Legislature(2015 - 2016)SENATE FINANCE 532

04/08/2016 09:00 AM Senate FINANCE

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09:06:33 AM Start
09:07:01 AM SB205 || HB373
09:46:07 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Time Change --
<Bill Hearing Canceled>
<Bill Hearing Canceled>
Heard & Held
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
SENATE BILL NO. 205                                                                                                           
     "An  Act approving  and ratifying  the sale  of royalty                                                                    
     oil by  the State of  Alaska to Tesoro  Corporation and                                                                    
     Tesoro   Refining  and   Marketing  Company   LLC;  and                                                                    
     providing for an effective date."                                                                                          
HOUSE BILL NO. 373                                                                                                            
     "An  Act approving  and ratifying  the sale  of royalty                                                                    
     oil by  the State of  Alaska to Tesoro  Corporation and                                                                    
     Tesoro   Refining  and   Marketing  Company   LLC;  and                                                                    
     providing for an effective date."                                                                                          
Co-Chair MacKinnon discussed housekeeping.                                                                                      
9:07:01 AM                                                                                                                    
JIM  SHINE,   SPECIAL  PROJECT  ASSISTANT,  OFFICE   OF  THE                                                                    
COMMISSIONER,  DEPARTMENT OF  NATURAL RESOURCES,   discussed                                                                    
SB 205,  and HB 373,  which were identical bills  that would                                                                    
ratify  the contract  that had  been negotiated  between the                                                                    
department and Tesoro for the sale of royalty oil.                                                                              
9:08:07 AM                                                                                                                    
Mr. Shine discussed the presentation,  "Proposed Sale of the                                                                    
State's  Royalty Oil  to Tesoro:  SB 205/HB  373." (copy  on                                                                    
file). He  showed Slide 2,  "Royalty In-Kind  versus Royalty                                                                    
        · The State has a choice to take its royalty in-                                                                        
          kind (RIK) or in-value (RIV)                                                                                          
        · When the State takes its royalty as RIV, the                                                                          
          lessees who produce the oil also market the                                                                           
          State's share along with their own production and                                                                     
          pays the State the value of its royalty share.                                                                        
        · When SOA takes its royalty share as RIK, the SOA                                                                      
          assumes ownership of the oil, and the DNR                                                                             
          Commissioner disposes of it through the sale                                                                          
          procedures prescribed by AS 38.05.183.                                                                                
        · Currently, the SOA receives all royalties as RIV;                                                                     
          historically, the SOA has regularly taken                                                                             
          royalties as RIK.                                                                                                     
Mr.  Shine  noted that  come  of  the contract  negotiations                                                                    
dated back to 1979.                                                                                                             
9:09:13 AM                                                                                                                    
Mr.  Shine  displayed  Slide 3,  "Non-Competitive  RIK  Sale                                                                    
        · Before taking RIK, the  DNR Commissioner must find                                                                    
          it is in the State's best interest.                                                                                   
        · DNR must decide whether to  sell RIK pursuant to a                                                                    
          competitive   auction    or   a   non-competitive,                                                                    
          negotiated sale.                                                                                                      
        · Solicitation  of Interest  issued January  2015 to                                                                    
          prospective purchasers to gauge market interest.                                                                      
        · DNR  determined  that  there was  not  competition                                                                    
          allowing for a competitive sale, and proposes to                                                                      
          enter into the negotiated 5-year contract with                                                                        
Mr.   Shine   elaborated    that   British   Petroleum   and                                                                    
ConocoPhillips  had topping  plants on  the North  Slope for                                                                    
infield  use, letters  had also  been sent  to Flint  Hills,                                                                    
Tesoro, and  Petro Star. Response  had been weak,  which led                                                                    
to the determination to enter the contract with Tesoro.                                                                         
9:10:46 AM                                                                                                                    
Mr.  Shine  discussed   Slide  4,  "Commissioner's  Decision                                                                    
     AS 38.05.183(e) states that  the commissioner must sell                                                                    
     the  State's  royalty  oil  to  the  buyer  who  offers                                                                    
     "maximum  benefits to  the citizens  of the  state." In                                                                    
