2.

It is technically feasible, to parallel and use the state haul road as a part of the work pad. Whenever there are strong and compelling cost or schedule reasons for using the haul road, then, and only then, should Northwest deviate from the Alyeska work pad to parallel the haul road.

3.

Northwest should strongly resist building snow pads. I

am convinced that any extended amount of snow pad will
greatly increase the cost, and result in substantial
additional risk that the project will be delayed.

4.

The periodic references that I see relating to above ground pipe should be put to rest as soon as possible...I see no reason why any substantial length of above ground pipe is going to be required for the gas line.

5.

The twelve "Working Group Questions/Concerns" included as
enclosure "C" of the Department of Interior's letter dated
June 13, 1979 must be resolved as soon as possible. There
is a tendency among some representatives of regulatory agencies
to continue to raise questions and identify potential problems,
etc., as opposed to addressing and resolving problems and
making decisions in accordance with a specific time table.
Often the type of issues raised, or the conditions attached
to approaches could be resolved by considered engineering

judgment, or could be determined to be insignificant. I
am concerned that, even after these so-called questions/
concerns are resolved a whole host of additional questions/
concerns will be raised. It is difficult to reconcile and
to come to grips with this issue. The basic design proposed
by Northwest uses proven technology...in fact, one of the
strengths of the gas line proposal is that it is state-of-
the-art and does not require any breakthroughs to be success-
ful. There already are strong pressures to try unique and
exotic solutions to problems and firm management direction,
including a firm resolution on the part of governmental
agencies, is required to resist these temptations. The
recent decisions that have been made by several of the
agencies, plus the attitude and approach being taken by
the Federal Inspector will go a long way to resolving
these issues.

57-087 0 80 - 50

THE WESTERN LEG OF THE

ALASKA NATURAL GAS TRANSPORTATION SYSTEM:

A PROGRESS REPORT

Prepared Statement Of

JOHN A. SPROUL

Executive Vice President
Pacific Gas and Electric Company

Chairman of the Board and Chief Executive Officer Pacific Gas Transmission Company

Before The

Subcommittee on Oversight and Investigations

Of The House Interior and Insular Affairs Committee

Washington, D. C.

I appreciate the opportunity to appear before this

ubcommittee on behalf of Pacific Gas and Electric Company

?GandE)

and Pacific Gas Transmission Company (PGT) to provide
his brief report on the status of the Western delivery leg of
he Alaska Natural Gas Transportation System.

PGandE and its subsidiary PGT have been designated by
resident Carter to build the Western Leg of the Alaska Natural
as Transportation System (ANGTS). In addition, PGandE, through
nother subsidiary, Calaska Energy Company, is participating in
he partnership that will build the Alaska portion of this system.
G andE will also purchase Alaska North Slope gas to serve the
9.1 million people in our service area in Northern and Central
California. We have entered into a contract with the Exxon
Corporation to purchase one-third of its share of the gas
production from the Prudhoe Bay field.

Thus, you can see that

PG andE and PGT are deeply involved in and strongly committed to
this overall project. We believe it to be the single most important
domestic energy project on the nation's agenda today.

Mr. John G. McMillian, Chairman of Northwest Alaskan Pipeline
Company, is submitting a presentation to this Subcommittee on the
overall ANGTS and the critical Alaskan portion of the project.

I will confine my remarks to the project's Western delivery leg.

In the enactment of the Alaska Natural Gas Transportation Act

of 1976, Congress wisely mandated that the project selected for the
transportation of Alaskan North Slope gas must include new

facilities to assure direct delivery of that gas to markets both
East and West of the Rocky Mountains and the Lower Continental

United States.

This mandate guarantees that both sides of the
country would have direct and equal access to the vast new domestic
natural gas reserves at Prudhoe Bay. Members of this Committee,
along with other members of Congress, took an active role in
pushing for the passage of this provision which assures
that the benefits of the ANGTS will be truly national in scope.
We deeply appreciate those efforts.

In accordance with the provisions of the Alaska Natural Gas
Transportation Act of 1976, the transportation system selected by
President Carter in his September 1977 Decision and Report to the
Congress on the ANGTS includes both an Eastern and a Western
delivery leg. The Western leg is simply the expansion of an
existing natural gas pipeline system owned and operated by PGT and
PGandE in the States of Idaho, Washington, Oregon and California.
Since 1961, PGT and PGandE have operated a 911-mile, 36-inch
diameter natural gas pipeline system extending from the Canada-U.S.
border near Kingsgate, British Columbia, to Antioch, California, near
San Francisco Bay. PGT presently has the capacity to import
approximately one billion cubic feet per day of Alberta natural
gas for PG and E's gas consumers in Northern and Central California.
The existing pipeline also transports up to 152 million cubic
feet per day of Alberta natural gas for Northwest Pipeline
Corporation and makes deliveries of this gas at various points

along the pipeline in Idaho, Washington and Oregon for distribution
to gas consumers in the Pacific Northwest.