Representative
CHRIS TUCK

I’m Here for You

I want to hear from you,
share your thoughts, voice
your opinion. Together we
will make a difference.

Click here to visit my Website
 
Click here to write me an email

Call me anytime:
   (907) 465-2095
   Toll-Free (866) 465-2095

Visit me:
   May-December
   716 W. 4th St., Ste. 340
   Anchorage, AK 99501
   (907) 269-0242 fax

   January-April
   State Capitol Bldg. Rm. 404
   Juneau, AK 99801
   (907) 465-3810 fax

Contact Other Elected Officials:

Governor Parnell,
Anchorage Office:
907-269-7450
EMAIL: Gov. Sean Parnell
www.state.ak.us

Senator Lisa Murkowski,
Anchorage Office:
907-271-3735,
EMAIL: Sen. Lisa Murkowski

Senator Mark Begich,
Anchorage Office:
907-271-5915
EMAIL: Sen. Mark Begich

Congressman Don Young,
Anchorage Office:
907-271-5978
EMAIL: Rep. Don Young

March 7, 2014

Gas Line Update: Recent Agreements

Dear Neighbors,

Recently, I provided information on the latest gas line proposal along with some of the basic concepts behind the plan.  In this update, I have provided information on the two agreements the state has entered into so far.  These are temporary, non-binding agreements that were signed in January, before the governor introduced his gasline bill.  If the bill passes this session, they will be the framework for negotiating binding contracts that would govern the ownership and operation of the pipeline and LNG plant.

Rep. Tuck signs a document accepting the Governor’s appointment of Sam Kito III to replace Rep. Beth Kerttula who recently resigned her house seat in Juneau.  Later, giving a legislative update at his constituent meeting at the Elim Café on March 1.

As I described in my last newsletter, this is a large pipeline that will ship billions of cubic feet of North Slope gas every day to a plant in the Kenai, where it will be liquefied for shipment to Asian markets. There are also opportunities to take the gas from the line for use here in Alaska.

I hope you will take a moment to review the following information and let me know if you have any questions or concerns.  A gas line is crucial for the future of our state and we must look closely at every proposal to make sure Alaskans get a fair deal.

“Heads of Agreement” (HOA)

• Signed by the state, all three major producers, TransCanada, and the Alaska Gasline Development Corporation.

• Outlines the main issues relevant to a tentative partnership.

• After passage of enabling legislation (SB138), the parties will negotiate final contracts.

• The producers propose to own percentages of the project equal to their percentages of the gas.

• The state will also own a percentage of the gas:  both “Royalty in Kind” and “Tax as Gas” (production taxes paid for with gas instead of money).

• Like the producers, the state will pay for and own a percentage of the project equal to our share of the gas. The percentage, which will be between 20-25%is not yet decided.

• The project will be managed like a condo: The pipe is jointly managed but everyone is responsible for their own gas through the pipe.

• Since the state will be an owner of gas, we will also be responsible to sell the Liquefied Natural Gas. The producers agree to negotiate to sell our share of gas on our behalf. The cost of this service is not yet decided.

• Each of the pipeline owners (including the state) has the ability to expand the pipeline to make room for new shippers.

• Fixed property tax based on throughput (thus none paid before pipe is in operation), also payments to municipalities for impacts of construction.

“Memorandum of Understanding“ (MOU)

• Signed by the State and TransCanada, the pipeline construction company who is currently our partner in the Alaska Gasline Inducement Act (AGIA) license.

• Once the bill passes and the final contracts signed, The (AGIA) license with TransCanada will be terminated and the state’s remaining obligations to TransCanada will end. The HOA anticipates the state owning 20-25% of the project. In the MOU, TransCanada agrees to pay for, own, and operate Alaska’s share of the pipeline and Gas Treatment Plant.

• The state has an option to buy back up to 40% of TransCanada’s share, thus up to 10% of the pipeline. At the end of the initial shipping contracts in 25 years we will have the ability to buy the entire project back at its depreciated value. We sign long-term shipping contracts for our gas through their pipe. These will be “ship or pay” contracts meaning we would be liable for payments even if the flow of gas was interrupted for some reason.

• TransCanada will not be involved in the proposed liquefied natural gas plant.

Thank you for taking the time to review this information.  A lot of questions remain about the project, and we Alaskans must work together to make sure we get the right answers.

I’m here for you, so please keep in touch on matters important to you and your family!

Warm regards,

      Chris Tuck
      Alaska State Representative
      District 22 - Anchorage

Tuck's Tips:

2014 CASA Program Seeks Volunteers

Court Appointed Special Advocates (CASA) are volunteers who work with the Office of Public Advocacy to represent the best interests of abused and neglected children in court.

There will be upcoming opportunities to attend information meetings about how to become a CASA volunteer.  Learn more at the following link:

alaskacasa.org/resources/1/Anchorage%20CASA%20spring%202014%20Flyer.pdf