MOA issues proposed term sheet for sale of ML&P
The Municipality of Anchorage has announced that it has released a proposed term sheet, setting out the provisions for the sale of municipality-owned electric utility Municipal Light & Power to Chugach Electric Association, Chugach Electric said today. Anchorage voters approved the sale in the municipal election that was held in April - since then the municipality, ML&P and Chugach Electric have been working out the details of the deal. Completion of the deal will result in a single consolidated utility in Anchorage, which, the municipality and the utilities say will achieve long term economies of scale through the efficient use of resource and the elimination of duplicated functions.
A series of public meetings have now been scheduled to review the proposed plans - the ballot measure for the sale required the Anchorage Assembly to approve final terms for the deal by Dec. 31.
"The term sheet is a product of rigorous review, vigorous discussion and adheres to the parameters outlined by the assembly and ratified by more than 65 percent of the voters of Anchorage," said Anchorage Mayor Ethan Berkowitz. "It represents an important milestone, and we are looking forward to a completed transaction."
"We're pleased to be moving forward with this acquisition and are looking forward to the public discussion over the next few months as we move toward final approval by the Chugach Board of Directors and the Assembly," said Chugach Electric CEO Lee Thibert.
- ALAN BAILEY
88 Energy adds acres
88 Energy said yesterday that it has executed agreements for an additional 45,239 North Slope acres, via its wholly owned subsidiary Accumulate Energy Alaska Inc.
Two parcels are involved, both adjacent to existing company acreage.
The first is an agreement with Arctic Slope Regional Corp. to lease hydrocarbon rights across 28,453 acres contiguous to the Western Fairway area of the company's Project Icewine acreage. This leasehold is 100 percent net to Accumulate, 88 Energy said, with lease terms consistent with those of the state.
The second agreement is with Great Bear Petroleum for a 69.1 percent working interest in 24,269 acres adjacent to and north of the Central Play Fairway at Project Icewine with 16,786 acres net to Accumulate, with consideration of a cash payment of $206,388 with $167,663 to be directed to lease rentals due by Oct. 1.
88 Energy said the two acquisitions increase its lease position by 45,239 net acres to 371,478 net acres across its three main project areas on the central North Slope.
- KRISTEN NELSON
See stories in Oct. 7 issue, available online Friday, Oct. 5 at www.PetroleumNews.com
For information on PN's news bulletin service, call 907-522-9469. PO Box 231651, Anchorage, AK 99523 - 1651