00                             HOUSE BILL NO. 21                                                                          
01 "An Act relating to the construction of an overland natural gas pipeline to transport                                   
02 natural gas from North Slope reserves to North American markets."                                                       
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  The uncodified law of the State of Alaska is amended by adding a new section                         
05 to read:                                                                                                                
06       LEGISLATIVE FINDINGS.  The legislature finds that                                                                 
07            (1)  known natural gas resources on the oil and gas leases of the North Slope of                             
08 Alaska, amounting to 35 trillion cubic feet (Tcf) that are ready for production, together with                          
09 estimates of total recovery from gas fields that may ultimately exceed an estimated 100 Tcf,                            
10 confirm Alaska as a principal source of energy to meet North American market demands for                                
11 cleaner, more efficient energy in this new century;                                                                     
12            (2)  an improved investment climate, technological and engineering                                           
13 improvements that have reduced the cost of construction and operation of a natural gas                                  
14 transportation system under arctic and subarctic conditions, and strong demand for the gas in                           

01 the North American market have significantly improved prospects for development of these                                
02 gas reserves and delivery of the gas to the population and industrial centers of Canada and the                         
03 United States;                                                                                                          
04            (3)  the gas reserves of Alaska's North Slope are so large that, without                                     
05 foreclosing consideration of projects involving gas-to-liquids and liquefied natural gas                                
06 technologies, the projected demands of the North American market will require completion of                             
07 an overland gas pipeline between the North Slope and the existing natural gas pipeline                                  
08 network in north central Alberta;                                                                                       
09            (4)  producers have identified two major routes--a "northern" route running                                  
10 east from the North Slope to Canada's Mackenzie River Valley, then south through that valley                            
11 to link to the pipeline network, and a "southern" route parallel to the trans Alaska oil pipeline                       
12 to the state's Interior, branching to parallel the Alaska Highway through the Yukon Territory                           
13 and northern British Columbia to link to the pipeline network--as the only natural gas pipeline                         
14 projects worthy of full consideration;                                                                                  
15            (5)  it is in the best interest of the State of Alaska that the natural gas pipeline                         
16 be constructed along the "southern" route, for construction along this route will                                       
17                 (A)  provide the benefit of a less expensive, cleaner energy source to                                  
18       the Interior of the state and provide the opportunity for additional gas                                          
19       commercialization throughout the state;                                                                           
20                 (B)  have the benefit of transportation access and support infrastructure,                              
21       following in part a route for which environmental studies have already been                                       
22       developed;                                                                                                        
23                 (C)  add significant property value to the tax base of the state and its                                
24       local governments, generating millions of dollars of additional state and local                                   
25       government revenue; and                                                                                           
26                 (D)  provide direct short-term construction and long-term operation-                                    
27       related employment opportunities for Alaskans.