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28th Legislature(2013-2014)

Bill Text 28th Legislature


00 Enrolled HB 4                                                                                                           
01 Relating to the Alaska Gasline Development Corporation; establishing the Alaska Gasline                                 
02 Development Corporation as an independent public corporation of the state; establishing and                             
03 relating to the in-state natural gas pipeline fund; making certain information provided to or by                        
04 the Alaska Gasline Development Corporation and its subsidiaries exempt from inspection as a                             
05 public record; relating to the Joint In-State Gasline Development Team; relating to the Alaska                          
06 Housing Finance Corporation; relating to judicial review of a right-of-way lease or an action                           
07 or decision related to the development or construction of an oil or gas pipeline on state land;                         
08 relating to the lease of a right-of-way for a gas pipeline transportation corridor, including a                         
09 corridor for a natural gas pipeline that is a contract carrier; relating to the cost of natural                         
10 resources, permits, and leases provided to the Alaska Gasline Development Corporation;                                  
11 relating to procurement by the Alaska Gasline Development Corporation; relating to the                                  
12 review by the Regulatory Commission of Alaska of natural gas transportation contracts;                                  
01 relating to the regulation by the Regulatory Commission of Alaska of an in-state natural gas                            
02 pipeline project developed by the Alaska Gasline Development Corporation; relating to the                               
03 regulation by the Regulatory Commission of Alaska of an in-state natural gas pipeline that                              
04 provides transportation by contract carriage; repealing the statutes relating to the Alaska                             
05 Natural Gas Development Authority and making conforming changes; exempting property of                                  
06 a project developed by the Alaska Gasline Development Corporation from property taxes                                   
07 before the commencement of commercial operations; and providing for an effective date.                                  
08                                                                                                                         
09                           _______________                                                                               
10    * Section 1. The uncodified law of the State of Alaska is amended by adding a new section                          
11 to read:                                                                                                                
12       LEGISLATIVE FINDINGS AND INTENT. (a) The legislature finds that                                                   
13            (1)  an in-state natural gas pipeline developed by the Alaska Gasline                                        
14 Development Corporation is required for public convenience and necessity;                                               
15            (2)  the development of a natural gas pipeline by the Alaska Gasline                                         
16 Development Corporation is in the best interest of the state;                                                           
17            (3)  making the Alaska Gasline Development Corporation an independent                                        
18 public corporation of the State of Alaska located for administrative purposes under the                                 
19 Department of Commerce, Community, and Economic Development will enhance the ability                                    
20 of the Alaska Gasline Development Corporation to accomplish its purposes.                                               
21       (b)  It is the intent of the legislature that                                                                     
22            (1)  the Alaska Gasline Development Corporation, in its new placement as an                                  
23 independent public corporation of the state, shall be treated for all purposes as the transfer of a                     
24 corporation within the state and not as the creation of a new entity by the State of Alaska;                            
25            (2)  the Board of Directors of the Alaska Gasline Development Corporation                                    
26 commit to governing the Alaska Gasline Development Corporation so as to affect positively                               
27 as many Alaskans as possible, including those in rural and coastal communities, and to extend                           
28 opportunities for all Alaskans to benefit from the natural gas resources of the state, including                        
01 propane and associated gas-related hydrocarbons other than oil;                                                         
02            (3)  to the maximum extent permitted by law, in developing a natural gas                                     
03 pipeline, the Alaska Gasline Development Corporation shall procure services, labor, products,                           
04 and natural resources from qualified businesses located in the state, including organizations                           
05 owned by Alaska Natives and municipal organizations directly affected by the project, if                                
06 those persons are competitive;                                                                                          
07            (4)  the Alaska Gasline Development Corporation shall, to the maximum                                        
08 extent permitted by law,                                                                                                
09                 (A)  hire qualified residents from throughout the state for management,                                 
10       engineering, construction, operations, maintenance, and other positions for a natural                             
11       gas pipeline project;                                                                                             
12                 (B)  establish hiring facilities in the state or use existing hiring facilities                         
13       in the state; and                                                                                                 
14                 (C)  use, as far as practicable, the job centers and associated services                                
15       operated by the Department of Labor and Workforce Development and an Internet-                                    
16       based labor exchange system operated by the state; and                                                            
17            (5)  the Alaska Gasline Development Corporation and its subsidiaries shall                                   
18 wind up and dissolve when no bonds, notes, or other obligations are outstanding and the                                 
19 Alaska Gasline Development Corporation or a subsidiary of the Alaska Gasline Development                                
20 Corporation is no longer engaged in the development, financing, construction, or operation of                           
21 an in-state natural gas pipeline.                                                                                       
22    * Sec. 2. AS 18.56.086 is amended to read:                                                                         
23            Sec. 18.56.086. Creation of subsidiaries. The corporation may create                                       
24       subsidiary corporations for the purpose of financing or facilitating the financing of                             
25       school construction, facilities for the University of Alaska, facilities for ports and                            
26       harbors, the acquisition, development, management, or operation of affordable                                     
27       housing, prepayment of all or a portion of a governmental employer's share of                                     
28       unfunded accrued actuarial liability of retirement systems, or other capital projects. [A                         
29       SUBSIDIARY CORPORATION MAY ALSO BE CREATED FOR THE PURPOSE                                                        
30       OF PLANNING, CONSTRUCTING, AND FINANCING IN-STATE NATURAL                                                         
31       GAS PIPELINE PROJECTS OR FOR THE PURPOSE OF AIDING IN THE                                                         
01       PLANNING, CONSTRUCTION, AND FINANCING OF IN-STATE NATURAL                                                         
02       GAS PIPELINE PROJECTS.] A subsidiary corporation created under this section                                       
03       may be incorporated under AS 10.20.146 - 10.20.166. The corporation may transfer                                  
04       assets of the corporation to a subsidiary created under this section. A subsidiary                                
05       created under this section may borrow money and issue bonds as evidence of that                                   
06       borrowing, and has all the powers of the corporation that the corporation grants to it.                           
07       However, a subsidiary created for the purpose of financing or facilitating the financing                          
08       of prepayment of a governmental employer's share of unfunded accrued actuarial                                    
09       liability of retirement systems may borrow money and issue bonds only if the state                                
10       bond rating is the equivalent of AA- or better and subject to AS 37.15.903. [A                                    
11       SUBSIDIARY CORPORATION CREATED FOR THE PURPOSE OF PLANNING,                                                       
12       CONSTRUCTING, AND FINANCING IN-STATE NATURAL GAS PIPELINE                                                         
13       PROJECTS OR FOR THE PURPOSE OF AIDING IN THE PLANNING,                                                            
14       CONSTRUCTION, OR FINANCING OF IN-STATE NATURAL GAS PIPELINE                                                       
15       PROJECTS IS EXEMPT FROM AS 36.30, INCLUDING AS 36.30.015(d) AND (f).]                                             
16       Unless otherwise provided by the corporation, the debts, liabilities, and obligations of                          
17       a subsidiary corporation created under this section are not the debts, liabilities, or                            
18       obligations of the corporation.                                                                                   
19    * Sec. 3. AS 31 is amended by adding a new chapter to read:                                                        
20              Chapter 25. Alaska Gasline Development Corporation.                                                      
21               Article 1. Organization, Administration, and Powers.                                                    
22            Sec. 31.25.010. Structure. The Alaska Gasline Development Corporation is a                                 
23       public corporation and government instrumentality located for administrative purposes                             
24       in the Department of Commerce, Community, and Economic Development, but                                           
25       having a legal existence independent of and separate from the state. The corporation                              
26       may not be terminated as long as it has bonds, notes, or other obligations outstanding.                           
27       The corporation may dissolve when no bonds, notes, or other obligations of the                                    
28       corporation or a subsidiary of the corporation are outstanding and the corporation or a                           
29       subsidiary of the corporation is no longer engaged in the development, financing,                                 
30       construction, or operation of an in-state natural gas pipeline. Upon termination of the                           
31       corporation, its rights and property pass to the state.                                                           
01            Sec. 31.25.020. Governing body. (a) The corporation shall be governed by a                                 
02       board of directors consisting of                                                                                  
03                 (1)  five public members; and                                                                           
04                 (2)  two individuals designated by the governor that are each the head                                  
05       of a principal department of the state, except that the commissioner of natural                                   
06       resources and the commissioner of revenue may not be designated to serve on the                                   
07       board unless the project for which a license is issued under AS 43.90 has been                                    
08       abandoned or is no longer receiving the inducements in AS 43.90.110(a) or the                                     
09       commissioner of natural resources and the commissioner of revenue are no longer                                   
10       signatories on a valid contract under AS 43.90.                                                                   
11            (b)  Public members of the board shall be appointed by the governor and are                                  
12       subject to confirmation by the legislature. When appointing a public member to the                                
13       board, the governor shall consider an individual's expertise and experience in natural                            
14       gas pipeline construction, operation, and marketing; finance; large project                                       
15       management; and other expertise and experience that is relevant to the purpose,                                   
16       powers, and duties of the corporation. Public members of the board serve staggered                                
17       five-year terms. A public member serves at the pleasure of the governor. A vacancy                                
18       shall be filled in the same manner as the original appointment.                                                   
19            (c)  Notwithstanding AS 39.05.055, the terms of the initially appointed public                               
20       members of the board shall be set by the governor to be two years for two members,                                
21       three years for two members, and five years for one member.                                                       
22            (d)  The public members of the board receive $400 compensation for each day                                  
23       spent on official business of the corporation and may be reimbursed by the corporation                            
24       for actual and necessary expenses at the same rate paid to members of state boards                                
25       under AS 39.20.180.                                                                                               
26            Sec. 31.25.030. Meetings of board. (a) The board shall elect a chair, secretary,                           
27       and treasurer from among its membership at each annual meeting. A majority of the                                 
28       members constitutes a quorum for organizing the board, conducting its business, and                               
29       exercising the powers of the corporation. The board shall meet at the call of the chair.                          
30       The board shall meet at least once every three months.                                                            
31            (b)  The board may meet and transact business by electronic media if                                         
01                 (1)  public notice of the time and locations where the meeting will be                                  
02       held by electronic media has been given in the same manner as if the meeting were                                 
03       held in a single location;                                                                                        
04                 (2)  participants and members of the public in attendance can hear and                                  
05       have the same right to participate in the meeting as if the meeting were conducted in                             
06       person; and                                                                                                       
07                 (3)  copies of pertinent reference materials, statutes, regulations, and                                
08       audio-visual materials are reasonably available to participants and to the public.                                
09            (c)  A meeting by electronic media as provided in this section has the same                                  
10       legal effect as a meeting in person.                                                                              
11            (d)  For the purposes of this chapter, public notice of 24 hours or more is                                  
12       adequate notice of a meeting of the board at which the issuance of corporation bonds                              
13       is authorized.                                                                                                    
14            (e)  An affirmative vote of at least four members of the board is required to                                
15       approve                                                                                                           
16                 (1)  the sale and issuance of bonds;                                                                    
17                 (2)  the sale or other disposition of a substantial asset or substantial                                
18       amount of the assets of the corporation; the corporation shall adopt a regulation that                            
19       defines a substantial asset and a substantial amount of assets for the purposes of this                           
20       paragraph;                                                                                                        
21                 (3)  the ownership structure for a pipeline project of which the                                        
22       corporation is a participant;                                                                                     
23                 (4)  an action committing the corporation to an additional natural gas                                  
24       pipeline project; and                                                                                             
25                 (5)  action on other matters identified in a regulation adopted by the                                  
26       corporation as being subject to this subsection.                                                                  
27            Sec. 31.25.035. Minutes of meetings. The board shall keep minutes of each                                  
28       meeting and send certified copies to the governor and to the Legislative Budget and                               
29       Audit Committee.                                                                                                  
30            Sec. 31.25.040. Administration of affairs. (a) The board shall manage the                                
31       assets and business of the corporation and may adopt, amend, and repeal bylaws and                                
01       regulations governing the manner in which the business of the corporation is                                      
02       conducted and the manner in which its powers are exercised. The board shall delegate                              
03       supervision of the administration of the corporation to the executive director,                                   
04       appointed in accordance with AS 31.25.045.                                                                        
05            (b)  The board shall adopt and publish procedures to govern the procurement                                  
06       by the corporation of supplies, services, professional services, and construction. The                            
07       procurement procedures must provide for an Alaska veterans' preference that is                                    
08       consistent with the Alaska veterans' preference in AS 36.30.175.                                                
09            Sec. 31.25.045. Executive director. The corporation shall employ an                                        
10       executive director who may not be a member of the board. The executive director shall                             
11       be appointed by the board and serves at the pleasure of the board.                                                
12            Sec. 31.25.050. Legal counsel. The corporation shall retain legal counsel to                               
13       advise the corporation in legal matters and represent it in litigation.                                           
14            Sec. 31.25.060. Employment of personnel. The board may appoint other                                       
15       officers and engage professional and technical advisors as independent contractors.                               
