JUNEAU -- Saying a pipeline along the Alaska Highway will bring Alaskans the maximum benefit from North Slope natural gas development, Rep. Scott Ogan (R-Palmer), chair of the Oil and Gas Committee, today introduced a committee bill to require such gas to be delivered to market along this route.

"The Alaska Constitution's statement of policy on natural resources clearly says the Legislature has the obligation to develop resources consistent with the public interest, and to the maximum benefit of the people," Ogan said. "It's clear that Alaska's interests are best served by a southern route, and this bill puts that into law."

House Bill 83 also requires that a gas pipeline constructed along the highway must have the built-in capacity to allow easy construction of a future spur line that could provide North Slope gas to consumers and industry in Southcentral Alaska, and supply facilities in Valdez to produce liquefied natural gas (LNG) for export to other markets, Ogan said. It includes additional provisions encouraging pipeline developers, as much as legally possible, to give Alaskans the jobs and contracts associated with pipeline construction and operation.

"We must keep an open mind, and make sure that we can take advantage of whatever technologies ultimately can bring the maximum benefit of this gas for Alaskans," he said.

The bill reflects the Republican-led Majority's desire to take advantage of the soaring prices and diminishing supplies of natural gas to start bringing Alaska's 35 trillion cubic feet of efficient, clean-burning gas to market. While it places into statute the state's insistence that a pipeline go through Alaska instead of Canada's Mackenzie River Delta, the bill is also intended as a vehicle to spur discussion of a full range of development options, Ogan said.

"The corporations have a responsibility to their shareholders to maximize the benefits of their oil and gas leases" Ogan said. "I think they understand that we in the Legislature have an obligation to do the same on behalf of our stakeholders, the people of Alaska. I think we can find synergies that meet the mutual interests of both the public and private sectors."

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