Session: State Capitol, Room 121 Juneau, AK 99801-1182 Phone: (907) 465-4797 Fax: (907) 465-3884 Interim: post office: 119 N. Cushman, Suite 101 Fairbanks, AK 99701-2879 location: 3340 Badger Road. North Pole, AK 99705 Phone: (907) 488-0857 Fax: (907) 488-4271

Sponsor Statement for SB 310
Pipeline Coordinator; Natural Gas Pipeline

An Act amending the Alaska Right-of-Way Leasing Act to provide for the assignment and coordination in one office within the Department of Natural Resources, the State Pipeline Coordinator's Office, of the responsibility for state authorizations for and state oversight of the preconstruction, design, and construction of pipelines to transport natural gas from the North Slope to market, and to require the cooperation of state agencies in the work of the office; and providing for an effective date.

Senate Bill 310 makes important changes to the Alaska Right-of-Way Leasing Act regarding the permitting and oversight of Alaska North Slope natural gas pipelines. Currently, the Commissioner of the Department of Natural Resources is permitted to delegate authority to an employee of that department or the Department of Law. The intent of this bill is to require that delegation of authority be given to the Gas Pipeline Coordinator for those duties prescribed under AS 38.35 relating to the authorization and oversight of North Slope natural gas pipelines. Further, it gives the coordinator final approval authority: (1) to issue all permits and authorizations relating to the North Slope natural gas pipelines; (2) over the agency program and financial plans; and (3) over dispute resolution.

It is in the best interest of the State of Alaska to have a unified voice when interacting with gas owners, pipeline companies, contractors and federal and international authorizing agencies in the pre-construction and construction phases of North Slope natural gas pipelines. By creating a single point of contact, this office replaces an often cumbersome system that involves numerous agencies. Currently, the process of permitting, authorization, and oversight does not provide for a single coordinated approach within state government. By relocating such authority to one office the state is able to streamline future pipeline efforts and maximize potential for bringing North Slope natural gas to market.

Senate Bill 310 sets in statute the Gas Pipeline Coordinator Office within the Department of Natural Resources and defines it separately from the State Pipeline Coordinator located in the Joint Pipeline Office. By doing so, this bill allows for a more efficient and effective use of state resources, time, and structures. Streamlining actions needed on permitting and right-of-way applications during pre-construction and construction phases of North Slope natural gas pipelines ensures the state's best interests are served. Furthermore, a lead point of contact in the state approval and oversight process provides for internal alignment and dispute resolution.

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