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Menge signs spur line right-of-way
Alan Bailey Petroleum News
The Alaska Department of Natural Resources said July 27 that Commissioner Michael Menge has signed the conditional right-of-way lease for the Alaska Natural Gas Development Authority’s proposed gas spur line between Glennallen and Palmer.
“This lease lays the foundation for a gas pipeline that, when constructed, will bring the benefits of reliable, affordable natural gas and propane to businesses and residents in Southcentral Alaska, the Kenai Peninsula, and rural and coastal communities throughout the state,” Menge said.
Menge presented the conditional lease to ANGDA CEO Harold Heinze at a brief ceremony in the ANGDA Anchorage offices. Heinze had signed the conditional lease on July 18 (see “Conditional ROW for spur line approved” in the July 23 edition of Petroleum News).
Lease gives ANGDA 10 years The conditional right-of-way lease provides ANGDA with a list of conditions that ANGDA needs to meet to show that they are fit, willing and able to build a pipeline, said Mike Thompson, acting state pipeline coordinator. ANGDA now has up to 10 years to produce the necessary development plans covering all technical, financial and environmental aspects of the construction project, he said.
“Providing in-state access to the (North Slope) gas is one of the six fundamental principles I followed in negotiating a natural gas pipeline contract,” Gov. Frank Murkowski said. “This right of way is one of the options available to us to fulfill my commitment to get Alaska’s gas to the people, and I am very pleased to see ANGDA obtain its lease.”
The governor is seeking a $4 million appropriation to the Department of Natural Resource, to allow ANGDA to continue its gas development work. At the July 17 ANGDA board meeting Heinze said that the Alaska Legislature had not appropriated any new funding for the ANGDA work program and that without continued funding the authority would have to cut back on its objectives.
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