Regulatory Commission of Alaska will look at history of natural gas legislation

Kristen Nelson

The Regulatory Commission of Alaska held a hearing Sept. 8 on a request from the Alaska Natural Gas Development Authority that the commission recommend repeal of two sections of the Alaska Pipeline Act, AS 42.06.240(f) and AS 42.06.370(c).

The commission had discussed ANGDA’s request at an Aug. 24 public meeting (see story in Sept. 4 issue of Petroleum News) and opened a docket, P-05-10.

Steve Pratt, representing ANGDA, said it was proposing the repeal of the two sections, which deal with open season issues and with how rates will be set, to avoid future problems. ANGDA has said it is concerned about the ability of in-state users to get gas beyond an initial open season and with how a pipeline, especially a spur line to Cook Inlet, could be financed under the present statutes, which call for rates to be set for intrastate service “as if that portion of the North Slope natural gas pipeline were a public utility…”

Sections adopted in 2000

Pratt said ANGDA had briefly investigated the legislative background, but was basing its request for repeal on concerns expressed about the sections by former Attorney General Charlie Cole at joint hearings held by the Legislative Budget and Audit Committee and the Senate Resources Committee in July 2004, and on the fact that the statutes were confusing.

Commissioner Jim Strandberg said he was on the commission at the time and while he didn’t remember the details, he did remember that the Legislature held hearings.

Commissioner Dave Harbour asked that the commission have its staff research the legislative history and include it in its record.

Commission Chair Kate Giard told Pratt she was surprised that ANGDA hadn’t done research on the legislative hearings. She said the commission’s staff has already begun some research work, and said those findings would be included as part of the commission’s record.

Written public comments close Sept. 19.