16       The executive director may hire employees of the corporation and engage professional                              
17       and technical advisors under contract with the corporation. The board shall prescribe                             
18       the duties and compensation of corporation personnel, including the executive                                     
19       director.                                                                                                         
20            Sec. 31.25.065. Personnel exempt from State Personnel Act. The personnel                                   
21       of the corporation are exempt from AS 39.25.                                                                      
22            Sec. 31.25.070. Purpose. The corporation shall, for the benefit of the state, to                           
23       the fullest extent possible,                                                                                      
24                 (1)  advance an in-state natural gas pipeline as described in the July 1,                               
25       2011, project plan prepared under former AS 38.34.040 by the corporation while a                                  
26       subsidiary of the Alaska Housing Finance Corporation, with modifications determined                               
27       by the corporation to be appropriate to develop, finance, construct, and operate an in-                           
28       state natural gas pipeline in a safe, prudent, economical, and efficient manner, for the                          
29       purpose of making natural gas, including propane and other hydrocarbons associated                                
30       with natural gas other than oil, available to Fairbanks, the Southcentral region of the                           
31       state, and other communities in the state at the lowest rates possible;                                           
01                 (2)  endeavor to develop natural gas pipelines and other transportation                                 
02       mechanisms to deliver natural gas, including propane and other hydrocarbons                                       
03       associated with natural gas other than oil, to public utility and industrial customers in                         
04       areas of the state to which the natural gas, including propane and other hydrocarbons                             
05       associated with natural gas other than oil, may be delivered at commercially                                      
06       reasonable rates; and                                                                                             
07                 (3)  endeavor to develop natural gas pipelines and other transportation                                 
08       mechanisms that offer commercially reasonable rates for shippers and access for                                   
09       shippers who produce natural gas, including propane and other hydrocarbons                                        
10       associated with natural gas other than oil, in the state.                                                         
11            Sec. 31.25.080. Powers and duties. (a) In addition to other powers granted in                              
12       this chapter, the corporation may                                                                                 
13                 (1)  determine the form of ownership and the operating structure of an                                  
14       in-state natural gas pipeline developed by the corporation and may enter into                                     
15       agreements with other persons for joint ownership, joint operation, or both of an in-                             
16       state natural gas pipeline;                                                                                       
17                 (2)  plan, finance, construct, develop, acquire, maintain, and operate a                                
18       pipeline system and other transportation mechanism, including pipelines, compressors,                             
19       storage facilities, and other related facilities, equipment, and works of public                                  
20       improvement, in the state to facilitate production, transportation, and delivery of                               
21       natural gas or other related natural resources to the point of consumption or to the                              
22       point of distribution for consumption;                                                                            
23                 (3)  lease or rent facilities, structures, and properties;                                              
24                 (4)  exercise the power of eminent domain and file a declaration of                                     
25       taking under AS 09.55.240 - 09.55.460 to acquire land or an interest in land that is                              
26       necessary for an in-state natural gas pipeline; the exercise of powers by the                                     
27       corporation under this paragraph may not exceed the permissible exercise of the                                   
28       powers by the state;                                                                                              
29                 (5)  acquire, by purchase, lease, or gift, land, structures, real or personal                           
30       property, an interest in property, a right-of-way, a franchise, an easement, or other                             
31       interest in land, or an interest in or right to capacity in a pipeline system determined to                       
01       be necessary or convenient for the development, financing, construction, or operation                             
02       of an in-state natural gas pipeline project or part of an in-state natural gas pipeline                           
03       project;                                                                                                          
04                 (6)  transfer or otherwise dispose of all or part of an in-state natural gas                            
05       pipeline project developed by the corporation or transfer or otherwise dispose of an                              
06       interest in an asset of the corporation;                                                                          
07                 (7)  elect to provide transportation of natural gas as a contract carrier,                              
08       common carrier, or otherwise;                                                                                     
09                 (8)  provide light, water, security, and other services for property of the                             
10       corporation;                                                                                                      
11                 (9)  conduct hearings to gather and develop data consistent with the                                    
12       purpose and powers of the corporation;                                                                            
13                 (10)  advocate for new pipeline capacity before the Federal Energy                                      
14       Regulatory Commission;                                                                                          
15                 (11)  make and execute agreements, contracts, and other instruments                                     
16       necessary or convenient in the exercise of the powers and functions of the corporation                            
17       under this chapter, including a contract with a person, firm, corporation, governmental                           
18       agency, or other entity;                                                                                          
19                 (12)  sue and be sued in its own name;                                                                  
20                 (13)  adopt an official seal;                                                                           
21                 (14)  adopt bylaws for the regulation of its affairs and the conduct of its                             
22       business and adopt regulations and policies in connection with the performance of its                             
23       functions and duties;                                                                                             
24                 (15)  employ fiscal consultants, engineers, attorneys, appraisers, and                                  
25       other consultants and employees that may, in the judgment of the corporation, be                                  
26       required and fix and pay their compensation from funds available to the corporation;                              
27                 (16)  procure insurance against a loss in connection with its operation;                                
28                 (17)  borrow money as provided in this chapter to carry out its                                         
29       corporate purposes and issue its obligations as evidence of borrowing;                                            
30                 (18)  include in a borrowing the amounts necessary to pay financing                                     
31       charges, to pay interest on the obligations, and to pay the interest, consultant, advisory,                       
01       and legal fees, and other expenses that are necessary or incident to the borrowing;                               
02                 (19)  receive, administer, and comply with the conditions and                                           
03       requirements of an appropriation, gift, grant, or donation of property or money;                                  
04                 (20)  do all acts and things necessary, convenient, or desirable to carry                               
05       out the powers expressly granted or necessarily implied in this chapter;                                          
06                 (21)  invest or reinvest, subject to its contracts with noteholders and                                 
07       bondholders, money or funds held by the corporation, including funds in the in-state                              
08       natural gas pipeline fund (AS 31.25.100), in obligations or other securities or                                   
09       investments in which banks or trust companies in the state may legally invest funds                               
10       held in reserves or sinking funds or funds not required for immediate disbursement,                               
11       and in certificates of deposit or time deposits secured by obligations of, or guaranteed                          
12       by, the state or the United States;                                                                               
13                 (22)  enter into, as it determines to be necessary or appropriate, any                                  
14       swap or hedge, cap, or other contract providing for payments based on levels of or                                
15       changes in interest rates or indices or in the cost or price of any commodity, supply, or                         
16       expense expected to be used or incurred in connection with the acquisition,                                       
17       construction, or operation of any facility or property owned, leased, or operated by the                          
18       corporation, or an option with respect to any of the foregoing.                                                   
19            (b)  Upon commencement of construction of an in-state natural gas pipeline,                                  
20       the corporation shall analyze potential natural gas pipelines and other transportation                            
21       mechanisms connecting to industrial, residential, or utility customers in other regions                           
22       of the state. If the corporation finds that a natural gas pipeline or other transportation                        
23       mechanism analyzed under this subsection is in the best interest of the state and can                             
24       meet the needs of industrial, residential, or utility customers at commercially                                   
25       reasonable rates, the corporation may finance, construct, or operate the natural gas                              
26       pipeline or other transportation mechanism as necessary. When developing or                                       
27       constructing a connecting line or other transportation mechanism, the corporation                                 
28       shall, to the maximum extent feasible, use existing land, structures, real or personal                            
29       property, rights-of-way, easements, or other interests in land acquired by the                                    
30       corporation.                                                                                                      
31            (c)  The corporation may not develop or construct a natural gas pipeline that is                             
01       a competing natural gas pipeline project for purposes of AS 43.90.440.                                            
02            (d)  The corporation shall establish a schedule of reasonable fees, rental rates,                            
03       and other charges, and collect fees, rentals, and other charges for use of the facilities                         
04       of the corporation.                                                                                               
05            (e)  If commitments to acquire firm transportation capacity are received in an                               
06       open season conducted by the corporation, the corporation shall, within 10 days after                             
07       accepting and executing the written commitments received during the open season,                                  
08       report the results of the open season to the president of the senate and the speaker of                           
09       the house of representatives and inform the public of the results of the open season                              
10       through publication on the Internet website of the corporation and in a press release or                          
11       other announcement to the media. The results made public must include the name of                                 
12       each prospective shipper, the amount of capacity allocated, and the period of the                                 
13       commitment. If the corporation determines that the commitments received during the                                
14       open season are not sufficient to permit the corporation to continue the development or                           
15       construction of the natural gas pipeline, the corporation shall report that to the                                
16       legislature within 30 days.                                                                                       
17            (f)  The corporation shall, to the maximum extent practicable without delaying                               
18       the progress of developing an in-state natural gas pipeline project and without causing                           
19       the in-state natural gas pipeline project to become a competing natural gas pipeline                              
20       project for purposes of AS 43.90.440, coordinate with and accommodate the                                         
21       developers of a large-diameter in-state natural gas pipeline by planning for the                                  
22       development and use of common pipeline facilities from the North Slope to the                                     
23       Livengood area or to another point from which a large-diameter in-state natural gas                               
24       pipeline may be constructed south to tidewater in either the Prince William Sound or                              
25       Cook Inlet area. In this subsection, "large-diameter in-state natural gas pipeline"                               
26       means a pipeline in the state with a diameter of 42 inches or more.                                               
27            Sec. 31.25.090. Confidentiality; interagency cooperation. (a) The                                          
28       corporation shall have access to information of departments, agencies, and public                                 
29       corporations of the state that is directly related to the planning, financing,                                    
30       development, acquisition, maintenance, construction, or operation of an in-state                                  
31       natural gas pipeline. The corporation shall avoid duplicating studies, plans, and                                 
01       designs that have already been provided or obtained by other state entities. All                                  
02       departments, agencies, and public corporations of the state shall cooperate with and                              
03       shall provide information, services, and facilities to the corporation upon its request                           
04       and, except for requests from the Alaska Gasline Inducement Act coordinator                                       
05       appointed under AS 43.90.250, give priority to processing authorization applications                              
06       and other requests of the corporation.                                                                            
07            (b)  Upon request by the corporation, a state entity shall provide water, sand                               
08       and gravel, other nonhydrocarbon natural resources, and a permit or a lease to the                                
09       corporation at the usual and customary rates, except as provided in (d) of this section.                          
10       Review of and action on a request shall be conducted and taken as provided in                                     
11       AS 38.34.020. In this subsection, "state entity" means a state department, authority, or                          
12       other administrative unit of the executive branch of state government, a public                                   
13       university, or a public corporation of the state.                                                                 
14            (c)  That part of the cost of providing, under (b) of this section, water, sand and                          
15       gravel, or other nonhydrocarbon natural resources, or of entering into a lease or                                 
16       issuing a permit, that is borne by the corporation for an in-state natural gas pipeline                           
17       project that is owned in whole or in part by the corporation may not be included in the                           
18       rate base in a proceeding under AS 42 or before the Federal Energy Regulatory                                     
19       Commission.                                                                                                       
20            (d)  Notwithstanding any contrary provision of law, the Department of Natural                                
21       Resources shall grant the corporation a right-of-way lease under AS 38.35 for the gas                             
22       pipeline transportation corridor at no appraisal or rental cost if                                                
23                 (1)  a complete right-of-way lease application under AS 38.35.050 is                                    
24       submitted;                                                                                                        
25                 (2)  the lease application is made the subject of notice and other                                      
26       reasonable and appropriate publication requirements under AS 38.35.070; and                                       
27                 (3)  the corporation submits the application for the right-of-way lease                                 
28       and agrees to be bound by those right-of-way lease covenants set out in                                           
29                      (A)  AS 38.35.120 for an in-state natural gas pipeline that the                                    
30            corporation intends to be a common carrier; or                                                               
31                      (B)  AS 38.35.121 for an in-state natural gas pipeline that the                                    
01            corporation intends to be a contract carrier.                                                                
02            (e)  After approval by the commissioner of natural resources, a right-of-way                                 
03       lease received by the corporation under (d) of this section may be transferred to a                               
04       successor in interest under the same terms and conditions applicable to the right-of-                             
05       way lease granted to the corporation.                                                                             
06            (f)  The corporation may enter into confidentiality agreements necessary to                                  
07       acquire or provide information to carry out its functions. If a state agency determines                           
08       that a law or provision of a contract to which the state agency is a party requires the                           
09       state agency to preserve the confidentiality of the information and that delivering the                           
10       information to the corporation would violate the confidentiality provision of that law                            
11       or contract, the state agency shall                                                                               
12                 (1)  identify the applicable law or contract provision to the corporation;                              
13       and                                                                                                               
14                 (2)  obtain the consent of the person who has the right to waive the                                    
15       confidentiality of the information under the applicable law or contract provision before                          
16       the state agency transfers the information to the corporation.                                                    
17            (g)  The portions of records containing information acquired or provided by the                              
18       corporation under a confidentiality agreement are not subject to AS 40.25. The                                    
19       corporation may enter into confidentiality agreements with a public agency, as defined                            
20       in AS 40.25.220, to allow release of confidential information. The portions of the                                
21       records and files of a public agency bound by a confidentiality agreement that reflect,                           
22       incorporate, or analyze information subject to a confidentiality agreement under this                             
23       subsection are not public records. Confidentiality agreements entered into under this                             
24       subsection are valid and binding against all parties in accordance with the terms of the                          
25       confidentiality agreement.                                                                                        
26            (h)  Information and trade secrets of the corporation are confidential and not                               
27       subject to AS 40.25 if the corporation determines that disclosure would cause                                     
28       commercial or competitive harm or damage to the corporation. Information that                                     
29       discloses the particulars of a business or the affairs of a private enterprise, investor,                         
30       advisor, consultant, counsel, or manager that is developed or obtained by the                                     
31       corporation and related to the development, financing, construction, or operation of an                           
01       in-state natural gas pipeline project by the corporation is confidential and not subject                          
02       to AS 40.25. The corporation may waive the confidentiality described in this                                      
03       subsection, except for information that is confidential under another provision of state                          
04       law or under a federal law or regulation and except for information acquired from                                 
05       another person that is subject to a confidentiality agreement, if the waiver is consistent                        
06       with the interests of the state and will facilitate the development, financing, or                                
07       construction of an in-state natural gas pipeline. On the date that the in-state natural gas                       
08       pipeline project becomes operational, the corporation shall make available, upon                                  
09       request under AS 40.25, records that were exempt from AS 40.25 under this                                         
10       subsection or (g) of this section, unless the corporation determines that                                         
11                 (1)  maintaining the confidentiality of the information is necessary to                                 
12       protect the economic interests of the corporation or the state; or                                                
13                 (2)  disclosure of the information will violate another provision of state                              
14       law, a federal law or regulation, or the terms of a confidentiality agreement or other                            
15       agreement to which the corporation is a party or that is binding on the corporation.                              
16            Sec. 31.25.100. In-state natural gas pipeline fund. The in-state natural gas                               
17       pipeline fund is established in the corporation and consists of money appropriated to                             
18       it. The corporation shall determine fund management and may contract with the                                     
19       Department of Revenue for fund management. Unless otherwise provided by law,                                      
20       money appropriated to the fund lapses into the general fund on the day this section is                            
21       repealed. Interest and other income received on money in the fund shall be separately                             
22       accounted for and may be appropriated to the fund. The corporation may use money                                  
23       appropriated to the fund without further appropriation for the cost of managing the                               
24       fund and for the planning, financing, development, acquisition, maintenance,                                      
25       construction, and operation of an in-state natural gas pipeline.                                                  
26            Sec. 31.25.120. Creation of subsidiaries. The corporation may create                                       
27       subsidiary corporations for the purpose of developing, constructing, operating, and                               
28       financing in-state natural gas pipeline projects or other transportation mechanisms; for                          
29       the purpose of aiding in the development, construction, operation, and financing of in-                           
30       state natural gas pipeline projects; or for the purpose of acquiring the state's royalty                          
31       share of natural gas, natural gas from the North Slope, and natural gas from other                                
01       regions of the state, including the state's outer continental shelf, and making that                              
02       natural gas available to markets in the state, including the delivery of natural gas,                             
03       including propane and other hydrocarbons associated with natural gas other than oil, to                           
04       coastal communities in the state, or for export. A subsidiary corporation created under                           
05       this section may be incorporated under AS 10.20.146 - 10.20.166. The corporation                                  
06       may transfer assets of the corporation to a subsidiary created under this section. A                              
07       subsidiary created under this section may borrow money and issue bonds as evidence                                
08       of that borrowing and has all the powers of the corporation that the corporation grants                           
09       to it. Unless otherwise provided by the corporation, the debts, liabilities, and                                  
10       obligations of a subsidiary corporation created under this section are not the debts,                             
11       liabilities, or obligations of the corporation.                                                                   
12            Sec. 31.25.130. Administrative procedure; regulations. (a) Except for                                      
13       AS 44.62.310 - 44.62.319 (Open Meetings Act), AS 44.62 (Administrative Procedure                                  
14       Act) does not apply to this chapter. The corporation shall make available to members                              
15       of the public copies of the regulations adopted under (b) - (e) of this section. Within 45                        
16       days after adoption, the chair of the board shall submit a regulation adopted under (b) -                         
17       (e) of this section to the chair of the Administrative Regulation Review Committee                                
18       under AS 24.20.400 - 24.20.460.                                                                                   
19            (b)  The board may adopt regulations by motion or by resolution or in another                                
20       manner permitted by its bylaws.                                                                                   
21            (c)  The board may adopt regulations to carry out the purposes of this chapter.                              
