 17 (A) two shall be appointed by the speaker of the house of 18 representatives; and 19 (B) one shall be appointed by the house minority leader; and 20 (3) one member appointed by the governor from the public. 21 (b) The board shall annually elect a chair, and may elect other officers, from 22 among its members. 23 Sec. 41.41.030. Term of office. (a) The members of the board shall be 24 appointed for terms of three years, and they may be reappointed. 25 (b) The terms of the members shall be staggered. 26 Sec. 41.41.040. Removal and vacancies. (a) The appointing authority 27 described in AS 41.41.020(a) may remove a member of the board from office. A 28 removal must be in writing and must state the reason for the removal. A member who 29 is removed may not participate in board business and may not be counted for purposes 30 of establishing a quorum after the member receives written notice of removal. A 31 member who is removed by the governor is not entitled to honoraria, per diem, or
01 travel expenses authorized under AS 41.41.060 for work performed after the member 02 receives the written notice of removal. 03 (b) The appointing authority described in AS 41.41.020(a) shall promptly fill a 04 vacancy on the board by appointment. An appointee to a vacancy shall hold office for 05 the balance of the term for which the appointee's predecessor on the board was 06 appointed. 07 (c) A vacancy on the board does not impair the authority of a quorum of the 08 board to exercise all the powers and perform all the duties of the board. 09 Sec. 41.41.050. Quorum and voting. Four members of the board constitute a 10 quorum for the transaction of business and the exercise of the powers and duties of the 11 board. Action may be taken only upon the affirmative vote of a majority of the full 12 membership of the board. 13 Sec. 41.41.060. Compensation of board members; per diem and travel 14 expenses. Members of the board are entitled to per diem and travel expenses 15 authorized for boards and commissions under AS 39.20.180. 16 Sec. 41.41.070. Authority staff. (a) The board may employ and determine 17 the salary of a chief executive officer. 18 (b) The chief executive officer may, with the approval of the board, select and 19 employ additional staff as necessary. 20 (c) An employee of the authority, including the chief executive officer, may 21 not be a member of the board. The chief executive officer and the other employees of 22 the board are in the exempt service under AS 39.25.110. 23 (d) In addition to its employees, the authority may contract for and engage the 24 services of bond counsel, consultants, experts, and financial advisors the corporation 25 considers necessary for the purpose of developing information, furnishing advice, or 26 conducting studies, investigations, hearings, or other proceedings. 27 Sec. 41.41.080. Legal counsel. The attorney general 28 (1) is the legal counsel for the authority; 29 (2) shall advise the authority in legal matters; and 30 (3) shall represent the authority in legal actions. 31 Sec. 41.41.090. Conflicts of interest. (a) Members of the board and the chief
01 executive officer of the authority are subject to the provisions of AS 39.50. 02 (b) If a member of the board or an employee of the authority acquires, owns, 03 or controls an interest, direct or indirect, in an entity or project in which assets of the 04 authority are invested, the member shall immediately disclose the interest to the board. 05 The disclosure is a matter of public record and shall be included in the minutes of the 06 board meeting next following the disclosure. 07 Sec. 41.41.100. Budget. The revenue earned by operations of the authority 08 must be identified as the source of the operating budget of the authority in the state's 09 operating budget under AS 37.07 (Executive Budget Act). 10 Sec. 41.41.110. Audits. The Legislative Budget and Audit Committee may 11 provide for an annual post audit and annual operational and performance evaluations 12 of the authority's operations and budget. 13 Sec. 41.41.120. Reports and publications. (a) By September 30 of each 14 year, the board shall publish a report of the authority for distribution to the governor 15 and the public. The board shall notify the legislature that the report is available. 16 (b) The report must include financial statements audited by independent 17 outside auditors and a statement of the amount of money received by the authority 18 from its operations during the period covered. 19 Sec. 41.41.130. Tax exemption. The security instruments issued by the 20 authority, the transfer of the security instruments, and the income on the security 21 instruments are exempt from all taxes and assessments in the state. 