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Special session hearings open on in-state natural gas pipeline

Posted: April 20, 2012 - 12:04am
Senate Community & Regional Affairs Committee members Sen. Albert Kookesh, D-Angoon, left, Sen. Donny Olson, D-Golovin, center, and Sen. Johnny Ellis, D-Anchorage, right, listen to Rep. Mike Hawker, R-Anchorage, make a pitch for HB 9 at the Capitol on Thursday which would promote an instate natural gas pipeline project.  Michael Penn/Juneau Empire
Michael Penn/Juneau Empire
Senate Community & Regional Affairs Committee members Sen. Albert Kookesh, D-Angoon, left, Sen. Donny Olson, D-Golovin, center, and Sen. Johnny Ellis, D-Anchorage, right, listen to Rep. Mike Hawker, R-Anchorage, make a pitch for HB 9 at the Capitol on Thursday which would promote an instate natural gas pipeline project.

As special session hearings aimed at passing a natural gas pipeline bill got underway Thursday, advocates of the small line found a skeptical reception in the Senate.

Pushing the line they’re calling Alaska Stand Alone Pipeline, or ASAP, are Reps. Mike Chenault, R-Nikiski, and Mike Hawker, R-Anchorage.

They were trying to resurrect House Bill 9, which Chenault said the committee “neutered” late in the recently concluded legislative session.

Chenault and Hawker warned that could threaten the chances that their pipeline could be successful.

They found a skeptical reception from the Community and Regional Affairs Committee, chaired by Sen. Donny Olson, R-Nome.

Olson said that as House Bill 9 arrived in his committee, it “looks like an open checkbook you could have out there,” and said he was reluctant to open the state to that risk.

Rena Delbridge, an aide to Hawker, said the original goal of the bill was to remove politics from the process and turn over ability to manage the project to the Alaska Gasline Development Corp., a subsidiary of the state-owned, independently operating Alaska Housing Finance Corp.

What’s caused other projects to fail in the past was political leaders wanting to make changes to the projects.

“Politics has interfered, in the sense of different people wanting to pick routes, different people wanting to pick size,” she said.

Instead, the state should stick with the route and size that’s already been selected and move forward, she said.

If the new AGDC project can’t make agreements without legislative approval, the delays inherent in the political process will make it more difficult to do a deal, Delbridge said.

“They may have to move quickly,” she said, for example, to lock in low bond rates.

Olson didn’t like giving an independent entity unlimited bonding capacity. The state would be on the hook, taking the risk, but if there’s a profit to be made it would go elsewhere, he said.

Delbridge disputed that, saying the state would not back the bonds at all.

“It would be those people purchasing the bonds that would carry the risk,” she said.

Other points of contention include whether the pipeline should be a common carrier, as the Senate wants, or a contract carrier as the sponsors want. That’s a technical change, but highly important to the project, she said.

Other concerns expressed by Olson included public records exemptions that the sponsors say are needed to obtain confidential business information from potential partners.

“They will necessarily need a level of confidentiality to go forward, but we’re being as open and trusting as we possibly we can,” Hawker said. AGDC will be a public corporation managed by a board made up of commissioners in the governor’s cabinet.

In addition, Olson said he’d heard concern from municipalities about a requirement that they provide rock and gravel for the project.

Hawker said he had not heard those concerns from cities, but that usual and customary market prices would be paid for any resources used.

“It is not our intent to trump or damage communities,” he said.

The sponsors concern was making sure the project wasn’t blocked, Hawker said.

“The concept behind this provision was to not allow, for whatever reason, for some small entity in the state of Alaska to essentially hold the whole state hostage in stopping a project,” he said.

Hawker promised to work with Olson and community representatives on that provision and possibly make changes.

The committee Thursday held the bill for further hearings. No hearing is scheduled today.

• Contact reporter Pat Forgey at 523-2250 or patrick.forgey@juneauempire.com

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Latitude58
14737
Points
Latitude58 04/20/12 - 07:08 am
2
3

Another giant sucking sound

Just like the Susitna Dam, this will suck up all of the available capital to the Railbelt, leaving the rest of the state starving.

"The state would be on the hook, taking the risk, but if there’s a profit to be made it would go elsewhere."

Now that sounds like a classic republican plan through and through.

Treyshawn DaSheed
263
Points
Treyshawn DaSheed 04/20/12 - 07:45 am
1
1

dead prez

s'all bout them benjamins 2 the pubkins, lattyfiddy8.

Alaska_First
0
Points
Alaska_First 04/20/12 - 09:54 am
2
1

More Dishonest Nonsense From Hawker

HB-9 properly died in the regular session because it is a really bad piece of legislation designed to ignore the will of the people and economic reality.

Cook Inlet holds a 200 year gas supply. Why build a pipeline to a place with 200 years worth of gas? Insanity.

The last time the legislature wanted to throw lots of money at a gasline we ended up with AGIA. Hawker ignores that the AGIA work has already established a gasline route. Even though the AGIA work primarily focused on a doomed Canada line, the work also included a route to Valdez. Why in the world are we not taking advantage of the work WE HAVE ALREADY PAID FOR?

The Alaska Municipal League, representing 97% of Alaska Communities, voted to support the All Alaska Gasline that follows the oil pipeline. That project is what voters asked for, makes economic sense, and does the most to help the entire state, not only with affordable energy, but with massive new revenue.

