Sen. John Torgerson State Capitol, Room 427 Juneau, AK 99801-1182 Phone: (907) 465-2828 Fax: (907) 465-4779

Rep. Joe Green State Capitol, Room 403 Juneau, AK 99801-1182 Phone: (907) 465-4931 Fax: (907) 465-4316

Chairman Restates Pipeline Route Preference
Producer Threats Won't Sway Legislature From Southern Route

(ANCHORAGE) - Responding to published threats that natural gas producers would abandon their pipeline feasibility studies if government ruled any route off-limits, the chairman of the Joint Committee on Natural Gas Pipelines on Monday strongly restated the Legislature's opposition to an "over-the-top" route that would deny Alaska the greatest benefits of North Slope gas development.

"The 'over-the-top' line is just not going to happen," said Sen. John Torgerson (R-Kasilof), chairman of the joint pipeline committee. "The Legislature passed a law against it last session, Rep. Don Young inserted language in the energy bill the House passed opposing it, Sens. Ted Stevens and Frank Murkowski oppose it in the Senate, the North Slope Borough opposes it, the Eskimo whalers oppose it and folks all over Alaska oppose it. How much clearer do we have to be?"

"Bringing North Slope gas through a southern pipeline is our best chance to fuel Alaska's economy into the 21st century," said Rep. Joe Green, vice chairman of the joint pipeline committee. "It means more construction and operations jobs for Alaskans, a reliable source of power for countless Alaska communities, and a source of hydrocarbon feed stock that could nurture a home-grown petrochemical industry in the North."

Following full and frank discussions on the issue with Torgerson and Green, BP's Gas Business Unit Leader Ken Konrad said Monday that the consortium understands and respect the Legislature's responsibility to advocate for gas development that benefits all Alaskans. He said the group is continuing its studies, and would work with the Legislature to find mutually acceptable solutions to any challenges that arise.

"We are not going to do a project that Alaska doesn't want," Konrad said.

While producers claim an over-the-top route would be shorter and could cost less to build, Green said it carries significant negatives, including: the environmental hazards of building undersea pipeline in an Arctic marine zone with massive ice scouring; concerns for the bowhead whales that are the foundation of the Inupiat Eskimo culture and subsistence hunting; and the long delays, high costs and low probability of winning government permits to build along the coast.

In a related development, a gas industry trade paper on Monday quoted a consortium employee as saying that neither of the two routes under consideration is economically viable because "the state is unwilling to give us a tax structure for our modeling." Konrad said that statement resulted from a miscommunication.

"We are working productively with the State to understand the many issues and options," Konrad said. "It's in the best interest of both the State and investors to have fair and certain rules around taxes before major commitments are made."

The joint pipeline committee will continue working energetically to address and resolve any issues that might impede progress on one of the most important economic issues before the state, Torgerson said. He noted that Committee members recently concluded an official protocol mission to solicit cooperation with Western Canadian governments on pipeline issues, and that the committee would continue its statewide meetings to take testimony from industry experts and the public with a meeting in Anchorage on Sept. 19.

"Following that meeting, I will be traveling to Washington, D.C. on behalf of all Alaskans, to make clear the state Legislature's opposition to the over-the-top route," Torgerson said.

"Alaska's natural gas is the energy of the future, and finding a way to get this gas to market is one of the most important development prospects on Alaska's economic horizon," Green said. "The people want it, the Legislature wants it and the industry wants it. I have every confidence that we can all work together for a gasline project that will benefit everyone."

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| Sen. Torgerson's Page | Rep. Green's Page |
| Joint Committee on Natural Gas Pipelines' Page |

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Wednesday, September 19

9:00 a.m. - 9:05 a.m.: Call to Order and Introductions

9:05 a.m. - 11:00 noon: Section by section overview/discussion of Producer's Legislation

• Patrick Coughlin, Special Consultant to the Senate Resources Committee
  
• Producer's Team
  
• Foothills Pipe Lines, Ltd.
  
• Anadarko/ Alberta Energy
  
• Alaska Gasline Port Authority
  
  

11:00 a.m. - 12:00 noon: Public Testimony
(limit to three minutes unless previously arranged by chair)

12:00 p.m. - 1:30 p.m.: Lunch Break

1:30 p.m. - 1:45 p.m.: Nan Thompson, Chair of Regulatory Commission of Alaska

1:45 p.m. - 2:00 p.m.: John Katz, Director of State/Federal Relations and Special Counsel to the Governor

2:00 p.m. - 6:00 p.m.: Committee discussion on federal legislation

# # #

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To Report Technical Problems or Contact Webmasters