Gardiner calls for investigation into Alpetco contract, 26 March 1980
t Check Called For Ajpetco's Contract the vot- JUNEAU (AP) -- House pipeline. of Speaker Terry Gardiner has Colletta said he agreed'an called for a legislative investi- vestigation should be held, gation into whether Alpetco, a though it is questionable firm that has a long-range con- er the Legislature has any .. I . i _ t _ _ A i i *.--. L _.l. Â«. __. .^ _. A^. -- - . -- A. ^i. ml- _ A. sx Signed for Appeals Court tract to purchase the state's er to change the contract. That royalty oil, is . meeting the question is being researched, terms of that contract. he said. Gardiner made the request Alpetco, a joint venture of Tuesday in a letter to Sen. Charter Oil (Alaska) Inc., Mike Colletta, chairman of the Alaska Petrochemical Company Legislature's joint committee and E.F. Hutton (Alaska) Inc., on financing of the natural gas has a 27-year contract with state to purchase up to 150,000 barrels per day of the state's royalty share of crude oil. The firm is to build a nearly $2 billion plant at Valdez to process the crude oil into feeds- tocks for a petrochemical plant. The contract sets several 'benchmarks" or deadlines that the firm must meet, in- court are Anchorage Public eluding spending $100 million Defender Brian Shortell, U.S. toward the project by July 18 a Attorney Alex Bryner and Su- and having financial com- perior Court Judges Tom mitments by third parties of at Schulz of Ketchikan and James least $1.5 billion. Kenai. The House of Representa- Legislation setting up the tives' research agency has court calls for all defendants in questioned whether the cases, felony cases to have one auto- terms have been met, motTM fi*ht Â«* Â»Â«Â«,,. i t~~~, *u~ T Q Â« Uam mn rÂ»4 oÂ«^i M~Â«.,...~I TÂ« right of appeal from the Jay Hammond and Natural Superior Court to the Court of sources Commissioner Bob Le- Appeals. Resche have disagreed. In ad- A person convicted of a crim- dition, a Fairbanks lawyer inal misdemeanor also would filed a lawsuit challenging por- one automatic right of ap- tions of the contract. in peal from the District Court, "Approval of the Alpetco chose to appeal either tract (by the Legislature in to the three-judge Court of Ap- 1978) was premised on the be- peals or the single-judge Supe- lief that (the state's 150,000 of rior Court. rels a day of oil) would go to a A decision of the appeals world class petrochemical facil- its court then could be appealed to ity," wrote Gardiner. " 'Promis- the Supreme Court, but it es were made of jobs, tax reve- DUI ic es were maue ui JODS, lax reve- of ap- would be left to the discretion nues, added values crimi- of the high court whether to other Alaskan benefits. Jan. - equipment high hear the appeal. now been announced that Al- The legislation establishing petco plans to put only 28,000 the new court also included barrels a day into petrochemic- 111 IAS L/X.LL VJVilC eligibility criteria for al production. Refineries year, appointment to judgeships not the state. that is all al- we a prac- expressed ready xist wanted." For example, the new law in- Gardiner also said that the creases the residency require- firm was to make an equivalent ment for District Court Judges of 30,000 barrels a day of from one year to five years. Su- leum products available in preme Court Chief Justice Jay Alaska. He said federal propos- Rabinowitz urged lawmakers to als that the state's gasoline not make the change, but they locations be reduced makes rejected his arguments. that issue "critically impor- Lawmakers also changed cur- tant" to the state's economy, rent law to allow magistrates He said the gas pipeline com- who are not lawyers to be ap- mittee should investigate pointed District Court judges whether the royalty crude con- after seven years as a magis- tracted to Alpetco be made trate. available to Alaska refineries now.