The $250,000 household income the Hawker family receives from ConocoPhillips is what is driving this corrupt, anti- Alaska legislation; HB-9.

Arctic John
0
Points
Arctic John 04/20/12 - 10:30 am
0
1

HB-9

Senator Olson - Grill them heavily again on both sides. You have done a
great job. Don't despair.

It is not the job of a super state endowed pipeline quasi-agency to do
the heavy lifting to negotiate with the owners, etc., prior to and during
pipeline construction in my opinion. The whole scheme smacks of ENSTAR
and Harry Noah directing the shots secretly in the background to their
benefit and minimum benefit to the State. When Harry Noah first came to
ANGDA after his appointment about 3 years ago HE told ANGDA that there
would be no consideration for Valdez as a deep water port. Fauske and ASAP
crew have maintained that line and there has been only lip service to studying
alternative routes. The TAPS alignment is the ONLY route that has opportunity
to access ice-free deep water ports out of Valdez and serve the greatest
number of Alaska's population. The confines of Cook Inlet do not have
any deep water ports available.

Has ASAP paid ENSTAR for the Prudhoe to Anchorage pipeline aerial
photography, etc., it did for the ASAP project at the beginning with Harry
Noah's Permission to get the project rapidly moving ahead without legislative
funding? I think that bill was about $5 Million. OR is ENSTAR presently a partner
with ASAP? Perhaps an investigation is required.

I firmly believe that the State and its agencies should negotiate with
the owners, et al, regarding the high powered relationships necessary regarding
permissions, permitting, etc., prior to pipeline design, construction, operation and
maintenance and termination for a "State grant of Right-Of-Way". Furthermore,
"a Federal Permit" will be required for crossing federal land north of the Yukon and
Elsewhere as required. Not ASAP!! (read between the lines - if this happens what
powers of the governor, AG's Office, legislature and state agencies are being given
up?)

I testified at the House hearings and filed written comments. I also
testified in the Senate hearings and Senator Wagoner was not interested in providing
gas to the three interior Military Bases, specifically Ft. Greely. An amazing attitude
exhibited by a State legislator. Senator French was not interested in
hearing about pipeline lengths to service all three bases from either the Parks
Highway or Richardson Highway. It was obvious to me that Fauske and others had fed
numbers to them that thwarted the actual highway distance numbers or the importance
of the three interior military bases, the local employment provided and income
the state receives annually from them.

Again, thank you for your stand and hold firm. ENSTAR, Chenault, Hawkins,
etc., should not be allowed to perpetuate their political futures and their poorly
conceived and applied super NOVA (HB-9) that is now blinking huge red
flashing danger lights to Alaska's population regarding ALASKA'S future population
and financial well being. Something continues to be rotten in Denmark.

Arctic John
0
Points
Arctic John 04/20/12 - 10:33 am
0
1

HB-9

Senator Olson - Grill them heavily again on both sides. You have done a
great job. Don't despair.

It is not the job of a super state endowed pipeline quasi-agency to do
the heavy lifting to negotiate with the owners, etc., prior to and during
pipeline construction in my opinion. The whole scheme smacks of ENSTAR
and Harry Noah directing the shots secretly in the background to their
benefit and minimum benefit to the State. When Harry Noah first came to
ANGDA after his appointment about 3 years ago HE told ANGDA that there
would be no consideration for Valdez as a deep water port. Fauske and ASAP
crew have maintained that line and there has been only lip service to studying
alternative routes. The TAPS alignment is the ONLY route that has opportunity
to access ice-free deep water ports out of Valdez and serve the greatest
number of Alaska's population. The confines of Cook Inlet do not have
any deep water ports available.

Has ASAP paid ENSTAR for the Prudhoe to Anchorage pipeline aerial
photography, etc., it did for the ASAP project at the beginning with Harry
Noah's Permission to get the project rapidly moving ahead without legislative
funding? I think that bill was about $5 Million. OR is ENSTAR presently a partner
with ASAP? Perhaps an investigation is required.

I firmly believe that the State and its agencies should negotiate with
the owners, et al, regarding the high powered relationships necessary regarding
permissions, permitting, etc., prior to pipeline design, construction, operation and
maintenance and termination for a "State grant of Right-Of-Way". Furthermore,
"a Federal Permit" will be required for crossing federal land north of the Yukon and
Elsewhere as required. Not ASAP!! (read between the lines - if this happens what
powers of the governor, AG's Office, legislature and state agencies are being given
up?)

I testified at the House hearings and filed written comments. I also
testified in the Senate hearings and Senator Wagoner was not interested in providing
gas to the three interior Military Bases, specifically Ft. Greely. An amazing attitude
exhibited by a State legislator. Senator French was not interested in
hearing about pipeline lengths to service all three bases from either the Parks
Highway or Richardson Highway. It was obvious to me that Fauske and others had fed
numbers to them that thwarted the actual highway distance numbers or the importance
of the three interior military bases, the local employment provided and income
the state receives annually from them.

Again, thank you for your stand and hold firm. ENSTAR, Chenault, Hawkins,
etc., should not be allowed to perpetuate their political futures and their poorly
conceived and applied super NOVA (HB-9) that is now blinking huge red
flashing danger lights to Alaska's population regarding ALASKA'S future population
and financial well being. Something continues to be rotten in Denmark.

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