Press releases & proclamations from the Alaska Governor's Office: on Energy & Oil

Submitted legislation to build natural AGIA gas pipeline

Governor Palin submitted the Alaska Gasline Inducement Act (AGIA) to the Legislature on her 89th day in office. The legislation will act as a vehicle to get a natural gas pipeline built and bring the state’s substantial gas reserves to market. The AGIA offers a number of inducements for those who hold gas leases and for those who want to build the line. In return, the state will provide a matching capital contribution and insist on the state’s must-haves: project benchmarks, gas for Alaskans, expansion capabilities, and jobs for Alaskans. The state is committed to ensuring that Alaskans will be trained and ready to build the gasline. Governor Palin recently traveled to Washington D.C., where she received encouragement for the AGIA from Alaska’s Congressional Delegation, FERC officials and members of the Bush Administration.
Source: Alaska Governor’s Office: press release, “100th Day” Mar 13, 2007

Fully fund the Petroleum Systems Integrity Office

Governor Sarah Palin today strongly urged lawmakers to restore critical funding for the Petroleum Systems Integrity Office (PSIO), which exercises oversight of the maintenance of facilities, equipment and infrastructure for sustained production and transportation of oil and natural gas resources in Alaska.

“I’m disappointed that House Finance subcommittee members removed $523,000 in funding for PSIO from my budget. Facing the prospect of the largest construction project in North America, a natural gas pipeline, we must demonstrate to Alaskans and the nation that we provide sound oversight of the systems that are needed to develop our resources. I am hopeful the full Finance Committee will restore funding for critical PSIO positions needed to accomplish this mission.“ The money would fund personnel for investigation of system integrity breaches and implementation of a statewide quality assurance program.

Source: Alaska Governor’s Office: press release, “Funding Restored” Feb 25, 2008

Bush is right: drill ANWR & develop our own supplies

Gov. Sarah Palin released the following statement after Pres. Bush renewed his call to open the Arctic National Wildlife Refuge for oil exploration in the face of surging gasoline prices: “Pres. Bush is right. Across the nation, communities are feeling the pinch of high energy costs. It is absurd that we are borrowing from one foreign country to buy oil from another. It is a threat to our national security and economic well-being. It is well past time for America to develop our own supplies.”
Source: Alaska Governor’s Office: Press release 8-068, “ANWR” Apr 29, 2008

Energy relief plan: $100 per person monthly, for oil & gas

Returning surplus funds through grants to electric utilities will result in a 60% reduction for all ratepayers. The benefit will flow to homeowners, renters, schools, governments and businesses.

In addition, there will be conservation incentives for the utilities. For every 1% reduction in 2008 kilowatt hour sales from 2007 sales, the state will make a year-end contribution for capital energy projects to the utility.

The Energy Debit Card will go out to every qualifying [Alaska resident]. The benefit will be $100 per month per recipient. The temporary Energy Debit Card can be used for purchases from Alaska energy vendors, such as heating oil distributors, natural gas utilities, electric utilities, gas stations & other retail fueling stations.

The value of this plan is approximately $1.2 billion. The grant to electric utilities is expected to be $475 million, while the Energy Debit Card totals are forecast to be $729 million. The Governor has proposed this energy relief plan for one year.

Source: Alaska Governor’s Office: Press release 08-074 “Energy Plan” May 15, 2008

Exxon-Mobil should pay $507 million for Exxon Valdez spill

Gov. Palin today encouraged Exxon Mobil to pay the $507 million in punitive damages plus interest awarded by the US Supreme Court to 32,000 plaintiffs in the 1989 Exxon Valdez oil spill lawsuit. “These people have suffered long enough,” Gov. Palin said. “While Exxon may have the ability to delay payments, I strongly encourage them to bring this sad chapter in our history to a long-overdue conclusion. It is time to end the misery so everyone can move on.“

The Governor is hopeful plaintiffs will receive payments this fall. So far, though, Exxon has not indicated whether it will cut checks to plaintiffs right away, or seek further reductions in the award as the case goes back to the lower courts.