22            (d)  Except as provided in (e) of this section, at least 15 days before the                                  
23       adoption, amendment, or repeal of a regulation, the board shall give public notice of                             
24       the proposed action by posting notice on the corporation's Internet website and on the                            
25       Alaska Online Public Notice System and by mailing a copy of the notice to every                                   
26       person who has filed a request for notice of proposed regulations with the board or the                           
27       corporation. The public notice must include a statement of the time, place, and nature                            
28       of the proceedings for the adoption, amendment, or repeal of the regulation and must                              
29       include an informative summary of the proposed subject of the regulation. On the date                             
30       and at the time and place designated in the notice, the board shall give each interested                          
31       person or an authorized representative, or both, the opportunity to present statements,                           
01       arguments, or contentions in writing and shall give members of the public an                                      
02       opportunity to present oral statements, arguments, or contentions for a total period of                           
03       at least one hour. The board shall consider all relevant matter presented to it before                            
04       adopting, amending, or repealing a regulation. At a hearing under this subsection, the                            
05       board may continue or postpone the hearing to a time and place that it determines. A                              
06       regulation that is adopted, or its amendment or repeal, may vary in content from the                              
07       informative summary specified in this subsection if the subject matter of the                                     
08       regulation, or its amendment or repeal, remains the same and the original notice was                              
09       written to ensure that members of the public are reasonably notified of the proposed                              
10       subject of the board's action in order for them to determine whether their interests                              
11       could be affected by the board's action on that subject.                                                          
12            (e)  A regulation or order of repeal may be adopted as an emergency regulation                               
13       or order of repeal if the board makes a finding in its order of adoption or repeal,                               
14       including a statement of the facts that constitute the emergency, that the adoption of                            
15       the regulation or order of repeal is necessary for the immediate preservation of the                              
16       orderly operation of the corporation's bonding programs. Upon adoption of an                                      
17       emergency regulation, the board shall, within 10 days after adoption, give notice of the                          
18       adoption in accordance with (d) of this section. An emergency regulation adopted                                  
19       under this subsection does not remain in effect more than 120 days unless the board                               
20       complies with (d) of this section during the 120-day period.                                                      
21            (f)  A regulation adopted under (b) - (e) of this section becomes effective                                  
22       immediately upon its adoption by the board, unless otherwise specifically provided by                             
23       the order of adoption.                                                                                            
24            Sec. 31.25.140. Exemption from the State Procurement Code; application                                     
25       of the Executive Budget Act; corporation finances. (a) The corporation and its                                  
26       subsidiaries are exempt from the provisions of AS 36.30 (State Procurement Code).                                 
27            (b)  The operating budget of the corporation and a subsidiary of the corporation                             
28       are subject to AS 37.07 (Executive Budget Act).                                                                   
29            (c)  To further ensure effective budgetary decision making by the legislature,                               
30       the board shall                                                                                                   
31                 (1)  annually review the corporation's assets, including the assets of the                              
01       in-state natural gas pipeline fund under AS 31.25.100, to determine whether assets of                             
02       the corporation exceed an amount required to fulfill the purposes of the corporation as                           
03       defined in this chapter; in making its review, the board shall determine whether, and to                          
04       what extent, assets in excess of the amount required to fulfill the purposes of the                               
05       corporation during the next fiscal year are available without                                                     
06                      (A)  breaching an agreement entered into by the corporation;                                       
07                      (B)  materially impairing the operations or financial integrity of                                 
08            the corporation; or                                                                                          
09                      (C)  materially affecting the ability of the corporation to fulfill                                
10            the purposes of the corporation as defined in this chapter;                                                  
11                 (2)  specifically identify in the corporation's assets the amounts that the                             
12       board believes are necessary to meet the requirements of (1)(C) of this subsection; and                           
13                 (3)  present to the legislature by January 10 of each year a complete                                   
14       accounting of all assets of the corporation, including assets of the in-state natural gas                         
15       pipeline fund under AS 31.25.100, and a report of the review and determination made                               
16       under (1) and (2) of this subsection; the accounting shall be audited by an independent                           
17       outside auditor.                                                                                                  
18                        Article 2. Bonds and Notes.                                                                    
19            Sec. 31.25.160. Bonds and notes. (a) The corporation may, by resolution,                                   
20       issue bonds and bond anticipation notes to provide funds to carry out its purposes.                               
21            (b)  The principal of and interest on the bonds or notes are payable from                                    
22       corporation funds. Bond anticipation notes may be payable from the proceeds of the                                
23       sale of bonds or from the proceeds of sale of other bond anticipation notes or, in the                            
24       event bond or bond anticipation note proceeds are not available, from other funds or                              
25       assets of the corporation. Bonds or notes may be additionally secured by a pledge of a                            
26       grant or contribution from the federal government, or a corporation, association,                                 
27       institution, or person, or a pledge of money, income, or revenue of the corporation                               
28       from any source.                                                                                                  
29            (c)  Bonds or bond anticipation notes may be issued in one or more series and                                
30       shall be dated, bear interest at the rate or rates a year or within the maximum rate, be                          
31       in the denomination, be in the form, either coupon or registered, carry the conversion                            
01       or registration provisions, have the rank or priority, be executed in the manner and                              
02       form, be payable from the sources in the medium of payment and place or places                                    
03       within or outside the state, be subject to authentication by a trustee or fiscal agent, and                       
04       be subject to the terms of redemption with or without premium, as the resolution of the                           
05       corporation may provide. Bond anticipation notes shall mature at the time or times that                           
06       are determined by the corporation. Bonds shall mature at a time, not exceeding 50                                 
07       years from their date, that is determined by the corporation. Before the preparation of                           
08       definitive bonds or bond anticipation notes, the corporation may issue interim receipts                           
09       or temporary bonds or bond anticipation notes, with or without coupons, exchangeable                              
10       for bonds or bond anticipation notes when the definitive bonds or bond anticipation                               
11       notes have been executed and are available for delivery.                                                          
12            (d)  Bonds or bond anticipation notes may be sold in the manner and on the                                   
13       terms the corporation determines.                                                                                 
14            (e)  If an officer whose signature or a facsimile of whose signature appears on                              
15       bonds or notes or coupons attached to them ceases to be an officer before the delivery                            
16       of the bond, note, or coupon, the signature or facsimile is valid the same as if the                              
17       officer had remained in office until delivery.                                                                    
18            (f)  In a resolution of the corporation authorizing or relating to the issuance of                           
19       bonds or bond anticipation notes, the corporation has power by provisions in the                                  
20       resolution that will constitute covenants of the corporation and contracts with the                               
21       holders of the bonds or bond anticipation notes                                                                   
22                 (1)  to pledge to a payment or purpose all or a part of its revenue to                                  
23       which its right then exists or may thereafter come into existence the money derived                               
24       from the revenue and the proceeds of the bonds or notes;                                                          
25                 (2)  to covenant against pledging all or a part of its revenue or against                               
26       permitting or suffering a lien on the revenue of its property;                                                    
27                 (3)  to covenant as to the use and disposition of payments of principal                                 
28       or interest received by the corporation on investments held by the corporation;                                   
29                 (4)  to covenant as to establishment of reserves or sinking funds and the                               
30       making of provision for and the regulation and disposition of the reserves or sinking                             
31       funds;                                                                                                            
01                 (5)  to covenant with respect to or against limitations on a right to sell                              
02       or otherwise dispose of property of any kind;                                                                     
03                 (6)  to covenant as to bonds and notes to be issued, and their                                          
04       limitations, terms, and condition, and as to the custody, application, and disposition of                         
05       the proceeds of the bonds and notes;                                                                              
06                 (7)  to covenant as to the issuance of additional bonds or notes or as to                               
07       limitations on the issuance of additional bonds or notes and the incurring of other                               
08       debts;                                                                                                            
09                 (8)  to covenant as to the payment of the principal of or interest on the                               
10       bonds or notes, as to the sources and methods of the payment, as to the rank or priority                          
11       of the bonds or notes with respect to a lien or security, or as to the acceleration of the                        
12       maturity of the bonds or notes;                                                                                   
13                 (9)  to provide for the replacement of lost, stolen, destroyed, or                                      
14       mutilated bonds or notes;                                                                                         
15                 (10)  to covenant against extending the time for the payment of bonds                                   
16       or notes or interest on the bonds or notes;                                                                       
17                 (11)  to covenant as to the redemption of bonds or notes and privileges                                 
18       of their exchange for other bonds or notes of the corporation;                                                    
19                 (12)  to covenant to create or authorize the creation of special funds of                               
20       money to be held in pledge or otherwise for operating expenses, payment or                                        
21       redemption of bonds or notes, reserves, or other purposes, and as to the use and                                  
22       disposition of the money held in the funds;                                                                       
23                 (13)  to establish the procedure, if any, by which the terms of a contract                              
24       or covenant with or for the benefit of the holders of bonds or notes may be amended or                            
25       abrogated, the amount of bonds or notes the holders of which must consent to                                      
26       amendment or abrogation, and the manner in which the consent may be given;                                        
27                 (14)  to covenant as to the custody of any of its properties or                                         
28       investments, the safekeeping and insurance of its properties or investments, and the                              
29       use and disposition of insurance money;                                                                           
30                 (15)  to covenant as to the time or manner of enforcement or restraint                                  
31       from enforcement of any rights of the corporation arising by reason of or with respect                            
01       to nonpayment or violation of the terms of an agreement to which the corporation is a                             
02       party or with respect to which the corporation has enforcement rights;                                            
03                 (16)  to provide for the rights, liabilities, powers, and duties arising                                
04       upon the breach of a covenant, condition, or obligation, and to prescribe the events of                           
05       default and the terms and conditions on which any or all of the bonds, notes, or other                            
06       obligations of the corporation become or may be declared due and payable before                                   
07       maturity and the terms and conditions on which a declaration and its consequences                                 
08       may be waived;                                                                                                    
09                 (17)  to vest in a trustee or trustees within or outside the state the                                  
10       property, rights, powers, and duties in trust as the corporation may determine, which                             
11       may include any or all of the rights, powers, and duties of a trustee appointed by the                            
12       holders of the bonds or notes, and to limit or abrogate the right of the holders of the                           
13       bonds or notes of the corporation to appoint a trustee under this chapter or limit the                            
14       rights, powers, and duties of the trustee;                                                                        
15                 (18)  to pay the costs or expenses incident to the enforcement of the                                   
16       bonds or notes or of the provisions of the resolution or of a covenant or agreement of                            
17       the corporation with the holders of its bonds or notes;                                                           
18                 (19)  to agree with a corporate trustee, which may be a trust company                                   
19       or bank having the powers of a trust company within or outside the state, as to the                               
20       pledging or assigning of revenue or funds to which or in which the corporation has any                            
21       rights or interest; the agreement may further provide for other rights and remedies                               
22       exercisable by the trustee as may be proper for the protection of the holders of the                              
23       bonds or notes of the corporation and not otherwise in violation of law and may                                   
24       provide for the restriction of the rights of an individual holder of bonds or notes of the                        
25       corporation;                                                                                                      
26                 (20)  to appoint and provide for the duties and obligations of any                                      
27       paying agent or paying agents, or other fiduciaries as the resolution may provide                                 
28       within or outside the state;                                                                                      
29                 (21)  to limit the rights of the holders of the bonds or notes to enforce a                             
30       pledge or covenant securing bonds or notes;                                                                       
31                 (22)  to make covenants other than and in addition to the covenants                                     
01       expressly authorized in this section, of like or different character, and to make                                 
02       covenants to do or refrain from doing acts and things as may be necessary, or as may                              
03       be convenient and desirable, to better secure bonds or notes or that, in the absolute                             
04       discretion of the corporation, would tend to make bonds or notes more marketable,                                 
05       notwithstanding that the covenants, acts, or things may not be enumerated in this                                 
06       section.                                                                                                          
07            Sec. 31.25.170. Independent financial advisor. In negotiating the sale of                                  
08       bonds or bond anticipation notes to an underwriter, the corporation may retain a                                  
09       financial advisor. A financial advisor retained under this section must be independent                            
10       from the underwriter.                                                                                             
11            Sec. 31.25.180. Validity of pledge. The pledge of assets or revenue of the                                 
12       corporation to the payment of the principal of or interest on an obligation of the                                
13       corporation is valid and binding from the time the pledge is made, and the assets or                              
14       revenue are immediately subject to the lien of the pledge without physical delivery or                            
15       further act. The lien of the pledge is valid and binding against all parties having claims                        
16       of any kind in tort, contract, or otherwise against the corporation, regardless of                                
17       whether those parties have notice of the lien of the pledge. This section does not                                
18       prohibit the corporation from selling assets subject to a pledge, except that the sale                            
19       may be restricted by the trust agreement or resolution providing for the issuance of the                          
20       obligations.                                                                                                      
21            Sec. 31.25.190. Capital reserve funds. (a) The corporation may not establish                               
22       a capital reserve fund as described in this section except as expressly authorized by                             
23       law. The enactment of this section does not express that authorization. Upon                                      
24       enactment of a law expressly authorizing the establishment of a capital reserve fund                              
25       described in this section and for the purpose of securing one or more issues of its                               
26       obligations, the corporation may establish one or more special funds, called "capital                             
27       reserve funds," and shall pay into those capital reserve funds                                                    
28                 (1)  money appropriated and made available by the state for the purpose                                 
29       of any of those funds;                                                                                            
30                 (2)  proceeds of the sale of its obligations, to the extent provided in the                             
31       resolution or resolutions of the corporation authorizing their issuance; and                                      
01                 (3)  other money that may be made available to the corporation for the                                  
02       purposes of those funds from another source.                                                                      
03            (b)  All money held in a capital reserve fund, except as provided in this section,                           
04       shall be used as required, solely for the payment of the principal of obligations or of                           
05       the sinking fund payments with respect to those obligations; the purchase or                                      
06       redemption of obligations; the payment of interest on obligations; or the payment of a                            
07       redemption premium required to be paid when those obligations are redeemed before                                 
08       maturity. However, money in a fund may not, at any time, be withdrawn from the fund                               
09       in an amount that would reduce the amount of that fund to less than the capital reserve                           
10       requirement set out in (c) of this section, except for the purpose of making, with                                
11       respect to those obligations, payment, when due, of principal, interest, redemption                               
12       premiums, and the sinking fund payments for the payment of which other money of                                   
13       the corporation is not available. Income or interest earned by, or increment to, a capital                        
14       reserve fund, because of the investment of the fund or other amounts in it, may be                                
15       transferred by the corporation to other funds or accounts of the corporation to the                               
16       extent that the transfer does not reduce the amount of the capital reserve fund below                             
17       the capital reserve fund requirement.                                                                             
18            (c)  If the corporation decides to issue obligations secured by a capital reserve                            
19       fund, the obligations may not be issued if the amount in the capital reserve fund is less                         
20       than a percentage, not exceeding 10 percent of the principal amount of all of those                               
21       obligations secured by that capital reserve fund then to be issued and then outstanding                           
22       in accordance with their terms, as may be established by resolution of the corporation                            
23       (called the "capital reserve fund requirement"), unless the corporation, at the time of                           
24       issuance of the obligations, deposits in the capital reserve fund from the proceeds of                            
25       the obligations to be issued or from other sources an amount that, together with the                              
26       amount then in the fund, would not be less than the capital reserve fund requirement.                             
27            (d)  In computing the amount of a capital reserve fund for the purpose of this                               
28       section, securities in which all or a portion of the funds are invested shall be valued at                        
29       par or, if purchased at less than par, at amortized costs as the term is defined by                               
30       resolution of the corporation authorizing the issue of the obligations, or by some other                          
31       reasonable method established by the corporation by resolution. Valuation on a                                    
01       particular date shall include the amount of interest earned or accrued to that date.                              
