Senators move to speed Alaska gas line

Murkowski, Stevens propose legislation to streamline federal leg of approval process for construction of pipeline; Palin pleased

Rose Ragsdale

For Petroleum News

Alaska Sens. Lisa Murkowski and Ted Stevens introduced legislation April 11 designed to accelerate the federal government’s push to build an Alaska gas pipeline.

The bill provides the Office of the Federal Pipeline Coordinator with more flexibility in hiring personnel; allows the federal coordinator to establish reasonable filing and service fees, and clarifies the intent of the Natural Gas Pipeline Act regarding litigation, according to a joint statement by the two Republican senators.

In 2004, Congress provided tax credits and loan guarantees to improve chances for construction of an Alaska gas pipeline system. Congress also created the Office of Federal Pipeline Coordinator to oversee 15 federal agencies that will play a role in construction and financing of a pipeline system, and set up a streamlined permitting and expedited court review process to limit unnecessary delays in the project.

Further streamlining

“This legislation will make certain that the federal government continues to be ready to work with potential contractors and the State of Alaska through the permitting process needed to construct a gas line,” Murkowski said. “The project is too important for our nation’s energy security and Alaska’s economy to be delayed any further.”

“Expediting the Alaska natural gas pipeline construction process is critically important to our state and nation,” said Stevens. “In order to get Alaska’s gas to market in time to compete with foreign LNG, we must ensure the federal review process is not overburdened or unnecessarily prolonged. A fully functioning office for our Federal Pipeline Coordinator is essential to achieving this goal.”

Specifically, the legislation:

• Waives time-consuming hiring procedures required by federal law for employees in the Federal Coordinator’s Office, thereby speeding permitting and design issues;

• Establishes reasonable filing and service fees, charges and commissions for review of pipeline plans submitted by the entity that wins the right to build the line; and

•Clarifies the intent of the 2004 legislation that all lawsuits related to the permitting or construction of a pipeline project must be filed in the D.C. Circuit Court of Appeals.

The Alaska Legislature is currently considering the Alaska Gasline Inducement Act, legislation introduced by Alaska Gov. Sara Palin earlier this year. AGIA defines a competitive process by which Alaska will choose a gas line project, provides inducements for the construction of a gas pipeline, and contains certain requirements that need to be met by any proposal.

Palin: federal legislation another step

“I so appreciate this step that our senators have taken because we all recognize how important this gas line is to the state as well as to the nation,” she continued.

“Our strong relationships with the congressional delegation, with federal officials, with fellow governors, and so many others will be crucial as we look forward to providing a secure and safe domestic supply of natural gas.”

Palin said her administration has been in continuous dialogue with the congressional delegation and has “encouraged movement.”

“We have discussed with the delegation ways in which we can all keep the gas line project moving as expeditiously as possible, and I credit them with coming up with a great solution as we work toward providing a state coordinator on our end through AGIA.”

Describing Stevens and Murkowski as her “strongest AGIA allies,” the governor said her administration is absolutely in concert with the senators on the new bill.

“The fact that this legislation further empowers the nation’s federal coordinator, Drue Pearce, will prove to be so very beneficial. Drue is definitely the right person to progress the gas line,” she added.