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SR 301: Urging the state, the Alaska Gasline Development Corporation, BP Exploration (Alaska) Inc., ConocoPhillips Alaska, Inc., and ExxonMobil Alaska Production Inc. to continue to honor the Heads of Agreement commitments if the state terminates the participation of TransCanada Alaska Development Inc.; urging that the transfer of the interests of TransCanada Alaska Development Inc. occur under the process outlined in current law; and urging all parties to support the 2016 work plan and budget.

00                         SENATE RESOLUTION NO. 301                                                                       
01 Urging the state, the Alaska Gasline Development Corporation, BP Exploration (Alaska)                                   
02 Inc., ConocoPhillips Alaska, Inc., and ExxonMobil Alaska Production Inc. to continue to                                 
03 honor the Heads of Agreement commitments if the state terminates the participation of                                   
04 TransCanada Alaska Development Inc.; urging that the transfer of the interests of                                       
05 TransCanada Alaska Development Inc. occur under the process outlined in current law;                                    
06 and urging all parties to support the 2016 work plan and budget.                                                        
07 BE IT RESOLVED BY THE SENATE:                                                                                           
08       WHEREAS, in January 2014, the state, the Alaska Gasline Development                                           
09 Corporation, TransCanada Alaska Development Inc., ExxonMobil Alaska Production Inc.,                                    
10 ConocoPhillips Alaska, Inc., and BP Exploration (Alaska) Inc. executed the Alaska liquefied                             
11 natural gas project enabling Heads of Agreement; and                                                                    
12       WHEREAS the Heads of Agreement established clear milestones to advance the                                      
13 Alaska liquefied natural gas project; and                                                                               
14       WHEREAS all parties to the Heads of Agreement agreed that execution of the Alaska                               
01 liquefied natural gas project would involve a phased development process; and                                           
02       WHEREAS all parties to the Heads of Agreement agreed that the purpose of                                        
03 preliminary front-end engineering and design is to advance technical work that would provide                            
04 each of the Alaska liquefied natural gas parties with sufficient information to evaluate the                            
05 technical, cost, and schedule aspects of the Alaska liquefied natural gas project; and                                  
06       WHEREAS all parties to the Heads of Agreement agreed the preliminary front-end                                  
07 engineering and design work, when used with other information regarding the commercial,                                 
08 legal, economic, financial, marketing, timing, and other necessary aspects of the Alaska                                
09 liquefied natural gas project, will assist the Alaska liquefied natural gas project parties in                          
10 determining how to proceed with the phased project development process, including whether                               
11 to proceed to the front-end engineering and design phase of the Alaska liquefied natural gas                            
12 project; and                                                                                                            
13       WHEREAS all parties to the Heads of Agreement agreed that, during the preliminary                               
14 front-end engineering and design phase, each of the producer parties and the state would                                
15 initiate preliminary, individual liquefied natural gas or gas sales or shipping efforts; and                            
16       WHEREAS all parties to the Heads of Agreement agreed that, during the preliminary                               
17 front-end engineering and design phase, the parties would work to develop mutually agreeable                            
18 gas offtake and balancing agreements to facilitate gas offtake by each of the parties with                              
19 regard to the parties' rights to capacity in the Alaska liquefied natural gas project; and                              
20       WHEREAS all parties to the Heads of Agreement agreed to complete the preliminary                                
21 front-end engineering and design phase of the project by the second quarter of 2016; and                                
22       WHEREAS all parties to the Heads of Agreement agreed that, during the front-end                                 
23 engineering and design phase, each party would seek to execute individual liquefied natural                             
24 gas or gas sales and shipping agreements; and                                                                           
25       WHEREAS all parties to the Heads of Agreement agreed to making a determination                                  
26 on proceeding to the front-end engineering and design phase by the second quarter of 2017;                              
27 and                                                                                                                     
28       WHEREAS all parties to the Heads of Agreement agreed to other Alaska liquefied                                  
29 natural gas project expectations; and                                                                                   
30       WHEREAS the Alaska State Legislature held hearings on the Heads of Agreement;                                   
31 and                                                                                                                     
01       WHEREAS the Twenty-Eighth Alaska State Legislature passed Senate Bill No. 138,                                  
02 enacted as ch. 14, SLA 2014, by a vote of 52 to eight to enable the Heads of Agreement and                              
03 advance the Alaska liquefied natural gas project; and                                                                   
04       WHEREAS the process set out in previous legislative action under both ch. 11, SLA                               
05 2013, and ch. 14, SLA 2014, created the statutory framework necessary to advance those                                  
06 important and complementary purposes of both monetizing Alaska's North Slope natural gas                                
07 and providing natural gas to Alaskans and should be followed as the state advances the Alaska                           
08 liquefied natural gas project; and                                                                                      
09       WHEREAS the Alaska liquefied natural gas project remains on schedule according to                               
10 the Heads of Agreement; and                                                                                             
11       WHEREAS the Heads of Agreement expires December 31, 2015; and                                                   
12       WHEREAS the state has made it clear that it intends to terminate the participation of                           
13 TransCanada Alaska Development Inc. in the Alaska liquefied natural gas project; and                                    
14       WHEREAS the Senate recognizes the expertise and performance of TransCanada                                      
15 Alaska Development Inc., including the value added by TransCanada Alaska Development                                    
16 Inc. to date; and                                                                                                       
17       WHEREAS the project partners in the Alaska liquefied natural gas project have                                   
18 global expertise that the state should use to further its important and complementary goals at                          
19 every opportunity; and                                                                                                  
20       WHEREAS, in recognition of the state's budgetary challenges and the need to protect                           
21 the state's interest, the Senate will continue to exercise due diligence and scrutinize every                           
22 proposed appropriation request by the state;                                                                            
23       BE IT RESOLVED that the Senate urges the parties to the Alaska liquefied natural                                
24 gas project and the signatories to the Heads of Agreement to continue to honor the                                      
25 commitments, expectations, and timelines contained in the Heads of Agreement until the                                  
26 completion of the front-end engineering and design phase and urges the parties to support the                           
27 funding of the work plan and budget for 2016 to ensure the completion of the preliminary                                
28 front-end engineering and design phase; and be it                                                                       
29       FURTHER RESOLVED by the Senate that the transition of direct ownership interest                                 
30 of the gas treatment plant and pipeline from TransCanada Alaska Development Inc. to the                                 
31 state should occur under the process outlined in ch. 11, SLA 2013, and ch. 14, SLA 2014, and                            
01 should maintain alignment within the various state departments and corporations.                                        
02       COPIES of this resolution shall be sent to the Honorable Bill Walker, Governor of                               
03 Alaska; the Honorable Mark Myers, Commissioner, Department of Natural Resources; the                                    
04 Honorable Randall Hoffbeck, Commissioner, Department of Revenue; Dan Fauske, President,                                 
05 Alaska Gasline Development Corporation; Dean C. Patry, President, TransCanada Alaska                                    
06 Development Inc.; Thomas W. Schuessler, President, ExxonMobil Alaska Production Inc.;                                   
07 Joe Marushack, President, ConocoPhillips Alaska, Inc.; and Janet Weiss, President, BP                                   
08 Exploration (Alaska) Inc.