02            (e)  The chair of the corporation shall annually, not later than January 2, make                             
03       and deliver to the governor and chairs of the house and senate finance committees a                               
04       certificate stating the sum, if any, required to restore a capital reserve fund to the                            
05       capital reserve fund requirement. The legislature may appropriate that sum, and the                               
06       corporation shall deposit all sums appropriated by the legislature during the then                                
07       current fiscal year for the restoration in the proper capital reserve fund. Nothing in this                       
08       section creates a debt or liability of the state.                                                                 
09            Sec. 31.25.200. Remedies. A holder of obligations or coupons attached to                                   
10       them issued under this chapter, and a trustee under a trust agreement or resolution                               
11       authorizing the issuance of the obligations, except as restricted by a trust agreement or                         
12       resolution, either at law or in equity,                                                                           
13                 (1)  may enforce all rights granted under this chapter, under the trust                                 
14       agreement or resolution, or under another contract executed by the corporation under                              
15       this chapter; and                                                                                                 
16                 (2)  may enforce and compel the performance of all duties required by                                   
17       this chapter or by the trust agreement or resolution to be performed by the corporation                           
18       or by an officer of the corporation.                                                                              
19            Sec. 31.25.210. Negotiable instruments. All obligations and interest coupons                               
20       attached to them are negotiable instruments under the laws of this state, subject only to                         
21       applicable provisions for registration.                                                                           
22            Sec. 31.25.220. Obligations eligible for investment. Obligations issued under                              
23       this chapter are securities in which all public officers and public bodies of the state and                       
24       its political subdivisions and all insurance companies, trust companies, banking                                  
25       associations, investment companies, executors, administrators, trustees, and other                                
26       fiduciaries may properly and legally invest funds, including capital in their control or                          
27       belonging to them. Those obligations may be deposited with a state or municipal                                   
28       officer of an agency or political subdivision of the state for any purpose for which the                          
29       deposit of bonds, notes, or obligations of the state is authorized by law.                                        
30            Sec. 31.25.230. Refunding obligations. (a) The corporation may provide for                                 
31       the issuance of refunding obligations for the purpose of refunding obligations then                               
01       outstanding that have been issued under this chapter, including the payment of the                                
02       redemption premium on them and interest accrued or to accrue to the date of                                       
03       redemption of the obligations. The issuance of the obligations, the maturities and other                          
04       details of them, the rights of the holders of them, and the rights, duties, and obligations                       
05       of the corporation with respect to them are governed by the provisions of this chapter                            
06       that relate to the issuance of obligations, insofar as those provisions may be                                    
07       appropriate.                                                                                                      
08            (b)  Refunding obligations may be sold or exchanged for outstanding                                          
09       obligations issued under this chapter, and, if sold, the proceeds may be applied, in                              
10       addition to other authorized purposes, to the purchase, redemption, or payment of the                             
11       outstanding obligations.                                                                                          
12            Sec. 31.25.240. Credit of state not pledged. (a) Obligations issued under this                             
13       chapter do not constitute a debt, liability, or obligation of the state or of a political                         
14       subdivision of the state or a pledge of the faith and credit of the state or of a political                       
15       subdivision of the state but are payable solely from the revenue or assets of the                                 
16       corporation. Each obligation issued under this chapter shall contain on its face a                                
17       statement that the corporation is not obligated to pay the obligation or the interest on                          
18       the obligation except from the revenue or assets of the corporation and that neither the                          
19       faith and credit nor the taxing power of the state or of any political subdivision of the                         
20       state is pledged to the payment of the principal of or the interest on the obligation.                            
21       This subsection applies to all debt, obligations, and liabilities of the corporation                              
22       regardless of how the debt, obligations, or liabilities are created, including by contract,                       
23       tort, or bond or note issuance. Except as provided in this subsection, a person may not                           
24       bring suit against the state or a political subdivision of the state other than the                               
25       corporation in the courts of the state to enforce or seek a remedy with respect to a                              
26       debt, obligation, or liability of the corporation.                                                                
27            (b)  Expenses incurred by the corporation in carrying out the provisions of this                             
28       chapter are payable from funds provided under this chapter, and liability may not be                              
29       incurred by the corporation in excess of those funds.                                                             
30                       Article 3. General Provisions.                                                                  
31            Sec. 31.25.250. Limitation on personal liability. A member of the board or                                 
01       other officer of the corporation or a subsidiary of the corporation is not subject to                             
02       personal liability or accountability because the member or officer executed or issued                             
03       an obligation.                                                                                                  
04            Sec. 31.25.260. Tax exemption. (a) The exercise of the powers granted by this                              
05       chapter is, in all respects, for the benefit of the people of the state, for their well-being                     
06       and prosperity, and for the improvement of their social and economic conditions, and                              
07       the corporation is not required to pay a tax or assessment on any property owned by                               
08       the corporation under the provisions of this chapter or on the income from it, including                          
09       state taxes levied or authorized under AS 43.56.010(a) and municipal taxes under                                  
10       AS 43.56.010(b) as provided in AS 43.56.020.                                                                      
11            (b)  All obligations issued under this chapter are declared to be issued by a                                
12       body corporate and public of the state and for an essential public and governmental                               
13       purpose, and the obligations, and the interest and income on and from the obligations,                            
14       and all fees, charges, funds, revenue, income, and other money pledged or available to                            
15       pay or secure the payment of the obligations, or interest on the obligations, are exempt                          
16       from taxation except for transfer, inheritance, and estate taxes.                                                 
17            Sec. 31.25.270. Annual report; final report. (a) The corporation shall prepare                             
18       and transmit annually a report to the governor accounting for the efficient discharge of                          
19       all responsibility assigned by law or by directive to the corporation. The corporation                            
20       shall notify the legislature that the report is available.                                                        
21            (b)  By January 10 of each year, the board shall prepare a report of the                                     
22       corporation. The board shall notify the governor and the legislature that the report is                           
23       available, and publish notice to the public on the Alaska Online Public Notice System                             
24       under AS 44.62.175 that the report is available on the corporation's Internet website.                            
25       The report shall be written in easily understandable language. The report must include                            
26       a financial statement audited by an independent outside auditor and any other                                     
27       information the board believes would be of interest to the governor, the legislature,                             
28       and the public. The annual income statement and balance sheet of the corporation shall                            
29       be published on the Internet. The board may also publish electronically or in print, at                           
30       the corporation's discretion, other reports it considers desirable to carry out its                               
31       purpose.                                                                                                          
01            (c)  After a decision of the corporation to dissolve under AS 31.25.010, the                                 
02       corporation shall provide a final report to the governor, the legislature, and the public                         
03       that summarizes the reasons for the dissolution of the corporation and a statement by                             
04       an independent outside auditor that the corporation and the subsidiaries of the                                   
05       corporation, if any, have no bonds, notes, or other obligations outstanding.                                      
06            Sec. 31.25.390. Definitions. In this chapter, unless the context clearly indicates                         
07       a different meaning,                                                                                              
08                 (1)  "board" means the board of directors of the corporation;                                           
09                 (2)  "bond" or "obligation" means a bond, bond anticipation note, or                                    
10       other note of the corporation authorized to be issued by the corporation under this                               
11       chapter;                                                                                                          
12                 (3)  "corporation" means the Alaska Gasline Development Corporation;                                    
13                 (4)  "governmental agency" means a department, division, public                                         
14       agency, political subdivision, or other public instrumentality of the state or the federal                        
15       government;                                                                                                       
16                 (5)  "in-state natural gas pipeline" means a natural gas pipeline for                                   
17       transporting natural gas in the state;                                                                            
18                 (6)  "natural gas pipeline" means a total system of pipe and connected                                  
19       facilities for the transportation, treatment or conditioning, delivery, storage, or further                       
20       transportation of natural gas, including all pipe, compressor stations, station                                   
21       equipment, and all other facilities used or necessary for an integral line of pipe to carry                       
22       out the transportation of the natural gas.                                                                        
23    * Sec. 4. AS 36.30.850(b) is amended by adding a new paragraph to read:                                            
24                 (46)  the Alaska Gasline Development Corporation (AS 31.25) and                                         
25       subsidiaries of the Alaska Gasline Development Corporation.                                                       
26    * Sec. 5. AS 37.05.146(c)(22) is amended to read:                                                                  
27                 (22)  Regulatory Commission of Alaska under AS 42.05, [AND]                                         
28       AS 42.06, and AS 42.08;                                                                                       
29    * Sec. 6. AS 38.05.180(bb)(1) is amended to read:                                                                  
30                 (1)  "gas or electric utility" includes an electric cooperative organized                               
31       under AS 10.25, a municipal utility, and a gas or electric utility regulated under                                
01       AS 42.05; [PROVIDED THAT,] if the contract gas is transmitted to consumers                                        
02       through a pipeline and the gas utility either owns the pipeline or is related in                                  
03       ownership to the owner of the pipeline, then the gas utility qualifies as a "gas or                               
04       electric utility" within the meaning of this paragraph only if it is bound or agrees to be                        
05       bound by the covenants set out in AS 38.35.120 or 38.35.121, as applicable;                                   
06    * Sec. 7. AS 38.34.099 is repealed and reenacted to read:                                                          
07            Sec. 38.34.099. Definitions. In this chapter,                                                              
08                 (1)  "Alaska Gasline Development Corporation" means the corporation                                     
09       created under AS 31.25.010;                                                                                       
10                 (2)  "in-state natural gas pipeline" and "natural gas pipeline" have the                                
11       meanings given in AS 31.25.390.                                                                                   
12    * Sec. 8. AS 38.35.100(d) is amended to read:                                                                      
13            (d)  The commissioner shall include in a conditional lease each requirement                                  
14       and condition of the covenants established under AS 38.35.120 or 38.35.121, as                                
15       applicable. The commissioner may also require that the lessee agree to additional                             
16       conditions that the commissioner finds to be in the public interest. In place of the                              
17       covenant established under AS 38.35.120(a)(9), the commissioner shall require the                                 
18       lessee to agree that it will not transfer, assign, pledge, or dispose of in any manner,                           
19       directly or indirectly, its interest in a conditional right-of-way lease or a pipeline                            
20       subject to the conditional lease, unless the commissioner, after considering the public                           
21       interest and issuing written findings to substantiate a decision to allow the transfer,                           
22       authorizes the transfer. The commissioner shall also require the lessee to agree not to                           
23       allow the transfer of control of the lessee without the approval of the commissioner; as                          
24       used in this subsection, "transfer of control of the lessee" means the transfer of 30                             
25       percent or more, in the aggregate, of ownership interest in the lessee in one or more                             
26       transactions to one or more persons by one or more persons.                                                       
27    * Sec. 9. AS 38.35.120(a) is amended to read:                                                                      
28            (a)  Except as provided for a natural gas pipeline subject to AS 38.35.121,                              
29       a [A] noncompetitive lease of state land for a right-of-way for an oil or natural gas                         
30       pipeline valued at $1,000,000 or more may be granted only upon the condition that the                             
31       lessee expressly covenants in the lease, in consideration of the rights acquired by it                            
01       under the lease, that                                                                                             
02                 (1)  it assumes the status of and will perform all of its functions                                     
03       undertaken under the lease as a common carrier and will accept, convey, and transport                             
04       without discrimination crude oil or natural gas, depending on the kind of pipeline                                
05       involved, delivered to it for transportation from fields in the vicinity of the pipeline                          
06       subject to the lease throughout its route both on state land obtained under the lease and                         
07       on the other land; it will accept, convey, and transport crude oil or natural gas without                         
08       unjust or unreasonable discrimination in favor of one producer or person, including                               
09       itself, as against another but will take the crude oil or natural gas, depending on the                           
10       kind of pipeline involved, delivered or offered, without unreasonable discrimination,                             
11       that the Regulatory Commission of Alaska shall, after a full hearing with due notice to                           
12       the interested parties and a proper finding of facts, determine to be reasonable in the                           
13       performance of its duties as a common carrier; however, a lessee that owns or operates                            
14       a natural gas pipeline                                                                                            
15                      (A)  subject to regulation either under 15 U.S.C. 717 et seq.                                  