22 Sec. 41.41.140. Political activities. The resources of the authority may not be 23 used to finance or influence political activities. 24 Sec. 41.41.150. Public access to information. (a) Information in the 25 possession of the authority is a public record, except that information that discloses the 26 particulars of the business or affairs of a private enterprise or investor is confidential 27 and is not a public record for purposes of AS 40.25.110 - 40.25.140. Confidential 28 information may be disclosed only for the purposes of an official law enforcement 29 investigation or when its production is required in a court proceeding. 30 (b) The restrictions of (a) of this section do not prohibit the publication of 31 statistics presented in a manner that prevents the identification of particular reports,
01 items, persons, or enterprises. 02 Article 2. Powers of the Authority. 03 Sec. 4141.200. Powers of the authority. In furtherance of its corporate 04 purposes, in addition to its other powers, the authority may 05 (1) sue and be sued; 06 (2) adopt a seal; 07 (3) adopt, amend, and repeal bylaws and regulations; 08 (4) make and execute contracts and other instruments; 09 (5) in its own name acquire property, lease, rent, convey, or acquire 10 real and personal property; a project site or part of a project site may be acquired by 11 eminent domain; 12 (6) issue bonds and otherwise incur indebtedness in accordance with 13 AS 41.41.300 - 41.41.410 in order to pay the cost of a project; 14 (7) accept gifts, grants, or loans from and enter into contracts or other 15 transactions regarding gifts, grants, or loans with a federal agency or an agency or 16 instrumentality of the state, a municipality, private organization, or other source; 17 (8) enter into contracts or agreements with a federal agency, agency or 18 instrumentality of the state, municipality, or public or private individual or entity, with 19 respect to the exercise of its powers; 20 (9) charge fees or other forms of remuneration for the use of authority 21 properties and facilities; 22 (10) defend and indemnify a current or former member of the board or 23 an employee or agent of the authority against the costs, expenses, judgments, and 24 liabilities as a result of actions taken in good faith on behalf of the authority; and 25 (11) purchase insurance to protect its assets, services, and employees 26 against liabilities that may arise from authority operations and activities. 27 Article 3. Revenue Bonds and Notes. 28 Sec. 41.41.300. Bonds and notes of the authority. (a) The authority, by 29 resolution, may issue revenue bonds and bond anticipation notes in order to provide 30 funds to carry out the purposes set out in AS 41.41.010(a). 31 (b) The principal and interest on the revenue bonds or notes authorized and
01 issued under (a) of this section are payable from authority funds. Bond anticipation 02 notes may be payable from the proceeds of the sale of bonds or from the proceeds of 03 the sale of other bond anticipation notes or, in the event bond or bond anticipation note 04 proceeds are not available, the notes may be paid from other funds or assets of the 05 authority. 06 (c) Bonds or notes may be additionally secured by a pledge of a grant or 07 contribution from the federal government, or a corporation, association, institution, or 08 person, or a pledge of money, income, or revenues of the authority from any source. 09 (d) Bonds or bond anticipation notes of the authority may be issued in one or 10 more series and shall be dated, bear interest at the rate or rates per year or within the 11 maximum rate, be in the denomination, be in the form, either coupon or registered, 12 carry the conversion or registration provisions, have the rank or priority, be executed 13 in the manner and form, be payable at the times, from the sources, and in the medium 14 of payment and place or places within or outside the state, be subject to authentication 15 by a trustee or fiscal agent, and be subject to the terms of redemption with or without 16 premium, as the resolution of the authority may provide. Bond anticipation notes shall 17 mature at the time or times that are determined by the authority. Bonds shall mature at 18 a time not exceeding a number of years from their date that is determined by the 19 authority. Before the preparation of definitive bonds or bond anticipation notes, the 20 authority may issue interim receipts or temporary bonds or bond anticipation notes, 21 with or without coupons, exchangeable for bonds or bond anticipation notes when 22 these definitive bonds or bond anticipation notes have been executed and are available 23 for delivery. 