US energy secretary urges Alaska lawmakers to move on gas pipe

US energy secretary urges Alaska lawmakers to move on gas pipe

Washington (Platts)--6Jul2006

US Energy Secretary Samuel Bodman has written to Alaska Governor Frank
Murkowski and members of the state's Legislature urging them to approve
legislation this summer allowing construction of a natural gas pipeline that
would move gas from Alaska's North Slope to markets in the lower 48 states to
begin.

In the two-page letter Wednesday, Bodman said that this was Alaska's
opportunity to get its gas to the marketplace, and if the state "does not
conclude necessary legislative and contractual work promptly, Alaskans may
lose the opportunity to pursue this project for several years or even a
decade," Murkowski's office said Thursday.

"I encourage recognition not only of the state's interests, but of the
strong national economic and security interests in developing the state's
natural gas resources," Bodman wrote.

"I strongly believe that the national interest is best served by a
decision this summer on the critical legislative and contractual issues
currently being considered by the state and its leaders," he added.

Murkowski welcomed Bodman's letter, which follows on from last week's
signing of a memorandum of understanding by 15 federal departments and
agencies to expedite permitting of the Alaska Highway gas pipeline project,
and a letter to Alaska legislators from Vice President Dick Cheney urging
action on the project.

In a June 27 letter, Cheney urged lawmakers to "promptly enact"
legislation that would permit construction and operation of the pipeline. The
Alaska Legislature "is the governmental entity that holds the fate of the
Alaska Gas Pipeline in its hands," Cheney wrote, adding that "time is of the
essence."

"It is clear that the Alaska Highway project is an important piece of the
nation's energy security picture, and the Bush Administration is solidly
behind it," Murkowski said. "DOE estimates the nation will need an additional
13 [Bcf/d] of gas in the next 10 years. Our project provides 4.5 [Bcf/d], and
is expandable to [6 Bcf/d]."

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