Legislature(2011 - 2012)BUTROVICH 205
03/19/2012 03:30 PM Senate RESOURCES
| Audio | Topic |
|---|---|
| Start | |
| SB159 | |
| SB215 | |
| HJR29 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 159 | TELECONFERENCED | |
| *+ | SB 215 | TELECONFERENCED | |
| + | HJR 29 | TELECONFERENCED | |
SB 215-GASLINE DEV. CORP: IN-STATE GAS PIPELINE
3:40:13 PM
CO-CHAIR PASKVAN announced SB 215 to be up for consideration
[version 27-LS1392\M was before the committee].
3:40:27 PM
SENATOR JOE THOMAS, Alaska State Legislature, sponsor of SB 215,
said they had studied these routes for a long time, particularly
the one between the Interior and the existing infrastructure
north of Cook Inlet. When he was first elected, he drove the
route from Prudhoe Bay into Fairbanks; the Alaska Stand Alone
Pipeline (ASAP) and the Alaska Natural Gas Development Authority
(ANGDA) had also studied that route, and they all identified the
southern route using the Parks Highway as the most preferred
route to move gas into the Interior. It could serve as a spur
for the AGIA line, as well.
SENATOR THOMAS said that wells are now being drilled in Cook
Inlet that could have as much as 19 tcf of gas, and any market
for Cook Inlet gas would increase the economics for that
particular route. It is the shortest route from existing
infrastructure to the Interior of Alaska and could connect up
with a line from the North Slope in the future. The overall
price tag of a smaller line is smaller and they will know by
fall how much gas is in Cook Inlet.
He said as the ASAP pipeline moves forward, it seems reasonable
to build the southern section first, as that portion would be
used regardless of the AGIA line or another other line that goes
into use.
SENATOR THOMAS said SB 215 does not stop the in-state line; it's
just the first half of it; it could easily be extended onto the
North Slope at any time. The southern portion will also increase
the opportunity for Interior gas exploration and development of
the Interior basins that have been known and explored to some
degree for decades. This route would also reduce costs of other
natural resource development in the Southcentral, Upper
Kuskokwim and Interior regions of the state.
He said that people always talk about public/private partnership
and there is probably an opportunity to extend this line off
towards the Donlin Creek Mine that has been talking about
building its own line. It goes through some very realistic
mining area to the west of the Susitna River.
SENATOR THOMAS said it is past the time to continue studying
pipelines and roads to enhance development of Alaska's resources
and build something. This pipeline from the North Slope has been
studied since 1959. SB 215 is part of a long-term affordable
energy solution for Interior Alaska and benefits other areas
that could use natural gas in the future.
He added that realistically, the southern end of the pipeline
should have a dramatic reduction in the cost per mile as the
materials, pipe, all the equipment, gravel and supplies would be
delivered by rail and/or paved road, a much different cost per
mile compared to the northern line.
3:46:04 PM
CO-CHAIR WAGONER said he might add one other thing to his
presentation: if this pipeline is built it enhances the ability
to export gas if it is found in the Interior in such places like
the Nenana Basin. The pipeline runs both ways.
SENATOR WIELECHOWSKI, co-sponsor of SB 215, said he thought this
was a great bill. This bill helps Fairbanks, because having a
pipe to put gas in will increase exploration. He asked what size
he anticipated the line would be.
SENATOR THOMAS replied either 20 inches or 24 inches based on
ANGDA and ASAP studies and what Enstar has said.
SENATOR WIELECHOWSKI asked if that would carry 500 mmcf.
SENATOR THOMAS answered yes.
SENATOR STEVENS asked for an idea of the distance of the
southern portion and how much it would cost compared to the
northern portion.
SENATOR THOMAS replied that the line would be about 350 to 365
miles long. The AGIA spur to Anchorage would be 365 miles, but
just getting to Fairbanks with existing infrastructure is about
335 miles. The figures at this point in time are not necessarily
refined and are more of an average cost per mile based on the
entire 720 miles of the pipeline from Prudhoe Bay to Mile 39 by
Wasilla. About $1.3 billion to $2 billion of the costs on the
northern end are for compressor stations and a conditioning
plant, but those numbers could be refined more into the $1.25
billion range.
CO-CHAIR WAGONER said Cook Inlet gas is really good and doesn't
need a conditioning plant. That is a huge savings versus North
Slope gas to Fairbanks.
