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.