AK HB8

Department of Transportation and Public Facilities shall contract to purchase pipe suitable for a natural gas pipeline project under the Alaska Gasline Inducement Act in quantity sufficient for the portion constructed within the state.

Department shall store the pipe until delivery to a licensee under an agreement entered into by the Department of Revenue.

After a license is issued under AS 43.90.190(b), the Department of Revenue shall negotiate with the licensee for purchase of the pipe acquired by the state.

Purchase terms may include an exchange of some or all pipe for a state interest in the natural gas pipeline to be constructed by the licensee and any other terms necessary to protect state interests.

Department of Revenue may finalize the negotiated agreement and arrange for pipe delivery to the licensee.