24 (e) Bonds or bond anticipation notes may be sold in the manner and on the 25 terms the authority determines. 26 (f) If an officer whose signature or a facsimile of whose signature appears on a 27 bond, note, or coupon attached to them ceases to be an officer before the delivery of 28 the bond, note, or coupon, the signature or facsimile is valid to the same extent as if 29 the officer had remained in office until delivery. 30 Sec. 41.41.310. Covenants. In a resolution of the authority authorizing or 31 relating to the issuance of bonds or bond anticipation notes, the authority has power by
01 provisions in the resolution that will constitute covenants of the authority and 02 contracts with the holders of the bonds or bond anticipation notes to 03 (1) pledge to a payment or purpose all or a part of its revenues to 04 which its right then exists or may thereafter come into existence, and the money 05 derived from the revenues, and the proceeds of bonds or notes; 06 (2) covenant as to the use and disposition of payments of principal or 07 interest received by the authority on loans or other investments held by the authority; 08 (3) covenant as to establishment of reserves or sinking funds and the 09 making of provision for and the regulation and disposition of the reserves or sinking 10 funds; 11 (4) covenant with respect to or against limitations on a right to sell or 12 otherwise dispose of property of any kind; 13 (5) covenant as to bonds and notes to be issued, and their limitations, 14 terms, and conditions, and as to the custody, application, and disposition of the 15 proceeds of the bonds and notes; 16 (6) covenant as to the issuance of additional bonds or notes, or as to 17 limitations on the issuance of additional bonds or notes and the incurring of other 18 debts; 19 (7) covenant as to the payment of the principal of or interest on the 20 bonds or notes, as to the sources and methods of the payment, as to the rank or priority 21 of the bonds or notes with respect to a lien or security, or as to the acceleration of the 22 maturity of the bonds or notes; 23 (8) provide for the replacement of lost, stolen, destroyed, or mutilated 24 bonds or notes; 25 (9) covenant as to the redemption of bonds or notes and privileges of 26 their exchange for other bonds or notes of the authority; 27 (10) covenant to create or authorize the creation of special funds of 28 money to be held in pledge or otherwise for operating expenses, payment or 29 redemption of bonds or notes, reserves, or other purposes; 30 (11) establish the procedure, if any, by which the terms of a contract or 31 covenant with or for the benefit of the holders of bonds or notes may be amended or
01 abrogated, the amount of bonds or notes the holders of which must consent to 02 amendment or abrogation, and the manner in which the consent may be given; 03 (12) covenant as to the custody of property or investments, their 04 safekeeping and insurance, and the use and disposition of insurance money; 05 (13) agree with a corporate trustee that may be a trust company or 06 bank having the powers of a trust company within or outside the state as to the 07 pledging or assigning of revenue or funds to which or in which the authority has rights 08 or an interest; the agreement may further provide for other rights and remedies 09 exercisable by the trustee as may be proper for the protection of the holders of a bond 10 or note of the authority and not otherwise in violation of law and may provide for the 11 restriction of the rights of an individual holder of bonds or notes of the authority; 12 (14) appoint and provide for the duties and obligations of a paying 13 agent or paying agents or other fiduciaries as the resolution may provide within or 14 outside the state; 15 (15) limit the rights of the holders of a bond or note to enforce a pledge 16 or covenant securing the bonds or notes; 17 (16) make covenants other than and in addition to the covenants 18 expressly authorized in this section of like or different character, and to make 19 covenants to do or refrain from doing acts and things as may be necessary or 20 convenient and desirable in order to better secure bonds or notes or that, in the 21 absolute discretion of the authority, will tend to make bonds or notes more marketable, 22 notwithstanding that the covenants, acts, or things may not be enumerated in this 23 section. 24 Sec. 41.41.320. Limitations of issuance of bonds. (a) The authority may not 25 issue bonds in an amount that exceeds the amount of bonds authorized to be issued by 26 the legislature. 27 (b) This section does not apply to the issuance by the authority of refunding 28 bonds or to the issuance by the authority of bonds the proceeds of which are intended 29 to be used to refinance the loans held by the authority. 30 Sec. 41.41.330. Independent financial advisor. In negotiating the private 31 sale of bonds or bond anticipation notes to an underwriter, the authority may retain a