Source: Alaska Governor’s Office: Press release 08-106, “Exxon” Jul 1, 2008

Agrees with Obama on more Alaska oil & gas production

Gov. Sarah Palin today responded to the energy plan put forward by the presumptive Democratic nominee for President, Illinois Senator Barack Obama. “I am pleased to see Senator Obama acknowledge the huge potential Alaska’s natural gas reserves represent in terms of clean energy and sound jobs,” Governor Palin said.

In a speech given in Lansing, Michigan, Senator Obama called for the completion of the Alaska natural gas pipeline, stating, “Over the next five years, we should also lease more of the National Petroleum Reserve in Alaska for oil and gas production. And we should also tap more of our substantial natural gas reserves and work with the Canadian government to finally build the Alaska natural gas pipeline, delivering clean natural gas and creating good jobs in the process.“

Gov. Palin said, ”This is a tool that must be on the table to buy us time until our long-term energy plans can be put into place, and it is gratifying to see Senator Obama get on board.“

Source: Alaska Governor’s Office: press release, “Obama Energy Plan” Aug 4, 2008

Windfall oil profits tax prevents investment

Palin [supported Obama’s energy proposal but] questioned the means to pay for Obama’s proposed rebate--a windfall profits tax on oil companies. In Alaska, the state’s resource valuation system, ACES, provides strong incentives for companies to re-invest their profits in new production.

“Windfall profits taxes alone prevent additional investment in domestic production. Without new supplies from American reserves, our dependency and addiction to foreign sources of oil will continue,” Palin said.

Source: Alaska Governor’s Office: press release, “Obama Energy Plan” Aug 4, 2008

Resource rebate: suspend AK 8-cent fuel tax for one year

I’m pleased to report to Alaskans that in early August, our Alaska Legislature agreed to approve a one-time resource rebate that returns part of our resource wealth to Alaskans --the owners in common of these resources. The rebate will be a direct payment of $1,200 to each Alaskan eligible for the 2008 Permanent Fund Dividend. The resource rebate was part of a larger energy package that also includes a 50% increase in the maximum loan amount for bulk fuel bridge and bulk fuel revolving loan funds to communities and cooperatives. Additionally, it suspends the state’s 8-cent motor fuel tax on gasoline, marine fuel and aviation fuel for one year and strengthens the Power Cost Equalization Program.

Our lawmakers also included an additional $60 million for the Home Energy Rebate Program operated by the Alaska Housing Finance Corporation and $50 million in grant funds to the Renewable Energy Fund, bringing the total available for renewable energy projects in FY 2009 to $100 million.

Source: Alaska Governor’s Office: August 2008 Newsletter Aug 20, 2008

Gasline Inducement Act: 1,715-mile natural gas pipeline

On Aug. 1, the legislature awarded TC Alaska the AGIA license to move forward and build Alaska’s natural gas pipeline. The Legislature also authorized my administration to award the Alaska Gasline Inducement Act license to TransCanada Alaska to initiate development of a 1,715-mile natural gas pipeline from Prudhoe Bay on the North Slope to the Alberta Hub in Canada. Lawmakers also appropriated $35.5 million for gas pipeline expenditures.
Source: Alaska Governor’s Office: August 2008 Newsletter Aug 20, 2008

Commercialize Alaska’s North Slope natural gas

Governor Sarah Palin today signed Administrative Order 242, directing the state Department of Natural Resources and the Department of Revenue to work cooperatively with any organization or entity committed to commercializing Alaska’s North Slope natural gas.

“This solidifies our commitment to facilitating an LNG project that is a product of market interest,” Governor Palin said. “By committing both project capital and natural gas resources to a pipeline that would transport North Slope natural gas to tidewater, an LNG project can remain an integral element of the state’s effort to deliver Alaska’s gas to market.“

Specifically, the Administrative Order instructs the two departments to provide specific kinds of support to those pursuing development of an economically and technically viable liquefied natural gas project. That support includes permitting coordination, fiscal and economic analysis, and facilitation of meetings with federal agencies.

Source: Alaska Governor’s Office: press release, “Admin. Order 242” Aug 20, 2008

  • The above quotations are from Press releases & proclamations from the Alaska Governor's Office.
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