State of Alaska
Fiscal Note
Bill Version: HB 409
2022 Legislative Session
Fiscal Note Number: 1
(H) Publish Date: 4/4/2022
Identifier: LL0121-DNR-DOG-3-20-22 Department: Department of Natural Resources
Title: APPROVE PETRO STAR INC. ROYALTY OIL Appropriation: Oil & Gas
SALE Allocation: Oil & Gas
Sponsor: RLS BY REQUEST OF THE GOVERNOR OMB Component Number: 439
Requester: Rules by Request of the Governor
Expenditures/Revenues
Note: Amounts do not include inflation unless otherwise noted below. (Thousands of Dollars)
Included in
FY2023 Governor's
Appropriation FY2023 Out-Year Cost Estimates
Requested Request
OPERATING EXPENDITURES FY 2023 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
Personal Services
Travel
Services
Commodities
Capital Outlay
Grants & Benefits
Miscellaneous
Total Operating 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Fund Source (Operating Only)
None
Total 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Positions
Full-time
Part-time
Temporary
Change in Revenues
1004 Gen Fund (UGF) 1,458.8 2,942.3 2,658.8 2,354.3 2,354.3 1,186.5
1050 PFD Fund (Other) 486.3 980.8 886.3 784.8 784.8 395.5
Total 0.0 1,945.1 3,923.1 3,545.1 3,139.1 3,139.1 1,582.0
Estimated SUPPLEMENTAL (FY2022) cost: 0.0 (separate supplemental appropriation required)
Estimated CAPITAL (FY2023) cost: 0.0 (separate capital appropriation required)
Does the bill create or modify a new fund or account? No
(Supplemental/Capital/New Fund - discuss reasons and fund source(s) in analysis section)
ASSOCIATED REGULATIONS
Does the bill direct, or will the bill result in, regulation changes adopted by your agency? No
If yes, by what date are the regulations to be adopted, amended or repealed?
Why this fiscal note differs from previous version/comments:
Not applicable, initial version
Prepared By: Jhonny Meza, Commercial Section Manager Phone: (907)269-8774
Division: Oil and Gas Date: 03/20/2022 05:00 PM
Approved By: Theresa Cross, Administrative Services Director Date: 03/20/22
Agency: Department of Natural Resources
Printed 4/4/2022 Page 1 of 2 Control Code: dsPpp
 HB 409 - Fiscal Note 1
FISCAL NOTE ANALYSIS
STATE OF ALASKA BILL NO. LL 0121
2022 LEGISLATIVE SESSION
Analysis
This bill provides legislative approval of a contract negotiated between the State of Alaska and Petro Star, Inc. for the sale
of the state's royalty oil for a term of five years. The agreement provides for the following barrels per day:
years 1 and 2: 12,500
years 3 through 5: 10,000
The number of barrels per day is multiplied by a negotiated Royalty In Kind differential per barrel to arrive at the expected
revenue increase. There will be no fiscal impact to the operating expenditures. The proposed contract is expected to
generate between $17.4 million and $19.7 million in revenues in addition to the amount that would have been collected if
the royalty oil sold under this contract had been disposed of in value.
(Revised 11/23/2021 OMB/LFD) Page 2 of 2
LL0121-DNR-DOG-3-20-22 Page 2 of 2 Control Code: dsPpp