CO-CHAIR PASKVAN remarked that a straddle plant wouldn't be
needed either.
3:51:56 PM
GRIER HOPKINS, staff to Senator Joe Thomas, Alaska State
Legislature, said the 1.84 billion gas treatment facility on the
North Slope could be taken off the books, too, and the pipeline
from the North Slope to Dunbar - at least until a later date if
a pipeline gets built the rest of the way up. The Fairbanks
straddle plant was estimated to cost $280 million - and all
those costs would not have to come into play right now,
especially the gas treatment plant and the straddle facility.
Regarding Senator French's question, Mr. Hopkins said the Alaska
Gasline Development Corporation (AGDC) recently published a
preliminary distribution report for the Fairbanks area and it
came in at about 60 mmcf/day for a total of 20 bcf/year, and
that could be supplied by a 12 inch line. But if the second half
of the line is built from the North Slope, it would make sense
to build a 20 inch line. He explained that the 60 mmcf
represents a 25 percent increase for the Cook Inlet market. All
the gas would not be available for use immediately; it would
take about 10 years to get the project completed.
3:54:11 PM
MR. HOPKINS said even if gas is delivered at today's cost ($23
mmcf), Fairbanks would save $114 million/year. Bringing a
sizeable amount of gas to Fairbanks would also help air quality.
CO-CHAIR PASKVAN said this committee should keep in mind that
the construction of pipeline coming from the Kenai going to
Southcentral heading north from Big Lake to Interior Alaska
would create an energy distribution system with storage in
place. A significant portion of the Alaska's population would be
on this energy distribution system. And he felt that there
should be an export of natural gas to Alaskans in the Interior
before Alaska's resources are sent overseas.
CO-CHAIR PASKVAN said public testimony would be officially
opened at a later date, but Mr. Green had come down from
Fairbanks to testify.
3:58:15 PM
RICHARD GREEN, representing himself, Fairbanks, AK, said he just
paid his fuel bill and thought it was a good time to testify
since he was already in Juneau. People in Fairbanks appreciated
the due diligence they are doing in Juneau, but Fairbanks needs
some energy relief, he said. He manages a large lumber yard
there and the utility bills "would knock your socks off."
Personally, he has a five-star plus energy house and his energy
bills are high there, too. It's time to do something.
CO-CHAIR WAGONER asked what his five-star house is costing to
heat.
MR. GREEN answered that his 3,000 sq. ft. house uses 5.3 gallons
of fuel a day or about 2,000 gallons a year at $4 or $5 a
gallon.
CO-CHAIR PASKVAN said to purchase 1,000 gallons of fuel at $4 a
gallon would cost $4,000. To get the comparable btus with
natural gas under current Southcentral pricing would be a little
under $1,400.
4:01:58 PM
JIM SACKETT, CEO/President, Toghotthele Corporation, Nenana, AK,
supported SB 215. A mechanism is needed to move energy to or
from Interior Alaska and that is what SB 215 does. They all know
what the reasons are.
CO-CHAIR PASKVAN thanked Mr. Sackett and said official public
testimony would happen very soon. [SB 215 was held in
committee.]
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 215 - Route Comparison.pdf |
SRES 3/19/2012 3:30:00 PM |
SB 215 |
| SB 215 - Sponsor Statement and Legislation.pdf |
SRES 3/19/2012 3:30:00 PM |
SB 215 |
| SB 215 - Energy Cost Comparison.pdf |
SRES 3/19/2012 3:30:00 PM |
SB 215 |
| SB 215 - Fairbanks Impact.pdf |
SRES 3/19/2012 3:30:00 PM |
SB 215 |
| HJR 29_BLM Legacy Wells_AOGCC.pdf |
SRES 3/19/2012 3:30:00 PM |
HJR 29 |
| HJR 29_Version A.pdf |
SRES 3/19/2012 3:30:00 PM |
HJR 29 |
| HJR29_Fiscal Note_1-2-022012-LEG-N.pdf |
SRES 3/19/2012 3:30:00 PM |
HJR 29 |
| HJR 29 Amend Wagoner.pdf |
SRES 3/19/2012 3:30:00 PM |
HJR 29 |
| Draft CS SB 159-D version.pdf |
SRES 3/19/2012 3:30:00 PM |
SB 159 |