Sponsor Statement for SCR 3

On February 13th British Petroleum (Alaska) Inc. announced they have suspended work on the Northstar oil field development project. British Petroleum is concerned with a lawsuit (Baxley, The Republican Moderate Party vs. State of Alaska & John Shively) challenging the revisions to the lease terms of Northstar field ratified by the legislature and signed by the Governor last year.

SCR 3 urges the Attorney General of the State of Alaska to use every appropriate resource and due diligence to defend the state's interests in this case. SCR 3 also respectfully requests the Superior Court to expedite consideration of the pending legislation so that work on the project can resume as quickly as possible.

In 1996 the legislature authorized the Commissioner of Natural Resources to revise the Northstar unit oil and gas leases. The legislature emphasized to British Petroleum (Alaska) Inc. the importance of a strong commitment to Alaska-hire, Alaska-build, and Alaska-buy in the development of the Northstar field. British Petroleum (Alaska) Inc. has honored its commitment to these important Alaskan issues.

Following the revised lease agreement, construction of modules for the Northstar project began in Anchorage. Several Alaskan construction and oil services companies made preparations for the increased work load. People were hired. Plans were put into place.

The lawsuit has directly resulted in many Alaskans losing their jobs. In the interest of all Alaskans, this case must be resolved quickly.

SCR 3 simply asks the Courts to act as expeditiously as possible on this hearing in order to put Alaskan families back to work.

DD/jja