FERC to Issue Rule on Alaska Pipeline
news.yahoo.com
Mon Nov 15, 6:53 PM ET
WASHINGTON - Federal regulators said Monday they will issue a final rule within three months on standards it will require to give shippers access to a proposed Alaska natural gas pipeline.
The Federal Energy Regulatory Commission (news - web sites)'s rule will be aimed at assuring that access to the pipeline, if it is built, will not discriminate against shippers and end-users of the gas but will ensure the project's economic certainty that is needed to attract investment.
Last month, Congress approved a number of financial incentives for building the 3,500-mile pipeline that would take natural gas from Alaska's North Slope to the lower 48 states. It's cost has been estimated at $20 billion.
Negotiations are under way on the extent of state support and involvement in the project.
Legislation passed by Congress before it adjourned in October for the election also required FERC to establish a timeline for federal review and approval of the project.
As the next step, FERC said Monday it would issue a final rule by Feb. 10, 2005, on standards for access to pipeline capacity. The commission said it was ready to accept public comments on the matter.
Alaska's North Slope is believed to hold as much as 100 trillion cubic feet of natural gas, the largest reserves in North America, including 30 trillion cubic feet easily accessible in the Prudhoe Bay area. The proposed pipeline would deliver about 4.5 billion cubic feet a day, about 7 percent of current consumption.
The companies that own the Alaska gas — ExxonMobil Corp., ConocoPhillips and BP PLC — are considering the project. If a decision were to be made to build the pipeline, it would be ready to ship gas in about 10 years.
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