Legislature(2021 - 2022)
2022-04-04 House Journal
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Full Journal pdf2022-04-04 House Journal Page 2275 and 12,500 bpd between January 1, 2025, and December 31, 2027 (years three to five of the contract). Based on monthly average forecasts, Petro Star's nominations under the Proposed Contract could represent 19 percent to 22 percent of the State's North Slope royalty oil. The State will receive a price for its royalty oil that will equal or exceed the price it would have received had it elected to keep its royalty in-value. In total, the Proposed Contract is expected to net the State roughly $17 to $19.8 million in revenue above what the State would receive by taking the royalty in-value. The State currently sells royalty oil to Petro Star under a one-year contract, which, due to its short duration, did not require legislative approval. The current contract terminates on December 31, 2022. The Proposed Contract would take effect on January 1, 2023 and terminate on December 31, 2027. This bill is the culmination of diligent analysis and public process that are imperative for responsible resource stewardship. The Department and the Alaska Royalty Oil and Gas Development Advisory Board (Board) considered the fiscal, economic, societal, and environmental impacts and benefits of the agreement. DNR issued a Final Best Interest Finding and Determination on the agreement that included analysis of the factors for the sale of royalty oil in AS 38.05.183. The Department did not receive any comments from the public on the sale during the public comment period that ended on March 2, 2022. Additionally, the Board held two public hearings on the sale. In accordance with AS 38.06.050, the Board voted to approve a written recommendation and report on March 9, 2022, recommending legislative approval of the agreement. The bill would allow the State to obtain the maximum value for its royalty oil. I urge your prompt and favorable action on this measure. Sincerely, /s/ Mike Dunleavy Governor" HB 410 HOUSE BILL NO. 410 by the House Rules Committee by request of the Governor, entitled: