October 21, 2004
"The single most significant event that made these meetings possible was the success of our Congressional Delegation in obtaining the federal incentives necessary to advance the project to the next phase - the development of a Stranded Gas Act contract between the state and the producers," Murkowski said.
The Governor said that the producers have embraced the state's equity concept which he had announced to the Legislative Budget and Audit Committee on October 13th. The state and the producers have pledged to continue to advance their discussions to develop a contract which will provide the fiscal certainty that is necessary for a project of this magnitude.
The state has set a target date of October 28, 2004 to submit its proposal to the producers. The producers have indicated that it is their goal to respond within one week.
Negotiations will then continue as the state's Stranded Gas team works with the producers to develop a final proposal to submit to the Legislature early in the coming session. Should the Legislature adopt the plan it would set the stage for expenditure in the range of $1 billion for engineering, planning and permitting.
North Slope producers at the Pasadena meeting were:
To date only TransCanada and the three producers are in negotiations with the state Stranded Gas team according to information provided by the Office of the Governor. These are the only applicants who have signed the reimbursement agreement required by the Stranded Gas Act.
Governor Murkowski met with President George W. Bush in Las Vegas last Thursday at a GOP rally along with 20 other governors campaigning on behalf of the President's re-election. Murkowski said the President's enthusiasm was evident as well in support of the delegation's success in passing the legislative package. The President said he looked forward to signing the bills so that the project could advance.
The Pasadena meeting was proposed by Governor Murkowski to coincide with his travel plans back to Alaska from Oklahoma City where he was elected chairman of the Interstate Oil and Gas Compact Commission (IOGCC) for the coming year. The IOGCC will be holding its spring meeting in Anchorage in May 2005 with about 350 IOGCC in attendance.
According to a news release, the major objective of the IOGCC this year will be to urge the U.S. Congress to pass a comprehensive Energy Bill as well as work toward developing increased oil and gas exploration throughout the U.S. and offshore and in Alaska.
Source of News Release: