Alaska State Legislature

News From The House Majority

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

For Immediate Release: February 17, 1997 Contact: Ken Freeman (907) 465-3804

Northstar Lawsuit Throws Alaskans Out of Work

JUNEAU - House Speaker Gail Phillips and Senator Dave Donley announced Monday they will introduce companion resolutions in the House and Senate urging the Attorney General of the State of Alaska to utilize every appropriate resource to defend Alaska's interests in the lawsuit filed against the state challenging the legality of the BP Northstar oil and gas project.

BP announced February 13 they have stopped all Anchorage module fabrication work on the Northstar oil field development project. The company is concerned about the lawsuit that challenges revisions in Northstar's lease terms ratified by the Alaska Legislature and signed by the Governor last year.

Speaker Phillips noted that this lawsuit is an unfortunate roadblock for a major Alaska jobs project.

"It was a tragedy for us to learn of BP's decision to shut down work on their Northstar project -- especially at the whim of two ill-advised individuals of questionable standing who have filed this frivolous litigation!" said Phillips.

The lawsuit claims the Knowles administration and the Legislature acted illegally in their decision to proceed with the Northstar project.

"The Legislature supported the Northstar project last year and will stand by their decision this year. We spent hours reviewing the pros and cons of the lease contract and feel the agreement would result in Jobs for Alaskans and the growth of new support industries in our state," said Senator Donley.

"If the two individuals had followed the many hours of testimony on the process, they could not have reached this irresponsible decision and hundreds of Alaskans would still be working. When frivolous and unnecessary litigation becomes the norm, and Alaskans are put out of work as a result, the time has come for us to stand up, unite, and say 'No More!'," Phillips said.

"The Attorney General must expeditiously assess this lawsuit and I am confident his conclusions will demonstrate the legality of the contract," said Donley.

Phillips noted the resolutions are currently in the drafting process and are likely to be introduced this week.

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