     making  this   determination,  the   commissioner  must                                                                    
        1. The cash value offered                                                                                               
        2. The projected effects of the sale  on the economy                                                                    
          of the state                                                                                                          
        3. The projected benefits of refining  or processing                                                                    
          the oil in state                                                                                                      
        4. The ability of the  prospective buyer  to provide                                                                    
          refined products for distribution and sale in the                                                                     
          state with price or supply benefits to the                                                                            
          citizens of the state                                                                                                 
        5. The eight criteria listed in AS  38.06.070(a), as                                                                    
          reviewed by the Royalty Board                                                                                         
9:11:14 AM                                                                                                                    
Mr. Shine  spoke to Slide  5, "Approval Process for  the RIK                                                                    
        · DNR  must make  a Best  Interest Finding  (BIF) in                                                                    
          support of the sale                                                                                                   
             o Preliminary BIF issued February 2016; final                                                                      
               BIF issued in March 2016.                                                                                        
        · DNR  presented the  sale to  the Royalty  Board on                                                                    
          March  15, 2016;  the Board  reviewed the  BIF and                                                                    
          the contract,  and unanimously voted  to recommend                                                                    
          the Legislature approve the sale to Tesoro.                                                                           
        · Prior   to  finalizing   the  RIK   contract,  the                                                                    
          Legislature  must   pass  a  bill   ratifying  the                                                                    
          contract with Tesoro (HB 373; SB 205).                                                                                
9:12:22 AM                                                                                                                    
Mr. Shine showed Slide 6, "Royalty Board's Decision                                                                             
     AS 38.06.070(a) states that the Alaska Royalty Oil and                                                                     
     Gas Development Advisory Board must consider:                                                                              
        1. The revenue needs and projected  fiscal condition                                                                    
          of the state;                                                                                                         
        2. The existence and extent of present and projected                                                                    
          local  and   regional  needs   for  oil   and  gas                                                                    
        3. The desirability of localized capital investment,                                                                    
          increased   payroll,  secondary   development  and                                                                    
          other possible effects of the sale;                                                                                   
        4. The projected social impacts of  the transaction;                                                                    
        5. The    projected     additional     costs     and                                                                    
          responsibilities which  could be imposed  upon the                                                                    
          state  and  affected   political  subdivisions  by                                                                    
         development related to the transactions.                                                                               
9:13:08 AM                                                                                                                    
Mr. Shine discussed Slide 7, "Royalty Board's Decision                                                                          
Criteria Cont.":                                                                                                                
     AS 38.06.070(a) states that the Alaska Royalty Oil and                                                                     
     Gas Development Advisory Board must consider:                                                                              
        6. The existence of specific local or regional labor                                                                    
          or  consumption markets  or both  which should  be                                                                    
          met by the transaction;                                                                                               
        7. The projected positive or  negative environmental                                                                    
         effects related to the transactions; and                                                                               
        8. The projected effects of the proposed transaction                                                                    
          upon existing private commercial enterprise and                                                                       
          patters of investment.                                                                                                
Mr. Shine stated that after  consideration of the criteria a                                                                    
report  had been  prepared that  discussed the  criteria and                                                                    
recommended  approval,   as  well   as  a   resolution  that                                                                    
recommended  the  ratification  of  the  contract  (copy  on                                                                    
9:13:38 AM                                                                                                                    
Mr. Shine turned to Slide 8, "Tesoro RIK Contract Terms":                                                                       
