The Senate was called to order by President Dick Bond.
The roll was called with thirty-seven senators present.
Senators Corbin, Hardenburger and Oleen were excused.
Invocation by Chaplain Fred S. Hollomon:
You have told us, ``Give, and it will be given to you. A good measure, pressed
down, shaken together and running over, will be poured into your lap.'' (Luke 6:38)
One of the great paradoxes is that the more we give the more we gain.
By giving an encouraging word, we gain appreciation.
By giving a second chance, we gain loyalty.
By giving a smile, we gain a smile.
By giving time, we gain a relationship.
By giving forgiveness, we gain harmony.
By giving an apology, we gain a friend.
By giving our best, we gain satisfaction.
And I hope everyone notices, O God, that none of what we give costs us any
money, nor can we buy what we have gained.
Thank You, Lord, for showing us how to give.
I pray in Jesus' Name,
PRESENTATION OF PETITIONS
The following petitions were presented, read and filed:
SP 8, by Senator Janice Hardenburger: a petition requesting support to remove tenure
laws from our State Education System, signed by Fred G. Cairns, Barnes, and 27 others.
SP 9, by Senator Janice Hardenburger: a petition requesting support to remove tenure
laws from our State Education System, signed by Donald Heitman, Palmer, and 16 others.
REFERENCE OF BILLS AND CONCURRENT RESOLUTIONS
The following bills were referred to Committees as indicated:
Federal and State Affairs: HB 2739; Sub. HB 2972.
Judiciary: HB 2715.
Utilities: SB 686.
Ways and Means: SB 687.
MESSAGE FROM THE GOVERNOR
March 12, 1998
Message to the Senate of the State of Kansas:
Enclosed herewith is Executive Order No. 98-1 for your information.
The President announced Executive Order No. 98-1, Suspending non-essential operations
during winter storm conditions, is on file in the office of the Secretary of the Senate and is
available for review at anytime.
CONSIDERATION OF MOTIONS TO CONCUR OR NONCONCUR
On motion of Senator Emert the Senate nonconcurred in the House amendments to SB 67 and requested a conference committee be appointed.
The President appointed Senators Emert, Schraad and Goodwin as a conference com-
mittee on the part of the Senate.
On motion of Senator Emert the Senate nonconcurred in the House amendments to SB 404 and requested a conference committee be appointed.
The President appointed Senators Emert, Salisbury and Barone as a conference com-
mittee on the part of the Senate.
INTRODUCTION OF ORIGINAL MOTIONS AND SENATE RESOLUTIONS
Senator Goodwin introduced the following Senate resolution, which was read:
SENATE RESOLUTION No. 1829--
A RESOLUTION congratulating and commending the Arkansas City High School wrestling
team, Coach Wayne Jackson and Assistant Coach Justin Ware for winning the Class 5A
State Championship for the eleventh consecutive year.
WHEREAS, The Arkansas City High School wrestling team won the 1998 Kansas State
High School Activities Association Class 5A State Wrestling Championship at Wichita on
February 28, 1998; and
WHEREAS, The Arkansas City High School ``Bulldogs'' won their eleventh consecutive
state championship with a 173 to 99 points victory over McPherson; and
WHEREAS, The team includes one state champion, Drew Soule, at 140 pounds; and
WHEREAS, The members of this outstanding wrestling team have received statewide
recognition for their fine sportsmanship and athletic abilities; and
WHEREAS, The success of this team is due to their strong competitive spirit and de-
termination to win plus the enthusiastic support of the school's administrators, the faculty,
the students, the parents and the citizens of this proud community: Now, therefore,
Be it resolved by the Senate of the State of Kansas: That the Arkansas City High School
wrestling team, Coach Wayne Jackson and Assistant Coach Justin Ware be congratulated
and commended for winning, for the eleventh consecutive year, the 1998 Kansas State High
School Activities Association Class 5A State Wrestling Championship; and
Be it further resolved: That the Secretary of the Senate be directed to send ten enrolled
copies of this resolution to Dr. Jean R. Snell, Superintendent, Arkansas City High School,
119 West Washington, P.O. Box 1028, Arkansas City, Kansas 67005-1028.
On emergency motion of Senator Goodwin SR 1829 was adopted unanimously.
