In-state Natural Gas Pipeline Opinion-Editorial

Here is the op-ed Anchorage Representative Mike Hawker and I co-wrote on in-state gas and Escopeta, which ran in the Fairbanks Daily News Miner. We’re seeing if any other publishers in the state have an interest in running the piece as well.

By Mike Chenault & Mike Hawker

Encouraging development of Alaska’s energy resources to benefit Alaskans is one of our highest priorities as legislators. To that end, we couldn’t be more pleased with the recent announcement of a major natural gas find in Cook Inlet.

Confirmation of this discovery could significantly improve Southcentral Alaska’s energy security. For now, we are cautiously optimistic and wish Escopeta Oil Company the greatest success proving up this potentially spectacular prospect.

As we celebrate their success, our greater goal must remain a secure, long-term, reasonably priced, clean energy supply for as much of Alaska as possible – energy that allows our communities to thrive.

It is imperative we continue planning toward that goal. Alaska’s future isn’t about North Slope gas over Cook Inlet gas, security for Anchorage over Fairbanks, exports to Asia over North America. And it’s not about a band-aid size fix that leaves the same issues on the table for years to come.

We need all of the options to play out in an overall solution that promises longevity, security, and growth. We must develop a healthy in-state market that delivers gas to consumers and allows exports that help producers maximize the value of their investments. But most of all, we need a strong, central organization such as the Alaska Gasline Development Corporation (AGDC) to bring these elements together for the greatest benefit.

Alaska, we have been here before. For decades, we have hoped for gas –for use at home and as a state revenue-generator – yet we’ve never realized that dream. We’ve watched windows of opportunity slam shut as we endlessly debate which gasline project in the acronym alphabet soup of proposals is best.

This is the time for decisive action defining the future Alaskans want – one where the benefits of gas reach more areas of Alaska than ever.

We recently announced plans for legislation enabling AGDC and an in-state gasline.  House majority members from across the state were adamant that planning a natural gas future cannot be set aside another legislative session. Alaskans also heard that instate gas isn’t only about Anchorage or Kenai. It’s about Fairbanks and the Railbelt, and about the people in communities off the road system who depend on our cities for supplies, educational institutions and health care facilities.

Natural gas is a resource that, by our Constitution, is to be developed for the maximum benefit of Alaskans. While we may not be able to weave a gasline network touching every village and town, we can and should do more to increase the benefits of natural gas throughout Alaska.

AGDC can be the organization that gets the job done. The main mission for Dan Fauske and his top-notch team at AGDC is the in-state line established by Speaker Chenault’s House Bill 369 in 2010.  Our legislative package will empower AGDC to keep the momentum rolling on those plans that are well underway. We believe AGDC has demonstrated tremendous leadership and project management, and we need look no further for a vehicle to take us into a natural gas future.

Our goal is to empower AGDC to be nimble, innovative, and responsive to major shifts in supply and demand around the world, for the greatest benefit of Alaska. If the new Cook Inlet find is a huge as some suggest, we need to consider building a line running north to Fairbanks, allowing the Interior to build out its gas infrastructure as we continue developing another line linking the North Slope.

That may be the exact course AGDC would elect to pursue, given the authority to do so. To reach that point, we must enable, empower and encourage AGDC, maintaining the momentum and world-class work we’ve seen so far.

Alaskans heard Governor Parnell talk recently about the need for humility and flexibility as he pursues alignment of an in-state gasline with the AGIA-sponsored project. Our legislation will position AGDC to be a strong partner in an aligned, commercial project, if that becomes a viable solution. We support that alignment, but we’re also unwilling to stand by and hope for the best. By empowering AGDC and aligning other state efforts, such as ANGDA, we will also be prepared to proceed with a stand-alone, in-state gasline.

Acting decisively and with a unified voice today, we can usher a natural gas future into Alaska, regardless of when the next window opens to the Outside world.

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Press conference wrap on my instate gasline proposals

Here’s the text of the press release that our office sent out during my press conference last Friday on the Alaska Gasline Development Corporations’ instate gasline proposal.

Also, here’s a link to the audio of the conference: http://housemajority.org/press.php?p=media&id=317&leg=27

Release:

Speaker maintains in-state gas momentum with new legislation

Bill Represents Next Critical Step: Implementing AK Gasline Dev. Corp. Recommendations; Defining the Project and Expanding AGDC’s Capabilities 

Friday, Nov. 4, 2011, Anchorage, Alaska – Alaska Speaker of the House Mike Chenault today said he will introduce legislation empowering the Alaska Gasline Development Corporation (AGDC) to move forward on plans for an in-state natural gas pipeline.

“I commend Governor [Sean] Parnell for his desire to align the gasline efforts now on the table,” Speaker Chenault, R-Nikiski, said. “This legislation provides the foundation for an in-state gasline that will deliver Alaska gas to Alaskans. Passage will make AGDC a powerful partner in an aligned project and also allow an in-state line to stand on its own.

“My highest priority is making sure the AGDC has every tool available to succeed, whether on its own or as part of a major export project.”

The Speaker praised AGDC President Dan Fauske and his team for the progress made since the Legislature passed Chenault’s House Bill 369 during the 26th Legislature. Fauske’s group delivered its opening report to the Legislature in July, which offered a preliminary plan for development and financing the line.

The new legislation will implement a number of AGDC’s recommendations meant to help define the project and attract private sector investment. Among other things, the package will expand the corporation’s abilities, streamline regulatory processes, and direct collaboration among state agencies, said Rep. Mike Hawker, R-Anchorage. He is working with Speaker Chenault to develop the legislation.

“I couldn’t be more pleased with the progress Dan Fauske and his team at AGDC has made planning an in-state gasline,” Rep. Hawker said. “They are following the core principles of successful megaprojects, and I have complete confidence in AGDC’s ability to bring a commercially viable project to a sanctioning point. Speaker Chenault’s legislation is the next critical step in getting Alaska gas to consumers sooner rather than later.”

The legislation will be designed to keep AGDC’s momentum going, Speaker Chenault said; also stressing it will not close the door on alignment with other projects, such as the line proposed by TransCanada and ExxonMobil under the Alaska Gasline Inducement Act.

The bill will be introduced at the beginning of the second regular session in January.

Please see the attached AGDC recommendations as presented in the July 1, 2011, Project Plan. Also attached is a summary sheet of the potential components of Speaker Chenault’s legislation.

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Summary sheet of proposed legislation: http://housemajority.org/chenault/pdfs/27/AGDC_enabling_legis_summary.pdf

 

AGDC recommendations: http://housemajority.org/chenault/pdfs/27/ASAP_project_plan_legislative_recs.pdf

AGDC’s full report can be viewed at http://www.gasline.us.com/2011/07/alaska-stand-alone-pipeline-asap-project-plan-july-1-2011/

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