Section 38.05.023. Terms in an agreement or contract related to a North Slope natural gas project.

   (a) An agreement or contract to which the state or an entity of the state is a party that is negotiated under AS 38.05.020(b)(11) must include a requirement that the state or an entity of the state shall have access to data developed under the agreement or contract in which the state or an entity of the state has directly participated financially. Access by the state or an entity of the state to the data must be on the same or substantially similar terms applicable to any other party in a North Slope natural gas project.
   (b) A proposed agreement or contract associated with a North Slope natural gas project may not include a provision that changes the property tax on property that was previously taxable under AS 43.56.
   (c) A proposed agreement or contract associated with a North Slope natural gas project must provide the means for allocating infrastructure costs between the state and other parties in the project. The allocation must take into consideration the extent to which infrastructure is used by the project and used by the public and the difference between the normal expected or actual life-cycle costs for the infrastructure as used by the project and the expected or actual life-cycle costs of the same infrastructure if subject only to general public use. The proposed agreement or contract may not require the state to pay infrastructure costs that are directly related to the project and not designed for general public use in a proportionate amount that is greater than the state's share of participation in the project.
   (d) An agreement or contract to which the state or an entity of the state is a party that is negotiated under AS 38.05.020(b)(11) must include principles based on commercially reasonable terms for delivering natural gas to public utilities in the state when the demand for natural gas by the utilities exceeds the amount of the state's royalty natural gas and natural gas delivered to the state as payment of tax that is available in a North Slope natural gas project.

Notes

History

(Sec. 26 ch 14 SLA 2014)