An Act relating to stranded gas pipeline carriers and to the intrastate regulation by the Regulatory Commission of Alaska of pipelines and pipeline facilities of stranded gas pipeline carriers.

Updated: February 24, 2000

Senate Bill 226 provides the framework for a stranded gas pipeline to proceed by establishing procedures, authorities and clarifying the duties of stranded gas pipeline carriers. Changes proposed by SB 226 are intended to apply to all potential stranded gas pipeline projects, to clarify state and federal regulatory jurisdictions, to complement a non-discriminatory federal process which will apply to any export volumes of stranded gas, to provide for instate gas transportation and sales, and to provide needed exemption from public utility designations for a stranded gas pipeline project.

SB 226 amends the Pipeline Act (AS 42.06) to define a stranded gas pipeline consistent with existing state statute and to clarify the Regulatory Commission of Alaska's authority and duties in regulating a stranded gas pipeline. SB 226 also specifies the criteria for the RCA to establish a fair, predictable and timely process to determine initial intrastate capacity and a method for needed pipeline system expansions to accommodate increased demand in state gas supplies.

Other changes proposed by SB 226 exempt stranded gas pipelines from the requirement to operate as a public utility and limit the common carrier requirements for stranded gas pipelines to the transportation of intrastate gas.

SB 226 also defines the types of intrastate transportation services available in a stranded gas pipeline system and how the tariffs and fees will be set.

Collectively, these changes are intended to provide greater certainty and predictability in the regulation of stranded gas pipeline systems. With passage of SB 226, gas export project sponsors will have increased ability to market Alaska's stranded gas reserves, to compete more effectively with alternative export projects, and to attract the large investments required to construct and operate the pipeline and related facilities needed to condition, transport and export stranded gas reserves.

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