        · 5 year  contract for 20,000 to  25,000 barrels per                                                                    
        · The  RIK sales  price uses  a netback  formula and                                                                    
          provides higher revenue to State compared to RIV.                                                                     
        · If   Tesoro   nominates   zero   barrels   for   3                                                                    
          consecutive months, the contract terminates.                                                                          
9:14:35 AM                                                                                                                    
Senator Dunleavy understood that if the contract were                                                                           
terminated the state would revert back to RIV.                                                                                  
Mr. Shine answered in the affirmative.                                                                                          
9:14:59 AM                                                                                                                    
Mr. Shine continued discussing Slide 8:                                                                                         
        · Security:  Tesoro   shall  provide  a   letter  of                                                                    
          opinion  from a  financial analyst  or a  stand-by                                                                    
          letter of credit equal in  value to 90 days of ANS                                                                    
          royalty  oil  (if  rating  falls  below  BBB-  and                                                                    
        · In-state processing:  Tesoro to  use "commercially                                                                    
          reasonable   efforts"   to   manufacture   refined                                                                    
          products from the ANS royalty oil.                                                                                    
        · Employment of Alaska  residents: no discrimination                                                                    
          against AK companies and residents.                                                                                   
9:16:02 AM                                                                                                                    
Mr. Shine discussed Slide 9, "RIK Contract Price":                                                                              
     ANS Spot Price - $1.95 - Tariff Allowance +/- Quality                                                                    
     Bank Adjustments - Line Loss                                                                                             
        · ANS Spot Price  = Average US West  Coast Price for                                                                    
          Alaska North Slope oil (reported by industry                                                                          
          trade publications Platts and Reuters)                                                                                
        · $1.95  RIK  Differential Destination  value  minus                                                                    
          marine costs so RIK > RIV.                                                                                            
        · Tariff Allowance = TAPS  and Pipelines upstream of                                                                    
        · Quality  Bank Adjustments  = as  reported by  TAPS                                                                    
          Quality Bank Administrator.                                                                                           
        · Line  Loss (loss  of volume  between  PS1 and  the                                                                    
9:16:57 AM                                                                                                                    
Mr. Shine spoke to Slide 10, "Contract is in the State's                                                                        
Best Interest":                                                                                                                 
        · DNR estimates  the State will  receive $45  to $56                                                                    
          million in additional revenue over taking RIV.                                                                        
        · Producers deduct  around $3.30  to $3.70  from the                                                                    
          west coast value as a "transportation deduction"                                                                      
          in arriving at the price for RIV.                                                                                     
        · The  proposed  Tesoro  contract will  deduct  only                                                                    
          $1.95 as a "location differential" from the west                                                                      
          coast ANS value.                                                                                                      
        · The  proposed  sale  provides  crude  to  Tesoro's                                                                    
          refinery at Nikiski with associated economic and                                                                      
          social benefits to Alaska's economy:                                                                                  
             o Tesoro employs approximately 210 Alaskans                                                                        
             o Tesoro produces 59,000 bpd refined products                                                                      
               at its Nikiski refinery                                                                                          
             o Tesoro refinery's estimated contribution to                                                                      
               the local economy is $127mm                                                                                      
9:19:12 AM                                                                                                                    
Mr. Shine displayed Slide 11, "Additional Royalty Oil                                                                           
        · Additional royalty  oil volumes are  available for                                                                    
          the other in-state refiner, Petro Star; helping                                                                       
          maintain    a   competitive    in-state   refining                                                                    
        · DNR is currently negotiating sales with Petro                                                                         
          Star of remaining royalty oil under similar                                                                           
          contractual terms.                                                                                                    
        · The proposed Tesoro contract and forthcoming                                                                          