16            (Natural Gas Act) [THE NATURAL GAS ACT (15 U.S.C. 717 ET SEQ.) OF                                        
17            THE UNITED STATES] or by the state or a political subdivision                                        
18            [SUBDIVISIONS] with respect to rates and charges for the sale of natural gas,                                
19            is, to the extent of that regulation, exempt from the common carrier                                         
20            requirement in this paragraph;                                                                               
21                      (B)  that is a North Slope natural gas pipeline (i) is required to                                 
22            operate as a common carrier only with respect to the intrastate transportation of                            
23            North Slope natural gas, as that term is defined in AS 42.06.630, and (ii) is not                            
24            required to operate as a common carrier as to a liquefied natural gas facility or                            
25            a marine terminal facility associated with the pipeline, and is not otherwise                                
26            required to perform its functions under the lease as a common carrier; for                                   
27            purposes of this subparagraph, "North Slope natural gas pipeline" means all the                              
28            facilities of a total system of pipe, whether owned or operated under a contract,                            
29            agreement, or lease, used by a carrier for transportation of North Slope natural                             
30            gas, as defined by AS 42.06.630, for delivery, for storage, or for further                                   
31            transportation, and including all pipe, [PUMP, OR] compressor stations,                                      
01            station equipment, tanks, valves, access roads, bridges, airfields, terminals and                            
02            terminal facilities, including docks and tanker loading facilities, operations                               
03            control centers for both the upstream part of the pipeline and the terminal,                                 
04            tanker ballast treatment facilities, fire protection system, communication                                   
05            system, and all other facilities used or necessary for an integral line of pipe,                             
06            taken as a whole, to carry out transportation, including an extension or                                     
07            enlargement of the line;                                                                                     
08                 (2)  it will interchange crude oil or natural gas, depending on the kind                                
09       of pipeline involved, with each like common carrier and provide connections and                                   
10       facilities for the interchange of crude oil or natural gas at every locality reached by                           
11       both pipelines when the necessity exists, subject to rates and regulations made by the                            
12       appropriate state or federal regulatory agency;                                                                   
13                 (3)  it will maintain and preserve books, accounts, and records and will                                
14       make those reports that the state may prescribe by regulation or law as necessary and                             
15       appropriate for purposes of administration of this chapter;                                                       
16                 (4)  it will accord at all reasonable times to the state and its authorized                             
17       agents and auditors the right of access to its property and records, of inspection of its                         
18       property, and of examination and copying of records;                                                              
19                 (5)  it will provide connections, as determined by the Regulatory                                       
20       Commission of Alaska under AS 42.06.340, to facilities on the pipeline subject to the                             
21       lease, both on state land and other land in the state, for the purpose of delivering crude                        
22       oil or natural gas, depending on the kind of pipeline involved, to persons (including                             
23       the state and its political subdivisions) contracting for the purchase at wholesale of                            
24       crude oil or natural gas transported by the pipeline when required by the public                                  
25       interest;                                                                                                         
26                 (6)  it shall, notwithstanding any other provision, provide connections                                 
27       and interchange facilities at state expense at [SUCH] places the state considers                                  
28       necessary if the state determines to take a portion of its royalty or taxes in oil or                             
29       natural gas;                                                                                                      
30                 (7)  it will construct and operate the pipeline in accordance with                                      
31       applicable state laws and lawful regulations and orders of the Regulatory Commission                              
01       of Alaska;                                                                                                        
02                 (8)  it will, at its own expense, during the term of the lease,                                         
03                      (A)  maintain the leasehold and pipeline in good repair;                                           
04                      (B)  promptly repair or remedy [ANY] damage to the leasehold;                                      
05                      (C)  promptly compensate for [ANY] damage to or destruction                                        
06            of property for which the lessee is liable resulting from damage to or                                       
07            destruction of the leasehold or pipeline;                                                                    
08                 (9)  it will not transfer, assign, or dispose of, in any manner, directly or                        
09       indirectly, or by transfer of control of the carrier corporation, its interest in a right-of-                     
10       way lease, or [ANY] rights under the lease or a [ANY] pipeline subject to the lease to                        
11       a [ANY] person other than another owner of the pipeline (including subsidiaries,                              
12       parents, and affiliates of the owners), except to the extent that the commissioner, after                         
13       consideration of the protection of the public interest (including whether the proposed                            
14       transferee is fit, willing, and able to perform the transportation or other acts proposed                         
15       in a manner that will reasonably protect the lives, property, and general welfare of the                          
16       people of Alaska), authorizes; the commissioner shall not unreasonably withhold                                   
17       consent to the transfer, assignment, or disposal;                                                                 
18                 (10)  it will file with the commissioner a written appointment of a                                     
19       named permanent resident of the state to be its registered agent in the state and to                              
20       receive service of notices, regulations, decisions, and orders of the commissioner; if it                         
21       fails to appoint an agent for service, service may be made by posting a copy in the                               
22       office of the commissioner, filing a copy in the office of the lieutenant governor, and                           
23       mailing a copy to the lessee's last known address;                                                                
24                 (11)  the applicable law of this state will be used in resolving questions                              
25       of interpretation of the lease;                                                                                   
26                 (12)  the granting of the right-of-way lease is subject to the express                                  
27       condition that the exercise of the rights and privileges granted under the lease will not                         
28       unduly interfere with the management, administration, or disposal by the state of the                             
29       land affected by the lease, and that the lessee agrees and consents to the occupancy                              
30       and use by the state, its grantees, permittees, or other lessees of any part of the right-                        
31       of-way not actually occupied or required by the pipeline for the full and safe                                    
01       utilization of the pipeline, for necessary operations incident to land management,                                
02       administration, or disposal;                                                                                      
03                 (13)  it will be liable to the state for damages or injury incurred by the                              
04       state caused by the construction, operation, or maintenance of the pipeline and it will                           
05       indemnify the state for the liabilities or damages;                                                               
06                 (14)  it will procure and furnish liability and property damage insurance                               
07       from a company licensed to do business in the state or furnish other security or                                  
08       undertaking upon the terms and conditions the commissioner considers necessary if                                 
09       the commissioner finds that the net assets of the lessee are insufficient to protect the                          
10       public from damage for which the lessee may be liable arising out of the construction                             
11       or operation of the pipeline.                                                                                     
12    * Sec. 10. AS 38.35.120(b) is amended to read:                                                                     
13            (b)  Except as provided for a natural gas pipeline subject to AS 38.35.121,                              
14       for [FOR] a right-of-way lease granted under this chapter for an oil or natural gas                           
15       pipeline valued at $1,000,000 or more to be valid and of legal effect, it must contain                            
16       the terms required to be inserted under the provisions of AS 38.35.110 - 38.35.140. An                            
17       oil or natural gas pipeline right-of-way lease granted under this chapter and subject to                      
18       this section that does not contain the required terms is null and void and without legal                      
19       effect and does not vest any interest in state land or any authority in the carrier granted                       
20       the lease.                                                                                                        
21    * Sec. 11. AS 38.35 is amended by adding a new section to read:                                                    
22            Sec. 38.35.121. Covenants required to be in a lease to a natural gas                                       
23       pipeline that is a contract carrier. (a) For a lease of state land for a right-of-way for                       
24       which an applicant has applied as a contract carrier under AS 42.08, a noncompetitive                             
25       lease of state land for a right-of-way for a natural gas pipeline valued at $1,000,000 or                         
26       more may be granted only on the condition that the lessee expressly covenant in the                               
27       lease, in consideration of the rights acquired by it under the lease, that                                        
28                 (1)  except for the covenants in AS 38.35.120(a)(1), (2), and (5), it will                              
29       meet the requirements of AS 38.35.120;                                                                            
30                 (2)  it will interchange natural gas and provide connections with each                                  
31       public utility pipeline, common carrier pipeline, or contract carrier pipeline, and                               
01       facilities for the interchange of natural gas at every locality reached by both pipelines                         
02       when the necessity exists, as provided in contracts on file with the Regulatory                                   
03       Commission of Alaska;                                                                                             
04                 (3)  it assumes the status of and will perform all of its functions                                     
05       undertaken under the lease as a contract carrier and, subject to contracts with shippers,                         
06       will accept, convey, and transport, without discrimination, natural gas delivered to it                           
07       for transportation from fields in the vicinity of the pipeline subject to the right-of-way                        
08       lease throughout the pipeline route, both on state land obtained under the lease and on                           
09       other land, and that, subject to contracts with shippers, it will accept, convey, and                             
10       transport natural gas without unjust or unreasonable discrimination in favor of itself or                         
11       one producer or person against another, but will take the natural gas delivered or                                
12       offered without unreasonable discrimination;                                                                      
13                 (4)  it will expand the natural gas pipeline on commercially reasonable                                 
14       terms that, when possible, encourage exploration and development of gas resources in                              
15       this state without increasing transportation costs for a shipper except as provided for in                        
16       the contract with the shipper; in this paragraph, "commercially reasonable terms"                                 
17       means terms that produce sufficient revenue from transportation contracts to cover the                            
18       cost of the expansion, including increased fuel costs and a reasonable return on capital,                         
19       without impairing the ability of the pipeline to recover the costs of existing facilities;                        
20                 (5)  it will not require a shipper to pay a rate in excess of the rates                                 
21       provided for in the contract with that shipper.                                                                   
22            (b)  A contract carrier may offer to a shipper firm transportation service,                                  
23       interruptible transportation service, or both. In this subsection, "firm transportation                           
24       service" has the meaning given in AS 42.08.900.                                                                   
25            (c)  The lessee may not construct or expand or allow the construction or                                     
26       expansion of a natural gas pipeline under (a) of this section to be a competing natural                           
27       gas pipeline project for purposes of AS 43.90. In this subsection, "competing natural                             
28       gas pipeline project" has the meaning given in AS 43.90.440.                                                      
29    * Sec. 12. AS 38.35.140 is amended by adding a new subsection to read:                                             
30            (c)  Notwithstanding (a) of this section, a right-of-way lease shall be granted                              
31       without appraisal or rental costs to the Alaska Gasline Development Corporation                                   
01       created under AS 31.25.010.                                                                                       
02    * Sec. 13. AS 38.35.200 is amended by adding new subsections to read:                                              
03            (c)  Except as provided for an applicant in (a) of this section and                                          
04       notwithstanding any contrary provision of law, an action or decision of the                                       
05       commissioner or other state officer or agency concerning the issuance or approval of a                            
06       necessary right-of-way, permit, lease, certificate, license, or other authorization for the                       
07       planning, financing, acquisition, maintenance, development, construction, or initial                              
08       operation of a natural gas pipeline by the Alaska Gasline Development Corporation                                 
09       under AS 31.25 that uses a right-of-way subject to this chapter may not be subject to                             
10       judicial review, except that a claim alleging the invalidity of this subsection must be                           
11       brought within 60 days after the effective date of this Act, and a claim alleging that an                         
12       action will deny rights under the Constitution of the State of Alaska must be brought                             
13       within 60 days following the date of that action. A claim that is not filed within the                            
14       limitations established in this subsection is barred. A complaint under this subsection                           
15       must be filed in superior court, and the superior court has exclusive jurisdiction.                               
16       Notwithstanding AS 22.10.020(c), except in conjunction with a final judgment on a                                 
17       claim filed under this subsection, the superior court may not grant injunctive relief,                            
18       including a temporary restraining order, preliminary injunction, permanent injunction,                            
19       or stay, against the issuance of a necessary right-of-way, permit, lease, certificate,                            
20       license, or other authorization for the planning, financing, acquisition, maintenance,                            
21       development, construction, or initial operation of a natural gas pipeline by the Alaska                           
22       Gasline Development Corporation. In this subsection, "natural gas pipeline" has the                               
23       meaning given in AS 38.34.099.                                                                                    
24            (d)  An appeal of a permitting decision or authorization by the Department of                                
25       Environmental Conservation under AS 46.03 or AS 46.14 that is made under a                                        
26       program approved or delegated by the United States Environmental Protection Agency                                
27       is not                                                                                                            
28                 (1)  subject to the limitation in (a) of this section;                                                  
29                 (2)  included in the actions or decisions described in (c) of this section.                             
30    * Sec. 14. AS 39.25.110(11) is amended by adding a new subparagraph to read:                                       
31                      (H)  Alaska Gasline Development Corporation and subsidiaries                                       
01            of the Alaska Gasline Development Corporation;                                                               
02    * Sec. 15. AS 39.50.200(b) is amended by adding a new paragraph to read:                                           
03                 (64)  the board of directors of the Alaska Gasline Development                                          
04       Corporation or the board of directors of a subsidiary of the Alaska Gasline                                       
05       Development Corporation.                                                                                          
06    * Sec. 16. AS 40.25.120(a) is amended to read:                                                                     
07            (a)  Every person has a right to inspect a public record in the state, including                             
08       public records in recorders' offices, except                                                                      
09                 (1)  records of vital statistics and adoption proceedings, which shall be                               
10       treated in the manner required by AS 18.50;                                                                       
11                 (2)  records pertaining to juveniles unless disclosure is authorized by                                 
12       law;                                                                                                              
13                 (3)  medical and related public health records;                                                         
14                 (4)  records required to be kept confidential by a federal law or                                       
15       regulation or by state law;                                                                                       
16                 (5)  to the extent the records are required to be kept confidential under                               
17       20 U.S.C. 1232g and the regulations adopted under 20 U.S.C. 1232g in order to secure                              
18       or retain federal assistance;                                                                                     
19                 (6)  records or information compiled for law enforcement purposes, but                                  
20       only to the extent that the production of the law enforcement records or information                              
21                      (A)  could reasonably be expected to interfere with enforcement                                    
22            proceedings;                                                                                                 
23                      (B)  would deprive a person of a right to a fair trial or an                                       
24            impartial adjudication;                                                                                      
25                      (C)  could reasonably be expected to constitute an unwarranted                                     
26            invasion of the personal privacy of a suspect, defendant, victim, or witness;                                
27                      (D)  could reasonably be expected to disclose the identity of a                                    
28            confidential source;                                                                                         
29                      (E)  would disclose confidential techniques and procedures for                                     
30            law enforcement investigations or prosecutions;                                                              
31                      (F)  would disclose guidelines for law enforcement                                                 
01            investigations or prosecutions if the disclosure could reasonably be expected to                             
02            risk circumvention of the law; or                                                                            
03                      (G)  could reasonably be expected to endanger the life or                                          
04            physical safety of an individual;                                                                            
05                 (7)  names, addresses, and other information identifying a person as a                                  
06       participant in the Alaska Higher Education Savings Trust under AS 14.40.802 or the                                
07       advance college tuition savings program under AS 14.40.803 - 14.40.817;                                           
08                 (8)  public records containing information that would disclose or might                                 
09       lead to the disclosure of a component in the process used to execute or adopt an                                  
10       electronic signature if the disclosure would or might cause the electronic signature to                           
11       cease being under the sole control of the person using it;                                                        
12                 (9)  reports submitted under AS 05.25.030 concerning certain                                            
13       collisions, accidents, or other casualties involving boats;                                                       
14                 (10)  records or information pertaining to a plan, program, or                                          
15       procedures for establishing, maintaining, or restoring security in the state, or to a                             
16       detailed description or evaluation of systems, facilities, or infrastructure in the state,                        
17       but only to the extent that the production of the records or information                                          
18                      (A)  could reasonably be expected to interfere with the                                            
19            implementation or enforcement of the security plan, program, or procedures;                                  
20                      (B)  would disclose confidential guidelines for investigations or                                  
21            enforcement and the disclosure could reasonably be expected to risk                                          
22            circumvention of the law; or                                                                                 
23                      (C)  could reasonably be expected to endanger the life or                                          
24            physical safety of an individual or to present a real and substantial risk to the                            
25            public health and welfare;                                                                                   
26                 (11)  the written notification regarding a proposed regulation provided                                 
27       under AS 24.20.105 to the Department of Law and the affected state agency and                                     
28       communications between the Legislative Affairs Agency, the Department of Law, and                                 
29       the affected state agency under AS 24.20.105;                                                                     
30                 (12)  records that are                                                                                  
31                      (A)  proprietary, privileged, or a trade secret in accordance with                                 
01            AS 43.90.150 or 43.90.220(e);                                                                                
02                      (B)  applications that are received under AS 43.90 until notice is                                 
03            published under AS 43.90.160;                                                                            
04                 (13)  information of the Alaska Gasline Development Corporation                                     
05       created under AS 31.25.010 or a subsidiary of the Alaska Gasline Development                                  
06       Corporation that is confidential by law or under a valid confidentiality                                      
07       agreement.                                                                                                    
08    * Sec. 17. AS 42.04.080(a) is amended to read:                                                                     
09            (a)  Except as provided in AS 42.05.171 or AS 42.06.140, when a matter                                       
10       comes for decision before the commission under AS 42.05, [OR] AS 42.06, or                                
11       AS 42.08, the chair shall appoint a hearing panel composed of three or more members                           
12       to hear, or if a hearing is not required, to otherwise consider, and decide the case. The                         
13       panel shall exercise the powers of the commission with respect to the matter.                                     
14    * Sec. 18. AS 42.05 is amended by adding a new section to read:                                                    
15            Sec. 42.05.433. Review of certain contracts by the commission. (a) A                                       
16       precedent agreement or contract entered into by a public utility with the Alaska                                  
17       Gasline Development Corporation or its successors or assigns may contain a covenant                               
18       for the public utility to establish, charge, and collect rates sufficient to meet its                             
19       obligations under the contract. If the precedent agreement associated with the contract                           
20       is approved by the commission under AS 42.08, the rate covenant in the associated                                 
21       contract is valid and enforceable.                                                                                
22            (b)  A public utility negotiating to purchase natural gas to be shipped through                              
23       an in-state natural gas pipeline regulated under AS 42.08 shall submit the contract to                            
24       the commission before the contract takes effect.                                                                  
25            (c)  A public utility negotiating to contract for the storage of natural gas                                 
26       shipped in an in-state natural gas pipeline regulated under AS 42.08 shall submit the                             
27       contract to the commission before the contract takes effect.                                                      
28            (d)  The commission shall review and may conduct an investigation and                                        
29       hearing to determine whether a contract submitted under (b) or (c) of this section is                             
30       just and reasonable. The review and determination shall be conducted as provided in                               
31       AS 42.08.320(b) - (d). The commission shall either approve the contract as presented                              
01       or, if the commission finds that a contract is not just and reasonable, disapprove the                            
02       contract. Notwithstanding AS 42.05.175, if the commission has not acted within 180                                
03       days after the contract is submitted, the contract shall be considered approved and                               
04       shall take effect immediately. The commission may, by order, extend the 180-day                                   
05       review period by the duration of a delay caused by a failure of the public utility to                             
06       submit supplemental information that is available to the public utility. A contract that                          
07       is approved or considered approved under this section is not subject to further review                            
08       by the commission.                                                                                                
09    * Sec. 19. AS 42.05.711 is amended by adding a new subsection to read:                                             
10            (t)  An in-state natural gas pipeline subject to AS 42.08 and an in-state natural                            
11       gas pipeline carrier subject to AS 42.08 are exempt from this chapter.                                            
12    * Sec. 20. AS 42.06 is amended by adding a new section to article 7 to read:                                       
13            Sec. 42.06.601. Exemption. An in-state natural gas pipeline subject to                                     
14       AS 42.08 and an in-state natural gas pipeline carrier subject to AS 42.08 are exempt                              
15       from this chapter.                                                                                                
16    * Sec. 21. AS 42 is amended by adding a new chapter to read:                                                       
17                 Chapter 08. In-State Pipeline Contract Carrier.                                                       
18                  Article 1. Application of Chapter; Purpose.                                                          
19            Sec. 42.08.010. Application of chapter; exemption. (a) This chapter applies                                
20       to the regulation of in-state natural gas pipelines that provide transportation by                                
21       contract carriage.                                                                                                
22            (b)  An in-state natural gas pipeline subject exclusively to federal jurisdiction                            
23       is exempt from this chapter.                                                                                      
24            Sec. 42.08.020. Qualification of the Alaska Gasline Development                                            
25       Corporation; findings. (a) The Alaska Gasline Development Corporation is                                        
26       financially fit, willing, and able to take the actions, perform the service, and conform                          
27       to the requirements of this chapter.                                                                              
28            (b)  The board of directors and the officers of the Alaska Gasline Development                               
29       Corporation are managerially fit, willing, and able to manage the Alaska Gasline                                  
30       Development Corporation and to take the actions, perform the service, and conform to                              
31       the requirements of this chapter.                                                                                 
01            (c)  The proposed service, construction, and operation of an in-state natural gas                            
02       pipeline for which the Alaska Gasline Development Corporation applies for a                                       
03       certificate under this chapter is required by present and future public convenience and                           
04       necessity.                                                                                                        
05            (d)  The findings that the Alaska Gasline Development Corporation is                                         
06       financially fit in (a) of this section and managerially fit in (b) of this section and that                       
07       an in-state natural gas pipeline is required by present or future public convenience and                          
08       necessity in (c) of this section are conclusive and binding on the commission.                                    
