00                   HOUSE CONCURRENT RESOLUTION NO. 2                                                                    
01 Urging Governor Murkowski to take quick action to conduct, approve, or sanction a                                       
02 study of in-state natural gas needs and take-off points for intrastate use of natural gas                               
03 transported in a North Slope natural gas pipeline.                                                                      
04 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
05       WHEREAS both the economic and fiscal future of the State of Alaska are closely tied                             
06 to the commercialization of North Slope gas; and                                                                        
07       WHEREAS the current climate of rising national demand for natural gas combined                                  
08 with declining natural gas reserves has created a loud call for Alaska's energy resources; and                          
09       WHEREAS the United States Congress has heard that call and answered with                                        
10 financial backing and direction for a regulatory regime for a project to bring Alaska's North                           
11 Slope gas to the lower 48 states; and                                                                                   
12       WHEREAS the United States Congress has also mandated that any project to bring                                  
13 Alaska gas to the lower 48 states must also be designed to accommodate deliveries of Alaska                             
14 gas to markets in Alaska, and has required that any pipeline sponsor study the needs of Alaska                          
15 for natural gas and the take-off points that will be required to maximize the value of gas to                           

01 serve Alaska gas markets; and                                                                                           
02       WHEREAS, on February 9, 2005, the Federal Energy Regulatory Commission, in its                                
03 Order No. 2005, issued final rules requiring that project sponsors of any Alaska gas pipeline                           
04 must rely on a study of Alaska in-state needs and take-off points as a part of the initial "open                        
05 season" process to design pipeline capacity needs, locate in-state delivery points, and                                 
06 calculate in-state transportation costs as part of a plan of design and construction of an Alaska                       
07 natural gas pipeline; and                                                                                               
08       WHEREAS the Federal Energy Regulatory Commission has also required that the                                     
09 study shall, to the extent practicable, be conducted, approved, or otherwise sanctioned by the                          
10 appropriate governmental agency, office, or commission of the State of Alaska; and                                      
11       WHEREAS the rules that were set out in the Federal Energy Regulatory Commission                                 
12 Order No. 2005 will be brought into force 90 days after being posted in the Federal Register;                           
13       BE IT RESOLVED that the Alaska State Legislature urges Governor Murkowski to                                    
14 take quick action to conduct, approve, or sanction a study of in-state natural gas needs and                            
15 take-off points for intrastate use of natural gas transported in a North Slope natural gas                              
16 pipeline, with the objective that the study be completed before the final rules relating to the                         
17 Alaska Natural Gas Pipeline take effect on the 90th day following the publication in the                                
18 Federal Register of the rules adopted by the Federal Energy Regulatory Commission in its                                
19 Order No. 2005.