JUNEAU — The Alaska Legislature approved a contract between the state and Flint Hills Resources for the sale of state-owned royalty oil.
The five-year deal got the seal of approval from the House on Tuesday, following approval from the Senate last week. The contract now goes to the governor’s desk for a signature.
The contract won unanimous approval from both bodies, with Interior legislators saying it helps maintain an important employer.
“I’ve had some issues with royalty oil and can we do it better?” said North Pole Rep. Doug Isaacson. “This will allow them to keep their contracts moving and their people employed.”
The contract offers some changes relative to previous contracts, cutting the rate the company pays for the oil. The five-year contract could be extended to 10 years if Flint Hills offers binding support for a North Slope natural gas project.
Rep. Tammie Wilson,
R-North Pole, supported the contract, telling her House colleagues that it sets a fair price for the state’s royalty oil.
“This really isn’t even about Flint Hills; this is about getting the best for our royalty oil when it comes to economics,” she said. “It’s in the best interest of the state.”
Contact staff writer Matt Buxton at 459-7544 and follow him on Twitter: @FDNMpolitics.