Knowles calls for "Alaska's gas on Alaska’s terms"
For immediate release: September 7, 2006
tonyknowles.com
Tony Knowles announced today that he had concrete plans to revive gasline negotiations immediately upon taking office. “We’re going to develop Alaska’s gas on Alaska’s terms, and we’re going to move quickly,” he said. Knowles outlined the terms and set a timetable that called for pipeline proposals to be on the governor’s desk by January 31, 2007.
Those terms include:
Work and financial commitments, and performance and scheduling benchmarks.
The right for the state to terminate the agreement and bring in another project sponsor if benchmarks are not met.
Provisions for a spur line to provide gas for Southcentral Alaska
Provisions for mandatory expansions and rolled-in rates.
Alaska hire with measurable and monitored targets. This includes a project labor agreement.
Use of Alaska businesses for pipeline construction, with measurable and monitored targets.
Provisions for low cost energy for Alaska use.
Opportunity for Alaskan corporate and individual investors to own an interest in the pipeline.
State has the option, but is not required, to own an interest in the pipeline.
State retains the option to take royalty gas in kind or in value
Oil taxes are not part of any gas line contract.
State retains its sovereign rights.
The pipeline proposals, which will be made public, must describe how the pipeline would be developed and how the developer plans to meet Alaska’s terms and conditions. Those were among the details that Knowles and his running mate, Ethan Berkowitz, laid out in press conferences today at the Port of Anchorage and in Fairbanks.
“A natural gas pipeline from the North Slope has been high-centered and it’s clearly not going anywhere before the next governor takes office,” Knowles said. “I want Alaskans to know how Ethan and I will get this thing moving. We will act quickly but deliberately.”
Knowles spelled out three over-arching goals for the gas pipeline that he’ll pursue as governor.
“We want the best deal possible for Alaska – that means jobs, business opportunities, revenue and natural gas for in-state use. We want a long term source of clean, affordable fuel for Alaska homes, businesses and communities. And we must negotiate from a position of strength,” Knowles said.
“A gas line isn’t just about building a balance sheet. It’s about building the economy. At today’s gas prices, it is a profitable project and we don’t need to make unnecessary concessions or go hat-in-hand to a developer. We’re going to encourage competition in this process,” Knowles said. “We will compare and assess proposals – that’s how you get the best deal with the most benefits. It’s the same principle that applies in any market transaction,” Knowles said.
Knowles said he aims to have a proposal ready for the legislature and the public by the end of the legislative session. “The stakes are high – that’s why we’re going to be aggressive, and that’s why we’re going to succeed. It’s time to develop Alaska’s gas on Alaska’s terms.” he said. |
