Sponsor Statement for HCR 11

On February 13th of this year, British Petroleum announced they would immediately stop fabrication work on their Northstar oil field development project. The company indicated the reason for the work stoppage was their concern with a lawsuit challenging revisions to the Northstar lease terms ratified by the Alaska Legislature and signed by the Governor last year.

HCR 11 asks the Attorney General of the State of Alaska to use every appropriate resource and due diligence to defend the state's interests in this case. HCR 11 also respectfully requests the Superior Court to expedite consideration of the pending legislation so that work on the project can resume as quickly as possible.

In 1996 the legislature authorized the Commissioner of Natural Resources to revise the Northstar unit oil and gas leases. At the time there was a strong commitment to Alaska-hire, Alaska-build, and Alaska-buy in the development of the field.

Following the revised lease agreement, construction of modules for the Northstar project began in Anchorage. Several Alaskan construction and oil services companies made preparations for the increased work load. People were hired. Plans were put into place.

The lawsuit has directly resulted in many Alaskans losing their jobs. In the interest of all Alaskans, this case must be resolved quickly.

Our resolution simply asks the Courts to act as expeditiously as possible on this hearing in order to put Alaskan families back to work.