SB 314: "An Act limiting retroactive adjustments in the sale price of state royalty oil sold by the state to a refiner."
00 SENATE BILL NO. 314 01 "An Act limiting retroactive adjustments in the sale price of state royalty oil sold by the 02 state to a refiner." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 38.05.183 is amended by adding a new subsection to read: 05 (i) Notwithstanding another provision of this chapter or a provision in a 06 contract for the sale of royalty oil, whether the contract is in effect on the effective 07 date of this Act or entered into on or after the effective date of this Act, in any contract 08 entered into for the sale of state royalty oil to a refiner, except for a price change that 09 is necessitated by a rate change based on a quality bank differential adjustment for the 10 Trans Alaska Pipeline System, the commissioner may not make a retroactive 11 adjustment in the sale price of the royalty oil based on a change in rates for 12 transportation of the oil on that pipeline system. For purposes of this subsection, 13 "quality bank differential" means the difference per barrel between the value of a 14 specified Alaska North Slope oil stream that is commingled with one or more other
01 streams at a pipeline connection and the value of the commingled pipeline stream, 02 referred to as the reference stream, immediately downstream from that pipeline 03 connection, as that difference in value is calculated by the person administering the 04 pipeline quality bank for that pipeline connection.