SGDA definition
Examples of SGDA in a sentence
The Legislature enacted the SGDA for the purposes of encouraging new investment to develop stranded Gas, providing fiscal terms that are tailored to the particular economic conditions of the Project, establishing those fiscal terms with as much certainty as the Alaska Constitution allows and maximizing the benefits to the people of Alaska of the development of stranded Gas.
In hiring its employees, each Midstream Entity shall advertise for available positions and use Alaska Job Service Organizations to notify Alaska residents of available positions on the Alaska Project, under the requirements of the SGDA.
The SGDA requires the Commissioner of the Department of Revenue to reach three preliminary findings at this stage of the process: (1) that the gas is stranded; (2) that the Contract is in the long-term fiscal interest of the State; and (3) that the Contract furthers the purpose of the SGDA.
At the time the SGDA was enacted, the market dynamics were significantly different than they are today.
In the third test of the SGDA, the word “maximize” connotes something more than the old adage, “something’s better than nothing.” The Producers, under their leases with the State, have already undertaken the obligation to develop the gas resources10.
The SGDA contemplates setting “fiscal terms” yet fails to define what constitutes a fiscal term.
The Producers submitted a Qualified Plan to the State promising to meet the stated goals of the SGDA in exchange for the State providing the Producers fiscal certainty.
The Contract is supposed to legally document the promises of the Qualified Plan and the goals of the SGDA.
To that end, this section addresses the structure and specific terms of the Contract that do not reach the promise of the Qualified Plan and intent of the SGDA.
The Contract prepared by the parties is based largely on AS 43.82, The Alaska Stranded Gas Development Act (SGDA).