Alaska State Legislature

News From The House Majority

Ken Freeman, Press Secretary
State Capitol
Juneau, AK 99801-1182
Phone: (907) 465-3804
web site: http//www.akrepublicans.org
Actuality line: 1-800-478-6540

House Measure Promotes Development of Gas Pipeline

For Immediate Release: January 29, 1997 Contact: Rep. Ramona Barnes (907) 465-3438

JUNEAU - Moving forward with their Commitment to promote Jobs for Alaskans, the Alaska State House of Representatives Wednesday passed HCR 1. The gas-pipeline resolution urges the establishment of a stable fiscal and regulatory environment in order to provide the best opportunity for a new Liquid Natural Gas (LNG) project to be economically viable and attractive.

"This is the first piece of legislation to pass the House and I am very excited our first measure promotes jobs and economic development for Alaskans," said House Speaker Gail Phillips.

"The Legislature encourages potential sponsors of the LNG project to find suitable measures to support and encourage Alaska businesses and residents to participate in construction and operation of this project," said Representative Ramona Barnes, sponsor of HCR 1.

"A critical element is the likelihood Alaska's huge volume of gas could be displaced from the market for many years if smaller, more easily placed projects come on line first - we must move forward now," said Barnes.

HCR 1 was recently discussed by a joint meeting of the House Resources Committee and the House Oil and Gas Committee. Representative Mark Hodgins of Kenai and Chairman of the House Oil & Gas Committee said creation of an Alaska Gas Pipeline falls right in step with his top priority in Juneau - Jobs for Alaskans.

"I came to Juneau to look for ways to create jobs for Alaskans and I can think of no better way than with the Trans Alaska Gas Line. The Gas line will provide jobs for Alaskans through the middle of the next century," said Representative Hodgins.

Representative Scott Ogan, Co-Chair of the House Resources Committee which unanimously passed HCR 1 last Tuesday, said this is an "exceptionally important" resolution for the future of Alaska.

"Many people, especially in the last few years, have been predicting gloom and doom for Alaska's economic future, yet I believe them to be wrong. I believe that Alaska has a bright future in Natural Resource Development, and that the gas pipeline will have a huge role to play in that future," said Ogan.

The proposed LNG project would transport and market the North Slope gas resource in the Asian Far East market. To ensure economic viability, a huge volume of 14 million metric tons of gas must be sold per year. It is believed there exists an opportunity in 2005 when demand in that market will rise enough to accept the volume of gas which this project will provide.

"The Gas Line makes good economic sense at this time and we need to get it on line as soon as possible in order to secure our place in global market," Rep. Hodgins said.

HCR 1 encourages the Governor to work with North Slope leaseholders as well as the Legislature, the federal government and Congress to develop and complete the LNG project.

"I want to assure Alaskans that we, the legislature, will be doing all that we can to make sure that this gas pipeline becomes reality, and I want to assure the oil companies that this issue will not be dropped. I believe strongly in the merits of this project, and will do everything I can to see it completed," said Rep. Ogan.

HCR 1 asks the Governor to work with leaseholders to develop a contract for execution with those who appear likely to become sponsors of the project. The contract would describe the nature, degree and duration of fiscal terms for the project and contractually guaranteeing the terms. The contract would be submitted to the Legislature for ratification. The Governor would also provide the Legislature with enabling legislation to authorize the State of Alaska to formally enter the contract.

Rep. Barnes said if built, the project would also be constructed so as to enable the marketing of gas to Alaska communities.

"The Governor is asked to work with leaseholders and Alaska's Congressional delegation to identify appropriate federal action to help expedite the project. He is also asked to identify and report to the Legislature, the form of participation in the project by the State of Alaska," said Barnes.

Broadcast Note: Audio actualities are available by calling 1-800-478-6540.

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