Legislature(2005 - 2006)CAPITOL 124
05/02/2005 01:00 PM RESOURCES
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HCR 13-NATURAL GAS SPUR LINE CONSTRUCTION CO-CHAIR RAMRAS announced that the next order of business would be HOUSE CONCURRENT RESOLUTION NO. 13 Expressing the legislature's support for the construction of a natural gas spur pipeline between Fairbanks and the Nenana Basin and Southcentral Alaska, commending the interest and initiative of the sponsors of that project, and encouraging the appropriate state resource agencies to lend support to those efforts. JIM POUND, Staff to Representative Jay Ramras, Alaska State Legislature, said HCR 13 would encourage the development of the stranded gas in the Interior. He added that early testing in the Nenana region indicates there could be as much as 10 trillion cubic feet of natural gas, and if it pans out, it will be stranded until a pipeline can be built. He said Fairbanks would have a difficult time consuming that much gas, so the idea is for the pipeline to go north and south. He noted that several companies are working on this project, and HCR 13 asks the resource agencies to work with them. The committee took an at-ease from 3:43:50 PM to 3:43:58 PM. MR. POUND recommended the following changes: on page 1, line 8, delete "to 15 trillion" because the actual estimate is only 10 trillion; on Page 2, line 8, insert ", LLC, Usibelli Energy LLC, Arctic Slope Regional Corporation"; and on Page 2, line 9, add "who have worked together and Enstar has secured partial federal funding". 3:45:42 PM HAROLD HEINZE, Chief Executive Officer, Alaska Natural Gas Development Authority (ANGDA), said he supports the resolution and has suggestions. He said on line 6 and 9, the word "reserves" is used, which implies they are well-known, discovered, and found, so he suggests using "potential reserves", "resource base", or "reserve base". He said there are no reserves at this time in the Nenana basin, and the reserves on the North Slope at most are 35 trillion cubic feet. He added that on line 12, page 2, the term "fastest most efficient" should not be used because that is unknown. 3:47:30 PM REPRESENTATIVE GATTO suggested striking the word "reserves", and use 35 trillion instead of 100 trillion. He said he will offer that as conceptual Amendment 1. REPRESENTATIVE CRAWFORD said he objected and offered an amendment to conceptual Amendment 1. He said 100 trillion is the potential, and he would like to keep it. He said there are 35 trillion cubic feet of reserves, so "take the reserves out and put resources, and we can say 100." REPRESENTATIVE GATTO objected to the amendment to conceptual Amendment 1 because the number "35" is used extensively, and anyone could say there is up to 100 million, but those are potential. REPRESENTATIVE CRAWFORD said "Or you can leave the 'reserves' in there and say '35', but to take 'reserves' out and just say '35 trillion potential resource' is a misnomer." 3:50:34 PM REPRESENTATIVE GATTO said change the '35' and keep 'reserves'. CO-CHAIR SAMUELS said, "If we use the word 'reserves', we have to use the '35'. If we want to use '100', then we use the word 'resource'." 3:51:08 PM REPRESENTATIVE CRAWFORD withdrew the amendment to conceptual Amendment 1. REPRESENTATIVE GATTO restated conceptual Amendment 1 to read: delete "100" and add "35". There being no objection, conceptual Amendment 1 carried. 3:52:32 PM CO-CHAIR SAMUELS offered Amendment 2, as follows: Page 1, line 8, following "estimated 10" Delete "to 15" Page 1, line 9, Delete "reserves" Insert "resources" There being no objection, Amendment 2 carried. CO-CHAIR RAMRAS offered Amendment 3, as follows: Page 2, line 8, following "Andex Resources" Insert ", LLC, Usibelli Energy, LLC," Page 2, line 9, following "ENSTAR Natural Gas Company" Delete "," Insert "Arctic Slope Regional Corporation" Page 2, line 9, following "who have" Insert "worked" Page 2, line 9, following "together" Insert "and ENSTAR has" There being no objection, Amendment 3 carried. 3:54:16 PM REPRESENTATIVE ELKINS moved to report HCR 13, labeled 24- LS0943\Y, as amended, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHCR 13(RES) passed out of committee.