Sen. Frank Murkowski (R-Alas.) said he wants federal legislation directing Alaskan North Slope producers and pipeline companies to build an arctic gas line that parallels the oil pipeline to Fairbanks and then the Alaska Highway to British Columbia.
"I continue to work with producers on amendment or substitute," Murkowski said when asked if he planned to introduce a bill that mandates the "southern" pipeline route through Alaska.
Murkowski's comments followed a 21/2-hr closed-door meeting on Capitol Hill with stakeholders to review regulatory and economic obstacles that could delay or postpone a pipeline. Alaska Gov. Tony Knowles was invited to the discussions but did not attend. Other Alaska state officials were present, including state legislators.
No administration or White House officials attended. Murkowski said he plans to discuss the gas line with officials from the Department of the Interior and other unspecified government agencies.
The senator, who is running for governor of Alaska in the fall elections, has shown an increasing interest in the multibillion-dollar pipeline-which would be the biggest US construction project yet.
Later in a written statement, Murkowski said discussions at the meeting showed that there is more work to be done on the pending omnibus energy policy legislation in the Senate. "The Senate bill falls short of protecting the interests of Alaska and will certainly need to be amended. Everyone must remember that this gas lies beneath the state of Alaska and belongs to the people of Alaska.
Producers have not indicated a preference for the pipeline route. Canadians favor a northern route from Prudhoe Bay field east across the Arctic Ocean to the Mackenzie Delta and then south along the Mackenzie Valley. The Alaskan government and the US House of Representatives are on record as favoring the more expensive southern route that crosses more state land. Murkowski said a federal legislative ban is needed to prevent a northern "over the top" route that would carry more environmental risk.
Both producers and pipeline companies say plans by Canadian producers to proceed with a pipeline south from the Mackenzie Delta will not compromise plans for a line to move North Slope gas.
A Senate Republican energy bill authored by Murkowski did not have a specific provision for the gas line. But Murkowski has said the federal government may need to intervene to ensure the line is built in a timely fashion (OGJ Online, Dec. 13, 2001). The Senate Democratic energy bill, drafted by Energy and Natural Resources Committee Chairman Jeff Bingaman (D-NM), has provisions for gas pipeline loan guarantees. But Murkowski said some producers have indicated they would prefer to have a guaranteed floor price for their gas instead of a construction loan guarantee for pipeline companies.
The Democratic bill would provide up to $10 billion in loan guarantees, provided the applications for permitting certificates are filed within 6 months after the bill is passed. Democrats do not endorse a specific route but call for expedited federal review if a pipeline application is filed.
Murkowski also wants the pending energy policy reform legislation to include a provision to "provide fair and open access to all gas producers on the North Slope" and give the state a "strong voice in determining in-state tariffs and gas distribution to guarantee Alaskans have access to the gas."
The Senate is expected to begin debating energy policy legislation later this winter.
