Senate passes stripped-down gas bill

By The Associated Press
Published 5:11 pm, August 7, 2006
Archived under News, Gas line

JUNEAU—The Alaska Senate on Monday approved without debate a bill to give Gov. Frank Murkowski’s administration more time to summarize public comments on a proposed natural gas pipeline contract and negotiate changes to the deal.

The bill passed 16-0, but may be brought up again the next time the Senate meets for a reconsideration vote.

If the bill passes the full Legislature, the Murkowski administration will have 120 days instead of 30 to make changes to the contract. The administration then plans to return to lawmakers for changes to the Stranded Gas Development Act and a vote on the contract.

The bill is a stripped-down version of a bill Murkowski introduced this special legislative session that would have granted him the authority to negotiate a freeze on oil taxes as part of his proposed contract with the state’s three largest oil companies.

The fiscal contract with BP PLC, ConocoPhillips and Exxon Mobil Corp. would set the tax and royalty terms with the state for building the $20 billion pipeline.

A Senate committee removed nearly all the provisions of the bill before passing it out. Several legislators have said they are concerned about granting that much authority to Murkowski when they have not yet seen the contract changes that are being negotiated.

The bill goes next to the House. The special session ends Thursday.

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