Representing the neighborhoods of Airport Heights, Campbell Park, College Village, Downtown, Fairview,
Geneva Woods, Government Hill, Green Acres, Midtown, Rogers Park, Spenard, South Addition, Tudor and Waldron
 

Working hard • Solving problems • Getting things done

August 1, 2008
 

Senator
Johnny Ellis

August 1st, 2008

SENATE MOVES GAS
LINE FORWARD

Friends and Neighbors,

         This afternoon the Alaska Senate voted 14-5 to grant a license to TransCanada to pursue a natural gas pipeline in line with the state’s requirements. I was a “yes” vote on this bill, and I believe this is the beginning, not the end, of a race to a gas line. Alaska is closer than ever to realizing this long-held dream. This process has given us two pipeline projects racing toward the finish line.

         Over the nearly two months that the Legislature discussed this issue I kept an open mind about TC Alaska’s proposal, as well as those from the Alaska Gasline Port Authority and the Denali group (British Petroleum and ConocoPhillips). After countless hours taking testimony from oil industry consultants and executives, Administration officials, and Alaska residents, I believe the Legislature has chosen the best course to deliver a gas line.

Over the past two months, the Legislature took testimony and quizzed consultants and Administration officials about the TC Alaska proposal. Here, Senator Bettye Davis (D-Anchorage) and I listen to a presentation in Anchorage on June 16.

         Some of the most convincing testimony we heard came from Dan Dickinson, who was an oil and gas consultant for Governor Murkowski, and who now consults with the Legislative Budget and Audit Committee. Mr. Dickinson and nearly every other expert we consulted said TC Alaska’s proposal can only move a pipeline forward, and will not crowd out competing proposals, like Denali.

         Under the state’s terms, TC Alaska will receive $500 million to take it through an “open season” and to apply for a federal (FERC) license. The terms that come along with this money include some of the “must haves” in my book: Alaska hire, a pipeline with an expandable capacity, enforceable benchmarks, distance-sensitive rates, reasonable transportation rates, the possibility of an LNG Y-line from Delta to Valdez, and take off points for spur lines around the state. It has always been my priority to build a gas line on Alaska’s terms, and today we took a major step in that direction.

Reviewing the language of a bill on the Senate floor.

         It’s important to keep in mind what today’s vote did not do. It did not crowd out alternate proposals like the Port Authority and Denali. It did not inhibit a bullet line to deliver in-state gas to Southcentral. And it was not a “giveaway” of $500 million. This money buys the Alaska must haves listed above and will be recouped in the form of lower transportation (tariff) rates.

         Over the last year I have voted on two of the most important issues during my time in public service. Last fall we reworked the state’s oil tax regime to give the state a more equitable share of our oil resources. And today the state moved closer than ever to a natural gas pipeline. We’re trying to spur new exploration for gas, or a “Gas Rush,” and I believe we are moving closer to making that a reality.

         Next up: we’ll be working all weekend on energy relief.

         Until next week,

        Senator Johnny Ellis

http://ellis.aksenate.org