Juneau -- Good morning. This is Speaker of the House Brian Porter.

I want to discuss two topics with you this morning.

The first is a brief update on the impending BP-ARCO merger. Sir John Browne, the Chief Executive of British Petroleum, was in Alaska Friday to speak to BP's and ARCO's employees and to meet with legislative leaders and the governor. A number of us, from both sides of the aisle, met with Sir John and the exchange was both frank and productive. I think we now have a good idea of what British Petroleum's goals are, both worldwide and here in Alaska. For his part, Sir John went away with a good idea of what the state's goals are regarding the upcoming merger.

Sir John indicated that this merger with ARCO, while certainly good for his company, is also going to be good for Alaska. He stressed that the biggest natural barrier to doing global-scale business in Alaska is the expenses caused by our relative remoteness. From his perspective, this consolidation - and the cost savings it will produce - will go a long way toward lessening those expenses. He concluded that he sees BP as a strong, aggressive company whose bottom line is to get biggest percentage of return it can for its shareholders. We indicated to Sir John that, likewise, Alaska is a strong, aggressive state whose bottom line is the best interests of its citizens and that understanding, these positions are not mutually exclusive.

The second topic I want to talk about is subsistence. There is now a pretty firm consensus in the legislature that, while a solution is still possible, it is probably not going to happen before the end of the regular session. We have been meeting, however, with legislators from all areas of the state and from both sides of the aisle . With the cooperation of rural legislators - again, from both the majority and the minority - we hope to start-up a working group a few weeks after the end of the regular session. This group will look at the problem from as many perspectives as possible, take it down to its basic issues, and try to formulate a solution that is fair and equitable - and meets the technical requirements of ANILCA and the Secretary of the Interior, as well. Many of us feel that a solution is so close we can reach out and touch it. With a little movement on all sides, we still believe we can reach that solution and move on.

This is Speaker of the House Brian Porter. Thanks for listening.