09            (e)  The commission shall determine whether a person making application                                      
10       under this chapter is technically fit, willing, and able to take the actions, perform the                         
11       service, and conform to the requirements in this chapter.                                                         
12          Article 2. Powers and Duties of Regulatory Commission of Alaska.                                             
13            Sec. 42.08.220. General powers and duties. (a) The commission shall                                        
14                 (1)  regulate, under the provisions of this chapter, an in-state natural gas                            
15       pipeline that provides transportation by way of contract carriage;                                                
16                 (2)  require permits for the construction, enlargement in size or                                       
17       operating capacity, extension, connection and interconnection, operation, or                                      
18       abandonment of an in-state natural gas pipeline facility under the provisions of this                             
19       chapter and subject to the same standards as certification in AS 42.08.330;                                       
20                 (3)  to the extent necessary to perform the duties of the commission                                    
21       under this chapter, have access to, and may designate its employees, agents, or                                   
22       consultants to inspect and examine, the accounts, financial and property records,                                 
23       books, maps, inventories, appraisals, valuations, and related reports kept by an in-state                         
24       natural gas pipeline carrier, or kept for an in-state natural gas pipeline carrier by                             
25       others, that directly affect the interests of the state and directly relate to in-state natural                   
26       gas pipelines located in the state during normal business hours;                                                  
27                 (4)  provide all reasonable assistance to the Department of Law in                                      
28       intervening in, offering evidence in, and participating in proceedings before an officer,                         
29       department, board, commission, or court of another state or the United States                                     
30       involving an in-state natural gas pipeline carrier or an affiliated interest and affecting                        
31       the interests of the state.                                                                                       
01            (b)  The commission may                                                                                      
02                 (1)  review and approve recourse tariffs filed by an in-state natural gas                               
03       pipeline carrier under this chapter;                                                                              
04                 (2)  review and approve contracts;                                                                      
05                 (3)  investigate, on its own motion or after receiving a formal                                         
06       complaint, a dispute                                                                                              
07                      (A)  related to rules, regulations, services, practices, and                                       
08            facilities that are not subject to the dispute resolution provisions in an in-state                          
09            natural gas pipeline carrier's contracts or recourse tariff;                                                 
10                      (B)  presented by a complainant that does not have a contract                                      
11            with the in-state natural gas pipeline carrier;                                                              
12                      (C)  related to the conduct of an in-state natural gas pipeline                                    
13            carrier's open season under AS 42.08.300; to resolve the dispute, the                                        
14            commission may order an expansion of an in-state natural gas pipeline or order                               
15            an open season under the terms provided for an expansion or open season in                                   
16            this chapter or AS 38.35.121(a)(4) and (c); or                                                               
17                      (D)  related to an unreasonable diminution in quantity or quality                                  
18            in the provision of service to a public utility that                                                         
19                           (i)  is a violation of the in-state natural gas pipeline                                      
20                 carrier's tariff or contract with the public utility;                                                   
21                           (ii)  has not been resolved by the in-state natural gas                                       
22                 pipeline carrier; and                                                                                   
23                           (iii)  will result in immediate injury, loss, or damage to                                    
24                 the peace, health, safety, or general welfare of the public as clearly                                  
25                 demonstrated by specific facts shown by affidavit or verified                                           
26                 complaint;                                                                                              
27                 (4)  adopt regulations that are necessary and proper to the performance                                 
28       of the duties of the commission under this chapter, including regulations governing                               
29       practices and procedures of the commission; regulations adopted by the commission                                 
30       may not be inconsistent with state law;                                                                           
31                 (5)  initiate, intervene in, and appear personally or by counsel and offer                              
01       evidence in and participate in, proceedings before an officer, department, board,                                 
02       commission, or court of this state involving an in-state natural gas pipeline carrier and                         
03       affecting the interests of the state; and                                                                         
04                 (6)  appoint a qualified, unbiased, and impartial administrative law                                    
05       judge with experience in the general practice of law to conduct hearings under this                               
06       chapter; the administrative law judge may perform other duties in connection with the                             
07       administration of this chapter and other laws; an administrative law judge hired to                               
08       conduct hearings under this chapter shall have been admitted to practice law for at                               
09       least five years immediately before appointment under this paragraph.                                             
10            (c)  Except with regard to a precedent agreement under AS 42.08.320(a) that is                               
11       filed before the issuance of a certificate, consideration of an application for a contract                        
12       carriage certificate under AS 42.08.330, and an initial recourse tariff under                                     
13       AS 42.08.350(a), the commission may extend a timeline required under this chapter if                              
14       all parties of record consent to the extension or if, for one time only, before the                               
15       timeline expires, the                                                                                             
16                 (1)  commission reasonably finds that good cause exists to extend the                                   
17       timeline;                                                                                                         
18                 (2)  commission issues a written order extending the timeline and                                       
19       setting out its findings regarding good cause; and                                                                
20                 (3)  extension of time is 30 days or less.                                                              
21            (d)  Except as provided in this chapter, the commission may not                                              
22                 (1)  require rates, rate design, or tariff rates or regulations;                                        
23                 (2)  require an in-state natural gas pipeline carrier to make a recourse                                
24       tariff filing;                                                                                                    
25                 (3)  order a modification of a contract that is approved, considered                                    
26       approved, or filed under this chapter;                                                                            
27                 (4)  conduct further review or investigation of a contract that is                                      
28       approved, considered approved, or filed under this chapter; or                                                    
29                 (5)  investigate a dispute under (b)(3) of this section if a complete                                   
30       formal complaint has not been filed with the commission within 60 days after the                                  
31       event giving rise to the complaint.                                                                               
01            Sec. 42.08.230. Commission decision-making procedures. The commission                                      
02       shall comply with AS 42.04.080(a) and expeditiously adjudicate all matters that come                              
03       before the commission.                                                                                            
04            Sec. 42.08.240. Publication of reports, orders, decisions, and regulations.                                
05       All reports, orders, decisions, and regulations of the commission shall be in writing.                            
06       The commission shall notify all affected operators of in-state natural gas pipeline                               
07       facilities and interested parties of reports, orders, decisions, and regulations as they are                      
08       issued and adopted and, when appropriate, publish them in a manner that will                                      
09       reasonably inform the public or the affected consumers of the services of an in-state                             
10       natural gas pipeline facility. The commission may set charges for costs of printing or                            
11       reproducing and furnishing copies of reports, orders, decisions, and regulations. The                             
12       publication requirement, as it pertains to regulations, does not supersede the                                    
13       requirements of AS 44.62 (Administrative Procedure Act).                                                          
14            Sec. 42.08.250. Application of Administrative Procedure Act. (a) The                                       
15       administrative adjudication procedures of AS 44.62 (Administrative Procedure Act)                                 
16       do not apply to adjudicatory proceedings of the commission under this chapter, except                             
17       that final administrative determinations by the commission are subject to judicial                                
18       review under AS 44.62 (Administrative Procedure Act) as provided in AS 42.08.530.                                 
19            (b)  AS 44.62 (Administrative Procedure Act) applies to regulations adopted                                  
20       by the commission.                                                                                                
21            Sec. 42.08.260. Annual report. The commission shall include in its annual                                  
22       reports under AS 42.05.211 and AS 42.06.220 a review of its activities under this                                 
23       chapter during the previous fiscal year. The report must address the regulation of in-                            
24       state natural gas pipeline facilities in the state as of June 30 of each year and must                            
25       contain details about the commission's compliance with the performance measures in                                
26       this chapter.                                                                                                     
27       Article 3. Contract Review; Contract Carriage Certificate; Open Seasons.                                        
28            Sec. 42.08.300. Open seasons. (a) An in-state natural gas pipeline carrier shall                           
29       include in its approved recourse tariff the procedures for conducting open seasons for                            
30       uncommitted firm transportation service and for expansion. At a minimum, the in-state                             
31       natural gas pipeline carrier shall publish reasonable public notice in advance of an                              
01       open season. The notice shall contain the approved recourse tariff, the proposed form                             
02       of the precedent agreement, the proposed form of the firm transportation service                                  
03       agreement, and other information sufficient to show the proposed route, capacity,                                 
04       operating pressures, in-service date, quality specifications, and other operating                                 
05       conditions that the pipeline carrier determines are relevant to an evaluation of the                              
06       proposed service. The notice shall also state the methods for awarding capacity set out                           
07       in the carrier's recourse tariff and whether presubscription agreements have been                                 
08       executed. An in-state natural gas pipeline carrier shall provide a mechanism for                                  
09       providing additional relevant information requested by potential shippers.                                        
10            (b)  An open season shall be conducted and firm transportation service shall be                              
11       awarded without undue discrimination or preference. Presubscription agreements are                                
12       subject to the methods for awarding capacity set out in the open season notice.                                   
13            (c)  An in-state natural gas pipeline carrier shall conduct an open season for                               
14       firm transportation service when it has existing uncommitted firm transportation                                  
15       capacity and has received a request for firm transportation capacity from one or more                             
16       potential shippers that meet the pipeline's creditworthiness requirements or after it has                         
17       executed presubscription agreements for firm transportation.                                                      
18            (d)  An in-state natural gas pipeline carrier shall conduct an open season for an                            
19       expansion of its pipeline system when it has received one or more requests for firm                               
20       transportation service from potential shippers that meet the pipeline's creditworthiness                          
21       requirements and that, in the aggregate, would enable the expansion of the pipeline's                             
22       system on a commercially reasonable basis. An expansion of the pipeline system is not                             
23       commercially reasonable if the expansion would cause the pipeline to be a competing                               
24       natural gas pipeline project for purposes of AS 43.90.                                                            
25            (e)  A natural gas pipeline carrier may enter into presubscription agreements                                
26       before the start of an open season, but not before an initial recourse tariff is approved.                        
27            (f)  An in-state natural gas pipeline carrier shall file revised recourse rates                              
28       before conducting an open season under (c) and (d) of this section unless the in-state                            
29       natural gas pipeline carrier filed revised recourse rates during the immediately                                  
30       preceding two-year period.                                                                                        
31            (g)  If executed precedent agreements are received by an in-state natural gas                                
01       pipeline carrier, the carrier shall, within 10 days after accepting and executing the                             
02       agreements, inform the public of the results through publication on the carrier's                                 
03       Internet website and in a press release or other announcement to the media. The results                           
04       made public must include the name of each prospective shipper, the amount of                                      
05       capacity allocated, and the period of commitment. If the carrier determines that the                              
06       commitments received during the open season are not sufficient to permit the carrier to                           
07       continue the development or construction of the in-state natural gas pipeline, the                                
08       corporation shall report that to the commission within 30 days.                                                   
09            Sec. 42.08.310. Transportation service. (a) Firm transportation service shall                              
10       be made available only through a presubscription agreement, a recourse tariff, or an                              
11       open season conducted in accordance with AS 42.08.300.                                                            
12            (b)  The pipeline carrier shall offer a recourse tariff for firm transportation                              
13       service. The rates included in the recourse tariff shall be determined on a cost-of-                              
14       service basis and may be levelized over the depreciable life of the pipeline. The                                 
15       recourse tariff may not preclude the pipeline carrier from collecting rolled-in rates so                          
16       long as the resulting rate for prior shippers does not exceed the initial maximum rate                            
17       allowable under agreements for capacity.                                                                          
18            (c)  An in-state natural gas pipeline carrier may contract to provide firm                                   
19       transportation service for rates and containing provisions different than those in the                            
20       recourse tariff. For purposes of this subsection, "provisions" are limited to those terms                         
21       and conditions that directly relate to the rate and do not include the general operating                          
22       terms and conditions of the recourse tariff.                                                                      
23            (d)  An in-state natural gas pipeline carrier shall provide interruptible                                    
24       transportation service through capacity not used for firm transportation service. An in-                          
25       state natural gas pipeline carrier shall establish means for routinely advising potential                         
26       shippers of the availability of interruptible transportation service and of uncommitted                           
27       firm transportation capacity.                                                                                     
28            Sec. 42.08.320. Review of certain contracts by the commission. (a) An in-                                  
29       state natural gas pipeline carrier shall submit each of its precedent agreements for firm                         
30       transportation service and any substantial amendments to the commission. A precedent                              
31       agreement negotiated with an entity that is not a public utility regulated by the                                 
01       commission may be filed under seal. Under AS 42.08.400, the commission shall keep                                 
02       confidential a precedent agreement filed under seal. Submission of precedent                                      
03       agreements to the commission is permissible before construction of an in-state natural                            
04       gas pipeline and before a request for certification under this chapter. In this subsection,                       
05       "substantial amendment" means an amendment that materially changes a rate or term                                 
06       and condition of service.                                                                                         
07            (b)  In the review of a precedent agreement submitted under (a) of this section                              
08       or a related contract submitted under AS 42.05.433(b) or (c), the commission shall                                
09                 (1)  conclude that a precedent agreement or related contract negotiated                                 
10       at arm's length between the parties is just and reasonable unless the commission finds                            
11       that unlawful market activity affected the rate or unfair dealing, such as fraud or                               
12       duress, affected the formation of the contract;                                                                   
13                 (2)  review and may conduct an investigation and hearing to determine                                   
14       whether a contract submitted under (a) of this section is just and reasonable; the                                
15       commission shall either approve the contract as presented or, if the commission finds                             
16       that a contract is not just and reasonable, disapprove the contract; if the commission                            
17       has not acted within 180 days after the submission of a contract, the contract shall be                           
18       considered approved and shall take effect immediately; a contract that is approved or                             
19       considered approved under this paragraph and the associated firm transportation                                   
20       service agreement are not subject to further review by the commission.                                            
21            (c)  For purposes of (b)(1) of this section, and except as provided in (d) of this                           
22       section, a precedent agreement or related contract is arm's length                                                
23                 (1)  if it incorporates the approved recourse tariff; or                                                
24                 (2)  if it does not incorporate the approved recourse tariff,                                           
25                      (A)  the precedent agreement or related contract is between two                                    
26            state-owned parties;                                                                                         
27                      (B)  the parties are not affiliated; or                                                            
28                      (C)  if the parties are affiliated, the precedent agreement or                                     
29            related contract is substantially similar to a precedent agreement or related                                
30            contract between unaffiliated parties, and the formation of the precedent                                    
31            agreement or related contract was not affected by unlawful market activity or                                
01            unfair dealing as described in (b)(1) of this section.                                                       
02            (d)  Notwithstanding (c) of this section, a precedent agreement or related                                   
03       contract with a public utility is not arm's length if the rate paid for transportation on an                      
04       in-state natural gas pipeline is greater than the recourse tariff rate.                                           
05            (e)  If a precedent agreement or related contract is not arm's length, the                                   
06       commission shall determine whether the precedent agreement or related contract is                                 
07       just and reasonable using the standards normally applied under AS 42.06.140. If the                               
08       commission is reviewing a precedent agreement under (c)(2) of this section, the                                   
09       commission may consider the in-state natural gas pipeline carrier's approved recourse                             
10       tariff, including the cost data underlying the tariff. When considering whether to                                
11       approve a contract as just and reasonable under this subsection, the commission shall                             
12       consider the consequences of failing to approve the contract.                                                     
13            Sec. 42.08.330. Contract carriage certificate. (a) The owner of an in-state                                
14       natural gas pipeline subject to this chapter may not engage in the transportation of                              
15       natural gas or undertake the construction of a natural gas pipeline facility for that                             
16       purpose, or acquire or operate an in-state natural gas pipeline facility, unless a                                
17       certificate of public convenience and necessity by the commission authorizing contract                            
18       carriage is in force with respect to that owner. A certificate shall describe the nature                          
19       and extent of the authority granted, including, as appropriate for the services involved,                         
20       a description of the authorized area and scope of operation for the in-state natural gas                          
21       pipeline facility.                                                                                                
22            (b)  Application for a certificate shall be made in writing to the commission                                
23       and verified under oath. The commission by regulation shall establish the                                         
24       requirements for the form of the application and the information to be contained in the                           
25       application. Notice of the application shall be provided to interested parties in the                             
26       manner provided by regulation.                                                                                    
27            (c)  Within 180 days after receiving an application under this chapter, the                                  
28       commission shall issue a contract carriage certificate authorizing, in whole or in part,                          
29       the operation, service, construction, or acquisition covered by the application to a                              
30       qualified applicant if the commission finds that the applicant is fit, willing, and able to                       
31       do the acts, perform the proposed service, and conform to the provisions of this                                  
01       chapter and the requirements of the commission, and that the proposed service,                                    
02       operation, construction, extension, or acquisition, to the extent authorized by the                               
03       certificate, is or will be required by the present or future public convenience and                               
04       necessity. The commission may, by order, extend the 180-day period for considering                                
05       an application by the duration of a delay caused by the failure of the applicant to                               
06       provide additional information reasonably required by the commission. If, within the                              
07       180-day period and any extension of the period for considering the application, the                               
08       commission fails to issue a contract carriage certificate and does not make a finding                             
09       that the applicant is not fit, willing, and able under this subsection or that the proposed                       
10       service is not required by public convenience and necessity, the application shall be                             
11       considered approved and the contract carriage certificate shall take effect immediately.                          
