Alaska Natural Gas Development Authority (ANGDA)
Board Meeting Minutes
1. CALL TO ORDER:
Chair Andy Warwick called the meeting to order at 10:05 am.
2. ROLL CALL / MEETING ATTENDANTS:
Other ANGDA Board Members present were: Vice Chair Scott Heyworth; John T. Kelsey; and Robert Stinson. Robert C. Favretto arrived at 10:30 am. Board Members, David Cuddy & Daniel Sullivan linked via teleconferece. Others present included: Harold C. Heinze, ANGDA CEO; Steven B. Porter, Deputy Commissioner of Revenue; and Aleta Pillick, Assistant Attorney General. Corrie Young, ANGDA Administrative Officer recorded the public meeting minutes. Please see Sign-in Log listing others in attendance.
3. ACTION ON AGENDA:
The Agenda was unanimously approved with no changes.
4. ACTION ON PREVIOUS MINUTES:
February 28, 2005 meeting minutes were unanimously approved with no changes.
5. PUBLIC COMMENT PERIOD:
Chair Warwick opened the floor for public comments:
· Chickaloon Resident, Warren Keogh, of P.O. Box 1166, Chickaloon, AK 99674 is the former Chair of the Chickaloon Community Council. He opposes construction of the gas pipeline through the Valley and suggested using the Parks/Denali route. Right now the gas spur plan is to route through his property. Mr. Keogh noted his appreciation for Harold Heinze coming to Chickaloon to present info, maps but says they want better public notice – requesting notices be e-mailed to Chickaloon residents as well as posted at the Chickaloon and Glennallen Post Offices.
· Chickaloon Resident, Nancy Taylor, of P.O. Box 1234, Chickaloon, AK 99674 spoke on behalf of various Chickaloon property owners. Ms. Taylor thanked Harold Heinze for attending a meeting in Chickaloon a few weeks ago and says she understands the importance of the gas line. However, she is requesting ANGDA to use state land when the route runs alongside private property; stressing the use of alternatives to protect & preserve private property. She would like to see the route along the Parks Highway saying Chickaloon is getting no benefits from the current route alignment.
· Chickaloon Resident, Robert Michel of P.O. Box 1196, Chickaloon, AK 99674 says there is no need to cross private land when state land is nearby – but said he is opposed to the gas line – saying there is “no way” Sutton or Chickaloon can get gas. He also asked how you shut gas down in Chickaloon when there are problems with the line. He does not want the gas line running through his land – and is in favor of the Parks Highway route.
6. CONTRACTOR REPORT BRIEFINGS ON ROW APPLICATION:
Od Odsather, ROW Project Coordinator, introduced each Contractor to the Board saying all of the Contractors contributed to the ROW application.
a. Engineering – Vin Robinson of Michael Baker, Jr. Engineering.
Mr. Robinson made a Power Point Presentation and said the Engineering Report will be available on the JPO website. He noted the spur pipeline route is 148 miles running from Glennallen to (near) Palmer. Shut down valves will be located at least every 20 miles. All pipelines will be buried with a depth cover of 30” minimum. The construction schedule is planned for Pre-Construction beginning Summer 2006, with construction commencing beginning Winter 06/07 through Summer 07. The estimated cost is $362 million dollars with 30% accuracy contingency. Material costs are over 1/3 of the total cost. The current price of steel has affected the cost. There will be at least 7 valve remote control shut-downs from Glennallen to Palmer – but the design may include as many as 9. Mr. Robinson noted a couple known earthquake faults in the Caribou Creek area.
b. Land / Alignment – Manny Lopez of ENSTAR.
Mr. Lopez gave a Power Point Presentation noting that they studied 5 different alignments from Glennallen to Palmer before choosing the current route. ENSTAR identified 354 properties along the route including state, native-owned, and private property (see Project Scope section of Presentation). Harold Heinze said we may see the alignment shift as ANGDA gets more aerial photos of the proposed route. Mr. Lopez said ENSTAR is looking at using existing utility easements already located on private land. Lopez answered general questions about the acquisition process saying there is a real estate appraisal process to determine Fair Market Value. The final step of acquisition if negotiation doesn’t reach mutual agreement is eminent domain. Mr. Lopez said ENSTAR has (some) 300 miles of pipeline and they have allowed fencing for some property owners to diminish trespass.
c. Environmental – Marvin Swink of AES Lynx.
Mr. Swink gave a Power Point Presentation saying the environmental study looked at 500 meters on each side of the proposed center-line. His company identified wetlands and cultural sites. He noted temporary construction disruptions for local residents near the proposed route; but emphasized the desire for Local-Hire/Alaska-Hire. Mr. Swink says no permanent access roads to the line will be built – rather contractors will use existing roads. Mr. Swink said there are 81 streams to cross – and DNR will have the final say on how those streams are crossed. Construction of the gas line will be above water tables and stream crossings will be built in the winter with minimal impact to fish. The Habitat Division of Fish & Game will determine when to cross streams. Mr. Swink noted that the route area will be re-vegetated with native grasses.
d. Public Outreach - Tom Arminski, Bristol Engineering.
Mr. Arminski gave a Power Point Presentation reporting on 2 Public Outreach forums that took place for recreational users who use the multi-use state land where the pipeline will be located. 30 attended a meeting in Palmer, and 7 in Anchorage. He noted low attendance by organized groups. There were up to three times more concerns than opportunities noted by attendees – but no fatal flaws – most concerns were about the diminishment of resources as well as concerned private property owners.
e. Aerial Photography - Ken Ambrosius, Aeromap.
Mr. Ambrosius said the route was flown on October 18th and they are processing the info into a digital format. Best time to do aerial photography is when leaves are off trees – and prior to snow on the ground. Aeromap will fly the route again since there was snow in the ground in some areas of the route.
