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.