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Providing coverage of Alaska and northern Canada's oil and gas industry
January 2008

Vol. 13, No. 3 Week of January 20, 2008

State delays Parks spur line RFP deadline

After taking time to re-evaluate the scope of a plan to study a potential natural gas spur line along the Parks Highway, the State of Alaska is now giving applicants two additional weeks to submit bids to conduct a feasibility study for the project.

The new deadline is Feb. 7, pushed back from Jan. 25. The study is being funded with federal dollars secured in 2005 by Alaska’s congressional delegation.

State Pipeline Coordinator Mike Thompson said his department recently finished re-evaluating its request for proposals to make sure the scope of the project matched the language of the congressional letter of intent connected with the funding.

While the state didn’t make any changes, it decided to extend the deadline to make up the lost time to potential contractors.

“We felt the bidders should be allowed to have that time back,” Thompson said.

The move shifts the timeline for other parts of the project, as well.

The state will now complete its evaluation of the proposals on Feb. 12, rather than Jan. 29; will issue a Notice of Intent to Award Contract on Feb. 13, rather than Jan. 30; and will award the contract on Feb. 26, rather than Feb. 12.

However, the state still intends to submit the final study to the State Pipeline Coordinator’s Office on Dec. 15.

The state also re-evaluated the RFP because some potential bidders questioned whether enough money had been allocated for the project, which would study everything from the geotechnical aspects of the proposed route, to land ownership, permitting and public outreach. The spur line would stretch around 320 miles from Fairbanks to the Enstar gas transmission pipeline in Wasilla.

The request for proposals set out a $1 million to $1.6 million budget for the project.

Ultimately, the state decided not to change the scope of the project.

—Eric Lidji






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