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.