12            (d)  The commission may attach to a contract carriage certificate reasonable                                 
13       terms and conditions that are consistent with the terms of this chapter and are for the                           
14       mutual benefit of the in-state natural gas pipeline facility and the public.                                      
15            (e)  Operating authority may not be transferred by sale or lease of the contract                             
16       carriage certificate or by the sale of substantially all of the stock or assets of a pipeline                     
17       carrier holding a certificate without prior approval and a finding by the commission                              
18       that the safe and efficient operation of the natural gas pipeline is not impaired by the                          
19       transfer. The commission shall summarily approve a transfer not involving a                                       
20       substantial change in ownership.                                                                                  
21            (f)  After receiving a complaint or on its own motion, the commission, after                                 
22       notice and hearing and for good cause shown, may amend, modify, suspend, or                                       
23       revoke, in whole or in part, a certificate. Good cause for amendment, modification,                               
24       suspension, or revocation of a certificate is shown by                                                            
25                 (1)  misrepresentation of a material fact in obtaining the certificate;                                 
26                 (2)  unauthorized discontinuance or abandonment of all or part of a                                     
27       service that is the subject of the certificate;                                                                   
28                 (3)  wilful failure to comply with the provisions of this chapter or a                                  
29       regulation or order of the commission; or                                                                         
30                 (4)  wilful failure to comply with a term, condition, or limitation of the                              
31       certificate.                                                                                                      
01            (g)  A person holding a certificate issued under this chapter may not abandon                                
02       or permanently discontinue the use of all or a portion of an in-state natural gas pipeline                        
03       without permission and approval by the commission, after due notice and hearing and                               
04       a finding by the commission that continued service is not required by public                                      
05       convenience and necessity. An interested person may file a protest or memorandum of                               
06       opposition to or in support of discontinuance or abandonment with the commission.                                 
07       The commission may order the temporary suspension of a service or part of a service.                              
08            Sec. 42.08.340. Filing requirements; recourse tariffs. (a) An in-state natural                             
09       gas pipeline carrier shall file with the commission a complete recourse tariff                                    
10       containing rates, rules, regulations, terms, and conditions pertaining to service                                 
11       provided under the certificate and copies of all contracts with shippers that in any way                          
12       affect or relate to the carrier's rates, tariffs, charges, classifications, rules, regulations,                   
13       terms, and conditions to service provided under the certificate.                                                  
14            (b)  The terms and conditions under which an in-state natural gas pipeline                                   
15       carrier offers its services and facilities to the public shall be governed strictly by the                        
16       provisions of its currently effective recourse tariff as supplemented and modified by                             
17       contracts that have been approved by the commission. A legally filed and effective                                
18       recourse tariff rate, charge, rule, regulation, or condition of service may not be                                
19       changed except as provided in this chapter. The in-state natural gas pipeline carrier                             
20       shall maintain copies of its recourse tariff on file at its principal business office and at                      
21       places designated by the commission and make the copies available to and subject to                               
22       inspection by the general public on demand.                                                                       
23            (c)  A change in a recourse tariff rate, charge, rule, regulation, or condition of                           
24       service is not effective until filed under (a) of this section. If more than one recourse                         
25       tariff rate or charge may reasonably be applied for billing purposes, the recourse tariff                         
26       rate or charge most advantageous to the shipper shall be used.                                                    
27            (d)  The commission may reject the filing of all or part of a recourse tariff that                           
28       is not consistent with this chapter. A recourse tariff rate or provision so rejected is                           
29       void.                                                                                                             
30            (e)  Initial and revised recourse tariffs shall be filed in the manner provided in                           
31       AS 42.08.350.                                                                                                     
01            Sec. 42.08.350. Initial or revised rates. (a) An in-state natural gas pipeline                             
02       carrier may not establish or place in effect an initial recourse tariff containing rates,                         
03       charges, rules, regulations, conditions of service, or practices without providing notice                         
04       to the commission and to the public at least 90 days before establishing or placing in                            
05       effect the initial recourse tariff. Notice shall be filed with the commission before an                           
06       open season and by making the recourse tariff provisions available for public                                     
07       inspection. The notice shall plainly indicate the time when the recourse tariff will go                           
08       into effect and include a supporting cost study. The commission may prescribe                                     
09       additional requirements for the notice and the form in which the notice must be                                   
10       provided. The commission, for good cause shown, may allow initial recourse tariffs to                             
11       take effect on less than 90 days' notice under conditions the commission prescribes by                            
12       order. Submission of a precedent agreement or an associated contract is not subject to                            
13       this section.                                                                                                     
14            (b)  The commission shall review the proposed initial recourse tariff and verify                             
15       that the proposed terms and conditions of service are not unduly discriminatory. The                              
16       commission also shall review the supporting cost study provided with an initial                                   
17       recourse tariff filing and verify, taking into consideration the expected risks, that the                         
18       proposed rate of return on equity is within the range of permissible rates of return as                           
19       determined by the Federal Energy Regulatory Commission in recent decisions related                                
20       to the construction of natural gas pipelines, that the cost study incorporates a                                  
21       reasonable depreciation methodology and depreciable life, and that the cost study uses                            
22       a reasonable capital structure. A proposed depreciation methodology, depreciable life,                            
23       or capital structure is reasonable if it is commonly accepted or used by the commission                           
24       or the Federal Energy Regulatory Commission.                                                                      
25            (c)  Upon written complaint or in its own motion, and after reasonable notice,                               
26       the commission may conduct a hearing to determine whether the initial recourse tariff                             
27       filed with the commission complies with the requirements in (b) of this section.                                  
28       Pending a hearing the commission may, by order stating the reasons for its action,                                
29       suspend the operation of the initial recourse tariff for a period not longer than 30 days                         
30       beyond the time when the initial recourse tariff would otherwise go into effect. An                               
31       order suspending an initial recourse tariff filing may be vacated if, after investigation,                        
01       the commission finds that it is in all respects proper. Otherwise, the commission shall                           
02       hold a hearing on the suspended filing and issue its order, before the end of the                                 
03       suspension period, approving or denying the suspended initial recourse tariff.                                    
04            (d)  Unless a recourse tariff is denied because it includes a proposed term or                               
05       condition of service that is unduly discriminatory, includes a proposed rate element                              
06       that does not comply with (b) of this section, or violates a provision of this chapter, the                       
07       commission shall approve the initial recourse tariff. If the commission does not issue                            
08       its ruling within the 90-day period, and the period of suspension, if any, the initial                            
09       recourse tariff filing shall be considered approved.                                                              
10            (e)  An in-state natural gas pipeline carrier may not establish or place in effect                           
11       a revised rate, charge, rule, regulation, condition of service, or practice contained in a                        
12       recourse tariff before providing notice to the commission and to the public at least 90                           
13       days before taking the action. After construction or an expansion of the pipeline, and                            
14       at any time that a carrier files for a revised recourse rate, the carrier shall file a                            
15       supporting cost study. Notice shall be given by filing with the commission and                                    
16       keeping open for public inspection the revised recourse tariff provisions, which shall                            
17       plainly indicate the changes to be made in the schedules then in force and the time                               
18       when the changes will go into effect. The commission may prescribe additional means                               
19       of giving notice. The commission, for good cause shown, may allow changes to take                                 
20       effect on shorter notice under conditions the commission prescribes by order.                                     
21       Submission of a precedent agreement or an associated contract is not subject to this                              
22       subsection.                                                                                                       
23            (f)  The commission shall review a proposed revised recourse tariff in the same                              
24       manner as the review of a proposed initial recourse tariff under (b) of this section,                             
25       except that the depreciable life may be adjusted in accordance with the time period                               
26       between the approval of the recourse tariff and the approval of the revised recourse                              
27       tariff. The commission shall verify that the carrier is using the same elements that                              
28       were last approved by the commission. A proposed recourse tariff with a new or                                    
29       revised term or condition of service that is unduly discriminatory shall be denied. The                           
30       commission also shall deny a revised tariff rate that does not use the previously                                 
31       approved value of the specified rate element, unless the carrier proves that the new                              
01       value is just and reasonable. If the commission does not issue its ruling within 90                               
02       days, the revised recourse tariff filing shall be considered approved.                                            
03            (g)  A person initiating a change in an existing recourse tariff bears the burden                            
04       of proving the reasonableness of the change. The in-state natural gas pipeline carrier                            
05       bears the burden of proving the recourse tariff terms and conditions are not unduly                               
06       discriminatory.                                                                                                   
07            (h)  An in-state natural gas pipeline carrier shall provide for separate rates for                           
08       one or more classes of firm transportation service and for interruptible transportation                           
09       service in a recourse tariff filed with the commission under (a) of this section. An in-                          
10       state natural gas pipeline carrier may impose a reservation fee or similar charge for                             
11       reservation of capacity in an in-state natural gas pipeline as a condition of providing                           
12       firm transportation service, but may not impose a reservation fee or similar charge for                           
13       reservation of capacity in an in-state natural gas pipeline for interruptible                                     
14       transportation service.                                                                                           
15            Sec. 42.08.360. Uniform system of accounts. An in-state natural gas pipeline                               
16       carrier operating under this chapter shall maintain its records and accounts in                                   
17       accordance with the uniform system of accounts for class A natural gas pipelines in 18                            
18       C.F.R. 201 (Federal Energy Regulatory Commission), as amended.                                                    
19            Sec. 42.08.370. Expansion; dispute resolution. (a) A contract entered into by                              
20       an in-state natural gas pipeline carrier may provide for expansion unless the expansion                           
21       would cause the pipeline to be a competing natural gas pipeline project for purposes of                           
22       AS 43.90.                                                                                                         
23            (b)  The recourse tariff or a contract filed by an in-state natural gas pipeline                             
24       carrier may include a dispute resolution procedure. A dispute resolution procedure                                
25       shall                                                                                                             
26                 (1)  provide that notice of a dispute be given to all shippers;                                         
27                 (2)  culminate in a process that is determined by an independent third                                  
28       party or panel; and                                                                                               
29                 (3)  permit the participation of existing shippers and creditworthy                                     
30       potential shippers that have previously made good-faith requests for firm                                         
31       transportation service; a participant must satisfy the commission's standard for                                  
01       intervention in an adjudicatory proceeding and demonstrate that the participant has a                             
02       property, financial, or other significant interest in the dispute.                                                
03            Sec. 42.08.380. Regulatory cost charge. (a) Each year, a person operating an                               
04       in-state natural gas pipeline under this chapter shall pay to the commission a                                    
05       regulatory cost charge if the pipeline for which the charge is assessed is subject to this                        
06       chapter and the commission has taken action on the pipeline or certificate under this                             
07       chapter during the prior fiscal year. The amount of the regulatory cost charge may not                            
08       exceed the sum of the following percentages of gross revenue derived from operations                              
09       in the state:                                                                                                     
10                 (1)  0.7 percent to fund the operations of the commission; and                                          
11                 (2)  0.17 percent to fund operations of the public advocacy function                                    
12       under AS 42.04.070(c) and AS 44.23.020(e) in the Department of Law.                                               
13            (b)  The commission shall by regulation establish a method to determine                                      
14       annually the amount of the regulatory cost charge that will apply to a pipeline                                   
15       regulated under this chapter. If the amount the commission expects to collect under (a)                           
16       of this section, AS 42.05.254(a), and AS 42.06.286(a) exceeds the authorized budgets                              
17       of the commission and the Department of Law public advocacy function under                                        
18       AS 42.04.070(c) and AS 44.23.020(e), the commission shall, by order, reduce the                                   
19       percentage determined under a regulation adopted under this subsection so that the                                
20       total amount of the fees collected approximately equals the authorized budgets of the                             
21       commission and the Department of Law public advocacy function under                                               
22       AS 42.04.070(c) and AS 44.23.020(e) for the fiscal year.                                                          
23            (c)  The commission shall administer the charge imposed under this section.                                  
24       The Department of Revenue shall collect and enforce the charge imposed under this                                 
25       section. The Department of Administration shall identify the amount of the operating                              
26       budgets of the commission and the Department of Law public advocacy function                                      
27       under AS 42.04.070(c) and AS 44.23.020(e) that lapses into the general fund each                                  
28       year. The legislature may appropriate an amount equal to the lapsed amount to the                                 
29       commission and to the Department of Law public advocacy function under                                            
30       AS 42.04.070(c) and AS 44.23.020(e) for operating costs for the next fiscal year. If the                          
31       legislature does so, the commission shall reduce the total regulatory cost charge                                 
01       collected for that fiscal year by a comparable amount.                                                            
02            (d)  The commission may adopt regulations under AS 44.62 (Administrative                                     
03       Procedure Act) necessary to administer this section, including procedures and                                     
04       requirements for reporting information and a requirement for paying the regulatory                                
05       cost charge in quarterly payments. The Department of Revenue may adopt regulations                                
06       under AS 44.62 (Administrative Procedure Act) for investigating the accuracy of filed                             
07       information and for collecting required payments.                                                                 
08            Sec. 42.08.390. Effect of chapter on taxes and royalties. Nothing in this                                  
09       chapter shall alter the calculation of a production tax under AS 43.55.011 - 43.55.180                            
10       or the calculation of a royalty due for a lease issued under AS 38.05.180.                                        
11                   Article 4. Public Records; Investigations.                                                          
12            Sec. 42.08.400. Public records. (a) Except as provided in (b) and (c) of this                              
13       section or prohibited from disclosure under state or federal law, records in the                                  
14       possession of the commission are open to public inspection at reasonable times.                                   
