Commerical Production of Alaska North Slope Gas
The recent alignment by parties around a path forward on a large-scale LNG project, and the Alaska Gasline Development Corporation's preparation for an open season in 2015 for an in-state pipeline, creates an opportunity to commercialize Alaska North Slope natural gas resources.
Seizing this opportunity and developing North Slope gas on Alaska's terms and in Alaskans' interests depends on clarifying how the State will manage its gas resources.
Governor Parnell on January 24, 2014 introduced Senate Bill 138, the Commercial Production of North Slope Natural Gas legislation, which contains the tools and clarity necessary to advance a project that would provide natural gas for Alaskans and markets beyond. This bill passed during the 2014 legislative session and was signed into law by Governor Parnell on May 8, 2014.
Senate Bill 138 allows the State to implement gas commercialization agreements recently signed by the State of Alaska and other parties. These agreements are: a Heads of Agreement with the Alaska Gasline Development Corp., ExxonMobil, ConocoPhillips, BP and TransCanada Corp., and a Memorandum of Understanding with TransCanada.
The legislation is informed by the Department of Natural Resources's Alaska North Slope Royalty Study, which was commissioned to assist the State in developing fiscal and policy measures for an Alaska LNG export project.
Additional information is available in the legislation's document library maintained by the Alaska Department of Revenue.