News from The Senate Majority
Alaska State Legislature

Wendy Lindskoog, Senate Majority Press Secretary
716 West 4th Avenue, Suite 510
Anchorage, Alaska 99501
Phone: 907/258-8184
http://www.akrepublicans.org
Broadcast Actualities: 800/478-6540

Senate Labor and Commerce Committee to Review Oil and Gas Revenue Forecasting

For Immediate Release: October 22, 1997 Contact: Senator Loren Leman at (907) 258-8189

Anchorage -- The Senate Labor and Commerce Committee chaired by Senator Loren Leman (R-Anchorage) will hold a hearing on Thursday, October 23 from 10:30 a.m. to 12:00 p.m. to consider the impact of oil market hedging on the State’s budget. Participants have been asked to prepare and present three options for the committee’s consideration.

The meeting will take place in the Anchorage Legislative Information Office second floor conference room located at 716 W. 4th Avenue. The Committee Agenda includes:

• Introduction: Brian Andrews, Financial Consultant, Private Client Group/Merrill Lynch
• Oil Market Outlook: Michael Rothman, First Vice President, Global Commodity Research/Merrill Lynch

Current Global Outlook
Supply/Demand Balance
Geopolitical Analysis
Crude Oil Price Bands

• Oil Market Hedging Overview: Ronald Lawson, Resident Manager, Pacific Coast Futures Center

Review Hedging Concepts and Goals
Upside/Downside Risks
Risks Due to Lack of Hedging
State of Alaska Oversight/Control

• Hedge Recommendations: Jeffrey Dikeman, Commercial Energy Specialist, Pacific Coast Futures Center

Past Examples of Oil Hedge Scenarios
Specific Proposals: Risks, Costs, and Benefits

• Oil Hedge Implementation: Ron Lawson (see above)/Steve Brantner, Vice President, Private Client Group

Account Procedures
Accountability and Controls

• State of Alaska Department of Revenue Response:

Chuck Logsdon, Chief Petroleum Economist

The Senate Labor and Commerce Committee members include Chairman Senator Loren Leman, Vice Chairman Senator Jerry Mackie, Senator Tim Kelly, Senator Mike Miller, Senator Lyman Hoffman.

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