02/10/2004 01:31 PM Senate TRA
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ALASKA STATE LEGISLATURE
SENATE TRANSPORTATION STANDING COMMITTEE
February 10, 2004
1:31 p.m.
TAPE(S)04-02
MEMBERS PRESENT
Senator John Cowdery, Co-Chair
Senator Thomas Wagoner, Co-Chair
Senator Gene Therriault
MEMBERS ABSENT
Senator Georgianna Lincoln
Senator Donny Olson
COMMITTEE CALENDAR
^OVERVIEW - NUIQSUT ICE ROAD
HOUSE BILL NO. 304
"An Act naming the Jack Coghill Bridge to the Interior."
MOVED HB 304 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 304
SHORT TITLE: JACK COGHILL BRIDGE TO THE INTERIOR
SPONSOR(s): REPRESENTATIVE(s) COGHILL
05/07/03 (H) READ THE FIRST TIME - REFERRALS
05/07/03 (H) TRA, STA
05/12/03 (H) TRA AT 5:30 PM CAPITOL 102
05/12/03 (H) Moved Out of Committee
05/12/03 (H) MINUTE(TRA)
05/13/03 (H) TRA RPT 5DP
05/13/03 (H) DP: FATE, OGG, KOHRING, MASEK, HOLM
01/13/04 (H) STA AT 8:00 AM CAPITOL 102
01/13/04 (H) Moved Out of Committee
01/13/04 (H) MINUTE(STA)
01/16/04 (H) STA RPT 7DP
01/16/04 (H) DP: GRUENBERG, SEATON, HOLM,
01/16/04 (H) LYNN, COGHILL, BERKOWITZ, WEYHRAUCH
01/20/04 (H) TRANSMITTED TO (S)
01/20/04 (H) VERSION: HB 304
01/21/04 (S) READ THE FIRST TIME - REFERRALS
01/21/04 (S) TRA, STA
02/10/04 (S) TRA AT 1:30 PM BUTROVICH 205
WITNESS REGISTER
Mr. Ken Donajkowski, Manager,
Health, Safety and Environmental
ConocoPhillips Alaska
Anchorage AK
POSITION STATEMENT: Nuiqsut Ice Road overview.
Ms. Ruth Germany-Bice
BP Alaska
Anchorage AK
POSITION STATEMENT: Nuiqsut Ice Road overview.
Mr. Jerry McDonald, General Manager
Carlisle Transportation
No address provided
POSITION STATEMENT: Nuiqsut Ice Road overview.
Mr. Richard Schmitz
Staff to Senator Cowdery
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Commented on HB 304 for the sponsor.
ACTION NARRATIVE
TAPE 04-2, SIDE A
CO-CHAIR THOMAS WAGONER called the Senate Transportation
Standing Committee meeting to order at 1:31 p.m. and handed the
gavel to Co-Chair Cowdery. Present were Co-Chairs Wagoner and
Cowdery. Senator Therriault arrived at 2:00 p.m. The first order
of business to come before the committee was a power point
presentation by John MacKinnon, Deputy Commissioner, Department
of Transportation and Public Facilities (DOTPF).
DEPUTY COMMISSIONER MACKINNON, DOTPF, introduced one of his
senior planners, Mike MacKinnon, who would deliver the power
point presentation that documents a year of history on the
Colville River Road project. The purpose of the project is to
increase domestic oil supply, improve the state economy, improve
the North Slope Borough's climate for business opportunities and
decrease Nuiqsut's fuel costs and provide access to the Dalton
Highway.
CO-CHAIR COWDERY asked if the southern route was more feasible
because of its proximity to the gas field.
DEPUTY COMMISSIONER MACKINNON replied that it was decided after
months of study that this route was the least environmentally
sensitive and follows good material sources on a regular basis.
It avoids many of the subsistence areas critical to the Nuiqsut
residents.
CO-CHAIR COWDERY asked how wide the corridor would be.
DEPUTY COMMISSIONER MACKINNON replied that it would be wide
enough to accommodate a pipeline, about 200 ft.
CO-CHAIR COWDERY asked what the total cost of the project is
estimated to be.
DEPUTY COMMISSIONER MACKINNON estimated the cost to be in the
$150 million to $200 million range, depending on the design.
CO-CHAIR WAGONER asked where the money would come from.
DEPUTY COMMISSIONER MACKINNON replied that he doesn't anticipate
using federal highway funds at this point. However, this project
lends itself very well to private financing of some sort. State
bonds could be used for a finance-design-build-operate contract
with a consortium that would pay for the project with tolls. He
related that one major oil company spends about $5.5 million
every year to build a 20-mile ice road to Nuiqsut for about 100
- 120 days of use. An all-year road would be worth considerably
more.