          Petro  Star  contract  will allow  for  additional                                                                    
          sale  oil  nominations  to  maximize  royalty  oil                                                                    
          sales if  the State has  more royalty oil  than is                                                                    
          currently forecasted.                                                                                                 
Mr. Shine confirmed that the  provision had been added after                                                                    
the public comment  period; the issues that  had been raised                                                                    
were  the  length  of  the  contract  and  the  pro-rationed                                                                    
preference  that   had  been  provided  to   Tesoro  through                                                                    
commercial  negotiations.  He  said  that  the  pro-rationed                                                                    
preference meant that  if the state had a  number of royalty                                                                    
purchasers, and less volumes  available than the contractual                                                                    
obligation  called for,  companied  would  be prorated  down                                                                    
according  to  their  percentage  of  royalty  purchase.  He                                                                    
stated that in 2015, during  the course of the negotiations,                                                                    
Petro Star  had approached the department  and had indicated                                                                    
a willingness to purchase on  established price terms; in an                                                                    
effort  to make  more volumes  available for  Petro Star  to                                                                    
purchase, Tesoro  reduced their maximum volumes  from 30,000                                                                    
to 25,000/ barrels  per day. He furthered  that in exchange,                                                                    
the state had provided  a pro-ration preference, which would                                                                    
have allowed them  to be the last purchaser  of royalties to                                                                    
be prorated  in the  event that the  sale occurred.  He said                                                                    
that  after  internal  discussions the  provision  had  been                                                                    
struck from the contract, leaving the status quo to remain.                                                                     
9:21:40 AM                                                                                                                    
Co-Chair  MacKinnon  asked  whether a  Petro  Star  contract                                                                    
would necessitate a separate piece of legislation.                                                                              
Mr.  Shine answered  in the  affirmative. He  explained that                                                                    
there  were two  separate  contracts  under discussion  with                                                                    
Petro Star  that would give  the company 5 years  of royalty                                                                    
purchases: a  1-year contract that would  commence in middle                                                                    
to late  August of  2016, and a  4-year contract  that would                                                                    
commence after  the 1-year terminated.  Both the  Petro Star                                                                    
and the Tesoro contracts would terminate in 2021.                                                                               
9:22:38 AM                                                                                                                    
Senator Bishop  asked about the  $45 million to  $55 million                                                                    
increase  over the  life of  the  project under  the 5  year                                                                    
contract.   He   understood   that  the   number   was   the                                                                    
differential on the marine shipping  between the RIK and the                                                                    
Mr. Shine stated that was correct.                                                                                              
9:23:12 AM                                                                                                                    
Senator  Dunleavy  asked  how  extreme  price  differentials                                                                    
would impact the agreement.                                                                                                     
Mr. Shine  stated that the  price differentials  would bring                                                                    
more money to the state  because the barrels would be valued                                                                    
higher,  but the  actual methodology  would  not change.  He                                                                    
said that  if the  value of  oil went  up to  $100/bbl., the                                                                    
deductions would be taken from that value.                                                                                      
9:24:07 AM                                                                                                                    
Senator  Dunleavy asked  whether changes  in the  per barrel                                                                    
valuation adjustments  could make  the RIK  equal to  RIV at                                                                    
the same prices.                                                                                                                
Mr.  Shine was  not aware  of all  the ramifications  of the                                                                    
price changes,  but detailed that  the current  contract had                                                                    
been negotiated  to give the department  the confidence that                                                                    
the contract would  bring more for RIK than  would have been                                                                    
received in RIV.                                                                                                                
9:25:20 AM                                                                                                                    
Senator Hoffman  asked whether the  state knew  the intended                                                                    
market that Tesoro had for the product under the contract.                                                                      
