Legislature(2003 - 2004)

2003-04-22 House Journal

Full Journal pdf

2003-04-22                     House Journal                      Page 1050
HB 279                                                                                            
HOUSE BILL NO. 279 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act expanding the purpose of the Alaska Natural Gas                                        
     Development Authority to include planning, developing,                                         
     constructing, managing, or operating an economically viable gas                                
     pipeline project from the North Slope of Alaska by a route that                                
     parallels the Trans Alaska Pipeline System or the Alaska                                       
     Highway; relating to the development plan, requiring a work plan,                              
     and relating to acquiring permits or other property by the authority                           
     for a proposed gas pipeline project; and providing for an effective                            
     date."                                                                                         
                                                                                                    
was read the first time and referred to the House Special Committee on                              
Oil & Gas and the Resources and Finance Committees.                                                 
                                                                                                    
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Fiscal, Dept. of Revenue                                                                        
                                                                                                    
                                                                                                    
The Governor's transmittal letter dated April 17, 2003, follows:                                    
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under authority of art. III, sec. 18, of the Alaska Constitution, I am                              
transmitting a bill that would amend the Alaska Natural Gas                                         
Development Authority Act (Act) (AS 41.41).  This bill would amend                                  
the Act to expand the scope of projects that the Alaska Natural Gas                                 
Development Authority (authority) may consider.  Under current law,                                 
the authority is required to develop a project plan within one year for a                           
gas transmission pipeline running from the North Slope to tidewater at                              

2003-04-22                     House Journal                      Page 1051
a point on Prince William Sound.  There may, however, be other                                      
projects that are economically viable to bring Alaska gas to market,                                
including a gas transmission line from the North Slope to the Canadian                              
border along the route of the Alaska Highway.  The State of Alaska's                                
approach to considering these potential projects should be consistent.                              
The authority is, therefore, an appropriate vehicle to consider and plan                            
for all economically viable projects that run from the North Slope by a                             
route that parallels the Trans Alaska Pipeline System or the Alaska                                 
Highway.                                                                                            
                                                                                                    
                                                                                                    
Section 1 of the bill includes legislative findings and intent that it is in                        
the best interests of the State of Alaska to expand the purpose of the                              
authority to include in its planning and operation any economically                                 
viable gas pipeline project from the North Slope by a route that                                    
parallels the Trans Alaska Pipeline System or the Alaska Highway.                                   
                                                                                                    
                                                                                                    
Section 2 of the bill would broaden the concept of what an essential                                
government function is under the Act to beyond the acquisition and                                  
delivery of North Slope gas to tidewater.                                                           
                                                                                                    
Sections 3 and 4 of the bill clarify that the authority may acquire                                 
federal, state, or local permits as property of the authority under                                 
standards set out in AS 41.41.450, but the authority is not required to                             
make any acquisition of property.                                                                   
                                                                                                    
                                                                                                    
Section 5 of the bill would expand the definition of "project" to                                   
include any project that follows a route that parallels the Trans Alaska                            
Pipeline System or the Alaska Highway.                                                              
                                                                                                    
                                                                                                    
Section 6 of the bill would replace the timeframe for production of a                               
development plan for a gas pipeline project with a specific date for                                
production of a work plan, which must include detailed budgeting and                                
scheduling information.  Requiring the authority to produce a detailed                              
work plan by January 1, 2004, will facilitate delivery of a                                         
comprehensive development plan.                                                                     
                                                                                                    

2003-04-22                     House Journal                      Page 1052
I believe that these amendments will enhance the State of Alaska's                                  
ability to promote the most viable project or projects to successfully                              
bring Alaska's vast gas reserves to market.                                                         
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                 Sincerely,                                                        
                                /s/                                                                 
                                Frank H. Murkowski                                                  
                                 Governor"