Juneau -- Wednesday, the House Resources Committee passed out a committee substitute for House Bill 290 Stranded Gas Pipeline Carriers.

During the committee meeting on Monday, February 21, Co-Chair Beverly Masek (R-Willow) asked that a working group made up of Representatives Hudson, Joule, and Barnes as chair, meet with representatives from the Departments of Revenue, Law, and Natural Resources as well as interested parties from the industry to find resolution on their concerns.

The working group met twice and the full committee adopted a committee substitute addressing their findings yesterday. Representative Barnes explained the changes in the new version of the bill, CSHB 290(RES). A section that would have required the commissioner of the Department of Natural Resources to obtain Legislative approval by law prior to accepting the state's royalty in kind or in value was completely removed. There were concerns as to its constitutionality based on the separation of powers. Another section dealing with the rate making methodology for instate service was also removed. "I believe setting the tariff methodology in statute is premature at this time. There are no contracts to review." Representative Barnes (R-Anchorage) explained.

Many members of the committee voiced their satisfaction with the committee substitute. "I believe CSHB 290 (RES) alleviates the concerns brought forth by the various Departments, industry groups, and members of this Committee. I am very pleased to see the end result, and once again voice my support for timely and responsible development of North Slope natural gas," stated Co-Chair Masek.

Attachments:

• Sponsor Statement
  
• Sectional Analysis