(a) The commissioners shall evaluate all applications determined to be complete under Alaska Stat. § 43.90.140, consider public comments received under Alaska Stat. § 43.90.160(a), and rank each application according to the net present value of the anticipated cash flow to the state from the applicant‘s project proposal using the factors in (b) of this section and weighted by the project’s likelihood of success based on the commissioners’ assessment of the factors listed in (c) of this section.
Terms Used In Alaska Statutes 43.90.170
applicant: means a person or group of persons that files an application for a license. See Alaska Statutes 43.90.900
commissioners: means the commissioner of revenue and the commissioner of natural resources, acting jointly. See Alaska Statutes 43.90.900
Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
net present value: means the discounted value of a future stream of cash flow. See Alaska Statutes 43.90.900
project: means a natural gas pipeline project authorized under a license issued under this chapter. See Alaska Statutes 43.90.900
state: means the State of Alaska unless applied to the different parts of the United States and in the latter case it includes the District of Columbia and the territories. See Alaska Statutes 01.10.060
(b) When evaluating the net present value of anticipated cash flow to the state from the applicant’s project proposal, the commissioners shall use an undiscounted value and, at a minimum, discount rates of two, five, six, and eight percent, and consider
(1) how quickly the applicant proposes to begin construction of the proposed project and how quickly the project will commence commercial operation;(2) the net back value of the gas determined by the destination market value of the gas and estimated transportation and treatment costs;(3) the ability of the applicant to prevent or reduce project cost overruns that would increase the tariff;(4) the initial design capacity of the applicant’s project and the extent to which the design can accommodate low-cost expansion;(5) the amount of the reimbursement by the state under Alaska Stat. § 43.90.110(a)(1)(A) and (B) proposed by the applicant under Alaska Stat. § 43.90.130(9);(6) economic value resulting from payments required to be made to the state under the terms of the proposal; and(7) other factors found by the commissioners to be relevant to the evaluation of the net present value of the anticipated cash flow to the state.(c) When evaluating the project’s likelihood of success, the commissioners shall consider
(1) the reasonableness, specificity, and feasibility of the applicant’s work plan, timeline, and budget required to be submitted under Alaska Stat. § 43.90.130, including the applicant’s plan to manage cost overruns, insulate shippers from the effect of cost overruns, and encourage shippers to participate in the first binding open season;(2) the financial resources of the applicant;(3) the ability of the applicant to comply with the proposed performance schedule;(4) the applicant’s organization, experience, accounting and operational controls, technical skills or the ability to obtain them, and necessary equipment or the ability to obtain the necessary equipment;(5) the applicant’s record of
(A) performance on projects not licensed under this chapter;(B) integrity and good business ethics; and(6) other evidence and factors found by the commissioners to be relevant to the evaluation of the project’s likelihood of success.