Mr. Shine  noted that Tesoro  produced a  significant amount                                                                    
of  jet  fuel,  which  was  shipped  via  a  common  carrier                                                                    
pipeline to the Anchorage  Airport; additionally, diesel and                                                                    
gasoline were sold to in-state markets.                                                                                         
9:25:56 AM                                                                                                                    
Senator  Bishop commented  that the  five-year contract  was                                                                    
the result of the amount of production on the North Slope.                                                                      
Mr. Shine  stated that  the state  had been  selling royalty                                                                    
oil  for several  years. He  added  that; historically,  the                                                                    
state had enjoyed the ability  to have longer term contracts                                                                    
because  there had  been more  throughput in  taps and  more                                                                    
volumes  available for  sale.  He said  that  when the  2013                                                                    
contract  was negotiated  with Flint  Hills, there  had been                                                                    
some concern with having a  long-term contract based on set-                                                                    
volumes and the state's inability  to predict the future. He                                                                    
said  that the  production  forecast and  declines that  the                                                                    
contract was  based on was  only for current  production and                                                                    
did not incorporate projects that had yet to come online.                                                                       
9:27:45 AM                                                                                                                    
Vice-Chair Micciche asked  if the committee had  a chance to                                                                    
review  the  document,  "Final  Best  Interest  Finding  and                                                                    
Determination  for the  Sale of  Alaska North  Slope Royalty                                                                    
Oil to  Tesoro Refining  & Marketing Company,  LLC, Division                                                                    
of Oil and Gas Alaska  Department of Natural Resources March                                                                    
17, 2016" (copy  on file). He thought that it  would be very                                                                    
difficult  for RIV  to bring  more value  to the  state than                                                                    
RIK. He  referred to the chart  on Page 11 of  the document,                                                                    
which  showed  the  marine transportation  costs,  which  he                                                                    
believed were  unlikely to  dramatically shift  downward. He                                                                    
read the statement at the top of Page 5:                                                                                        
     …..the State  sold approximately 95.14  million barrels                                                                    
     of   royalty   oil   in-kind  under   three   different                                                                    
     contracts: the Flint Hills  Resources RIK contract from                                                                    
     April 2004  to March 2014  (FHR 2004); the  Flint Hills                                                                    
     Resources  RIK contract  from April  2014  to May  2014                                                                    
     (FHR 2014);  and the current  Tesoro RIK  contract from                                                                    
     February 2014  to January 2016 (Tesoro  2014). The sale                                                                    
     of those 95.14 million  barrels in-kind generated about                                                                    
     $106.11  million of  additional revenue  to the  State,                                                                    
     which would not  have been realized had  this volume of                                                                    
     royalty oil been taken in value.                                                                                           
Mr. Shine  concurred. He noted  that Page 11  reflected that                                                                    
marine transportation  costs would increase over  the next 5                                                                    
9:29:10 AM                                                                                                                    
Co-Chair  MacKinnon asked  how many  barrels of  royalty oil                                                                    
were available.                                                                                                                 
Mr. Shine  thought the state  had 52 to 55  thousand barrels                                                                    
per day, but considering  the production decline, he thought                                                                    
that it  could be as  low as 36  to 38 thousand  barrels per                                                                    
day by 2021.                                                                                                                    
Co-Chair MacKinnon  asked whether  there was a  formula used                                                                    
by the state to determine using the RIK versus the RIV.                                                                         
Mr. Shine  explained that  when the state  used RIK,  it did                                                                    
not nominate more  than 95 percent of  the available volume.                                                                    
He said that by maintaining and  selling some of the oil in-                                                                    
value, market indicators could  help determined actual costs                                                                    
and inure  that RIK prices  met, or exceeded, RIK  in future                                                                    
9:30:57 AM                                                                                                                    
Vice-Chair Micciche referred  to the table on page  3 of the                                                                    
best interest  finding document. He believed  that the state                                                                    
was losing  value by not  increasing the amount of  RIK oil.                                                                    
