Governor Signs $22 Million Revenue Bill into Law
State to sell royalty oil to Petro Star Inc. in four-year contract
Bill-signing ceremony at Petro Star Valdez Refinery
August 7, 2017 VALDEZ—Governor Bill Walker today signed into law Senate Bill 30, which is expected to generate between $22 million and $27 million in revenue to the state. The legislation, which the governor introduced, approves a four-year contract in which the State of Alaska will sell royalty oil to Petro Star Inc.
“With the decline of oil prices and production, it takes creative, out-of-the box thinking and teamwork to generate revenue,” Governor Walker said. “Because jobs in Alaska should go to Alaskans, my bill includes a local-hire provision. I thank Petro Star and Arctic Slope Regional Corporation for teaming up with the state so that our resources can put the maximum number of Alaskans to work. I also thank Senator Cathy Giessel and Representatives Geran Tarr and Andy Josephson for their support of this bill.”
Under terms of the contract, which ends December 31, 2021, the state will sell royalty oil to Petro Star
- 16,400 to 20,500 barrels per day in 2018
- 13,200 to 16,500 barrels per day in 2019
- 10,800 to 13,500 barrels per day in 2020
- 8,400 to 10,500 barrels per day in 2021
"This legislation is the result of the joint efforts by Petro Star Inc., ASRC and the State of Alaska, ensuring an RIK crude supply even during declining TAPS throughput,” said Doug Chapados, PSI president and CEO. “Not only does this ensure a diverse and stable crude supply for the future, it also has the potential to generate tens of millions of additional dollars for the state over the next five years. I would like to thank state lawmakers as well as the governor for moving SB 30 forward.”
Petro Star Inc., which is an Arctic Slope Regional Corporation subsidiary, operates refineries in North Pole and Valdez.