04/30/2001 05:35 PM Senate RES

         HCR 17-SALE OF NATURAL GAS TO POWER DATA CENTERS                                                                   
                                                                                                                              
CHAIRMAN TORGERSON announced HCR 17 to be up for consideration.                                                                 
                                                                                                                                
MR.  MARK MYER,  Division  of Oil  and  Gas, Department  of  Natural                                                            
Resources  (DNR),  said  that  DNR  supports  HCR 17.  He  said  the                                                            
amendments adopted in the  House significantly improved the bill. He                                                            
thought  the challenge  of  this project  would  be  to determine  a                                                            
valuation methodology  that would be fair prior to  a gas sale. Some                                                            
of the questions that would  have to be discussed with the producers                                                            
are the structure  of the facilities and the method  of repayment of                                                            
gas.                                                                                                                            
                                                                                                                                
SENATOR TAYLOR asked if  a sale could take place without approval of                                                            
the legislature  because it says the commissioner  "can determine on                                                            
his own" and make such a sale.                                                                                                  
                                                                                                                                
CHAIRMAN  TORGERSON responded  if DNR puts  it out as a competitive                                                             
bid,  it  can sell  it,  but  it can't  negotiate  one  without  the                                                            
legislature's approval.                                                                                                         
                                                                                                                                
SENATOR TAYLOR  asked if DNR could make a determination,  go through                                                            
a competitive bidding and  sell the state's royalty gas on the North                                                            
Slope.                                                                                                                          
                                                                                                                                
CHAIRMAN TORGERSON answered affirmatively.                                                                                      
                                                                                                                                
MR. MYERS  said that one  of the "WHEREAS"  clauses requires  DNR to                                                            
have long-term  substantial sales of the state's oil  and gas and to                                                            
obtain the approval of the legislature.                                                                                         
                                                                                                                                
CHAIRMAN TORGERSON  asked if sales  from competitive bids  must have                                                            
legislative approval.                                                                                                           
                                                                                                                                
MR. MYERS answered yes.                                                                                                         
                                                                                                                                
SENATOR PEARCE  moved to pass HCR 17 from committee  with individual                                                            
recommendations. There were no objections and it was so ordered.