01 financial advisor. A financial advisor retained under this section must be independent 02 from the underwriter. 03 Sec. 41.41.340. Validity of pledge. (a) The pledge of assets or revenue of the 04 authority to the payment of the principal or interest on an obligation of the authority is 05 valid and binding from the time the pledge is made, and the assets or revenue become 06 immediately subject to the lien of the pledge without physical delivery or further act. 07 The lien of a pledge is valid and binding against all parties having claims in tort, 08 contract, or otherwise against the authority, irrespective of whether those parties have 09 notice of the lien of the pledge. 10 (b) This section does not prohibit the authority from selling assets subject to a 11 pledge, except that a sale may be restricted by the trust agreement or resolution 12 providing for the issuance of the obligations. 13 Sec. 41.41.350. Capital reserve funds. (a) For the purpose of securing one 14 or more issues of its obligations, the authority may establish one or more special 15 funds, called "capital reserve funds," and shall pay into those capital reserve funds (1) 16 money appropriated and made available by the state for the purpose of those funds, (2) 17 proceeds of the sale of its obligations, to the extent provided in the resolution or 18 resolutions of the authority authorizing their issuance, and (3) other money that may 19 be made available to the authority for the purposes of those funds from another source. 20 All money held in a capital reserve fund, except as provided in this section, shall, 21 subject to appropriation, be used as required solely for the payment of the principal of 22 obligations or of the sinking fund payments with respect to those obligations; the 23 purchase or redemption of obligations; the payment of interest on obligations; or the 24 payment of a redemption premium required to be paid when those obligations are 25 redeemed before maturity. However, money in a fund may not be withdrawn from 26 that fund at any time in an amount that would reduce the amount of that fund to less 27 than the capital reserve requirement set out in (b) of this section, except for the 28 purpose of making, with respect to those obligations, payment, when due, of principal, 29 interest, redemption premiums, and the sinking fund payments for the payment of 30 which other money of the authority is not available. Income or interest earned by, or 31 increment to, a capital reserve fund due to the investment of the fund or other amounts
01 in it may be transferred by the authority to other funds or accounts of the authority to 02 the extent that the transfer does not reduce the amount of the capital reserve fund 03 below the capital reserve fund requirement. 04 (b) If the authority decides to issue obligations secured by a capital reserve 05 fund, the obligations may not be issued if the amount in the capital reserve fund is less 06 than a percent, not exceeding 10 percent, of the principal amount of all of those 07 obligations secured by that capital reserve fund then to be issued and then outstanding 08 in accordance with their terms, as may be established by resolution of the authority, 09 called the "capital reserve fund requirement," unless the authority, at the time of 10 issuance of the obligations, deposits in the capital reserve fund from the proceeds of 11 the obligations to be issued or from other sources an amount that, together with the 12 amount then in the fund, will not be less than the capital reserve fund requirement. 13 (c) In computing the amount of a capital reserve fund for the purpose of this 14 section, securities in which all or a portion of the funds are invested shall be valued at 15 par or, if purchased at less than par, at amortized costs as the term is defined by 16 resolution of the authority authorizing the issue of the obligations or by some other 17 reasonable method established by the authority by resolution. Valuation on a 18 particular date must include the amount of interest earned or accrued to that date. 19 (d) To assure the continued operation and solvency of the authority for the 20 carrying out of its corporate purposes, provision is made in (a) of this section for the 21 accumulation in capital reserve funds of an amount equal to their capital reserve fund 22 requirement. 