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Governor Accepts Producers' Gas Pipeline Application

January 24, 2004
Saturday - 1:10 am

Friday Governor Frank Murkowski delivered letters to Conoco-Phillips, BP and Exxon saying the State of Alaska has accepted the joint application from the three major North Slope producers to enter into negotiations on terms to construct a natural gas pipeline to the Lower 48. The application is the second Stranded Gas application the Governor has announced this week, following yesterday's announcement of an application from a consortium that includes MidAmerican Energy Holding Company, Pacific Star Energy, and CIRI.

The producers' application, received by the state on Tuesday, January 13, has been in review by the Department of Natural Resources and Department of Revenue. After a number of amendments to accommodate requests from the applicants, Murkowski said it has been accepted, as indicated by the letters.

"It is a great day for Alaska," Murkowski said. "We have had a long and productive relationship with the North Slope producers in the oil patch, and it is heartening to have them take this significant step toward commercializing our natural gas. We recognize this is just one step in the right direction and there remains much work to be done. But it is a step in the right direction."

"The North Slope producers bring decades of experience in the Arctic to this process," Murkowski said. "This includes exploration and development of our resources, and construction and operation of processing facilities and transportation systems. I have worked closely with these companies at both the state and federal level on legislation in support of the natural gas pipeline. So, we have come a very long way together and I am pleased to advance their application today."

The state will now enter into negotiations with the sponsor group. The state's negotiating team consists of Attorney General Gregg Renkes, Commissioner of Revenue Bill Corbus, and Commissioner of Natural Resources Tom Irwin, along with members of their staff. Murkowski said he hopes to have concluded negotiations on the terms of a draft contract in time to submit it to the Legislature for its approval.



Source of News Release:

Office of the Governor
Web Site


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