(JUNEAU) - The Alaska Senate voted 20-0 to approve House Bill 267 by Rep. Vic Kohring (R-Mat-Su), that provides financing for the construction of a natural gas pipeline from the North Slope. The bill authorizes the Alaska Railroad to issue tax exempt bonds to raise the necessary funding.

"This is a key element to finally getting the gas line built," said Kohring, who is Chairman of the Legislature's Oil & Gas Committee. Kohring initiated the legislation just four weeks ago, and it sailed with ease throughout the entire committee process. "I'm pleased that the support is so widespread, among my colleagues on both sides of the political spectrum."

HB 267 authorizes the Railroad to issue up to $17 billion in bonds for the pipeline. Meanwhile, the recently enacted Stranded Gas Act, which Kohring co-sponsored, has begun the process of negotiations between the state and gas producers.

"These two actions by the Legislature, along with federal action to streamline permitting and regulations, will bring Alaska closer to seeing the pipeline become a reality," Kohring said.

House Bill 267 now awaits the Governor's signature.

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05-20-03: House Special Committee on Oil and Gas Chair Rep. Kohring explains how Alaska Railroad bonds will help build a natural gas pipeline to the Lower 48.

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