ConocoPhillips and Alaska reach gas pipeline agreement
Kurt S. Abraham
As announced by the office of Gov. Frank Murkowski, the state of Alaska and ConocoPhillips have agreed on base fiscal contract terms for a natural gas pipeline. In addition to ConocoPhillips, Alaska has been negotiating with BP and ExxonMobil. “This is a significant milestone, and there are other positive signs on the horizon,” said Murkowski. “Additional work remains.” Although Murkowski said that he cannot disclose contract terms until the state reaches contract agreements with all three companies. However, he did say that the ConocoPhillips terms reflect six principles that he has insisted upon. These principles include Alaskans receiving a fair share of revenues from a gas pipeline; residents being able to access the gas; future explorers must have access to the pipeline; the pipeline must be expandable; the state should own a share of the pipeline; and Maskans should have jobs related to building the project. The governor stressed that the agreement provides maximum value to Alaskans.
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