He  wondered  whether there  was  any  way to  increase  the                                                                    
proportion of RIK volumes.                                                                                                      
Mr.   Shine  reiterated   that  the   state  was   currently                                                                    
negotiating contracts  with Petro  Star, which when  used in                                                                    
combination   with    the   Tesoro   contract,    would   be                                                                    
approximately 95  percent of the available  royalty volumes.                                                                    
He  added that  in an  effort to  increase and  maximize the                                                                    
value of royalty oil for  the state, the department would be                                                                    
nominating and  selling up  to 95  percent of  the available                                                                    
volumes, over the next 5 years.                                                                                                 
9:32:22 AM                                                                                                                    
Co-Chair MacKinnon  OPENED public  testimony for SB  205 and                                                                    
HB 373.                                                                                                                         
9:33:15 AM                                                                                                                    
MATT GILL,  EXTERNAL AFFAIRS SENIOR MANAGER,  TESORO ALASKA,                                                                    
urged the  committee to support the  legislation. He offered                                                                    
a background of  the Tesoro Corporation. He  shared that the                                                                    
company's refinery in Kenai had  the operational capacity of                                                                    
up to  72,000 barrels  per day of  primarily jet  and diesel                                                                    
production followed  by gasoline and gasoline  bland stocks,                                                                    
heating oil  and heavy fuel  oils, and propane  and asphalt.                                                                    
He shared  that the corporation  operated a 68  mile, common                                                                    
carrier  products  pipeline,  which  transported  jet  fuel,                                                                    
gasoline, and diesel  fuel to the Port of  Anchorage and the                                                                    
Anchorage   International  Airport.   He  stated   that  the                                                                    
wholesale  delivery of  products occurred  through terminals                                                                    
in Kenai, Anchorage, Nikiski, and  the Port of Anchorage. He                                                                    
relayed that in  addition to being the largest  tax payer in                                                                    
the Kenai  Peninsula Borough, the corporation  provided 225,                                                                    
family wage,  in-state jobs at  the refinery  and terminals.                                                                    
He added  that there were 30,  full-time contractors working                                                                    
in and around  the refinery year-round. He  expounded on the                                                                    
many positive  ways that the corporation  impacted the state                                                                    
socially and  economically. He relayed that  the legislation                                                                    
was the  product of over  a year of dialogue  and productive                                                                    
negotiations  between the  Department  of Natural  Resources                                                                    
(DNR)  and  Tesoro.  He   expressed  appreciation  with  the                                                                    
state's ability  to understand the corporation's  issues and                                                                    
arrive at a mutually beneficial  agreement that was a "win -                                                                    
win" for both parties. He  added that DNR estimated that the                                                                    
state  would continue  to receive  a price  for its  RIK oil                                                                    
that  exceeded  the  price  for RIV.  He  related  that  the                                                                    
estimated additional value to the  state was between $45 and                                                                    
$56  million for  the span  of the  contract. The  five year                                                                    
contract would  provide Tesoro with  a stable supply  of ANS                                                                    
crude,  which  giving  the volumetric  flexibility  to  help                                                                    
accommodate  seasonal  fluctuations  in demand  for  refined                                                                    
products. He  furthered that the  availability, flexibility,                                                                    
and stability offered by the  contract would have a positive                                                                    
impact on  Tesoro's ability  to maintain  ongoing operations                                                                    
at  the  Nikiski  refinery.  He  stated  that  in  order  to                                                                    
accommodate  the  needs  of  other  in-state  refiners,  the                                                                    
contract  had  been  modified to  reduce  the  volumes,  and                                                                    
eliminate  a  pro-ration  clause  and  a  5  year  extension                                                                    
period. He  offered that  Tesoro believed  in the  future of                                                                    
Alaska  and  was  committed to  being  an  active  corporate                                                                    
9:37:20 AM                                                                                                                    
Senator Hoffman referred to  his previous question regarding                                                                    
Tesoro markets in the state.                                                                                                    
Mr. Gill detailed  that the refined jet  fuel went primarily                                                                    
