Juneau -- Legislative leaders Friday announced their intention to form a Joint Special Committee on Mergers to study the effects BP Amoco's acquisition of Arco will have on the State of Alaska and its citizens.

"Time is of the essence," said Senator Rick Halford (R-Chugiak). "There is a lot of complex information that must be analyzed. Because the Federal Trade Commission (FTC) will begin its own investigation soon, any input from Alaska must be developed within the next six to nine months."

"We may determine through our committee hearings that we need to modify the terms of this acquisition," said Senate President Drue Pearce (R-Anchorage). "That might include negotiating conditions that would require BP Amoco's divestiture of oil and gas assets in Alaska, or an outright move to stop the acquisition all together. On the other hand, we may learn that this acquisition will provide tremendous benefit for the State."

Halford said the committee would closely examine both the state and federal laws that influence the acquisition.

Committee members, to be appointed by Senate President Drue Pearce and House Speaker Brian Porter, will work to minimize any adverse effects the acquisition could have on Alaska. The primary issues to be reviewed include:

• Revenues generated through oil production and transport
• Employment opportunities for Alaskans
• Environmental Impacts
• Future oil and gas exploration and development
• Sale of natural gas from the North Slope
• Fostering a healthy competitive environment for industry in Alaska

The committee may meet during and between sessions of the Twenty-first Alaska State Legislature and will be terminated when the Twenty-second Legislature convenes. The Senate introduced Senate Concurrent Resolution 9 on Friday to form the special committee. The House will introduce its concurrent resolution Saturday.

"Many people have contacted us in Juneau expressing their concern," said Pearce. "It is our role to protect Alaska's interests and guard against any negative consequences this acquisition may have on Alaskans."

# # #

Broadcasters note: Audio comments are available on the Majority Actuality line, 1-800-478-6540
= Rick Halford, 16 K = Rick Halford, 28 K

| Top | Senator Halford's Page |