Meeting the Challenges of Getting Alaskas Natural Gas to Market

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Meeting the Challenges of Getting Alaskas
Natural Gas to Market

• Drue Pearce
• Federal Coordinator
• Office of the Federal Coordinator for
• Alaska Natural Gas Transportation Projects
• 9th Annual Arctic Gas Symposium
• March 3, 2009

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Pipeline Projects

• Past
• TAPS
• ANGTA
• Present
• ANGPA

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TAPS



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ANGTA



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ANGPA



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What is the Role of the OFC?

• Coordination
• Compliance and Oversight
• Information Dissemination

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What are the Challenges?

• Technical
• Economic
• Political
• Process

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Technical

• Construction in Permafrost
• Arctic Construction
• High Pressure/Large Diameter Pipelines
• Seismic
• Climate Change

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Technical Construction in Permafrost



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Technical Arctic Construction



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Technical High Pressure/Large Diameter48inch,
X80, 2500/2600PSIG
Photos provided by North American Pipeline Inc



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Technical Seismic
This rupture of the Tok Cutoff Highway in Alaska
resulted from a magnitude 7.9 earthquake along
the Denali Fault in 2002.
Peter Haeussler, USGS, prepares to measure the
offset of a crevasse on the Canwell Glacier.



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Technical Climate Change
Northern Oil and Gas Research Forum 08



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Economic

• Financing a 26 Billion Enterprise
• Infrastructure
• Steel
• Training/Retaining Qualified Labor
• Natural Gas Prices

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Economic Financing a 26 Billion Enterprise

• Federal Loan Guarantees
• Public Law 108-324, Section 116
• 18 Billion in 2004 U.S. dollars

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Economic Infrastructure

• Approximately 2 Billion in Alaska Projects to
  improve safety and drivability and
  maintainability
• 52 Highway Projects
• 6 Airports
• 14 Bridges
• 15 Facilities
• Canada?
• No firm estimates are available

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Economic Steel

• Estimated 1.1 million tons in U.S.
• Estimated 1.4 million tons in Canada

Photo provided by North American Pipeline Inc



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Economic Training/Retaining Qualified Labor



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Economic Natural Gas Prices



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POLITICS!





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The Competitors



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Key Players

• Federal Governments
• State and Provincial Governments
• Municipal Governments
• Stakeholders

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Process Related Issues

• Permitting
• Environmental Review
• Consultations

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Process U.S. Federal Agencies

• Office of Federal Coordinator
• Council on Environmental Quality
• Federal Energy Regulatory Commission
• Department of Interior
• Bureau of Land Management
• Bureau of Indian Affairs
• U.S. Fish and Wildlife Service
• Minerals Management Service
• National Park Service
• U.S. Geological Service
• Department of Energy
• Department of Transportation
• FHWA
• PHMSA
• FAA
• Department of Treasury
• Department of State

• Department of Defense
• U.S. Army Corps of Engineers
• Department of Commerce
• NOAA
• NMFS
• Department of Homeland Security
• CBP
• TSA
• U.S. Coast Guard
• Department of Labor
• Environmental Protection Agency
• Department of Agriculture
• Advisory Council on Historic Preservation
• Department of Justice
• Federal Communications Commission

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Process Environmental Review

• Canadian, NPA or NEB
• State of Alaska
• U.S. Federal, including NEPA

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FERC Pre-Filing Environmental Review Process
Applicant Process
FERC Process
Assesses market need and considers project
feasibility
Receives Applicants request to conduct its
review of the project within FERCs NEPA
Pre-Filing Process
Requests use of FERCs Pre-Filing Process
Studies potential site locations
Formally Approves Pre-Filing Process and issues
PF Docket No. to Applicant
Identifies Stakeholders
Holds open house to discuss project
Participates in Applicants open house
Issues Notice of Intent for Preparation of an EIS
opening the scoping period to seek public
comments.
Public Input Opportunities
Conducts route studies and field surveys.
Develops application.
Holds public scoping meeting(s) and site visits
in the project area. Consults with interested
stakeholders.
Issues Notice of Application
Files formal application with the FERC
Analyzes data and prepares Draft EIS
Issues Draft EIS and opens comment period
Public Input Opportunities
Holds public comment meetings on the Draft EIS in
the project area
Responds to comments and revises the Draft EIS
Issues Final EIS
Commission Issues Order
Parties can request FERC to rehear decision
Public Input Opportunities
Submits outstanding information to satisfy
conditions of Commission Order
Issues Notice to Proceed with construction.
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Process FERC Resource Reports

• General Project Description
• Water Use and Quality
• Fish, Wildlife and Vegetation
• Cultural Resources
• Socioeconomics

• Geological Resources
• Soils
• Land Use, Recreation and Aesthetics
• Air and Noise Quality
• Alternatives
• Reliability and Safety

For more information on each report, you can find
the FERC regulations at http//edocket.access.gpo.
gov/cfr_2005/aprqtr/pdf/18cfr380.12.pdf



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Process Government-To-Government

• Consultations with Directly and Indirectly
  Affected Alaska Natives

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Process Consultations

• Cultural and Historic Sites
• National Historic Preservation Act, Section 106

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• Office of the Federal Coordinator
• Alaska Natural Gas Transportation Projects
• Washington, DC Location
• 1101 Pennsylvania Avenue, NW, 7th Floor
• Washington, D.C. 20004
• [phone]
• ___________________________
• Anchorage, AK Location
• 411 W 4th Ave. 2nd Floor
• Anchorage, Alaska 99501
• [phone]
• http//www.arcticgas.gov
• info_at_arcticgas.gov

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