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Enbridge to enter negotiations for Alaska pipeline construction

By OGJ editors

HOUSTON, Apr. 13 -- Alaska Gov. Frank H. Murkowski earlier this month reported that Enbridge Inc. of Calgary intended to file an application with the state under the Stranded Gas Development Act (SGDA) that will allow Enbridge to enter into negotiations with Alaska over fiscal, taxation, royalty, and other terms related to the construction of a natural gas pipeline from Prudhoe Bay to the Yukon border.

The state currently is negotiating a draft contract under SGDA with the three major Alaskan North Slope producers—BP PLC, ConocoPhillips, and ExxonMobil Corp.—and has a second application under review from the Port Authority group, comprising the City of Valdez and the Fairbanks North Star Borough.

A third applicant, MidAmerican Energy Holding Co., Des Moines, Iowa, last month withdrew its application with Alaska to develop a $6.3 billion gas pipeline after the state declined to give the company a 5-year exclusive right to build, own, and operate the pipeline (OGJ Online, Mar. 25, 2004).

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