1995-04-22                     Senate Journal                      Page 1191
SB 164                                                                       
A bill approving the contract is being introduced for legislative              
approval for two reasons.  First, as a matter of comity, I respect the         
legislature's 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                                                                 
                                                                               
The following were received and will be published in House and                 
Senate Joint Journal Supplement No. 12:                                        
                                                                               
Agreement for the Sale and Purchase of State                                  
Royalty Oil to Tesoro Alaska Petroleum Company,                                
from the Department of Natural Resources                                       
                                                                               
Final Finding and Determination to Sell Royalty Oil                           
to Tesoro Alaska Petroleum Company, from the                                   
Department of Natural Resources                                                
                                                                               
The Alaska Royalty Oil and Gas Development                                    
Advisory Board, Resolution 95-1