(ANCHORAGE) - Earlier this week, Representative Ralph Samuels (R-Anchorage), Chair of the Legislative Budget and Audit Committee (LB&A) and Senator Gene Therriault (R-North Pole), Vice-Chair of LB&A met with the Federal Energy Regulatory Commission (FERC) to discuss upcoming regulations pertaining to Alaska's natural gas pipeline.

As part of legislation adopted by Congress earlier this year, FERC is in the process of drafting open season regulations to allow access for a pipeline. Representative Samuels and Senator Therriault presented a briefing paper to FERC outlining Alaska's requests regarding informational criteria, timing, and capacity allocation through Alaska open seasons. Specifically, the paper requests full disclosure of information on the pipeline, potential expansions, and demand for pipeline capacity, as well as that capacity be allocated only through publicly-conducted open seasons, with smaller shippers entitled to their full capacity requests. Additionally, the paper advocates that tariffs for both original and expansion capacity be calculated on a "rolled-in" basis, thereby eliminating discrimination in tariffs between shippers based on when they sign up for service.

"What we did is get our foot in the door of FERC's public comment process to make sure Alaska's voice is heard on access issues. The more access we have to a gasline, the more potential exploration, jobs, revenue, and related development we will see in the state. We want to encourage investment in natural resources in our state both now and for years to come," said Representative Samuels.

Senator Therriault went on to say, "All North Slope producers should have the opportunity to get their gas to market. The regulations that are enacted today will have an effect on Alaska's revenue potential for generations to come, making it extremely important that they be well thought out, implemented and take Alaska's best interest to heart."

FERC will issue draft regulations on November 18th and conduct a public hearing in Anchorage on December 3rd. The public comment period on the draft regulations will end December 17th with the final regulations being adopted February 9, 2005.

The briefing paper presented to FERC is available upon request.

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