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Protocol Signed with Alaska Gasline Port Authority


May 08, 2004

Juneau, AK - Governor Frank Murkowski and the Alaska Gasline Port Authority (Port Authority) announced Friday an agreement to help facilitate development and construction of a pipeline that will commercialize stranded North Slope gas.  The agreement, or protocol, indicates the state's willingness to work with the Port Authority, as necessary, on issues concerning development and construction of the pipeline project.

Governor Murkowski said, "We need to look at every opportunity, include every Alaskan, and consider every possibility to get our North Slope gas commercialized. The agreement with the Port Authority is a great example of Alaskans working together to do just that."

The protocol identified four discussion points the state will assist in expediting:
Permitting for:

  • Pipelines, gas processing and conditioning facilities, LNG liquefaction facilities, and marine terminals;
  • Right-of-way agreements or leases for all of the above;
  • Facilitating the use of ANS gas in Alaska power plants; and
  • The identification of other potential benefits to the state that could be incorporated into the scope of the pipeline project.

The protocol also identified five discussion points in which the Port Authority will aid the state:

  • The documentation supporting the application and the decision from the IRS regarding the Port Authority's tax exempt status;
  • The detailed cost estimate from Bechtel for the pipeline project;
  • Assistance from the Port Authority in obtaining additional work-product performed by Bechtel in furtherance of the pipeline project;
  • Assistance in understanding the economic model developed for the Port Authority by Taylor DeJongh; and
  • Copies of agreements the Port Authority entered into with companies to negotiate ANS gas and Alaska LNG procurement, transportation, gas and power development.

As a result of the protocol negotiations and the signing of this agreement, the Port Authority has decided to withdraw its application under the Alaska Stranded Gas Development Act (the Act).  The State of Alaska and the Port Authority agreed that the application may be resubmitted any time prior to March 31, 2005 if the Port Authority determines that the benefits available under the Act are necessary for successful implementation of the pipeline project.

The parties agreed to meet as soon as practical and to continue as necessary to work toward an agreement embodying the principles of the protocol.



Source of News Release:

Office of the Governor
Web Site


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