Senate Republicans: TC Alaska/ExxonMobil Agreement
Positive For Alaska and Gas Pipeline

NORTH POLE – The Senate Republican Caucus provided the following comments on today’s announcement by TC Alaska and ExxonMobil regarding their agreement on the Alaska North Slope Gas Pipeline project.

“Certainly today’s announcement is very positive for Alaska and the country.  While it appears that this agreement honors the terms of AGIA while advancing an Alaska Gasline project, we will be very interested to look more closely at all the details, to be assured that the state’s “must haves” in AGIA will be protected.  I appreciate that their announcement continues to acknowledge the possibility of an LNG option that includes a liquefaction facility in Valdez,” said Sen. Gene Therriault, R – North Pole.

While several key aspects of the announcement are worthy of highlighting, such as TC-Alaska remaining the licensee under AGIA, and the open season timeline continues on schedule, Therriault noted, “This agreement marks a serious breakthrough for the gas pipeline project in that ExxonMobil’s partnering acknowledges that TransCanada’s ability to advance a project using the Northern Pipeline Act (NPA) is a significant advantage compared to the National Energy Board (NEB) process in Canada.  For years legislators were told by some that there was no advantage to using the NPA rather than the standard approval process of the NEB.”

“Throughout this process we always predicted that TransCanada and the companies would come together and negotiate an agreement.  This announcement today between TC-Alaska and Exxon goes a long way towards a commitment to see this project through,” said Sen. Tom Wagoner, R-Kenai.

“I am hopeful that today’s announcement will quiet those who appear to have been hoping for failure of the AGIA process,” said Sen. Con Bunde, R-Anchorage.

“We look forward to the continued development of solid construction cost data which the state and other interested parties will need as we approach an open season in 2010,” said Sen. Fred Dyson, R-Eagle River. “Construction of the pipeline is still not assured; however, this agreement is a real step forward.”