MARCH 17, 2014

Representing District 15:
Midtown, University, and East Anchorage

I Answer to You!

Contact my office:
State Capitol Room 430
Juneau AK, 99801
(907) 465-4939
(800) 465-4939
 
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submit your 175 word letter to the Anchorage Daily News via e-mail letter@adn.com, or fax them to 258-2157, attn: letters to the editor.

Contact other elected officials

Governor Sean Parnell
907-269-7450
EMAIL: Gov. Sean Parnell

Senator Mark Begich
907-271-5915
EMAIL: Sen. Mark Begich

Senator Lisa Murkowski
907-271-3735
EMAIL: Sen. Lisa Murkowski

Congressman Don Young
907-271-5978
EMAIL: Rep. Don Young

Gasline Talks: Part 1

Dear Friends and Neighbors,

As expected, the Governor’s new gas line proposal has dominated much of the discussion this session.  Although the deal is far from complete, and may not ultimately be the best path forward, developing our natural gas reserves is critical to the future of our state.  (Put simply, we’re running out of oil and it’s not coming back in familiar volumes—we need a replacement source of revenue!).  Throughout this process, it is essential that Alaskans have access to accurate information so a beneficial and transparent deal can be negotiated on the behalf of all Alaskans.

A gas treatment plant (GTP), a pipeline, and a liquefied natural gas plant are the three components of the Governor’s new gasline proposal

I have summarized some of the most important points of the project so you will have access to pertinent information as the discussions and project moves forward.  Please review this information and share with me your thoughts and any questions you may have.  Your responses will guide me as I continue to take a hard look at this project.

The Project as Currently Proposed:

•  Attempts to access the estimated 35 trillion cubic feet of gas estimated to be in Prudhoe Bay and Point Thomson.

•  Involves the construction of a gas treatment plant (GTP) at the North Slope to remove impurities.

•  Requires the construction of a 42 inch pipe, 800 miles long.

•  The pipe concludes at a liquefied natural gas (LNG) plant at Nikiski, with storage tanks, docks, and tankers.

•  At completion, about 2.3 billion cubic feet per day are proposed to be shipped to Korea and Japan under long-term contracts up to 25 years.

•  The project will cost an estimated $45 billion total, with $23 billion of that for the LNG plant.

Earlier this winter (right after I had ankle surgery) I visited Point Thomson, a critical natural gas reserve

The Concept:

•  Tries to bring together two non-compatible pieces of legislation currently on the books; the Alaska Stranded Gas Development Act and the Alaska Gasline Inducement Act (AGIA).

•  The state will take all of its revenue as gas, rather than as monetary payment.

•  The state will own a percentage of the infrastructure equal to its percentage of gas.

•  Alaska will earn revenue as a return on investment as well as from profits on gas sales.

•  TransCanada will continue as the constructor of the project and will release the state from its obligations under the AGIA contract.

The Governor’s gasline proposal seeks to bring gas from the North Slope down to Nikiski for export potential

There are many more details to be shared about this project, and I will be studying them diligently and reporting back to you as I learn more.  In the near future I will be providing you with information about

•  the agreements that have been negotiated to date,

•  a description of legislation currently being considered,

•  details about the anticipated process for moving forward,

•  and a list of concerns to be addressed to make sure the project is a good deal for Alaskans.

Don’t forget to complete our community survey about important issues facing our state! Click here to access the survey.

Thank you for your time. Your early input on this project is crucial. As always, please let me know if I can be of service to you or your family,

I Answer to You!

Sincerely,

Representative Andy Josephson
State Capitol Room 430
Juneau AK, 99801
Phone: 907-465-4939
Rep.Andy.Josephson@akleg.gov