23 (e) The chair of the authority shall annually, not later than January 2, make 24 and deliver to the governor and chairs of the house and senate finance committees a 25 certificate stating the sum, if any, required to restore a capital reserve fund to the 26 capital reserve fund requirement. The legislature may appropriate that sum, and all 27 sums appropriated during the current fiscal year by the legislature for the restoration 28 shall be deposited by the authority in the appropriate capital reserve fund. 29 (f) This section does not create a debt or liability of the state. 30 Sec. 41.41.360. Remedies. A holder of obligations or coupons attached to 31 them issued under the provisions of this chapter, and a trustee under a trust agreement
01 or resolution authorizing the issuance of the obligations, except as restricted by a trust 02 agreement or resolution, either at law or in equity, may enforce all rights granted 03 hereunder or under the trust agreement or resolution, or under another contract 04 executed by the authority under this chapter, and may enforce and compel the 05 performance of all duties required by this chapter or by the trust agreement or 06 resolution to be performed by the authority or by an officer of it. 07 Sec. 41.41.370. Negotiable instruments. All obligations and interest 08 coupons attached to them are negotiable instruments under the laws of this state, 09 subject only to applicable provisions for registration. 10 Sec. 41.41.380. Obligations eligible for investment. Obligations issued 11 under the provisions of this chapter are securities in which all public officers and 12 public bodies of the state and its political subdivisions, all insurance companies, trust 13 companies, banking associations, investment companies, executors, administrators, 14 trustees, and other fiduciaries may properly and legally invest funds, including capital 15 in their control or belonging to them. These obligations may be deposited with a state 16 or municipal officer of an agency or political subdivision of the state for a purpose for 17 which the deposit of bonds, notes, or obligations of the state is authorized by law. 18 Sec. 41.41.390. Refunding bonds. (a) The authority may provide for the 19 issuance of refunding bonds for the purpose of refunding an obligation then 20 outstanding that has been issued under the provisions of this chapter, including the 21 payment of redemption premium on them and interest accrued or to accrue to the date 22 of redemption of the obligations. The issuance of the bonds, the maturities and other 23 details of them, the rights of the holders of them, and the rights, duties, and obligations 24 of the authority in respect of them are governed by the provisions of this chapter that 25 relate to the issuance of obligations insofar as those provisions may be appropriate. 26 (b) Refunding bonds may be sold or exchanged for outstanding bonds issued 27 under this chapter, and, if sold, the proceeds may be applied, subject to appropriation 28 and in addition to another authorized purpose, to the purchase, redemption, or payment 29 of the outstanding obligations. Pending the application of the proceeds of refunding 30 bonds, with any other available funds, to the payment of the principal, accrued 31 interest, and redemption premium on the obligations being refunded, and, if so
01 provided or permitted in the resolution authorizing the issuance of the refunding bonds 02 or in the trust agreement securing them, to the payment of any interest on the 03 refunding bonds and expenses in connection with the refunding, the proceeds may be 04 invested in direct obligations of, or obligations the principal of and the interest on 05 which are unconditionally guaranteed by, the United States that mature or that will be 06 subject to redemption, at the option of the holders of them, not later than the respective 07 dates when the proceeds, together with the interest accruing on them, will be required 08 for the purposes intended. 09 Sec. 41.41.400. Credit of state not pledged. (a) Obligations issued under 10 the provisions of this chapter do not constitute a debt, liability, or obligation of the 11 state or of a political subdivision of the state or a pledge of the faith and credit of the 12 state or of a political subdivision of the state but are payable solely from the revenue 13 or assets of the authority. Each obligation issued under this chapter must contain on 14 its face a statement that the authority is not obligated to pay it or the interest on it 15 except from the revenue or assets of the authority and that neither the faith and credit 16 nor the taxing power of the state or of a political subdivision of the state is pledged to 17 the payment of the principal of or the interest on the obligation. 