05/04/2001 05:22 PM Senate JUD

         HCR 17-SALE OF NATURAL GAS TO POWER DATA CENTERS                                                                   
                                                                                                                                
REPRESENTATIVE  PETE  KOTT,  reported   that  the  resolution  lends                                                            
legislative support  for the sale of royalty gas to  a company if it                                                            
is in the  best interests  of the state. The  gas would be  used for                                                            
electrical generation  to power data centers within  the North Slope                                                            
Borough. This  would create jobs and  provide long lasting  economic                                                            
diversity.  It is estimated  that  one trillion  of the 33  trillion                                                            
cubic feet of  gas from the North Slope would be used  over the next                                                            
25 years.                                                                                                                       
                                                                                                                                
SENATOR  THERRIAULT  pointed  out  that  the  "resolves"  support  a                                                            
competitive,  reasonable price but  the "WHEREAS" beginning  on page                                                            
2, line  2 states  that the commissioner  of  natural resources  may                                                            
determine that a competitive  bid is not in the best interest of the                                                            
state and  therefore  not required.  He asked why  there is  concern                                                            
with the competitive bid process.                                                                                               
                                                                                                                                
REPRESENTATIVE  KOTT responded that  there is just one company  that                                                            
has come forward  but if there was  another interested company  then                                                            
there could be a competitive bid.                                                                                               
                                                                                                                                
JAMES  DODSON, Netricity  LLC, testified  that the  language in  the                                                            
resolution  reflects  the  two  ways  the  commissioner  of  natural                                                            
resources is  able to sell gas leases.  The commissioner  may decide                                                            
not to  hold a competitive  sale due  to the lack  of market  or the                                                            
decision could be made to hold a competitive sale.                                                                              
                                                                                                                                
SENATOR THERRIAULT   questioned the wording  on page 1, lines 12 and                                                            
13 that stated that jobs  would be created in Anchorage and Nikiske.                                                            
He  pointed  out  that  since  modules  have   been  constructed  in                                                            
Fairbanks as well, he would  like to strike the words "Anchorage and                                                            
Nikiske" and replace them with "Alaska".                                                                                        
                                                                                                                                
REPRESENTATIVE KOTT had  no problem with the change stating that the                                                            
modules would  undoubtedly be built in the most efficient  location.                                                            
                                                                                                                                
Number 2189                                                                                                                     
                                                                                                                                
SENATOR  THERRIAULT  moved  amendment   1 striking   "Anchorage  and                                                            
Nikiske" from page 1, line 13 and inserting "Alaska".                                                                           
                                                                                                                                
There was no objection. Amendment 1 passed.                                                                                     
                                                                                                                                
SENATOR ELLIS  expressed support  for the  resolution and moved  SCS                                                            
CSHCR 17(JUD) from committee with unanimous consent.                                                                            
                                                                                                                                
There being no objection, the resolution moved from committee.