Gas Pipeline Office gets temporary quarters; sends MOU to ANS producers

Kay Cashman

The state’s Gas Pipeline Office will open a temporary headquarters in early August on the 15th floor of the Atwood building in downtown Anchorage. The newly created multi-agency office will process right of way and related permit applications for North Slope natural gas pipeline projects.

The GPO currently has four employees. Bill Britt, Alaska’s gas pipeline coordinator, told PNA that a budget for a “full-blown office” was approved by the Legislative Budget and Audit Committee in mid-July, calling for up to 77 new positions.

“That’s for when we’re fully engaged in processing applications,” he said.

“Right now we’re in pre-application mode with the producers’ group and in the process of figuring out what work needs to be done for processing Foothills applications.”

Foothills Pipe Lines Alaska Inc., on behalf of the Alaskan Northwest Natural Gas Transportation Co. partnership, signed an agreement with the state July 18 for the GPO to review its previously filed right of way lease application for the construction and operation of an Alaska Highway pipeline. The terms of the agreement call for the partnership to reimburse the state for the cost of processing the right of way application. (See related story on page A19.)

Britt has submitted a similar MOU to the North Slope’s gas producers group — BP Exploration (Alaska) Inc., Phillips Petroleum Co. and ExxonMobil æ for reimbursement of up to $2 million for right of way pre-application work.

“It’s waiting for their signature,” Britt said. “The $2 million is a first level estimate of what would be needed for next six months or so.”

Initially GPO’s multi-agency staff will include individuals from the following state agencies: Department of Natural Resources, Department of Environmental Conservation, the Division of Governmental Coordination, the Department of Fish and Game, the Department of Public Safety, the Department of Labor and Workforce Development, and the Department of Transportation and Public Facilities. The Department of Law will provide support, and other state agencies, such as the Regulatory Commission of Alaska, are likely to coordinate with the GPO.

“The GPO agencies are the state agencies that will have permitting and authorization responsibilities over a North Slope gas pipeline. At this point, we don’t know who the federal lead agency will be. I expect to be working pretty closely with the U.S. Department of the Interior. They are bound to have a profound role in a gas pipeline project,” Britt said.

Britt said he expected GPO to be in permanent office space in Anchorage Jan. 1.

Britt can be reached at 907 271-5070.