to the  Anchorage International Airport, gasoline  went into                                                                    
the   Interior  markets;   Tesoro  products   generally  fed                                                                    
Anchorage, up  to Fairbanks, and  along the  highway system.                                                                    
He  said  that  the  communities in  Southeast  and  Western                                                                    
Alaska were serviced by other imports from other companies.                                                                     
9:38:14 AM                                                                                                                    
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
9:38:46 AM                                                                                                                    
AT EASE                                                                                                                         
9:39:32 AM                                                                                                                    
Co-Chair   MacKinnon   discussed   the  fiscal   note.   She                                                                    
referenced the second page of the note:                                                                                         
     There will be an indeterminate increase in revenues;                                                                       
     the increase is indeterminate due to the uncertainty                                                                       
     in predicting the price of ANS crude.                                                                                      
Co-Chair  MacKinnon wondered  which forecast  had been  used                                                                    
when  determining  the  potential economic  benefit  to  the                                                                    
Mr. Shine  explained that  the $45 to  $56 million  had been                                                                    
meant  to represent  the difference  between the  RIV marine                                                                    
transportation of  $3.50 per barrel, and  the $1.95 location                                                                    
differential  in  an RIK  contract,  over  the life  of  the                                                                    
contract on  20 to 25  thousand barrels  per day of  oil. He                                                                    
said  that the  numbers  reflected the  volumes being  sold,                                                                    
with  the  approximate  $1.50 delta  between  RIK  and  RIV,                                                                    
exclusive of the price of ANS.                                                                                                  
9:42:00 AM                                                                                                                    
Vice-Chair Micciche  wondered whether the fiscal  note could                                                                    
reflect a more defensible and conservative number.                                                                              
Mr.  Shine stated  that the  amount on  the fiscal  note had                                                                    
been determined by DNR.                                                                                                         
9:42:33 AM                                                                                                                    
Co-Chair MacKinnon commented that  the committee was working                                                                    
to pass  only the barest  of fiscal notes out  of committee.                                                                    
She thought that the indeterminate  note did not reflect the                                                                    
positive  position  that the  state  would  be in  with  the                                                                    
approval of the contract.                                                                                                       
Mr.  Shine added  that  there would  be  no negative  fiscal                                                                    
impact,  and the  indeterminate note  was not  an effort  to                                                                    
reflect  any  increases  in  cost   to  the  department.  He                                                                    
stressed  that if  the committee  wanted  a positive  fiscal                                                                    
note   he    was   eager    to   have    the   conversation.                                                                    
9:43:58 AM                                                                                                                    
Vice-Chair  Micciche reiterated  that the  numbers could  be                                                                    
conservatively estimated. He  thought that indeterminate was                                                                    
less accurate that just using the lowest estimates.                                                                             
Co-Chair MacKinnon  said that the committee  would work with                                                                    
Legislative   Finance  Division   to  determine   historical                                                                    
reflections of  the numbers, and whether  something positive                                                                    
could be put forward.                                                                                                           
9:44:53 AM                                                                                                                    
AT EASE                                                                                                                         
9:45:13 AM                                                                                                                    
SB  205  was  HEARD  and   HELD  in  committee  for  further                                                                    
SB  373  was  HEARD  and   HELD  in  committee  for  further                                                                    
Co-Chair MacKinnon discussed housekeeping.                                                                                      

Document Name Date/Time Subjects
SB 205 040716 DNR PPT SB 205 - S Finance.pdf SFIN 4/8/2016 9:00:00 AM
SB 205
SB 205 Supporting Document Resolutions for Tesoro RIK Contract 2016.pdf SFIN 4/8/2016 9:00:00 AM
SB 205
SB 205 Supporting Document Report to Alaska Legislature.pdf SFIN 4/8/2016 9:00:00 AM
SB 205
SB 205 Supporting Document TesoroRIKContractBIF.pdf SFIN 4/8/2016 9:00:00 AM
SB 205
SB 205 Transmittal Letter.pdf SFIN 4/8/2016 9:00:00 AM
SB 205
HB 373 Supporting Document Report to Alaska Legislature.pdf SFIN 4/8/2016 9:00:00 AM
HB 373
HB 373 Supporting Document Resolutions for Tesoro RIK Contract 2016.pdf SFIN 4/8/2016 9:00:00 AM
HB 373
HB 373 Supporting Document TesoroRIKContractBIF.pdf SFIN 4/8/2016 9:00:00 AM
HB 373
HB 373 Transmittal Letter.pdf SFIN 4/8/2016 9:00:00 AM
HB 373