2006-07-12                     Senate Journal                      Page 3630
SB 3002                                                                                           
SENATE BILL NO. 3002 BY THE SENATE RULES COMMITTEE                                                  
BY REQUEST OF THE GOVERNOR, entitled:                                                               
                                                                                                    
          "An Act relating to the Alaska Stranded Gas                                               
          Development Act; relating to municipal impact                                             
          money received under the terms of a stranded gas                                          
          fiscal contract; relating to determination of full and                                    
          true value of property and required contributions for                                     
          education in municipalities affected by stranded gas                                      
           fiscal contracts; and providing for an effective date."                                 
                                                                                                    
was read the first time and referred to the Special Committee on                                    
Natural Gas Development.                                                                            
                                                                                                    
The following fiscal information was published today:                                               
 Fiscal Note No. 1, zero, Department of Revenue                                                     
 Fiscal Note No. 2, zero, Department of Natural Resources                                           
                                                                                                    
Governor's transmittal letter dated July 12:                                                        
                                                                                                    
Dear President Stevens:                                                                             
                                                                                                    
Under the authority of article III, section 18, of the Alaska                                       
Constitution, I am transmitting a bill relating to the Alaska Stranded                              
Gas Development Act.  This bill is a shorter version of SB 2004,                                    
which was introduced at my request during the Second Special Session                                
of the Twenty-Fourth Alaska State Legislature.  The provisions of the                               
present bill are based largely on certain amendments to SB 2004 that                                
were reflected in CSSB 2004(NGD).  The bill I am transmitting would                                 
authorize the commissioner of revenue to negotiate fiscal terms                                     
relating to oil, and includes provisions relating to certain payments to                            
municipalities and nonprofit organizations.                                                         
                                                                                                    
I continue to believe that the proposed fiscal contract originally                                  
negotiated with the producers would be in the public interest.                                      
However, it is my intent to be responsive to the concerns expressed by                              
the Legislature and members of the public concerning the provisions                                 
in the fiscal contract that provide for fiscal certainty for certain taxes                          
levied on the production of oil.  I encourage the Legislature to                                    

2006-07-12                     Senate Journal                      Page 3631
continue review the fiscal contract and consider amendments to the                                  
Stranded Gas Development Act that will provide a sound foundation                                   
throughout the duration of the contract.  I pledge the full cooperation                             
of my administration to assist you in this effort, which is in the long-                            
term fiscal interest of the state.                                                                  
                                                                                                    
I urge your prompt and favorable consideration of this bill.                                        
                                                                                                    
Sincerely yours,                                                                                    
/s/                                                                                                 
Frank H. Murkowski                                                                                  
Governor