"An Act amending the purpose of the Alaska Natural Gas Development Authority to include planning, developing, constructing, managing, or operating an economically viable gas pipeline project from the North Slope of Alaska by a route that parallels the Trans Alaska Pipeline System or the Alaska Highway; authorizing evaluation of opportunities for private sector involvement in the project; amending requirements related to the Authority's preparation of a development plan; and providing for an effective date."

SB 271 was introduced to expand the scope of the Alaska Natural Gas Development Authority (ANGDA) to include planning, developing, constructing, managing or operating an economically viable gas pipeline project from the North Slope to the Canadian Boarder. This approach also asks ANGDA to evaluate opportunities for private sector involvement in the project. With the recent announcement of applications by independent and producer pipeline operators under The Stranded Gas Act, SB 271 could be a key component to a link with existing infrastructure in Canada.

As one of the legislators that introduced the original legislation eventually passed by a voter initiative, I feel it was an omission to not allow for more private sector risk when considering this project. Under this bill, a private sector investor, constructor and or operator could build and operate the pipeline either to tidewater, the Canadian border or both. State ownership would give the advantage of tax-free status but the private sector would shoulder the risk in areas that the state traditionally should not undertake. Tax-free ownership dramatically changes the economics of a project.

SB 271 is project sponsor neutral, as all parties interested in bringing Alaska's North Slope Gas to market, could utilize this process. I think this makes LNG to tidewater a more viable project if the LNG line could piggyback off of the preplanned infrastructure of a route that parallels the Trans Alaska Pipeline System or the Alaska Highway.

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