Lawmakers prepare for gas line contract

Alaska legislators hire Robson for review of anticipated North Slope natural gas pipeline contract

Larry Persily

Petroleum News Government Affairs Editor

The Alaska Legislature wants to be ready if and when it receives a developer’s proposed fiscal contract for a natural gas pipeline, and to help prepare for that possibility lawmakers are hiring a former state Oil and Gas Division employee to advise them on gas line issues.

The Legislative Budget and Audit Committee voted without objection March 29 to contract with Bonnie Robson, former deputy director at the Oil and Gas Division. Robson, who moved to Zihuatanejo, Mexico, after leaving state government last fall, is expected to live in Juneau the next several weeks as she helps lawmakers study up on Alaska’s Stranded Gas Act.

Lawmakers started talking about hiring a consultant a few weeks ago, when they thought they might see a gas line fiscal contract for MidAmerican Energy Holdings Co., said Rep. Ralph Samuels, chair of the Budget and Audit Committee. The administration had said it was hopeful of reaching a deal with the pipeline company to pursue building a line from the North Slope, and legislators thought they might have to move quickly to consider and approve the contract before they adjourn in mid-May, Samuels said.

And although MidAmerican has broken off its contract talks with the state, legislators still know they could see a draft fiscal contract later in the year from the major North Slope producers or perhaps another potential developer. It just makes sense to start studying the issues that could be covered in a final contract, Samuels said.

Consultant will analyze gas line applications

• Review applications submitted to the state under the Stranded Gas Development Act, which allows for a negotiated fiscal contract governing payments to the state and municipalities in lieu of the existing tax structure.

• Review confidential documents submitted by applicants to the administration and assist lawmakers in analyzing those documents.

• Review and analyze any draft contracts negotiated by the administration, and assist the committee with its comments and/or suggested amendments to the contracts.

“Everybody has spoken very highly of her,” Samuels said of Robson.

Robson said she planned to start work immediately. The committee authorized Samuels to negotiate a contract with Robson, not to exceed $100,000. The chairman said he had not negotiated contract terms as of March 30.

Robson’s work will continue for the next several weeks, as she reviews the applications on file for gas line fiscal contracts, and she could return to Alaska later in the year if the administration successfully negotiates a draft contract with any of the applicants, Samuels said.

Robson has almost four years experience in the oil and gas section at the Department of Law, in addition to her two years as deputy director of the Oil and Gas Division at the Department of Natural Resources. She also worked five years on oil and gas issues at private law firms in Anchorage.

The committee record includes statements explaining that Robson’s expertise and the need to move quickly on the work is sufficient justification to award the contract to an out-of-state contractor and without a competitive selection process.