08/09/2006 11:11 AM House FIN

CS FOR SENATE BILL NO. 3002(NGD)                                                                                              
                                                                                                                                
     An  Act  amending  the time  allowed  under  the  Alaska                                                                   
     Stranded  Gas Development  Act for  the commissioner  of                                                                   
     revenue   to   summarize    public   comments,   propose                                                                   
     amendments,   if   any,   and  make   findings   and   a                                                                   
    determination; and providing for an effective date.                                                                         
                                                                                                                                
WILLIAM   CORBUS,   COMMISSIONER,  DEPARTMENT   OF   REVENUE,                                                                   
observed  that under  the Stranded  Gas  Development Act  the                                                                   
Administration  has  30 days  following  the  closure of  the                                                                   
public  comment  process  to  prepare  a  summary  of  public                                                                   
comments received.  The Department renegotiates  the contract                                                                   
and issues  the final fiscal  interest findings.  The purpose                                                                   
of  the  legislation  is  to  extent  the  time  allowed  for                                                                   
negotiation and the final fiscal  interest findings for up to                                                                   
                                                  th                                                                            
120 days. The public  process was begun on May  10  and ended                                                                   
on July  24, 2006 (75 days).  Included in the  public process                                                                   
were:  eleven days  of  legislative briefings,  seven  public                                                                   
hearings, and  six public forums  by the Administration.  The                                                                   
Administration  received  2,158 comments,  which  need to  be                                                                   
analyzed.  He stressed  that additional  time  was needed  to                                                                   
complete  the  process  of  renegotiating  the  contract  and                                                                   
preparing findings.                                                                                                             
                                                                                                                                
11:15:19 AM                                                                                                                   
                                                                                                                                
Commissioner  Corbus  observed  that  contract  analysis  and                                                                   
renegotiation  is also partially  dependent on [the  adoption                                                                   
of] Petroleum  Production Tax (PPT) legislation,  which added                                                                   
to the delay.                                                                                                                   
                                                                                                                                
11:16:24 AM                                                                                                                   
                                                                                                                                
In  response   to  a  question  by  Representative   Stoltze,                                                                   
Commissioner Corbus reiterated  that the public process ended                                                                   
on July  24, 2006. The legislation  would extend  the process                                                                   
to 120 days (toward the end of November).                                                                                       
                                                                                                                                
11:18:46 AM                                                                                                                   
                                                                                                                                
Co-Chair  Chenault  noted  the   two  previous  fiscal  notes                                                                   
pertained to  previous versions  and would not  accompany the                                                                   
legislation. He observed  that a new zero fiscal  note, dated                                                                   
8/9/06, would be issued by the Department of Revenue.                                                                           
                                                                                                                                
11:19:29 AM                                                                                                                   
                                                                                                                                
Representative Hawker  MOVED to report CSSB  3002(NGD) out of                                                                   
Committee with  the accompanying  new REV fiscal  note. There                                                                   
being NO OBJECTION, it was so ordered.                                                                                          
                                                                                                                                
SB  3002 was  REPORTED  out of  Committee  with  a "do  pass"                                                                   
recommendation and with a zero fiscal note: REV #3.