Legislature(1999 - 2000)
01/27/2000 01:09 PM House O&G
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HOUSE SPECIAL COMMITTEE ON OIL AND GAS
January 27, 2000
1:09 p.m.
COMMITTEE CALENDAR
PRESENTATION by Cook Inlet Pipeline Terminus Group
TAPE
00-7, SIDES A and B
CALL TO ORDER
Representative Whitaker, Chairman, re-convened the House Special
Committee on Oil and Gas meeting at 1:09 p.m. [This meeting was
the third of three held on the same date. This third meeting was
a continuation of the one scheduled for 11:00 a.m.]
PRESENT
Committee members present at the call to order were
Representatives Dyson, Phillips, Green, Harris, Porter, Smalley,
and Whitaker.
SUMMARY OF INFORMATION
CHAIRMAN WHITAKER introduced Dale Bagley, Kenai Peninsula Borough
Mayor, who narrated a visual presentation on the Cook Inlet
Pipeline Terminus Group's proposal for an Alaska natural gas
pipeline terminal at Nikiski on Cook Inlet.
MAYOR BAGLEY began by noting that there are several proposals for
natural gas projects. However, Alaska's North Slope has an
estimated 35 trillion cubic feet of natural gas, enough gas for
all.
Members of the Alaska North Slope Liquefied Natural Gas (LNG)
project sponsor group are ARCO Alaska, Foothills Pipe Lines,
Ltd., Marubeni Corporation, Phillips Petroleum Company, and BP
Exploration (Alaska) Inc. This group is in the final months of
Phase 1 of the development of a $20 million construction project
to bring Alaskan natural gas to an Alaskan port. This project
will provide clean energy, clean industry, and long-term, quality
jobs for Alaskans.
The sponsor group is considering building a terminus either at
Nikiski on Cook Inlet or on Anderson Bay near Valdez. The
Peninsula Group supports the Cook Inlet location because there
are more potential customers there; the supply of natural gas is
not growing to meet consumer demand; and Alaska Nitrogen
Products, a major employer on Cook Inlet, needs new souses of
natural gas.
Value-added processing of Alaskan resources strengthens the
state's economy. North Slope gas provides an opportunity for
value-added industries. Those industries need space for
facilities, storage, and housing, and Cook Inlet has the space to
accommodate industrial growth. The region also has a 31-year
relationship with the natural gas industry, resulting in
infrastructure, a trained workforce, and market experience.
MAYOR BAGLEY concluded that all of Alaska would benefit from
locating the gas pipeline terminus at Cook Inlet.
In a question-and-answer session following the presentation,
Mr. Bagley provided additional information including:
Having BP Exploration (Alaska) Inc. as a member of the Cook Inlet
Pipeline Terminus Group strengthens chances of the proposal
coming to fruition.
If a port authority approach provides economic benefits to a
gasoline project, it will work wherever a gas line terminates.
The relationship of the state to any port authority needs to be
clearly spelled out because there are economic trade-offs.
No matter which route the pipeline takes, there will be some
permitting and environmental hurdles to overcome. There are
already rights of way for the railroad and highway along the
railbelt route that could minimize the impacts of a pipeline in
that area. However, this is a long-term project with long-term
economic benefits, and any initial obstacles should be weighed in
relation to that.
All Alaskans should get behind the gas pipeline project,
whichever route is chosen, as all Alaskans will benefit.
COMMITTEE ACTION
The committee took no action.
ADJOURNMENT
The meeting was adjourned at 1:35 p.m.
NOTE: The meeting was recorded and handwritten log notes were
taken. A copy of the tape and log notes may be obtained by
contacting the House Records Office at 129 6th Street, Suite 229,
Juneau, Alaska 99801-2197, (907) 465-2214, and after adjournment
of the second session of the Twenty-first Alaska State
Legislature this information may be obtained by contacting the
Legislative Reference Library at 129 6th Street, Suite 102, (907)
465-3808.
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