Legislature(1993 - 1994)

1993-05-04 Senate Journal

Full Journal pdf

1993-05-04                     Senate Journal                      Page 2056
HB 116                                                                       
CS FOR HOUSE BILL NO. 116(FIN)(title am) "An Act amending                      
the manner of determining the royalty received by the state on gas             
production, and directing the commissioner of natural resources to             
accept, under certain circumstances, the contract price agreed to              
between a lessee of federal land and a gas or electric utility as the          
value of the federal government's royalty share from natural gas               
production on federal land from which the state is entitled under              
applicable federal law to receive a share of the royalty on gas                
production; and providing for an effective date" which had been held           
to the May 4 calendar (page 2049) was read the third time.                     
                                                                               
Senator Pearce offered the following Letter of Intent:                         
                                                                               
                                Letter of Intent                               
                                      for                                      
                            CSHB 116 (Fin)(title am)                           
                                                                               
It is the intent of the Senate that, upon the effective date of this           
legislation, the departments of Natural Resources and Law                      
immediately withdraw all pending appeals before the United States              
Department of Interior, Minerals Management Service, regarding the             
propriety of utilizing the contract price for valuing federal royalty          
gas from the Beluga River Unit that is sold to Chugach Electric                
Assn., Inc., that those departments take no action to encourage or             
induce the Minerals Management Service to disregard the contract               
price for the purpose of valuing those royalties; and that those               
departments take any such further action as may be necessary to                
ensure that the position of the State of Alaska with respect to federal        
royalty valuation of such gas, as articulated in CSHB 116(FIN)(title           
am), is known and communicated to the Minerals Management                      
Service, notwithstanding that, as of the effective date of this                
legislation, the Department of Natural Resources may not have                  
entered into an agreement with federal Beluga River lessees under              
AS 38.05.180(aa) or Section 4 of this legislation.                             
                                                                               
                                                                               

1993-05-04                     Senate Journal                      Page 2057
HB 116                                                                       
Senator Pearce moved for the adoption of the Letter of Intent.                 
                                                                               
Senators Kerttula, Phillips, Donley moved and asked unanimous                  
consent that they be allowed to abstain from voting due to a conflict          
of interest.  Objections were heard.                                           
                                                                               
The question being:  "Shall the Letter of Intent be adopted?"  The             
roll was taken with the following result:                                      
                                                                               
CSHB 116(FIN)(TITLE AM)                                                        
Letter of Intent                                                               
                                                                               
YEAS:  15   NAYS:  5   EXCUSED:  0   ABSENT:  0                              
                                                                               
Yeas:  Donley, Ellis, Frank, Halford, Jacko, Kelly, Leman, Little,             
Miller, Pearce, Phillips, Rieger, Salo, Sharp, Taylor                          
                                                                               
Nays:  Adams, Duncan, Kerttula, Lincoln, Zharoff                               
                                                                               
and so, the Senate Letter of Intent was adopted.                               
                                                                               
Senators Donley, Pearce, Halford, Leman, Ellis, Kelly, Rieger, Taylor          
moved and asked unanimous consent that they be shown as cross                  
sponsors on the bill.  Without objection, it was so ordered.                   
                                                                               
The question being:  "Shall CS FOR HOUSE BILL NO.                              
116(FIN)(title am) "An Act amending the manner of determining the              
royalty received by the state on gas production, and directing the             
commissioner of natural resources to accept, under certain                     
circumstances, the contract price agreed to between a lessee of                
federal land and a gas or electric utility as the value of the federal         
government's royalty share from natural gas production on federal              
land from which the state is entitled under applicable federal law to          
receive a share of the royalty on gas production; and providing for            
an effective date" pass the Senate?"  The roll was taken with the              
following result:                                                              
                                                                               
                                                                               

1993-05-04                     Senate Journal                      Page 2058
HB 116                                                                       
                                                                               
CSHB 116(FIN)(TITLE AM)                                                        
Third Reading - Final Passage                                                  
Effective Date                                                                 
                                                                               
YEAS:  17   NAYS:  3   EXCUSED:  0   ABSENT:  0                              
                                                                               
Yeas:  Donley, Duncan, Ellis, Frank, Halford, Jacko, Kelly, Kerttula,          
Leman, Little, Miller, Pearce, Phillips, Rieger, Salo, Sharp, Taylor           
                                                                               
Nays:  Adams, Lincoln, Zharoff                                                 
                                                                               
Duncan changed from "Nay" to "Yea".                                            
                                                                               
and so, CS FOR HOUSE BILL NO. 116(FIN)(title am) passed the                    
Senate with a Senate Letter of Intent.                                         
                                                                               
Senator Taylor moved and asked unanimous consent that the vote on              
the passage of the bill be considered the vote on the effective date           
clause.  Without objection, it was so ordered.                                 
                                                                               
Senator Adams gave notice of reconsideration.