(SitNews) Juneau, Alaska - Alaska Governor Bill Walker signed into law House Bill 373, a multi-million dollar revenue bill that passed the legislature unanimously. It formalizes the state’s contract with Tesoro, a refining company.

The five-year contract allows for Tesoro to purchase from the state up to 25,000 barrels of oil per day. It will circulate $127 million in the economy as Tesoro produces up to 59,000 barrels per day at its Nikiski refinery, which employs more than 200 Alaskans.

Alaska Governor Bill Walker signs into law House Bill 373
Photo courtesy Office of the Governor

“As we grapple with low oil prices and declining production, I’m pleased we pulled together to pass this common-sense legislation,” Governor Walker said. “This monetizes our natural resources and provides an economic boost to the Southcentral region. I thank Senator Peter Micciche and Representative Dan Saddler for carrying this bill.”

Department of Natural Resource officials estimate the state will receive $45 million to $56 million more in revenue over five years with this royalty volumes in-kind (RIK) contract than through a royalty volumes in-value (RIV) contract.

In royalty volumes in-value contracts, companies sell natural resources on the state’s behalf and pay the state the value of its share. In royalty volumes in-kind contracts, the state takes ownership of the oil and sells the natural resources itself.

Edited by Mary Kauffman, SitNews

Source of News:

Office of the Governor
www.gov.state.ak.us

 

Representations of fact and opinions in comments posted below are solely those of the individual posters and do not represent the opinions of Sitnews.

SitNews ©2016
Stories In The News
Ketchikan, Alaska

Articles & photographs that appear in SitNews may be protected by copyright and may not be reprinted without written permission from and payment of any required fees to the proper sources. E-mail your news & photos to editor@sitnews.us Photographers choosing to submit photographs for publication to SitNews are in doing so granting their permission for publication and for archiving. SitNews does not sell photographs. All requests for purchasing a photograph will be emailed to the photographer.