(JUNEAU) - The Alaska House of Representatives unanimously approved House Bill 16 by a vote of 40 to zero on Wednesday. Sponsored by Rep. Hugh "Bud" Fate (R-Fairbanks), HB 16 renews the Stranded Gas Development Act by extending the June 30, 2001 deadline to March 31, 2005 to allow the state and producers to begin new contract negotiations.

"By renewing the Stranded Gas Development Act, we're opening the door for new gas projects," Fate said.

HB 16 encourages further natural gas development by expanding the areas of potential gas exploration and development that fall under the Stranded Gas Development Act. The Act sets qualifications for projects that can apply to pay the state in lieu of taxes. Currently, the statute only qualifies natural gas projects that export the gas in liquefied form. HB 16 would allow gas development and transportation in any form and does not specify a pipeline route.

"We need to invigorate resource development in Alaska," Fate said. "This bill will encourage more gas drilling and potentially a gas pipeline."

HB 16 moves to the Senate.

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