The Alliance

Natural Gas Pipeline BriefingApril 27, 2001

William G. Britt, Jr.State Pipeline Coordinator

Department of Natural Resources

Development and transportation of Alaska natural gas to North

American markets is in the best interest of the people of Alaska

and the United States.

Governor Knowles’ Gas Pipeline Priorities

• Alaska hire and use of Alaskan businesses

• Alaskan access to gas

• Fair share of revenues for Alaskans

Why Send Alaska Gas to North America and Not Asia?

• Qatar

• Malaysia

• Brunei

• Abu Dhabi

• Indonesia

• Australia

Why the Highway Route?

• Ease of permitting

• Ease of design and construction

• Alaskan access to gas

• Alaska hire and use of Alaska businesses

• Revenues for Alaskans

Governor Knowles’“Doing It Right” Policy

• Sound Science

• Prudent Management

• Responsive, Meaningful Public Involvement

Sound Science

• Hydrological Studies

• Geological Studies

• Archaeological Studies

• Gas Supply Studies

• Oil Production Studies

• Fiscal Studies

Prudent Management

Advocacy• Project Proponents• Federal Government• Canadian Government

Approval and oversight processes• Design• Construction• Operation

Responsive, MeaningfulPublic Involvement

• Public participation in approval processes

• Administrative Order 188

Natural Gas Policy Council

Mission:

Advise Governor and Gas Pipeline Cabinet on how to promote the Alaska Natural Gas Pipeline Project, and how to maximize the benefits of the project for Alaskans.

Natural Gas Policy Council

• Scope of work:

- meetings to inform the public and gather their comments - recommendations to governor and cabinet on:

- potential benefits to Alaskan communities - best uses of state’s royalty gas- options for GTL, LNG, and NGL projects- demand for in-state natural gas

- minimizing environmental impacts- readiness for Alaskans to work on the project- state financing and potential ownership of the project

Federal Agencies

BLM

DOT/OPS

EPA

CG

COE

Federal - StateJoint Pipeline

Office

State Pipeline Coordinator

Commissioner ofNatural Resources

Governor

State Agencies

DNR

DEC

DFG

DOT

DOL

DPS

DGC

Authorized Officer

State DirectorBLM

Sec. of Interior

Section 10. Legislative declaration of policy 15. Powers of the commissioner 20. Grant of right-of-way lease 30. Abandonment, reduction, or impairment of service of pipeline 40. Temporary or emergency service or

temporary abandonment, reduction, or impairment of service by lessee

50. Application for right-of-way leases 70. Notice of application 80. Analysis and public hearing 90. Multiple applications for same lease100. Decision on application110. Term of lease120. Covenants required to be included in lease

Right-of-Way Leasing Act

Section122. Products pipeline leases130. Right-of-way easements or leases acquired from others140. Payment of rental and costs170. Forfeiture of lease180. Suits to enjoin or recover damages for defaults190. Application of the Administrative Procedure Act200. Judicial review of decisions of commissioner on application205. Lease savings clause210. Delegation of commissioner’s authority220. Continued operation of certain carriers225. Binding effect of covenants230. Definitions260. Short title

National Environmental Policy Act Lead Agency TBDCertificate of Public

Convenience and Necessity FERC (interstate)Dredge and Fill Permits COESection 10 Permits COEWastewater (NPDES) Permits EPA/ADECSPCC Plans EPAPermit to handle Hazardous Waste EPARadio/Wireless Communication

Permits and Licenses FCCAirport Leases FAANotices to Proceed BLMMaterial Sales BLMLand Use Authorizations DOD, BIA, othersBridge Permits CG

Examples of Federal Authorizations for an Alaskan Gas Pipeline

Certificate of Public Convenience and Necessity RCA (intrastate)

Right-of-Way Lease ADNRLand Use Authorizations ADNR, UA, MHTWater Appropriations ADNRMaterial Sales ADNRBurning Permits ADNR and ADECOil Discharge Contingency Plans ADECFood Service Permits ADECSolid Waste Disposal Permits ADECPSD (Air Quality) Permits ADECWater and Sewage Plan Approvals ADECHabitat Protection Permits ADFGUtility Permits for Encroachment ADOTACMP Consistency DGC

Examples of State Authorizations for an Alaskan Gas Pipeline

Zoning Requirements andLand Use Permits North Slope Borough

Development Permits North Slope Borough

Road Plans North Slope Borough

Zoning and Land Use Approval Delta Junction

Leases, Rights-of-Way, Land Use Authorizations Chugach, Ahtna,

others

Examples of Local and Private Authorizations for an Alaskan Gas

Pipeline

• Single point of contact for permitting, authorizations, and oversight

• Coordinated process for permitting, authorizations, and oversight

• Similar terms and conditions in permits and authorizations

• Unified voice in dealing with federal and Canadian governments, pipeline

companies, and gas owners

• Use existing structures to address these issues

Administrative Order 187

Gas Pipeline Cabinet

Commissioners of:- Alaska Department of Natural Resources (Chair) - Alaska Department of Environmental Conservation- Alaska Department of Fish and Game- Alaska Department of Revenue- Alaska Department of Transportation and Public Facilities- Alaska Department of Labor and Workforce Development- Alaska Department of Community and Economic Development

Directors of:- Division of Governmental Coordination- Governor’s Washington D.C. Office

Attorney General

Administrative Order 187

State Pipeline Coordinator is the:

Lead for coordinating state permitting,authorizations, and oversight for gas pipelines - Work planning - Scheduling - Budgeting - Staffing

Lead for communication and coordination with federal and Canadian agencies related to - Routing - Design - Permitting - Authorizations - Construction oversight

Administrative Order 187

State Pipeline Coordinator’s Office (SPCO)

Gas PipelineOffice (GPO)

Joint PipelineOffice (JPO)

Deputy StatePipeline

Coordinator

State PipelineCoordinator

Commissioner ofNatural Resources

Governor

GPO Agencies

DNR

DEC

DFG

DOT

DOL

DPS

DGC

JPO AgenciesDNR

DEC

DFG

DOT

DOL

DPS

DGC

BLM

DOT/OPS

EPA

CG

COE

FY02 Scope of Work

• Prepare to receive an application

• Work with proponents

• State policy support

• Process an application

Questions?