Legislature(2001 - 2002)
05/04/2001 05:22 PM Senate JUD
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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 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.
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