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SCR 14: Establishing the Joint Committee on Natural Gas Pipelines.

00 SENATE CONCURRENT RESOLUTION NO. 14 01 Establishing the Joint Committee on Natural Gas Pipelines. 02 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 WHEREAS the North Slope of Alaska contains approximately 35 trillion cubic feet 04 of known natural gas reserves and in excess of 100 trillion cubic feet of estimated natural gas 05 resources; and 06 WHEREAS demand for natural gas in the lower 48 states is expected to experience 07 record growth, rising from approximately 22 trillion cubic feet a year in 2000 to 30 to 35 08 trillion cubic feet a year in 2020; and 09 WHEREAS demand for liquefied natural gas in Asia and the Pacific is also expected 10 to experience significant growth; and 11 WHEREAS demand for natural gas exists in the state, and, if a natural gas pipeline 12 were built through Alaska along a southern route, many communities in the state could be 13 supplied with natural gas; and 14 WHEREAS Alaska's North Slope natural gas is attractive to all of these markets; and 15 WHEREAS improved economics and technological advances have removed 16 previously perceived barriers to the commercialization of Alaska's North Slope natural gas;

01 and 02 WHEREAS it is widely recognized that maximum benefit to Alaskans from the 03 commercialization of North Slope natural gas lies in market exposure for Alaska North Slope 04 gas reserves, opportunities for in-state use of the natural gas and for participation by Alaskans 05 in construction, maintenance, and operation of the gas pipeline transportation project, and the 06 recovery of revenue by the state from the development, transport, and sale of Alaska North 07 Slope gas reserves; and 08 WHEREAS the North Slope Natural Gas Pipeline Group, composed of BP Alaska, 09 Exxon Mobil, and Phillips Petroleum, is spending $75,000,000 this year to study various 10 routes and intends to file an application to transport natural gas from Alaska with the Federal 11 Energy Regulatory Commission and the Canadian National Energy Board by the end of 2001; 12 and 13 WHEREAS other entities, including Foothills Pipe Lines, Ltd., Yukon Pacific 14 Corporation, and Alaska Gasline Port Authority, are in various stages of rapidly developing a 15 natural gas pipeline; and 16 WHEREAS the best interests of the North Slope Natural Gas Pipeline Group and the 17 other entities may or may not be compatible with the best interests of the state; and 18 WHEREAS the governor has expressed a preference for expedited consideration and 19 development of a natural gas pipeline along the Alaska Highway route and has requested and 20 received funds to conduct various studies regarding a natural gas pipeline, including the study 21 of in-state natural gas demand, natural gas supply, a natural gas fiscal system, and the effect 22 of natural gas sales on the Prudhoe Bay reservoir; and 23 WHEREAS the legislature has introduced a bill that requires the Department of 24 Revenue to contract with an expert to study state ownership and financing of a natural gas 25 pipeline, to issue a report by January 2002, and to meet with and share data with the 26 legislature during the interim; and 27 WHEREAS the governor has established a Natural Gas Pipeline Policy Council that 28 includes the president of the senate and the speaker of the house of representatives and that 29 shall meet during the interim between legislative sessions and provide recommendations and a 30 final report by November 2001; and 31 WHEREAS several items are pending in the United States and Canada, including a

01 bill in the United States Congress entitled the National Energy Security Act of 2001, the 02 President's national energy policy, and similar action in Ottawa, that are expected to affect the 03 development of Alaska's North Slope gas resources and that could be advanced during the 04 interim; and 05 WHEREAS the Alaska State Legislature supports the commercialization of Alaska 06 North Slope gas for the maximum benefit of the people of the state; and 07 WHEREAS, given the importance of a natural gas pipeline system and that the 08 regime by which it is developed will have significant and lasting effects on the future of gas 09 development within the state and on future state revenues, it is imperative that the 10 administration and the Alaska State Legislature conduct a comprehensive, expedited review 11 of the effects of a trans Alaska pipeline on the state and its people; 12 BE IT RESOLVED by the Alaska State Legislature that a Joint Committee on 13 Natural Gas Pipelines is established to 14 (1) study issues relating to the proposed gas pipeline and collect information; 15 the committee may hold hearings, if the committee considers hearings desirable and may 16 compel attendance by subpoena if necessary; 17 (2) hire consultants and experts; 18 (3) work with the federal and Canadian governments and agencies, the 19 governor, the governor's staff, and outside consultants and experts; and 20 (4) take whatever action may be appropriate to ensure that the best interests of 21 the state are protected; and be it 22 FURTHER RESOLVED that the Joint Committee on Natural Gas Pipelines shall 23 consider what legislation should be adopted during the Second Regular Session of the 24 Twenty-Second Alaska State Legislature to enhance the best interests of the state and shall 25 report to the legislature on any recommended action within 15 days after the Second Regular 26 Session convenes; and be it 27 FURTHER RESOLVED that the president of the senate and the speaker of the house 28 of representatives shall jointly determine the number of senators and representatives to be 29 members of the committee, appoint the committee members, and jointly designate a member 30 to chair the committee; and be it 31 FURTHER RESOLVED that the Joint Committee on Natural Gas Pipelines may

01 meet during and between sessions of the Twenty-Second Alaska State Legislature and is 02 terminated on the convening of the First Regular Session of the Twenty-Third Alaska State 03 Legislature.