I, Tony Knowles, Governor of the State of Alaska, under the authority vested in me by art. III, of the Alaska Constitution, and by AS 44.19.028, establish the Oil and Gas Policy Council.

PURPOSE

The future of oil and gas matters is of vital public interest. There is a need to study the long-range options available to industry and the state, and propose possible courses of action, in the hopes of minimizing potential problems and conflicts in the future.

The purpose of the Oil and Gas Policy Council (Council) is to develop the framework that will be used to evaluate issues that will arise in the future concerning Alaska's oil and gas resources,

The council shall provide periodic reports to the Governor that address the following issues:

1. What additional steps, if any, should be taken to promote the lifting of the oil export ban.

2. What steps, if any, should the state take to promote exploration and production from the Arctic National Wildlife Refuge.

3. What can be done to improve the participation of independent oil and gas companies in exploration and production in Alaska.

4. How long will the North Slope continue to produce enough oil to keep the Trans-Alaska Pipeline operating.

5. What effect will the availability of production from newly discovered fields have on extending the operating life of the Trans-Alaska Pipeline.

6. Whether the state should further alter its royalty or tax structure to encourage exploration and development of new or already discovered fields.

7. If, when or how North Slope gas will be marketed, identifying possible scenarios such as: (1) marketing liquefied natural gas to Asia; (2) conversion of gas to liquids for transportation through the Trans-Alaska Pipeline; (3) marketing gas or natural gas liquids in Alaska; or (4) marketing gas in the contiguous 48 states.

8. How to provide job opportunities in the oil and gas industry for Alaskans who have not traditionally been employed in that industry.

9. What steps should be taken to promote additional oil and gas production and development in the Cook Inlet basin.

10. What steps should be taken to promote industrial development using the natural gas found in the Cook Inlet basin and elsewhere.

11. What additional steps should be taken to assure protection of Alaska's lands and waters during expanded exploration, production, transportation, and refining activities within the state.

12. Other steps the state and industry can take cooperatively to ensure a healthy business climate, a strong employment base, and a steady source of revenues to the state.

The Governor will appoint at least thirteen persons as members of the Oil and Gas Policy Council to include:

A. the commissioner of Commerce and Economic Development or designee;

B. the commissioner of Natural Resources or designee;

C. the commissioner of Revenue or designee;

D. two legislators, one from each house; and

E. eight public members, at least three of whom shall be employed in oil and gas exploration and production.

The Department of Commerce and Economic Development shall provide administrative support for the council. In accordance with law, the department may enter into intergovernmental agreements necessary to accomplish the purposes of this order.

A quorum of the council must be present at the council meetings. A majority of the council constitutes a quorum. Council members who are not state employees serve without compensation and are entitled to per diem and travel expenses in the same manner permitted for members of other state boards and commissions. The Governor shall designate a member of the council as chair of the council. Meetings of the council shall be conducted in accordance with AS 44.62.310 (Open Meetings Act).

This order takes effect immediately.

DATED at Kenai, Alaska, this 17th day of February, 1995.

S/S Tony Knowles     
Tony Knowles         
Governor