(JUNEAU) - Governor Frank Murkowski signed House Bill 16 in Anchorage on Monday. 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 Senate last week and the House the week earlier.

"It's a critical piece of legislation for oil and gas development this year," Fate said. "The Act will help the administration and the industry to pave the way to a gas pipeline."

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. Previously, the Act had only allowed for natural gas projects that export the gas in liquefied form. HB 16 allows gas development and transportation in any form.

"This state legislation is essential to make the pipeline happen," Fate said. "However, we also need federal legislation to support this project, and we'll watch closely for that necessity to become a reality."

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04-07-03: House Resources Committee Chair Rep. Hugh "Bud" Fate explains the importance of Governor Murkowski signing Fate's House Bill 16, the Stranded Gas Development Act.

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