Gasline czar Keith Meyer to face panel

SUMMER IS GRILLING SEASON

The new head of the Alaska Gasline Development Corporation will on Wednesday get his first chance to meet with the Senate Natural Resources Committee.

The committee convenes at 10 am (Anchorage Legislative Information Office) to receive its mandated update on AK-LNG, the Alaska Gasline project. The last time the committee held an update session, it went for six hours, with presenters wilting under the pressure of senators’ questions.

During the winter update, the simmering tension between the Walker administration and Alaska’s oil producers

Committee chairwoman Sen. Cathy Giessel sent a list of questions to AGDC President Keith Meyer, who at this point is expected to be the sole presenter on behalf of the state.

ON THE GRILL

We obtained that list of Senator Giessel’s questions:

Honorable Presenters,

The Alaska Legislature’s Senate and House Resources Committees (Committees) have been engaged in the second half of the 29^th Legislature. Now that the most recent special session draws to a close, the Committees turn their attention to the Alaska LNG Project (AK LNG). Under the enabling legislation for AK LNG, Senate Bill 138, the project participants are to give an update every quarter to the Legislature.

Since the last update in January, there have been several potentially new developments. In February, Governor Walker and the project participants held a joint press conference that alluded to possible changes to the structure in AK LNG. In addition, legislative offices have received inquiries from members of the press and the public regarding articles covering speculative changes to AK LNG.

Given the timeliness of the upcoming AK LNG update on June 29, 2016, I am providing questions with the expectation that responses will be provided by the date of the update. This is similar to the request made before the update in September, 2015. Unless otherwise stated, the questions are directed to all project participants.

1. The Pre-Front End Engineering and Design Phase (Pre-FEED) has been indicated to be completed by the fall of 2016.
   1. Please describe what is envisioned, from the perspective of each participant, as to what will occur after the completion of Pre-FEED
   2. Please describe what is the envisioned, from the perspective of each participant, as to the management structure after the completion of Pre-FEED. If possible, provide an organizational chart with names and job descriptions
   3. To the State of Alaska Gas Team (State Gas Team), what is the expectation for the role of the Alaska Gasline Development Corporation (AGDC) and the Department of Natural Resources (DNR) after the completion of Pre-FEED
   4. What is the funding source effort to proceed after the completion of Pre-FEED
   5. What is the anticipated Work Plan & Budget (WP&B) for the 2017 calendar year
   6. How does the State of Alaska (SOA) plan to fund activities after the completion of Pre-FEED

2. Does the (SOA) still intend to pursue a liquefied natural gas (LNG) project as proscribed in the AK LNG Heads of Agreement (HOA) and Senate Bill 138? In the event it does not:
   1. Is the SOA still pursuing an LNG project that is not proscribed by the AK LNG HOA and Senate Bill 138? If so
      1. Will the SOA pursue a project pursuant to the authorizations proscribed in Senate Bill 138 or House Bill 4? Does the SOA foresee authorizations that can be interchanged between the enabling legislation
      2. What is the structure of the venture

• Has an analysis from a consultancy been conducted on that new structure that show potential revenues and risks to the SOA, such as the study conducted by Black & Veatch for Senate Bill 138

1. Will the SOA experience any increase in liability under the new venture structure
2. Does the SOA intend to purchase property in the Matanuska-Susitna Borough or the Kenai Peninsula Borough for the new venture structure? If so, who will manage those properties
3. Is there a reason the Legislature has yet to be briefed on the details of that structure by the State Gas Team

• Has any company, government entity, or investment group, been identified as potential participants in the venture structure? If so
  1. Has an assessment been conducted as to the cost or charge fees of those participants
  2. Has an analysis been done for government take for the SOA under the venture structure
• Has the SOA engaged in any discussion related to pursuing an LNG project with a company or government entity besides the AK LNG project participants? If so
  1. Has the SOA signed confidentiality agreements with anyone other than the AK LNG project participants? What is the purpose of those agreements
  2. Has the SOA signed a Memorandum of Understanding (MOU) that has not been publically announced
  3. Do the project participants reaffirm their commitment that any agreement that has a term in excess of two years will come before the Legislature for approval? If not
     1. Please describe the type of agreements, to the extent possible, that may bypass the Legislature, and the reason that action is necessary.

It is my intent that, by having these questions presented to the project participants in writing before the update, there is sufficient time to provide responses. If responses are not possible, there is sufficient time to have an explanation as to why that is the case. Should there be any questions, please do not hesitate to contact my office.

I sincerely thank each and every one of the project participants of AK LNG. This is potentially one of the largest infrastructure projects in the world, and Alaskans have waited generations to commercialize their North Slope natural gas. It is through this venue that the Alaskan public can see the progress of a venture that, thanks to changes made in 2015, gives each resident a one-quarter share in AK LNG.

DETAILS

ANCHORAGE – Senator Cathy Giessel (R-Anchorage), Chair of the Senate Resources Committee will convene an information session of the Joint House and Senate Resource Committees to review the progress of the Alaska LNG Gasline Project.

Who: Senate Resources Committee & House Resources Committee

What: Update on the Alaska LNG Gasline Project

When: Wednesday, June 29 at 10:00 a.m.

Where: Anchorage LIO – Auditorium A, 716 W. 4th Ave., Anchorage, AK 99501 – Live Stream available: http://akl.tv

Why: The joint meeting of the Resources Committees will receive an update on the AKLNG project from the following stakeholders:
Steve Butt, AK LNG Project Manager
AK LNG State Gas Team
AK LNG Fiscal Team

For more information or to schedule an interview, contact Jane Conway or Kari Nore in Sen. Giessel’s office at  (907) 269-0181.