15            (b)  The commission may by regulation classify records received from an in-                                  
16       state natural gas pipeline carrier or in-state natural gas pipeline as privileged records                         
17       that are not open to the public for inspection.                                                                   
18            (c)  A record filed with the commission that is a precedent agreement between                                
19       an in-state natural gas pipeline carrier and an unregulated entity is a privileged record                         
20       that is not open to the public for inspection. For a record that relates to a precedent                           
21       agreement, or is or relates to a contract other than a precedent agreement between an                             
22       in-state natural gas pipeline carrier and an unregulated entity, if an in-state natural gas                       
23       pipeline carrier identifies the provisions of the record that contain information that, if                        
24       disclosed, could adversely affect the competitive position of the shipper or could cause                          
25       commercial or competitive harm or damage if disclosed and the commission agrees,                                  
26       the information shall be treated by the commission as confidential.                                               
27            (d)  A person may make written objection to the public disclosure of                                         
28       information contained in a record filed under this chapter or of information obtained                             
29       by the commission or by the attorney general under this chapter, stating the grounds                              
30       for the objection. When an objection is made, the commission shall order the                                      
31       information withheld from public disclosure if the information adversely affects the                              
01       interest of the person making written objection and disclosure is not required in the                             
02       interest of the public.                                                                                           
03            (e)  A commissioner may certify as to all official records of the commission                                 
04       under this section and may certify as to all official acts of the commission under this                           
05       chapter.                                                                                                          
06            Sec. 42.08.410. Investigations. The commission may investigate any matter                                  
07       for which an investigation is authorized under this chapter. An investigation may be                              
08       public, nonpublic, or both. In conducting an investigation, the commission may                                    
09       compel the attendance and testimony of witnesses and the production of records and                                
10       testimony before the commission or its designee. In the course of an investigation, the                           
11       commission may, subject to AS 44.23.020(e), exclude from attendance at the taking of                              
12       investigative testimony all persons except a person compelled to attend, that person's                            
13       attorney, members of the commission or the commission's staff, and a person                                       
14       authorized to transcribe the proceedings. In conducting an investigation related to a                             
15       timely filed dispute, the commission shall issue a final order within 150 days after the                          
16       date the formal complaint was filed with the commission, except for disputes related                              
17       to open seasons, in which case, a final order must be issued within 60 days. If the                               
18       commission has not acted within the applicable time period in this section, the dispute                           
19       shall be considered to have been dismissed with prejudice.                                                        
20                   Article 5. Accounts, Records, and Reports.                                                          
21            Sec. 42.08.450. Accounts; records; triennial reports. (a) To the extent                                    
22       necessary for the commission to perform the duties of the commission under this                                   
23       chapter,                                                                                                          
24                 (1)  the commission may by regulation require an in-state natural gas                                   
25       pipeline carrier or affiliated interest engaged in activities relating to pipelines to                            
26       establish and maintain as part of its system of accounts continuing property records                              
27       showing, as to property that is actually being used in pipeline activity in this state, the                       
28       year of placement in service, original cost, and current location, and, as to a pipeline                          
29       system, accounts and records in a manner showing, on a current basis, the original cost                           
30       of the system in the state and related reserves for depreciation;                                               
31                 (2)  the in-state natural gas pipeline carrier shall                                                    
01                      (A)  keep its accounts for its pipeline facilities located in this                                 
02            state separate from any accounts relating to any other business, including                                   
03            another pipeline facilities business or a subsidiary business, in which it                                   
04            engages, directly or indirectly; except as the commission provides, property,                                
05            expense, or revenue used in or derived from the other business may not be                                    
06            considered in establishing the rates and charges of the facility;                                          
07                      (B)  keep books, accounts, papers, and records required by this                                    
08            chapter or by regulations adopted by the commission under this chapter in an                                 
09            office in this state and may not remove them from the state except upon written                              
10            authority by the commission; and                                                                           
11                      (C)  file a report with the commission that contains an updated                                    
12            cost study and a calculation of the three-year average actual return on equity;                              
13            the report shall be filed every three years after the pipeline begins operations,                            
14            within 90 days after the close of the annual accounting period for the in-state                              
15            natural gas pipeline carrier, or within additional time granted by the                                       
16            commission upon a showing of good cause.                                                                     
17            (b)  The commission shall review the cost study described in (a)(2)(C) of this                               
18       section and verify that, for the rate elements specified in AS 42.08.350(b), the carrier                          
19       is using the same elements that were last approved by the commission. If the carrier                              
20       does not use the correct rate elements in its triennial report, the commission may                                
21       require the carrier to recalculate and file a corrected report. If, on the date the report                        
22       described in (a)(2)(C) of this section is delivered, the report reflects that the three-year                      
23       average actual return on equity exceeds the approved rate of return, the carrier shall,                           
24       not later than 90 days after the date the report is delivered, deposit an amount equal to                         
25       the excess in a segregated operating reserve fund. The carrier shall continue to deposit                          
26       the excess described in this subsection at the times described in this subsection until                           
27       the amount in the operating reserve fund is equal to 20 percent of the most recent                                
28       three-year average of the carrier's annual operating costs. The carrier may use money                             
29       in the operating reserve fund to offset any shortage in the recovery of operating costs                           
30       set out in another triennial report. If a deposit will cause the operating reserve fund to                        
31       exceed 20 percent of the most recent three-year average of the carrier's annual                                   
01       operating costs, the amount exceeding 20 percent must be used to reduce, on a                                     
02       volumetric basis, the firm transportation service rates for all shippers for the next                             
03       three-year period.                                                                                              
04                       Article 6. General Provisions.                                                                  
05            Sec. 42.08.510. Designation of service agents. An in-state natural gas pipeline                          
06       carrier shall file with the commission a written appointment of a named permanent                                 
07       resident, which may be a corporation, of this state as its registered agent in this state                         
08       on whom service of all notices, regulations, and requests of the commission may be                                
09       made. The appointment shall specify the address in this state of the appointed agent.                             
10       The address may be changed from time to time by filing a new address in the state                                 
11       with the commission. If an in-state natural gas pipeline carrier fails to appoint a                               
12       registered agent, service of notices, regulations, and requests may be made by posting                            
13       a copy in the main office of the commission and filing a copy in the office of the                                
14       lieutenant governor.                                                                                              
15            Sec. 42.08.520. Effect of regulations. Regulations adopted by the commission                               
16       under this chapter have the effect of law.                                                                        
17            Sec. 42.08.530. Judicial review and enforcement. (a) Except as provided in                                 
18       AS 38.35.200(c), a final order of the commission under this chapter is subject to                                 
19       judicial review under AS 44.62.560 and 44.62.570.                                                                 
20            (b)  If an appeal is not taken from a final order of the commission within 10                                
21       calendar days after an investigation under AS 42.08.220(b)(3), the commission may                                 
22       apply to the superior court for enforcement of the order of the commission. The court                             
23       shall enforce the order by injunction or other process.                                                           
24            Sec. 42.08.540. Joinder of actions. Under the applicable court rules, appeals                              
25       from orders of the commission and applications for enforcement of orders of the                                   
26       commission may be joined. The court may, in the interests of justice, separate the                                
27       actions.                                                                                                          
28            Sec. 42.08.900. Definitions. In this chapter,                                                              
29                 (1)  "affiliated" or "affiliated interest," with respect to an in-state                                 
30       natural gas pipeline carrier, means any person that                                                               
31                      (A)  is controlled or owned, in whole or in part, by the in-state                                  
01            natural gas pipeline carrier;                                                                                
02                      (B)  is controlled or owned, in whole or in part, by an entity that                                
03            controls or owns, in whole or in part, the in-state natural gas pipeline carrier; or                         
04                      (C)  controls or owns, in whole or in part, the in-state natural                                   
05            gas pipeline carrier;                                                                                        
06                 (2)  "commission" means the Regulatory Commission of Alaska                                             
07       created under AS 42.04.010;                                                                                       
08                 (3)  "commissioner" means a member of the commission;                                                   
09                 (4)  "firm transportation service" means service by a natural gas                                       
10       pipeline carrier that is not subject to a prior claim by another shipper or another class                         
11       of service; service constitutes "firm transportation service" if the service receives the                         
12       same priority as any other class of firm transportation service;                                                  
13                 (5)  "in-state natural gas pipeline" or "in-state natural gas pipeline                                  
14       facility" means a natural gas pipeline that transports or will transport natural gas in the                       
15       state by way of contract carriage;                                                                                
16                 (6)  "in-state natural gas pipeline carrier" means the owner, including a                               
17       corporation, company, or other entity organized under the laws of the United States or                            
18       of any state, of an in-state natural gas pipeline or an interest in it, or a person,                              
19       including a corporation, company, or other entity organized under the laws of the                                 
20       United States or of any state, that transports or will transport natural gas as a contract                        
21       carrier;                                                                                                          
22                 (7)  "natural gas pipeline" has the meaning given in AS 31.25.390;                                      
23                 (8)  "precedent agreement" means a contractual commitment, including                                    
24       a presubscription agreement, to acquire firm transportation capacity, executed between                            
25       an in-state natural gas pipeline carrier and another person, that establishes the rates,                          
26       terms, and conditions for service;                                                                                
27                 (9)  "record" means a report, file, book, account, paper, or application                                
28       and the facts and information contained in it.                                                                  
29    * Sec. 22. AS 43.56.020 is amended by adding a new subsection to read:                                             
30            (d)  Taxable property of a natural gas pipeline project owned or financed by                                 
31       the Alaska Gasline Development Corporation or a joint venture, partnership, or other                              
01       entity that includes the Alaska Gasline Development Corporation is exempt from state                              
02       taxes levied or authorized under AS 43.56.010(a) and municipal taxes levied or                                    
03       authorized under AS 43.56.010(b) before the commencement of commercial                                            
04       operations of that natural gas pipeline project. In this subsection, "commencement of                             
05       commercial operations" means the first flow of natural gas in the project that generates                          
06       revenue to the owners of the natural gas pipeline project.                                                        
07    * Sec. 23. AS 36.30.850(b)(45); AS 38.34.030, 38.34.040, 38.34.050, 38.34.060;                                     
08 AS 39.25.110(11)(G); AS 39.50.200(b)(57); AS 41.41.010, 41.41.020, 41.41.030, 41.41.040,                                
09 41.41.050, 41.41.060, 41.41.070, 41.41.080, 41.41.090, 41.41.100, 41.41.110, 41.41.120,                                 
10 41.41.130, 41.41.140, 41.41.150, 41.41.200, 41.41.300, 41.41.310, 41.41.320, 41.41.330,                                 
11 41.41.340, 41.41.350, 41.41.360, 41.41.370, 41.41.380, 41.41.390, 41.41.400, 41.41.410,                                 
12 41.41.450, 41.41.500, 41.41.900, and 41.41.990 are repealed.                                                            
13    * Sec. 24. Sections 1 and 5, 2002 Ballot Measure No. 3, are repealed.                                              
14    * Sec. 25. The uncodified law of the State of Alaska is amended by adding a new section to                         
15 read:                                                                                                                   
16       TRANSITION AND LEGISLATIVE INTENT. (a) It is the intent of the legislature                                        
17 that a right-of-way lease subject to AS 31.25.090(d), enacted by sec. 3 of this Act,                                    
18 AS 38.35.100(d), as amended by sec. 8 of this Act, AS 38.35.120(a), as amended by sec. 9 of                             
19 this Act, AS 38.35.120(b), as amended by sec. 10 of this Act, and AS 38.35.121, enacted by                              
20 sec. 11 of this Act, that is entered into between the commissioner of natural resources and the                         
21 Alaska Gasline Development Corporation before the effective dates of secs. 3 and 8 - 11 of                              
22 this Act be amended as soon as practicable after the effective dates of secs. 3 and 8 - 11 of this                      
23 Act to conform to the requirements of AS 31.25.090(d), enacted by sec. 3 of this Act,                                   
24 AS 38.35.100(d), as amended by sec. 8 of this Act, AS 38.35.120(a), as amended by sec. 9 of                             
25 this Act, AS 38.35.120(b), as amended by sec. 10 of this Act, and AS 38.35.121, enacted by                              
26 sec. 11 of this Act.                                                                                                    
27       (b)  The transition of the Alaska Gasline Development Corporation from a subsidiary                               
28 of the Alaska Housing Finance Corporation to an independent public corporation of the state                             
29 may not disrupt, interfere, or alter the work of the Alaska Gasline Development Corporation.                            
30 The governor shall appoint the board of the Alaska Gasline Development Corporation as soon                              
31 as practicable after the effective date of this Act. It is the intent of the legislature that the                       
01 governor appoint the new board of the Alaska Gasline Development Corporation within 90                                  
02 days after the effective date of this Act. The board of the Alaska Housing Finance                                      
03 Corporation shall serve as the board of the Alaska Gasline Development Corporation until the                            
04 governor appoints the board of the Alaska Gasline Development Corporation under this                                    
05 subsection. The board of directors of the Alaska Gasline Development Corporation shall work                             
06 with the board of directors of the Alaska Housing Finance Corporation and the commissioner                              
07 of commerce, community, and economic development to ensure the smooth transition of the                                 
08 Alaska Gasline Development Corporation to being an independent public corporation,                                      
09 including modifying the articles of incorporation of the Alaska Gasline Development                                     
10 Corporation.                                                                                                            
11       (c)  It is the intent of the legislature that the transition of the Alaska Gasline                                
12 Development Corporation to being an independent public corporation of the state located for                             
13 administrative purposes in the Department of Commerce, Community, and Economic                                          
14 Development be treated for all purposes only as a change of placement within the state and                              
15 not as the creation of a new public corporation of the state.                                                           
16       (d)  It is the intent of the legislature that the Alaska Housing Finance Corporation, the                         
17 board of directors of the Alaska Gasline Development Corporation as a subsidiary created                                
18 under AS 18.56.086 by the Alaska Housing Finance Corporation, and the commissioner of                                   
19 commerce, community, and economic development expeditiously amend the articles of                                       
20 incorporation, the bylaws, and other documents of the Alaska Gasline Development                                        
21 Corporation to reflect the change in the placement of the Alaska Gasline Development                                    
22 Corporation from being a subsidiary of the Alaska Housing Finance Corporation to being an                               
23 independent public corporation of the state as provided in AS 31.25, enacted by sec. 3 of this                          
24 Act.                                                                                                                    
25       (e)  It is the intent of the legislature that the Alaska Housing Finance Corporation and                          
26 the commissioner of commerce, community, and economic development coordinate the                                        
27 transition of the Alaska Gasline Development Corporation to its new placement within the                                
28 state as an independent public corporation of the state and assist the newly appointed board of                         
29 directors of the Alaska Gasline Development Corporation to ensure that the development of                               
30 an in-state natural gas pipeline is not unreasonably delayed because of the change in                                   
31 placement within the state of the corporation.                                                                          
01    * Sec. 26. The uncodified law of the State of Alaska is amended by adding a new section to                         
02 read:                                                                                                                   
03       REVISOR'S INSTRUCTIONS. The revisor of statutes shall change the catch lines of                                   
04            (1)  AS 38.35.120 from "Covenants required to be included in lease" to                                       
05 "Covenants required to be included in lease to a pipeline that is not a natural gas pipeline                            
06 contract carrier"; and                                                                                                  
07            (2)  AS 38.35.200 from "Judicial review of decisions of commissioner on                                      
08 application" to "Judicial review."                                                                                      
09    * Sec. 27. This Act takes effect immediately under AS 01.10.070(c).                                                
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