18 (b) Expenses incurred by the authority in carrying out the provisions of this 19 chapter are payable from funds provided under this chapter, and liability may not be 20 incurred by the authority in excess of these funds. 21 Sec. 41.41.410. Officers not liable. A member or other officer of the 22 authority is not subject to personal liability or accountability by reason of having 23 executed or issued an obligation. 24 Article 4. Property of the Authority. 25 Sec. 41.41.450. Property of the authority. The authority may acquire, by 26 purchase, lease, or gift, upon terms that it considers proper, land, structures, real or 27 personal property rights, rights-of-way, franchises, easements, and other interests in 28 land it considers necessary or convenient for the financing of the project or a part of 29 the project. 30 Article 5. Project Construction. 31 Sec. 41.41.500. Contract terms relating to use of Alaska resources. (a)
01 The authority shall enter into one or more prehire project term agreements with labor 02 organizations that 03 (1) contain no-strike clauses; and 04 (2) secure timely completion of the project and maximum employment 05 opportunities for state residents. 06 (b) To maximize the economic benefits of the project to Alaskan businesses, 07 the authority shall use Alaska contractors and suppliers to the maximum extent 08 possible to take advantage of the Alaska experience in Arctic engineering and 09 construction. 10 Article 6. General Provisions. 11 Sec. 41.41.900. Tax exemption. All obligations issued under this chapter are 12 declared to be issued by a body corporate and public of the state and for an essential 13 public and governmental purpose, and the obligations, and the interest and income on 14 and from the obligations, and all fees, charges, funds, revenues, income, and other 15 money pledged or available to pay or secure the payment of the obligations, or interest 16 on the obligations, are exempt from state taxation except for transfer, inheritance, and 17 estate taxes. 18 Sec. 41.41.990. Definitions. In this chapter, 19 (1) "authority" means the Alaska Liquefied Natural Gas Development 20 Authority; 21 (2) "board" means the board of directors of the Alaska Liquefied 22 Natural Gas Development Authority; 23 (3) "project" means the gas transmission pipeline, together with all 24 related property and facilities, to extend from the Prudhoe Bay area on the North Slope 25 of Alaska to tidewater at a point on Prince William Sound and includes planning, 26 design, and construction of the pipeline and facilities as described in 27 AS 41.41.010(a)(1) - (5). 28 * Sec. 3. AS 39.25.110(11) is amended by adding a new subparagraph to read: 29 (G) Alaska Liquefied Natural Gas Development Authority; 30 * Sec. 4. AS 39.50.200(b) is amended by adding a new paragraph to read: 31 (57) the board of directors and chief executive officer of the Alaska
01 Liquefied Natural Gas Development Authority (AS 41.41.020). 02 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 03 read: 04 DEVELOPMENT OF PROJECT PLAN. Not later than one year after the first 05 meeting of the board of directors of the Alaska Liquefied Natural Gas Development 06 Authority, the board shall produce a development plan. The development plan must include 07 (1) estimates of construction costs and timelines; 08 (2) gas procurement prices; 09 (3) use of the state's royalty gas; 10 (4) estimates of revenue to the general fund and the Alaska permanent fund; 11 (5) a revenue sharing plan with municipal governments; 12 (6) a plan for delivery and pricing of natural gas to communities along the 13 pipeline route and to Southcentral Alaska through a spur line; 14 (7) a payment schedule to companies providing permits or other valuable 15 assets; and 16 (8) a marketing plan to approach potential buyers of liquefied natural gas. 17 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 18 read: 19 INITIAL APPOINTMENTS OF MEMBERS OF ALASKA LIQUEFIED NATURAL 20 GAS DEVELOPMENT AUTHORITY BOARD OF DIRECTORS. Of the members first 21 appointed under AS 41.41.020(a), enacted by sec. 2 of this Act, 22 (1) three members shall be appointed to three-year terms; 23 (2) two members shall be appointed to two-year terms; and 24 (3) two members shall be appointed to one-year terms.