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submitted by ADNR-Office of History & Archeology

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submitted by Advisory Council on Historic Preservation

On behalf of the Alaska AFL-CIO I would like to take this opportunity to commend the governor and her administration on engaging in a process to build a framework to move a gas line project concept forward which has been refreshingly open, despite the several and varied industry critics who have come out of the woodwork in opposition.

Whether or not AGIA is the best process to get a line built remains to be seen, but it is without a doubt the greatest effort that has ever existed in our state to move forward a project that takes the concerns of all Alaskans into consideration.

In light of last evening’s news where former chief of staff to Governor Murkowski, Jim
Clark has admitted guilt in regards to circumstances related to the former administration's efforts in conjunction with a selfishly driven unethical company, breeching the public trust, this reinforces Governor Palin’s AGIA process as being the right approach to prevent a similar outcome.

After meeting with Transcanada, it is clear that the Transcanada team made every effort to meet the varied desires of a state desperate to get its gas to market. The flexibility to alter their project to meet the wishes of the state are commendable and well thought out. The risk to Transcanada’s financial exposure should the three producers not commit gas in an open season shows their commitment to bear the brunt of $100 million, and certainly justifies their willingness to accept the state’s offer to provide $500 million in guarantees, on a $600 million endeavor which does not guarantee success or commencement of a construction project.

The only weakness in their proposal, and of course it is unavoidable, is that it relies on the commitments of all three major producers in order to be viable. Unfortunately, while I believe one or more of the major producers really do want to get our gas to market, we as a state have been led down the path of lackluster commitments in the past. And in fact the AGIA process did get one of the big three to lay some of their cards on the table as well. I commend Conoco-Phillips for making a proposal. However, AGIA is the law that was passed nearly unanimously, and accordingly a process the legislature overwhelmingly approved as the methodology to move a project forward.

A criticism I have heard is that it is not a competitive process when only one successful applicant emerges. That is utter hogwash. Every competitive bid process I have ever witnessed results in only one successful bidder. Transcanada met every must have the AGIA process laid out, and built the flexibility in their project to construct an LNG line if the transcontinental approach is not viable for whatever reason. Because the several other applicants did not meet the minimum requirements set forth in AGIA does not mean the process was not competitive. Quite the contrary, it means that Transcanada dotted all their i’s and crossed all their t’s better than any other applicant. Accordingly, as long as AGIA is the law, the process should be honored and allowed to run its course.

From the readings of legal opinions posted on the AGIA website it is obvious that Transcanada’s application is and has been the only unconditional and fully compliant application submitted within the requirements of AGIA and should be thusly considered.

Thank you for consideration of my comments

submitted by Alaska AFL-CIO

Attached is our letter whsi has also been faxed and mailed.

March 05, 2008
AGIA License Office
State of Alaska, Department of Revenue
550 West 7th Avenue, Suite 1820
Anchorage, AK 99501
Dear Commissioner Galvin and Commissioner Irwin:
The number one legislative priority of the Alaska State Chamber of
Commerce is the construction of the Alaska gas pipeline to supply the U.S.
market. The State Chamber commends the Administration for its hard
work and strong efforts to bring a successful gasline project to fruition.
In order for an AGIA licensee, or any other pipeline project sponsor to
succeed, there must be a clear, stable and predictable natural gas tax regime
so that natural gas owners perceive value in participating in a FERC open
season. We urge the Administration and the Alaska Legislature to begin
that dialogue.
Again, we commend your efforts to get an Alaska gasline project under
way. As “The Voice of Alaska Business” we look forward to continuing
the dialogue and providing the business perspective on this vital economic
development project.
Yours in economic prosperity,
Wayne A. Stevens
President/CEO