ANCHORAGE – Governor Bill Walker issued a proclamation Thursday calling the Legislature into a special session on October 24 in Juneau to address gasline issues. In a short video address to Alaskans, Governor Walker explained the urgency of North Slope gas production.

“With a $3.5 billion budget deficit, this gasline project has gone from a wish-list item to a must-have,” said Governor Walker. “Under the negotiation process I inherited, very little has been accomplished on the commercial agreements. It is time to make the necessary legislative changes so a single party cannot delay the production of Alaska’s natural gas resources and sway our destiny.”

Part of Governor Walker’s legislation package, which will be introduced before the start of the special session, includes a proposal to buy TransCanada’s share of the gas pipeline and gas treatment facility. Governor Walker said this is absolutely critical to ensure Alaska has a seat at the negotiating table. The legislation package will also include a bill to reinstate a reserve tax on North Slope resources in the ground that are not developed. In 1975, Governor Bill Egan signed a similar piece of legislation allowing the state to collect oil revenue prior to the Trans-Alaska Pipeline being built.

“For far too long, Alaska’s gas has been treated like milk with no expiration date, and it never gets to the front of the cooler,” Governor Walker explained. “Without this insurance policy, Alaska runs the significant risk of never monetizing our gas resources for the benefit of all Alaskans and future generations.”

Governor Walker also released his administration’s review of the Alaska LNG project today, which provides a brief history of the state’s prior efforts to produce North Slope gas, and explains why Alaska must take a more aggressive role in future gasline negotiations. The report summarizes the results of a review of the AKLNG project process, and highlights the challenges the project faces under the negotiating framework that was established by SB 138. Governor Walker noted the importance of releasing this report in time for the special session as it lays out the necessary changes to finally bring North Slope gas to market and to Alaskans.

“This legislation will vastly improve the probability of an Alaska gasline being built,” Governor Walker said. “It ensures that, if one or more producers delay construction of the gasline, Alaska still receives critical tax revenues from our natural gas resources.  But only if we have the political will and courage to do so.”

Link to Video: https://vimeo.com/140367751

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