DNR says Marathon royalty‑in‑kind sale could yield $6–9 million premium; finance committee advances bill
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Summary
The Department of Natural Resources told the Senate Finance Committee HB 194 would approve a royalty‑in‑kind sale to Marathon’s Kenai‑area refinery, potentially delivering a $6–9 million premium to the state; the committee advanced the bill with fiscal notes.
John Crowther, the Department of Natural Resources commissioner designee, reintroduced House Bill 194 to the Senate Finance Committee on March 3. Crowther said the bill would approve a royalty‑in‑kind contract sale to Marathon’s refinery on the Kenai Peninsula and that these long‑standing contracts typically yield a premium to the state.
"We're potentially receiving a premium over our royalty in‑kind value of between 6 and $9,000,000 during the primary term," Crowther said, arguing the sale would also help ensure in‑state refineries have fuel supplies needed for gasoline, jet fuel and air operations in South Central Alaska.
Senator Staitland moved the Senate committee substitute for HB 194 from committee with attached fiscal notes and recommendations. There was no objection and the bill was passed from committee with individual recommendations for further review.
The committee record did not include further detail on the contract term length, the exact fiscal‑note line items, or final price terms beyond the premium estimate cited by the commissioner designee; the committee advanced the substitute for subsequent legislative consideration.