04/28/2005 05:00 PM House OIL & GAS

HCR 8 - COOK INLET GAS GATHERING SYSTEM COMPLAINT                                                                             
                                                                                                                                
CHAIR KOHRING [announced  that the first order  of business would                                                               
be]   HOUSE  CONCURRENT   RESOLUTION  NO.   8,  Encouraging   the                                                               
Regulatory  Commission of  Alaska expeditiously  to complete  its                                                               
investigation of the Cook Inlet Gas Gathering System.                                                                           
                                                                                                                                
CHAIR  KOHRING noted  that the  Regulatory  Commission of  Alaska                                                               
(RCA)  has developed  a preliminary  decision regarding  the Cook                                                               
Inlet  Gas  Gathering  System  (CIGGS),   thus  rendering  HCR  8                                                               
unnecessary.   He asked Ms.  Giard to comment on  the preliminary                                                               
decision.                                                                                                                       
                                                                                                                                
5:14:01 PM                                                                                                                    
                                                                                                                                
KATE GIARD, Chair, Commissioner,  Regulatory Commission of Alaska                                                               
(RCA), Department of Commerce,  Community, & Economic Development                                                               
(DCCED), relayed that in response  to a complaint filed by Agrium                                                               
U.S.,  Inc., in  October 2004,  the  RCA initiated  a process  by                                                               
which to determine  whether CIGGS was in violation of  AS 42.05 -                                                               
the Alaska Public  Utilities Regulatory Act - and AS  42.06 - the                                                               
Pipeline Act.   The RCA, in  late March of 2005,  determined that                                                               
Union  Oil  Company  of  California  (Unocal)  and  Marathon  Oil                                                               
Company -  as owners of  CIGGS -  were public utilities  and thus                                                               
qualified to  be regulated under  AS 42.05, and  then immediately                                                               
exempted  those  two  companies   from  RCA  regulation  for  the                                                               
remainder  of the  pleading cycle.   Ms.  Giard recommended  that                                                               
members read  the RCA's order  on this issue,  particularly pages                                                               
18-21,  and noted  that the  RCA has  also issued  an order  that                                                               
schedules a prehearing  conference for May 4, 2005,  at which the                                                               
issues of  settlement procedures  and consolidating  the pleading                                                               
schedule will be discussed.                                                                                                     
                                                                                                                                
[HCR 8 was held over.]