SB 138-GAS PIPELINE; AGDC; OIL & GAS PROD. TAX  CHAIR GIESSEL announced CSSB 138(RES), version 28-GS2806\N, to be up for consideration. She said Amendment 6 was adopted last Friday and it corrects a drafting error on page 3 that had to do with numbering. She asked if there was further discussion. 3:33:24 PM SENATOR DYSON joined the committee. SENATOR MICCICHE reminded people that the members will keep an eye on this bill as it moves through the other committees, especially the Finance Committee. He thanked the chair for her leadership. 3:34:03 PM SENATOR DYSON said he made what some viewed as critical remarks last Friday about organized labor and was visited by a number of them afterwards. He was told that the unions that used to have an internal rule that said they couldn't hire qualified Alaskans as long as people were on the books in the Lower 48, but that provision had gone away. He was also assured that virtually all of the construction unions in this state are very enthusiastic about this pipeline going forward and they don't believe there will be any labor problems or anybody excluded from getting work. SENATOR BISHOP echoed Senator Micciche's comments and congratulated the chair on doing a good job of keeping the committee on task. 3:35:51 PM SENATOR FAIRCLOUGH said this is as close as they have ever been to a natural gas pipeline in terms of alignment and getting an equity share, but Alaskans need to be willing to take on the risks and those need to be understood as much as possible. She said this is just the first step should they agree with the conditions outlined in the project. What is before them and getting ready to exit from the Resources Committee is at least a partial understanding and she wanted it on the record that she would be a "no recommendation," because she will see SB 138 again in the Finance Committee and wants to really understand the taxing issue. She said they had had good conversations about some of the risks that are still out there and some base lines that she would like to see incorporated into this bill when it's pointing towards royalty leases and the floor and was wondering if other language should be considered for the "floor." She wanted to continue keeping an open mind about that percentage knowing that it's related to our equity share and that that will put more on the table for Alaskans as they choose to analyze whether the gross tax is equal to what our tolerance is for the risk on future capital cash calls from the state. 3:38:53 PM CHAIR GIESSEL said she looked at this project as a legacy that can be left for generations to come; it's a megaproject that will provide affordable energy for Alaskans and the opportunity to transmit natural gas all over the state. The jobs during construction will be tremendous for all Alaskans who are fit, willing, and ready to take them. They have talked about diversifying the economy, and affordable energy is what brings private sector diversification to an economy - like Iceland's aluminum processing industry that has transformed that country, because of their low cost energy. Alaska can do the same thing and this is an opportunity to do that. She said they had looked at a lot of details in this bill, but many other elements, like fiscal issues, need a further look. They heard a lot about payment in lieu of taxes for local municipalities and concerns expressed about the creation of a subsidiary, but she was fully confident that the Finance Committee would dig into those topics. 3:40:57 PM SENATOR DYSON moved to report CSSB 138, version 28-GS2806\N as amended, from committee with attached fiscal notes and individual recommendations. There were no objections and CSSB 138(RES) moved from the Senate Resources Standing Committee.