Gov. Bill Walker address members of the media during a news conference at the Capitol in Juneau, Alaska, on Monday, March 2, 2015.  A bill filed by House leadership would undercut Walker's plan to expand the scope of the in-state natural gas pipeline to be comparable and some say competitive with the North Slope producer-backed pipeline.  (AP Photo/The Juneau Empire, Michael Penn  )

Gov. Bill Walker address members of the media during a news conference at the Capitol in Juneau, Alaska, on Monday, March 2, 2015. A bill filed by House leadership would undercut Walker's plan to expand the scope of the in-state natural gas pipeline to be comparable and some say competitive with the North Slope producer-backed pipeline. (AP Photo/The Juneau Empire, Michael Penn )

Bill passed limiting state entity in alternate gas plan

  • By Becky Bohrer
  • Tuesday, March 31, 2015 4:46pm
  • News

JUNEAU, Alaska) — The Alaska Senate passed a bill Tuesday that would temporarily restrict participation by a state-sponsored corporation in an alternate gas pipeline project proposed by Gov. Bill Walker.

The vote followed a failed attempt by legislative leaders and Walker to reach an agreement.

The vote was 13-7, but notice of reconsideration was given, meaning the bill could be voted on again before advancing. It passed the House last week.

ADVERTISEMENT
0 seconds of 0 secondsVolume 0%
Press shift question mark to access a list of keyboard shortcuts
00:00
00:00
00:00
 

Walker has said he would veto the bill. A legislative override would require the support of at least 40 legislators.

Supporters of the bill say it reaffirms state support for Alaska LNG, the major liquefied natural gas project the state is pursuing with BP, ConocoPhillips, Exxon Mobil Corp., TransCanada Corp. and the state-sponsored Alaska Gasline Development Corp., or AGDC. They say they’re worried that Walker’s proposal will cast a shadow of uncertainty over the project.

Critics of the bill say it will hamper the state’s negotiating position on Alaska LNG and put the state at a disadvantage if Alaska LNG stalls.

HB 132 would restrict AGDC from planning or taking steps to develop an alternate export or liquefied natural gas project until the earliest of these: the state or one of the oil and gas companies pulls out of Alaska LNG; Alaska LNG enters its next phase; or July 1, 2017.

The bill stemmed from an opinion piece in which Walker expressed support for Alaska LNG but also called for increasing the size of a smaller, stand-alone pipeline, initially aimed at delivering gas to Alaskans, and turning it into a project that would be capable of exports.

He wrote that whichever project was first to produce a solid plan and conditions acceptable to the state would get full state support, or that, perhaps, the two might be combined at some point.

The language raised concerns with some lawmakers that Walker was proposing a competing project.

Walker, in an attempt to clarify his position, sent a letter to the Senate Resources Committee chair last week and repeatedly referred to his proposal as a backup.

House Speaker Mike Chenault, R-Nikiski, and Rep. Mike Hawker, R-Anchorage, sponsors of the bill, released their own op-ed, saying the letter offered few details and that Walker’s approach “clearly creates a competing alternative that threatens the state’s investment in and the success of Alaska LNG.”

Details of the alternate project are still being fleshed out. At a recent meeting, the AGDC board directed staff to develop rough cost estimates and a schedule for two different scenarios. The board also sought modification of an order issued by Walker late last year halting new, unobligated spending on the gas line.

Many see a major gas project as critical to state efforts to shore up revenues amid declining oil production, create jobs and provide energy for Alaskans.

Walker has said he’s had high-level discussions with the oil and gas companies and all have indicated an understanding of his proposal and willingness to move forward on Alaska LNG.

Contacted by email, BP Alaska spokeswoman Dawn Patience said the company remains committed to an Alaska LNG project in which the state is an equal participant and co-investor.

Natalie Lowman, a ConocoPhillips Alaska spokeswoman, said the company understands the state’s desire to have a fallback and does not believe that causes a problem for Alaska LNG, which her company supports. But she said the fallback option should be just that and not a competing project.

Kim Jordan, an Exxon Mobil spokeswoman, said the collective efforts should focus on advancing Alaska LNG. Expansion of the stand-alone pipeline project “will create confusion and uncertainty with federal regulators, potential buyers and the public about the state’s intention to fully support and participate in the Alaska LNG project,” she wrote.

More in News

The cast of Kenai Central High School’s upcoming production of “A Midsummer Night’s Dream” pose for a photo on Nov. 6, 2025. The play will open on Nov. 14 at 7 p.m. Photo courtesy of Travis Lawson
Kenai students prepare to open ‘A Midsummer Night’s Dream’

The play will premiere Friday at Kenai Central High School, with additional showings the following weekend.

The Challenger Learning Center is seen here in Kenai, Alaska on Sept. 10, 2020. (Photo by Brian Mazurek/Peninsula Clarion)
Kenai City Council terminates Challenger Learning Center’s lease

Kenai City Council adopted a resolution to terminate the Challenger Learning Center’s lease

Participants jump into Resurrection Bay during the 2019 Polar Bear Jump in Seward<ins>, Alaska</ins>. Photo by Brice Habeger, courtesy of the American Cancer Society
Registration open for 41st annual Polar Bear Jump

The Seward event, scheduled for January, will raise money for cancer research and patients.

Photos courtesy of Lisa Parker
Alaska Women’s Hall of Fame inductee Lisa Parker is pictured with Aleut’s Senior Director, Public Policy and Lands Ethan Tyler in during the Kodiak Alaska Municipal League meeting in August 2024.
Soldotna vice mayor inducted to Alaska Women’s Hall of Fame

Vice Mayor Lisa Parker was inducted to the Alaska Women’s Hall of Fame on Oct. 21, making her one of 10 women inducted this year.

Recipients of the Alaska Travel Industry Association's 2025 Annual Industry Awards celebrate their awards at ATIA's annual convention in Anchorage, Alaska. Photo courtesy of the Alaska Travel Industry Association
Seward lodging business earns industry award

Salted Roots Alaska was one of eight businesses to receive awards from the Alaska Travel Industry Association last week.

(Black Press File Photo)
Victims’ families file lawsuit against federal government for 2023 car crash

Three people are seeking damages as a result of a car accident caused by an on-duty Coast Guardsman in Kasilof in September 2023.

The Kenai Chamber of Commerce team hosts their third annual Haunted Chamber Maze, Oct. 18-31, 2025, in Kenai, Alaska. Photo courtesy of the Kenai Chamber of Commerce
Kenai chamber hosts 3rd annual Haunted Chamber

The haunted house-style maze collected donations for the Kenai Peninsula Food Bank and Operation Children First.

The sign at the front of Kenai River Campus’s main building as seen on Tuesday, Jan. 22, 2019. (Photos by Brian Mazurek/Peninsula Clarion)
Kenai Peninsula College receives federal grant

Grant funds will establish a program to support first-generation college students.

State of Alaska Department of Law logo. Photo courtesy of the State of Alaska Department of Law
Kenai man indicted for sexual abuse

Aaron “Scott” Merritt was indicted by a Kenai jury for sexual abuse crimes committed between 1998 and 2002.

Most Read