Senate Resources Committee Unveils Pipeline Plan

The Senate Resources Committee today unveiled their draft changes to the Governor’s plan for a large-diameter natural gas pipeline.


The Committee amended the bill to clarify that the State Legislature will be included in confidential information relating to contract negotiations.


Rachel Petro, President and CEO of the Alaska Chamber, spoke about confidentiality during the public comment period earlier this week…


Petro: “We do support the principles found in the HOA, as well as SB 138; chiefly: the State participation in an Alaska gas project; the State taking a percentage gas share and participating in an Alaska gas project at the same percentage of gas share; and then establishing a very clear process to move the project forward, which must include the necessary tools for confidentiality to be able to develop the various project-enabling arrangements that any business needs to do.”


The royalty rate for gas was also outlined in the draft at a minimum of 12.5 percent. The Committee also adopted Sen. Lesil McGuire’s suggestion that Alaskans could use their PFDs to invest in the project.


Further ammendments will be discussed this afternoon. The Committee plans to hold the bill over the weekend.


Kenai Peninsula Borough Mayor Mike Navarre also spoke this week, highlighting the impact the project will have on the Peninsula…


KPB Mayor Navarre: “We would like the opportunity to negotiate on our behalfs, and be part of determining what our local tax base and the tax structure will be, particularly if the State is going to own an equity interest, which creates somewhat of a conflict at the state and local governments. We will be living with the impacts long after the project is finished and we see the initial ramp-up for construction jobs.”

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