HOUSE SPECIAL COMMITTEE ON OIL AND GAS                                  
                 September 19, 1997                                            
                      8:05 a.m.                                                
                                                                               
                                                                               
COMMITTEE CALENDAR                                                             
                                                                               
PIPELINE CORRIDOR MAYORS MEETING                                               
TOPIC:  TAXATION AND LOCAL FISCAL OUTLOOKS                                     
                                                                               
TAPE(S)                                                                        
                                                                               
97-21, SIDE(S) A & B                                                           
97-22, SIDE(S) A & B                                                           
97-23, SIDE(S) A                                                               
                                                                               
CALL TO ORDER                                                                  
                                                                               
Representative Hodgins, Chairman, convened the House Special                   
Committee on Oil and Gas meeting at 8:05 a.m.                                  
                                                                               
PRESENT                                                                        
                                                                               
Committee members present at the call to order were Representatives            
Hodgins and Brice (via teleconference).  Representative(s)                     
Kemplen, Rokeberg and Ryan arrived as the meeting was in progress.             
                                                                               
SUMMARY OF INFORMATION                                                         
                                                                               
DAVE COBB, Mayor, City of Valdez, gave a brief overview on the Gas             
Line Now Committee.  He introduced the other participates of the               
work session and asked questions on their testimony.                           
                                                                               
BENJAMIN NAGEAK, Mayor, North Slope Borough, briefly commented on              
working together on gas line issues and asked questions of the                 
participants.                                                                  
                                                                               
MARGIE JOHNSON, City of Cordova, stated that she would follow the              
course of the project.                                                         
                                                                               
BILL WALKER, Attorney, City of Valdez, thanked the state                       
administration and the Department of Revenue for their help on the             
project and discussed long term operational employment                         
opportunities.                                                                 
                                                                               
CHAIRMAN MARK HODGINS discussed his intent to work together with               
the pipeline mayors and asked questions of the participants.                   
                                                                               
REPRESENTATIVE TOM BRICE outlined the issues at hand and asked                 
questions of the participants.                                                 
                                                                               
REPRESENTATIVE ALAN KEMPLEN asked questions of the participants.               
                                                                               
REPRESENTATIVE JOE RYAN asked questions of the participants.                   
                                                                               
JOHN SHIVELY, Commissioner, Department of Natural Resources,                   
discussed the market challenges for liquid natural gas.                        
                                                                               
BILL VAN DYKE, Petroleum Manager, Lease Administration/Royalty,                
Division of Oil and Gas, Department of Natural Resources, discussed            
the work of his group, Royalty in Kind/Royalty in Value and                    
answered questions.                                                            
                                                                               
DAN ZOBRIST, Petroleum Economist, Division of Oil and Gas,                     
Department of Natural Resources, discussed the issue of how much               
gas should be reserved for community use and referred to a series              
of graphs.  He answered questions on his testimony.                            
                                                                               
LARRY OSTROSKI, Member, Local Hire Team, discussed the goals of his            
committee in the pipeline project and answered questions.                      
                                                                               
ROGER MARKS, Petroleum Economist, Department of Revenue, discussed             
the main issues of the State Local Fiscal Committee and answered               
questions on his testimony.                                                    
                                                                               
DAVID HIER, Member, North Slope Borough Committee, commented on                
property tax issues.                                                           
                                                                               
JEFF LOWENFELD, Representative, Yukon Pacific Corporation,                     
addressed the issues affecting the communities and the legislature             
in regards to the pipeline project and answered questions on his               
testimony.                                                                     
                                                                               
COMMITTEE ACTION                                                               
                                                                               
The committee took no action.                                                  
                                                                               
ADJOURNMENT                                                                    
                                                                               
The meeting was adjourned at 11:45 a.m.                                        
                                                                               
NOTE:                                                                          
                                                                               
The meeting was recorded but no log notes were taken.  A copy of               
the tape(s) and an abbreviated summary of the meeting may be                   
obtained by contacting the House Records Office at 130 Seward                  
Street, Suite 211, Juneau, Alaska 99801-1182, (907) 465-2214, and              
after adjournment of the second session of the Twentieth Alaska                
State Legislature, in the Legislative Reference Library.