(JUNEAU) - The Alaska State Senate approved House Bill 16 by a vote of 19 to zero on Friday. Sponsored by Rep. Hugh "Bud" Fate (R-Fairbanks), HB 16 revises the Stranded Gas Development Act to invite more companies to the gas pipeline discussion and extends the Act's deadline to March 31, 2005 to allow the state and producers to begin new contract negotiations. HB 16 unanimously passed the House last week.

"Both bodies of the Legislature understand the urgent need for new resource development with a gas pipeline in Alaska," Fate said. "We're re-opening the door to a concept that has always been popular, but also needed time."

HB 16 encourages further natural gas development by expanding the areas of potential exploration and increasing the number of companies that qualify for gas pipeline construction. More developers will be able to apply for a pipeline permit with less capital than previously required. Also, the current Act only allows natural gas projects that export the gas in liquefied form. HB 16 would allow gas development and transportation in any form.

"Alaska needs to get aggressive if it's going to get a gas pipeline," Fate said. "This bill opens the door to more companies, more ideas, and more opportunity."

HB 16 moves to the governor for approval.

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04-04-03: Rep. Hugh "Bud" Fate explains the role of expanding the Stranded Gas Development Act in the construction of a natural gaspipeline.

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