07/18/2001 09:06 AM Senate NGP

3:03 p.m.                                                                                                                       
                                                                                                                                
SENATOR  ROBIN TAYLOR,  Alaska State  Legislature,  sponsor of  SB
, first  thanked the  committee for taking  the amount  of time                                                              
they have  on this issue.   He then  brought attention to  SB 221,                                                              
which  provides  for  an  all-Alaskan  pipeline and  is  the  only                                                              
legislation  pending that  would do  so.  His  primary concern  in                                                              
introducing it is  jobs for Alaska, and following  that, "Alaskans                                                              
need to be on  the construction of any future  pipeline, a partial                                                              
owner, if not  a total owner of  the project, so that  Alaska, for                                                              
the first time, receives a true fair share of the project."                                                                     
                                                                                                                                
SENATOR  TAYLOR noted  that many  have said  producers and  owners                                                              
have to be in  agreement before any gas goes down  a pipeline.  He                                                              
commented, "Well,  Alaska happens to  be one of those  owners, and                                                              
it's high  time that gas  was no longer  locked and frozen  on the                                                              
North Slope, but  was freed up.  And  it has to get to  at least a                                                              
deep water port before it can be provided to world markets."                                                                    
                                                                                                                                
SENATOR TAYLOR said an all-Alaskan  pipeline to Valdez is not only                                                              
possible,  but the permits  exist  today, and  YPC has pledged  to                                                              
contribute their  permits to this  project should  the legislature                                                              
pass it.   He commented  that he was  disturbed by the  remarks of                                                              
Mr. Small  [of Cambridge Energy  Research Associates  (CERA)], who                                                              
indicated that if in the future Alaska  wishes to build a pipeline                                                              
to  the   Midwest,  Alaska   will  have  to   have  to   be  "more                                                              
conciliatory"' towards the Canadians.  He stated:                                                                               
                                                                                                                                
     The  idea of having  Alaska's heritage  and future  held                                                                   
     hostage by foreign governments  and foreign politicos is                                                                   
     disturbing to  me.  I am  comforted by the fact  that we                                                                   
     have  sufficient  gas on  the  Slope of  known  reserves                                                                   
     today -  to say nothing  of what the potential  reserves                                                                   
     are  for our  future -  that Alaska  can easily  develop                                                                   
     both pipeline  projects.  That is, we can  first develop                                                                   
     an all-Alaska  pipeline following the existing  corridor                                                                   
     and branching  off probably  at Glennallen and  going to                                                                   
     the  Anchorage  bowl.  If  there's  anything  that  will                                                                   
     provide long-term  jobs and  security for the  people of                                                                   
     Alaska in  the development of  its gas resources,  it is                                                                   
     [an] all-Alaska pipeline.                                                                                                  
                                                                                                                                
SENATOR TAYLOR  said there is  significant support  throughout the                                                              
Alaskan community  for this proposition.   He also  mentioned that                                                              
the  liberal  government in  British  Columbia  is going  to  move                                                              
forward  in developing  gas  resources off  the  coast of  British                                                              
Columbia.   Furthermore, Bolivia  announced yesterday it  would be                                                              
building a $5 billion, 5,000-mile  natural gas pipeline and tanker                                                              
route, taking landlocked  gas out of Bolivia and  shipping it into                                                              
Mexico and then to California.   He stated:                                                                                     
                                                                                                                                
     The rest of  the world is trying to take  advantage.  If                                                                   
     we have  to wait for the  owners to get onboard  for the                                                                   
     producers to  be happy, for  us to sucre enough  support                                                                   
     from the Canadians  that they're willing to  now talk to                                                                   
     us about how  many jobs they're going to  develop, if we                                                                   
     wait for  all those  things to  occur, I firmly  believe                                                                   
        the markets are going to filled and the window of                                                                       
     opportunity will be lost.                                                                                                  
                                                                                                                                
SENATOR  TAYLOR   concluded  by   saying  he  looked   forward  to                                                              
discussing  the   all-Alaskan  gas   pipeline  project   with  the                                                              
committee.  [End of discussion of SB 221.]