MR. KEN DONAJKOWSKI, Health, Safety and Environmental Manager,
ConocoPhillips Alaska, said that ConocoPhillips doesn't oppose
the road, but had requested a road to access the National
Petroleum Reserve Alaska (NPRA). However, ConocoPhillips doesn't
require it in connection with its exploration efforts there. He
emphasized three key matters that must be addressed as an
integral component of the project first:
The first one is that increased security risk is our
first concern and is a direct consequence of parties
other than the current oil field operators and their
contractors being the attendant beneficiaries of the
Colville River Road. So, by virtue of this road being
an extension of existing infrastructure rather than an
independent route means that parties not directly
under the auspices of a current operator, BP and
ConocoPhillips, will be driving on roads with direct
access to the existing oil field facilities.
CO-CHAIR COWDERY asked who would be doing that.
MR. DONAJKOWSKI replied all other explorers and other users that
haven't been determined yet.
CO-CHAIR COWDERY asked if ConocoPhillips intended to provide
funding for the road.
MR. DONAJKOWSKI replied no and said he understood that BP
wouldn't either. He added that additional potential for
terrorist attacks needed to be thoroughly assessed on the road
extension and appropriate mitigation should be included in the
scope of the project. The safety of those who would drive
through the oil fields is as important as the security issue.
Employees and contractors who are associated with existing
fields have direct access to information on road conditions and
hazards through radio communication, safety training, vehicle
polices, etc. that are provided by the operators. Even access
that is restricted to industrial route use will pose unique
challenges to maintaining vehicle safety. Existing
infrastructure would have to be upgraded and must be factored
into the overall project cost.
Finally, he said that any related capital and incremental
maintenance costs must not be borne by the owners and operators
of the existing field and that some cost recovery mechanism,
such as a user fee, must be established.
MR. DONAJKOWSKI emphasized that the Colville River Road and the
connecting oil field infrastructure must be restricted to
industrial use with the exception of use by residents.
CO-CHAIR WAGONER asked Ruth Germany-Bice what BP thought about
construction of this project.
MS. GERMANY-BICE, BP spokeswoman, replied that BP did not
request the road nor does it plan on participating in the
consortium for construction of the road. BP would probably not
use the road because it isn't doing any exploration in that
area.
CO-CHAIR WAGONER asked who other than ConocoPhillips is or plans
to do work in the NPRA. There was no answer.
MR. JERRY MACDONALD, General Manager, Carlisle Transportation,
said he had been operating on the road to Nuiqsut for quite a
few years and supported having the road extension built. He felt
that it would reduce environmental impacts and increase safety
for the users. Now, village residents drive wherever they want
to get to the oil field infrastructure, either up the river or
across the tundra. People have had to get rescued half way
there. He said that use of the road 90 to 100 days per year is
pretty optimistic. Last year it was open only 30 days or so.
CO-CHAIR WAGONER asked how deep the river is in that area.
MR. MACDONALD replied about 20 ft.
CO-CHAIR WAGONER asked how much the bridge is estimated to cost.
DEPUTY COMMISSIONER MACKINNON answered $100 million.
CO-CHAIR WAGONER said he thought that a ferry could operate on
the river.
DEPUTY COMMISSIONER MACKINNON replied that the Corps of
Engineers Environmental Impact Statement (EIS) would look at a
ferry as one of the alternatives to the project.
DEPUTY COMMISSIONER MACKINNON replied that is not a practical
alternative because of the short open water season, but more
investigation would be done on that consideration.
SENATOR THERRIALUT joined the committee at 2:00 p.m.
CO-CHAIR WAGONER thanked everyone for their testimony and closed
the hearing.
HB 304-JACK COGHILL BRIDGE TO THE INTERIOR
CO-CHAIR WAGONER announced HB 304 to be up for consideration.
MR. RICHARD SCHMITZ, staff to Senator Cowdery, said he was asked
by the Senator to present this bill for Representative Coghill
who was out of town. He referred the committee to a map where he
pointed out the Jack Coghill Bridge's location. Right now it is
called Bridge 316.
CO-CHAIR COWDERY moved to pass HB 304 from committee with
individual recommendations and zero fiscal note. There were no
objections and it was so ordered.
There being no further business to come before the committee,
CO-CHAIR WAGONER adjourned the meeting at 2:05 p.m.
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