1998-02-10                     Senate Journal                      Page 2466
SB 288                                                                       
An Act relating to contracts with the state                                   
establishing payments in lieu of other taxes by a                              
qualified sponsor or qualified sponsor group for                               
projects to develop stranded gas resources in the                              
state; providing for the inclusion in such contracts                           
of terms making certain adjustments regarding                                  
royalty value and the timing and notice of the                                 
states right to take royalty in kind or in value from                          
such projects; relating to the effect of such contracts                        
on municipal taxation; and providing for an effective                          
date.                                                                          
                                                                               
was read the first time and referred to the Resources and Finance              
Committees.                                                                    
                                                                               
Fiscal notes published today from Department of Natural Resources,             
Department of Revenue.                                                         
                                                                               
Governors transmittal letter dated February 9:                                 
                                                                               
Dear President Miller:                                                         
                                                                               
Today I am transmitting the Alaska Stranded Gas Development Act                
to advance the development of Alaska's vast supply of North Slope              
natural gas. This legislation follows the recommendations of the               
North Slope Gas Commercialization Team which was established by                
legislation last year to build a framework to improve the economic             
feasibility and competitiveness of a North Slope gas project.                  
                                                                               
The bill authorizes the state to negotiate contracts with project              
sponsors to improve the economic feasibility of developing stranded            
gas on the North Slope. Contract payments would replace some or                
all of the state and municipal taxes applicable to the gas project             
including: 1) state and municipal ad valorem property taxes; 2)                
production or severance taxes; and 3) state corporate taxes. The               
state's royalty share of produced gas would not be subject to such a           
contract.  Contract  payments  would be designed to improve project