Legislature(1995 - 1996)
1995-04-22 House JournalFull Journal pdf
1995-04-22 House Journal Page 1452 HB 320 HOUSE BILL NO. 320 by the House Rules Committee by request of the Governor, entitled: "An Act approving the sale of Prudhoe Bay Unit royalty oil by the State of Alaska to Tesoro Alaska Petroleum Company; and providing for an effective date." was read the first time and referred to the Finance Committee. The following fiscal notes apply: Zero fiscal note, Dept. of Natural Resources, 4/22/95 Zero fiscal note, Dept. of Revenue, 4/22/95 The following attachments will be published in the House & Senate Joint Journal Supplement No. 12: Dept. of Natural Resources Agreement for the Sale and Purchase of State Royalty Oil to Tesoro Alaska Petroleum Company Dated April 21, 1995 Final Findings to Sell Royalty Oil to Tesoro Alaska Petroleum Company Dated April 21, 1995 Alaska Royalty Oil & Gas Development Advisory Board Resolution 95-1 The Governor's transmittal letter, dated April 22, 1995, appears below: "Dear Speaker Phillips: Under the authority of art. III, sec. 18, of the Alaska Constitution, I am transmitting a bill that provides for legislative approval of a royalty oil 1995-04-22 House Journal Page 1453 HB 320 contract between the state and Tesoro Alaska Petroleum Company for the sale of Prudhoe Bay Unit royalty oil. Also transmitted with this bill are copies of the resolution of the Alaska Royalty Oil and Gas Development Advisory Board recommending approval of that contract in accordance with AS38.06.040(a)(3) and 38.06.050(a), and the report required by AS38.06.070(c). The contract is described in a final finding issued by the commissioner of the Department of Natural Resources on April21, 1995. A copy of the commissioners final finding and the signed contract are attached. Copies of the commissioners preliminary finding and the draft contract previously were sent to the legislature and made available to the public for review. A bill approving the contract is being introduced for legislative approval for two reasons. First, as a matter of comity, I respect the legislatures desire to have a direct voice in major disposals of royalty oil. Therefore, although this and previous Administrations have consistently taken the position that the statutory requirement of legislative approval of royalty oil contracts (AS 38.06.055) is unconstitutional, the contract itself contains provisions requiring approval by the legislature before it can take effect. Second, this legislation would ratify the royalty oil contract. This ratification would cure any procedural defect that might have occurred in the process of entering into this contract. I urge your prompt consideration and passage of this bill. Sincerely, /s/ Tony Knowles Governor"