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Co-Chair: State Capitol, Room 128 Juneau, AK 99801-1182 Phone: (907) 465-2679 Fax: (907) 465-4822 Send E-Mail |
Co-Chair: State Capitol, Room 108 Juneau, AK 99801-1182 Phone: (907) 465-3744 Fax: (907) 465-2273 Send E-Mail |
Stranded Gas Pipeline Carriers
An Act relating to pipeline carriers of natural gas produced from the North Slope of Alaska and to the intrastate regulation by the Regulatory Commission of Alaska of pipelines and pipeline facilities of that natural gas.
Updated: March 29, 2000
Before a North Slope natural gas pipeline project can proceed, certain amendments to existing state statutes are required. These changes are intended:
- to apply to all potential North Slope natural gas pipeline projects
- to clarify respective state and federal jurisdictions in regulating such projects
- to be complementary to a non-discriminatory federal process which will apply to any export volumes of North Slope natural gas
- to provide for local (in state) gas transportation and sales
- to provide needed exemption from public utility designation for a North Slope natural gas pipeline project.
CSHB 290(FIN) will amend the Pipeline Act (AS 42.06) to define a North Slope natural gas pipeline, will clarify that the Regulatory Commission of Alaska's (RCA's) authority in regulating a North Slope natural gas pipeline extends only to the intrastate transportation of gas through such a system, to define a fair, predictable and timely process to identify and dedicate sufficient initial intrastate capacity in a North Slope natural gas pipeline and to establish the criteria for needed pipeline system expansions over the life of a North Slope natural gas pipeline system to accommodate increased demand for in state gas supplies.
CSHB 290(FIN) will amend the Public Utilities Act (AS 42.05) to clarify that North Slope natural gas pipeline systems are exempt from the requirement of operating as a public utility, and will amend the Right-of-Way Leasing Act (AS 38.35) to limit the requirement of common carriage for North Slope natural gas pipeline systems to the transportation of intrastate gas volumes only. Although not required to operate under the Public Utilities Act, a North Slope natural gas pipeline system must design and collect its tariff for intrastate transportation as if that portion of its pipeline was a public utility regulated under the provisions of AS 42.05.
CSHB 290(FIN) also defines the types of intrastate transportation services that will be available in a North Slope natural gas pipeline system, provides that in its tariff filed with the RCA a North Slope natural gas pipeline carrier may charge separate rates for those services, and may also charge a reservation fee for reserving capacity in a North Slope natural gas pipeline system.
Collectively, these changes are intended to provide greater certainty and predictability in the regulation of North Slope natural gas pipeline systems. This increased certainty will enhance the ability of gas export project sponsors to market Alaska's North Slope natural gas reserves, to compete more effectively with alternative export projects and to attract the large investments required to construct and operate the pipeline and related facilities necessary to condition, transport and export North Slope natural gas reserves.
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