Committee on Utilities introduced the following Senate resolution, which was read:
SENATE RESOLUTION No. 1830--
A RESOLUTION urging the State Corporation Commission to postpone certain proceed-
ings and conduct an investigation relating to a natural gas contract (P-0802 contract).
WHEREAS, The State Corporation has reviewed and made certain determinations with
respect to a natural gas contract, identified as the P-0802 contract; and
WHEREAS, The State Corporation Commission made certain determinations in its or-
der of March 12, 1979, in Docket No. 113,421-U, where the Commission found that the
P-0802 contract was not used and useful for the purpose of providing natural gas service to
retail customers in Kansas; and
WHEREAS, The State Corporation Commission found as follows: ``Furthermore, we are
unconvinced that this contract relationship of applicant with its wholly owned subsidiary has
been maintained strictly at `arms length'. We are particularly concerned that applicant ap-
pears to have sacrificed benefits of considerable importance by the amendments negotiated
subsequent to the original contract.'' (Order of March 12, 1979, at para. 41, page 28); and
WHEREAS, Kansas ratepayers made contributions to develop oil and gas leases in the
Bowdoin Field in Montana, which were ultimately made the subject of the P-0802 contract;
WHEREAS, The P-0802 contract was made the subject of a corporate spin off, wherein
utility stockholders were given one share of stock in the company that retained the P-0802
contract for each share of utility stock that was owned by the utility share owner; and
WHEREAS, Ratepayers received no benefits from the spin off; and
WHEREAS, The P-0802 contract was renegotiated as the spin off was occurring in a
transaction which was not at arm's length and which did not permit marketing out of the
contract if the price under the contract was incompatible with current market conditions;
WHEREAS, The price of the P-0802 contract is well above current market prices; and
WHEREAS, Parties to a State Corporation Commission docket (Docket No. 96-KNNG-
700-TAR) entered into a settlement agreement to postpone a determination of the prudency
of the P-0802 contract until after September 30, 1999, in exchange for rate relief which was
to be effective through 1999 but, in accepting the agreement, the Commission nevertheless
determined that there was evidence to support that the contract was prudent, even though
the docket was not established for the purpose of determining the prudency of the contract,
the determination was at odds with earlier rulings by the Commission concerning the con-
tract and the Commission order had the effect of undermining the settlement agreement
of the parties in Docket No. 96-KNNG-700-TAR; and
WHEREAS, On December 19, 1996, approximately 200 ratepayers appeared before the
State Corporation Commission to request a prudency review of the P-0802 contract; and
WHEREAS, In a subsequent docket (Docket No. 97-KNNG-523-GIG), the State Cor-
poration Commission agreed to investigate the assignment of the contract as part of the gas
realignment that was ordered by the Federal Energy Regulatory Commission to determine
if the assignment was proper, but the Commission refused to include the issue of the P-
0802 contract's prudency, even though such a review would impact on the contract's as-
signment: Now, therefore,
Be it resolved by the Senate of the State of Kansas: That the State Corporation Com-
mission be urged to postpone its current proceedings in Docket No. 97-KNNG-523-GIG
until such time that the prudency of all transactions involving the P-0802 contract can be
independently determined or after September 30, 1999; and
Be it further resolved: That the State Corporation Commission be urged to conduct an
investigation of all aspects of the P-0802 contract, including the earlier decision of the
Commission which established that the contract was not required for utility service in Kansas
and was not negotiated in an arm's length transaction.
REFERRAL OF ORIGINAL MOTIONS AND SENATE RESOLUTIONS
The President referred SR 1830 to the Committee on Utilities.
On motion of Senator Emert the Senate adjourned until 2:30 p.m., Monday, March 16,