Legislature(2001 - 2002)
04/25/2001 01:12 PM House RES
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HCR 17-SALE OF NATURAL GAS TO POWER DATA CENTERS CO-CHAIR MASEK announced that the next order of business would be HOUSE CONCURRENT RESOLUTION NO. 17, Expressing the legislature's support for sale of a portion of Alaska's North Slope natural gas for electrical generation to power data centers within the North Slope Borough. Number 2102 REPRESENTATIVE GREEN made a motion to adopt Amendment 1, which read [original punctuation provided]: Page 1, line 8: Strike "is seeking" Insert "has proposed" Rationale: This still recognizes that Netricity is the only company that has approached the state with this idea, but does not assert any propriety to the company for future sale. Page 2, line 2: After "a portion of" Strike "Alaska's North Slope" Insert "The State's Royalty Natural Gas from Alaska's North Slope" Rationale: This incorporates Royalty Gas, and leaves the resolve to the generic sale of the gas, with no companies mentioned. There being no objection, Amendment 1 was adopted. CO-CHAIR MASEK called a brief at-ease at 3:18 p.m. She called the meeting back to order at 3:20 p.m. Number 2195 REPRESENTATIVE GREEN offered Amendment 2 [which was Senator Torgerson's Amendment 1 to SCR 10, the companion resolution in the Senate]. Amendment 2 read [original punctuation provided]: Page 2, line 1: After "natural gas resources;" Insert "WHEREAS AS 38.05.183 mandates that any sale of the state's oil and gas royalty "shall be by competitive bid" unless the commissioner of the Department of Natural Resources: (1) determines, in writing with specific findings and conclusions, that the best interest of the state does not require competitive bidding or that no competition exists and (2) gives notice to the Alaska Royalty Oil and Gas Development Advisory Board; WHEREAS AS 38.05.183 mandates that if the commissioner determines to sell royalty oil or gas non-competitively, the commissioner must consider the criteria in AS 38.05.183(e) and 38.06.070; WHEREAS 11 AAC 03.03.010 mandates that the commissioner [sic] before the sale of royalty gas is completed, whether by competitive bid or not, the commissioner must make a public finding that the sale is in the best interests of the state WHEREAS AS 38.06.050 requires that before any long-term, substantial sale of the state's oil or gas can [sic] made, the sale must be reviewed by the Alaska Royalty Oil and Gas Development Advisory Board and it must issue a written recommendation to the legislature about the sale; WHEREAS AS 38.06.055 requires that before any long-term, substantial sale of the state's oil or gas can be made, the sale must be approved by the legislature;" Page 2, line 3 After "natural gas" Insert "at a competitive, reasonable price" Page 2, line 5 FURTHER RESOLVED that the Alaska State Legislature requests that the commissioner determine in a written finding whether the state's royalty share of North Slope natural gas must be competitively bid at this time, and, if it must, conduct a competitive sale; FURTHER RESOLVED that the Alaska State Legislature requests that, if the commissioner determines that the state's royalty share of North Slope natural gas need not be competitively bid, the commissioner: (1) enter into negotiations with Netricity, L.L.C., or other qualified purchaser, for the sale of the state's royalty share of North Slope natural gas consistent with the procedures and policies set forth in AS 38.05.183, AS 38.06.010 - .080, and 11 AAC 03.010 - .250; and (2) by the first day of the 2nd session of the 22nd legislature, either present the legislature with a contract for the sale of the North Slope royalty gas for approval or a report explaining why the state should not sell its royalty gas. REPRESENTATIVE GREEN explained that Amendment 2 would not conflict with the previous amendment, but was, in a sense, an addendum. While the state is very receptive to the offer made by Netricity, it wants to make certain there is no misunderstanding: it wants to protect its resources while getting the absolute best value that it can. He added, "I think that was incumbent upon us when we took the oath." Number 2295 CO-CHAIR MASEK asked if there was any objection to Amendment 2. There being no objection, Amendment 2 was adopted. Number 2319 REPRESENTATIVE McGUIRE made a motion to move HCR 17, as amended, from committee with individual recommendations. There being no objection, CSHCR 17(RES) was moved out of the House Resources Standing Committee.
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