AK House Majority
The 26th Alaska State Legislature, 2009 - 2010  
Sponsor Statement: House Concurrent Resolution 2

In-State Gas Pipeline

Ak Legislative MajorityAk Legislative Majority
Rep. Jay Ramras R-10
Ak Legislative Majority

Rep. Jay Ramras (R-10)
Ak Majority Organization

Ak Majority Organization

Urging the Governor to commit to providing energy security for all Alaskans by supporting the in-state gas pipeline project and assisting the project in its efforts to secure needed permits, rights-of-way, engineering specifications, and other approvals necessary or desirable, to bundle the approvals for sale on the market to interested private sector pipeline companies, and in all other ways to act in due haste to move the in-state natural gas pipeline to a construction phase; urging the Governor to support the persons working on the in-state gas pipeline project in discussions with and obtaining of letters of intent from potential industrial users of natural gas, including the Agrium U.S., Inc., facility, the ConocoPhillips/Marathon facility, mining companies, and other businesses interested in value-added processing of Brooks Range foothills that exceeds the needs and demands of Alaskans for affordable natural gas; urging the Governor to continue negotiations with one or more entities capable of producing and supplying natural gas from the North Slope or Brooks Range foothills to Southcentral and Interior Alaska on commercially reasonable terms and in sufficient quantities to support the energy needs of Alaskans and the economic viability of a pipeline; urging the Governor to expedite the permits necessary or desirable to construct and operate a gas-to-liquids facility at Point Mackenzie if a feasibility document shows that it is economically viable; and urging the Governor to take the actions requested in this resolution, as necessary and appropriate, immediately and with all reasonable speed and effort.

Posted: March 31, 2009 : v26-LS0264\T
Bill Version: SCS CSHCR 2(FIN)
Status: Legis Resolve 41 : 2010-08-03

The intent of House Concurrent Resolution No. 2 is to provide energy security for Alaskans. This resolution urges the Governor to take action that will facilitate development of a small natural gas pipeline, commonly referred to as the "bullet line." With completion of a large diameter gas line not expected until 2016 at the earliest, the bullet line, a smaller project that will be easier and quicker to complete, can bridge the gap in natural gas delivery and provide much needed natural gas long-term to communities along its route between the North Slope and Cook Inlet. Because the gas will be extracted and delivered within the state, and for export, the cost of this resource to the ratepayers could be considerably less than the cost of other sources of fuel consumed by Alaska's residents today. Thus, the bullet line will provide certainty of supply and predictability of price for Alaskans along the bullet line route.

The Governor and key agencies in the executive branch are in a unique position to facilitate development of the bullet line by a private entity. HCR 2 urges the Governor to use those resources to accomplish several goals. First, HCR 2 urges the Governor to locate companies or entities on the North Slope or elsewhere in the Brooks Range foothills that have significant quantities of natural gas and to negotiate contracts with those entities to guarantee commercially reasonable terms that will enhance economic viability of a bullet line.

Second, HCR 2 urges the Governor to take the lead in initiating discussions with all potential industrial users of natural gas, including the Agrium plant in Kenai, which is a facility that processes natural gas into urea fertilizer and other consumables, but closed recently because it lacked a sufficient supply of gas to continue operations. At its peak, Agrium employed 250 people. Reopening Agrium not only will provide needed jobs for the Kenai, it will also support the farming industry in Alaska, which came to rely on a cheap, local source of fertilizer. Additionally, it will help ensure a steady demand for natural gas that will enhance the economic viability of a gas bullet line.

Third, HCR 2 also urges the Governor to advocate for an increase in the amount of natural gas that may be exported from the state under the authority granted by the United States Department of Energy. Under current licenses with the U.S. Department of Energy, ConocoPhillips Alaska Natural Gas Corporation and Marathon Oil Company may export from the Kenai liquefied natural gas export facility up to 99,000,000,000,000 British thermal units (about 98,100,000,000 cubic feet) of liquefied natural gas during the two-year period from April 1, 2009 to March 31, 2011. By supporting the renewal and increase in export licenses, the Governor will take the lead in insuring that Cook Inlet natural gas demand is supplied and that a natural gas bullet line from the North Slope to Cook Inlet is an economically viable project.

Finally, HCR 2 urges the Governor to take the actions requested in the resolution, as necessary and appropriate, before June 1, 2011.

A bullet line from the North Slope to the Cook Inlet will not only provide long-term energy security for Alaskans, it will also increase jobs all along the route from the North Slope to Cook Inlet and it will increase local and state revenue.

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2010-03-30 : 00:38 : [AUDIO] Rep. Ramras Comments on HCR 2 passing out of the Senate Finance Committee
 Download Audio  [MP3:387KB]

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