Session: State Capitol, Room 30 Juneau, AK 99801-1182 Phone: (907) 465-3873 Fax: (907) 465-3922 Interim: PO Box 1441 Wrangell, AK 99929-1441 Phone: (907) 874-2318 Fax: (907) 874-3470 50 Front Street, Suite 203 Ketchikan, AK 99901 Phone: (907) 225-8088 Fax: (907) 225-0713

Sponsor Statement for SB 221
Alaska Liquefied Natural Gas Development Authority

Over the years in Juneau, I have repeatedly asked this Administration and each of the owners and potential producers of North Slope Gas, "When can we expect to see a pipeline, and will Alaska receive a fair share of the profits derived from our gas?" I wanted to know when the producers intended to sell gas. I also asked if Alaska should invest in the pipeline. Having watched twice, when the Canadians took the state ferry hostage, I asked, "What would stop Canada from holding our gas hostage in the future?" The answers I received were often confusing, complex, sometimes less than responsive, and certainly less than reassuring.

This experience caused me to draft and submit SB 221 (Alaska Liquefied Natural Gas Development Authority) last spring. I believe that Alaskans want a secure All Alaska Gas Pipeline running from Prudhoe Bay to Valdez, and they want it NOW!

Electrical blackouts roll through California, Oregon, and Nevada. The energy crisis is real and Alaska could be a major part of the solution to that crisis. Unfortunately, some wish to build the pipeline through Canada, thus giving the Canadians control over our destiny. Others want the major oil companies to tell us where and when to build the pipeline and on what terms. As the debate goes on, some are moving quickly to deliver gas to California. Just two weeks ago, Bolivia announced a five billion dollar gas pipeline project aimed at California. The window of economic opportunity may soon close as other gas producing companies and countries react to capture these markets.

SB 221 would allow Alaskans to own and control the gas pipeline. All of the jobs created in building and operating the pipeline would be Alaskan jobs. Alaska would get the jobs created by liquification and could develop the plastics and petrochemical plants associated with this resource. No foreign power could ever hold our gas or our pipeline hostage.

Value could be extracted from Alaska's gas before it left our state. Alaskans could utilize Alaska's gas along the way. Fairbanks, Delta Junction, Glenallen, Valdez and (with a spur line from Glenallen to Sutton) all of Cook Inlet could utilize this gas.

With passage of SB 221 we can literally start building the pipeline. Yukon Pacific has pledged its permits. The existing pipeline right of way and the corridor could be used. That road is already built and the right of way already exists. Those permits have already been granted.

The resulting revenue to Alaska will be greater, and the project will be on line years quicker, if we pass SB 221 and build an All Alaska Gas Pipeline.

The decisions on which this gas pipeline will be built are of major importance and will significantly affect future generations of Alaskans. An "All Alaska Gas Pipeline" may be the only way to make sure that Alaska gets a fair share and Alaska's gas doesn't get left out of the world markets.

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