7. RIGHT-OF-WAY (ROW) APPLICATION – GLENNALLEN TO PALMER:
The ROW Application was formally submitted by Harold Heinze, CEO to Mike Thompson, Acting State Pipeline Coordinator. Mr. Thompson said they will evaluate the application for completeness according to Statute 38.35 Pipeline ROW Leasing. There will be a 60 day public notice period and then the Commissioner of DNR will provide his analysis. The Commissioner’s analysis has a 30-day Public Comment period. Mr. Thompson said DNR sends information about Public Hearings to private addresses, post offices, e-mails as well as using radio announcements. A draft lease will address re-vegetation, wildlife habitat, etc. Mr. Thompson said their work should be complete by this fall.
BOARD ACTION:
Chairman Warwick adjourned the meeting at 12:07 pm for a lunch break. The board meeting resumed at 1:15 pm.
8. CONTRACTOR REPORT:
TRANSPORT OF NORTH SLOPE GAS TO TIDEWATER:
Ward Whitmore, P.E. of Baker Engineering
Mr. Whitmore presented information about his detailed technical report on getting NS gas to tidewater. The J-Curves show different options with different pipe sizes – but Whitmore said if you have a choice, put in an expandable pipe. 35-40% of the total cost is pipe. He explained changing the composition of gas beyond methane to include ethane, propane, and butane saying you can ship some of these to tidewater. 1500 lbs per square inch at minimum can transport hydrocarbons without operational problems. His report addresses transporting a “brew” of hydrocarbons through the pipeline along with the gas and splitting it out at Cook Inlet. Ethane and Butane have potential for petrochemical feed. AG Edwards provided economic information for the report. Whitmore’s report identifies key leveraging and technical issues. Whitmore said the trick is to install a big enough pipe to get full capacity but not too big so it’s not full – noting that the lowest cost of service brings the highest return. A 24” line from Glennallen to Palmer will easily supply double the current usage in Cook Inlet and does not require a compressor station.
Mr. Heinze noted that he plans to get Whitmore’s report to the Legislature & Administration as well as introducing information to the AOGCC during their April 21 hearing. Heinze noted that there is no public information currently available pertaining to higher pressure (2500 psi) technology. Heinze said Whitmore’s report demonstrates enough economic feasibility to go forward. Chair Warwick and Vice Chair, Heyworth thanked Whitmore for his “good work” saying it is very valuable to the state.
A meeting between the ANGDA Board, AG Edwards, Ward Whitmore, and Harold Heinze will be scheduled to go over economics and funding issues covered in the report.
9a. STRANDED GAS REPORT:
Deputy Commissioner of the Dept. of Revenue, Steven Porter, said negotiations with the Producers and Trans-Canada are continuing. The state received AGPA’s application for a North Slope pipeline last week and is forwarding it to the Department of Law to confirm it meets the requirements of the Stranded Gas Act statute.
9b. AGPA’S APRIL 2 MEETING IN VALDEZ:
ANGDA Board Member, John Kelsey, attended the Gas Port Authority’s meeting and said AGPA has made an application under the Stranded Gas Act and is making a proposal to buy gas from the Producers. AGPA made a presentation to the public about their application. An AGPA press release is out today at 1pm.
9c. CEO ACTIVITIES & ADMINISTRATIVE REPORT:
Harold Heinze outlined his presentations, speeches and important meetings throughout the past month (see Activities Report). Heinze is planning a trip to Juneau to testify to Senate Resources about ANGDA between April 14 – April 21. He is also testifying at the AOGCC hearing on April 21. Representatives from Mitsubishi are coming to meet with ANGDA on May 4th and 5th – planning for a special dinner meeting. Chair, Warwick suggested a possible fishing trip. Heinze will speak in Canada on May 11 & 12 at the BC Natural Gas Symposium.
10. FUNDING STATUS & EXPENDITURE REPORT:
LB&A has allocated 2.17 million dollars to ANGDA for additional contractor work (See 11 herein).
Representative Rokeburg has assured Mr. Heinze that he’s writing a bill for Railbelt Energy Funds (8 million dollars) that will be earmarked for ANGDA. This will allow ANGDA to have a good bond package to move forward.
Approximately 8 thousand dollars is left in ANGDA Operating Fund through June 30, 2005. These funds will be spent on the Mitsubishi visit, copy costs for Whitmore report, Heinze trip to Canada, as well as other general office expenses.
11. FUTURE CONTRACT PLANS:
ANGDA contractor, PND is currently studying the Marine Transport of Propane.
Future contracts for many aspects of the Spur Line include design, financing plans & bonding, permits, regs, private ROW acquisitions, plans for the Delta to Glennallen connection, and other contract & legal work. Money will also be set aside for contractor studies for LNG Plant Operations.
12. BOARD MEMBER COMMENTS:
David Cuddy recommended that ANGDA hear from the Producers regarding their gas pipeline. He said BP is available to speak to us.
John Kelsey suggested that ANGDA meet with AGPA regarding their pipeline application filed under the Stranded Gas Act.
13. NEXT MEETINGS: The May Board Meeting was moved from May 16 to May 9. The June Meeting was set for June 27.
BOARD ACTION -
EXECUTIVE SESSION: A motion was made, seconded and unanimously approved to move into Executive Session to discuss personnel issues. David Cuddy participated via telephone. Dan Sullivan was not available to participate.
Executive Session ended at 4pm.
The Board determined to invite BP and AGPA to the next Board Meeting.
14. ADJOURN PUBLIC MEETING: The meeting adjourned at 4:08pm.
Board Minutes Respectfully submitted by
________________________
Corrie Young
Administrative Officer
Alaska Natural Gas Development Authority
State of Alaska