00Enrolled SCR 15                                                                                                         
01 Authorizing the Legislative Budget and Audit Committee to pursue and direct litigation                                  
02 relating to state natural gas transportation.                                                                           
03                                        _______________                                                                  
04 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                             
05      WHEREAS the economic and fiscal futures of the state are closely tied to the                                     
06 commercialization of North Slope natural gas; and                                                                       
07      WHEREAS the current climate of increasing national demand for natural gas                                        
08 combined with declining natural gas reserves has created a demand for the state's energy                                
09 resources; and                                                                                                          
10      WHEREAS the United States Congress passed and the President of the United States                                 
11 signed into law the Alaska Natural Gas Pipeline Act to bring the state's North Slope natural                            
12 gas to the lower 48 states; and                                                                                         
13      WHEREAS the Alaska Natural Gas Pipeline Act (P.L. 108-324) required the Federal                                  
14 Energy Regulatory Commission to issue regulations governing the conduct of open seasons                                 
15 for state natural gas transportation projects; and                                                                      
16      WHEREAS the Legislative Budget and Audit Committee provided testimony and                                        
17 written comments to the Federal Energy Regulatory Commission during the development of                                  

01 the open season regulations; and                                                                                        
02      WHEREAS the Federal Energy Regulatory Commission issued Order No. 2005 on                                        
03 February 9, 2005, and the totality of the regulations was consistent with the substance of the                          
04 testimony and comments of the Legislative Budget and Audit Committee; and                                               
05      WHEREAS Order No. 2005 conforms to the congressional mandate that the open                                       
06 season regulations promote competition in the exploration, development, and production of                               
07 Alaska natural gas; and                                                                                                 
08      WHEREAS Order No. 2005 also meets congressional directives to provide for access                                 
09 to in-state delivery points for local consumption needs within the state; and                                           
10      WHEREAS ChevronTexaco Natural Gas, a division of Chevron U.S.A., Inc., filed an                                  
11 appeal to the United States Court of Appeals for the District of Columbia on April 8, 2005,                             
12 challenging Federal Energy Regulatory Commission Order No. 2005; and                                                    
13      WHEREAS, in order to preserve the ability of the Alaska State Legislature to voice                               
14 concerns or objections or provide relevant facts and testimony to the United States Court of                            
15 Appeals for the District of Columbia, it is necessary to file a motion to intervene within 30                           
16 days of the appeal;                                                                                                     
17      BE IT RESOLVED that the Alaska State Legislature delegates to the Legislative                                    
18 Budget and Audit Committee the full authority to intervene, appeal, and take all action                                 
19 necessary to pursue and direct litigation regarding the Federal Energy Regulatory                                       
20 Commission Order No. 2005; and be it                                                                                    
21      FURTHER RESOLVED that the Legislative Budget and Audit Committee is                                              
22 authorized to hire counsel and make all decisions concerning the objectives, scope, and means                           
23 of pursuing these objectives, including settlement, compromise, and appeal.