Legislature(2025 - 2026)BUTROVICH 205
04/25/2025 03:30 PM Senate RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| SB176 | |
| SB180 | |
| Confirmation Hearing(s): Board of Game | |
| Confirmation Hearing(s): State Assessment Review Board | |
| Confirmation Hearing(s): Alaska Commercial Fisheries Entry Commission | |
| Confirmation Hearing(s): Board of Fisheries | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| *+ | SB 32 | TELECONFERENCED | |
| *+ | SB 180 | TELECONFERENCED | |
| = | SB 176 | ||
SB 176-APPROVE MARATHON PETRO ROYALTY OIL SALE
3:31:38 PM
CHAIR GIESSEL announced the consideration of SENATE BILL NO. 176
"An Act approving and ratifying the sale of royalty oil by the
State of Alaska to Marathon Petroleum Supply and Trading Company
LLC; and providing for an effective date."
3:32:04 PM
RYAN FITZPATRICK, Commercial Manager, Division of Oil and Gas,
Department of Natural Resources (DNR), Juneau, Alaska, said SB
176 would approve the sale of Alaska's royalty oil to Marathon
Petroleum Corporation. He explained that DNR negotiates
contracts with in-state refiners for the sale of Alaska's
royalty oil in-kind to those refineries. The contracts go
through a public process, a best interest finding (DNR), a
Royalty Board review, and approval by the legislature.
3:33:00 PM
CHAIR GIESSEL opened public testimony on SB 176.
3:33:18 PM
CASEY SULLIVAN, Government and Public Affairs Manager, Marathon
Petroleum Corporation, Anchorage, Alaska, testified in support
of SB 176. He said the availability, flexibility, and stability
of the contract would have a positive impact on Marathon
Petroleum Corporation's (Marathon) ability to optimize ongoing
operations. He said that Marathon's Kenai refinery is one of the
longest in-state manufacturers producing quality transportation
fuel. The facility can produce up to 60 thousand barrels of
crude oil per calendar day. The refinery primarily produces
gasoline, jet fuel, diesel, and other products such as propane
and asphalt. These are distributed from Nikiski to North Pole
and beyond, through terminals at Kenai, North Pole, and the Port
of Alaska. Marathon employes over 300 Alaskans. He stated that
SB 176 would ratify the new proposed contract, which is the
result of positive negotiations between Marathon and DNR. He
expressed appreciation for the professionalism of DNR throughout
the process. He opined that the contract, which would allow
Marathon to purchase oil at a premium, is a win for both
Marathon and the State of Alaska. He said Marathon is committed
to continuing its legacy of safely and reliably producing
quality fuel products.
3:33:31 PM
SENATOR WIELECHOWSKI joined the meeting.
3:35:31 PM
SENATOR CLAMAN noted that SB 176 includes a three-year contract
with 7 one-year extension options, which is a ten-year proposal.
He asked if Marathon has had similar contracts in the past or
whether contracts are typically a shorter duration.
3:36:00 PM
MR. SULLIVAN replied that contract times have generally been
three to five-years; however, Marathon contracts have previously
utilized the one-year extensions. He stated that the extensions
have proved very useful and provide increased flexibility. He
clarified that, while Marathon has had contracts for more than 5
years, none have reached 10 years.
3:36:49 PM
CHAIR GIESSEL closed public testimony on SB 176.
3:36:58 PM
CHAIR GIESSEL solicited the will of the committee.
3:37:01 PM
SENATOR WIELECHOWSKI moved to report SB 176, work order 34-
GS1086\A, from committee with individual recommendations and
attached fiscal note(s). He gave authorization for Legislative
Legal Services to make technical and conforming changes.
3:37:16 PM
CHAIR GIESSEL found no objection and SB 176 was reported from
the Senate Resources Standing Committee.