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ALASKA NATURAL GAS TRANSPORTATION SYSTEM

OVERSIGHT HEARINGS

BEFORE THE

SUBCOMMITTEE ON

OVERSIGHT AND INVESTIGATIONS

OF THE

COMMITTEE ON

INTERIOR AND INSULAR AFFAIRS

HOUSE OF REPRESENTATIVES

NINETY-SIXTH CONGRESS

FIRST SESSION

ON

ALASKA NATURAL GAS TRANSPORTATION SYSTEM

HEARINGS HELD IN WASHINGTON, D.C.
OCTOBER 15 AND 16, 1979

Serial No. 96-22

Printed for the use of the

Committee on Interior and Insular Affairs

U.S. GOVERNMENT PRINTING OFFICE

COMMITTEE ON INTERIOR AND INSULAR AFFAIRS

HOUSE OF REPRESENTATIVES

MORRIS K. UDALL, Arizona, Chairman

PHILLIP BURTON, California

ROBERT W. KASTENMEIER, Wisconsin
ABRAHAM KAZEN, JR., Texas
JONATHAN B. BINGHAM, New York
JOHN F. SEIBERLING, Ohio
HAROLD RUNNELS, New Mexico
ANTONIO BORJA WON PAT, Guam
BOB ECKHARDT, Texas
JIM SANTINI, Nevada
JAMES WEAVER, Oregon
BOB CARR, Michigan

GEORGE MILLER, California
JAMES J. FLORIO, New Jersey
DAWSON MATHIS, Georgia
PHILIP R. SHARP, Indiana

EDWARD J. MARKEY, Massachusetts
PETER H. KOSTMAYER, Pennsylvania
BALTASAR CORRADA, Puerto Rico
AUSTIN J. MURPHY, Pennsylvania
NICK JOE RAHALL II, West Virginia
BRUCE F. VENTO, Minnesota
JERRY HUCKABY, Louisiana
LAMAR GUDGER, North Carolina
JAMES J. HOWARD, New Jersey
JERRY M. PATTERSON, California
RAY KOGOVSEK, Colorado
PAT WILLIAMS, Montana

DON H. CLAUSEN, California
Ranking Minority Member
MANUEL LUJAN, JR., New Mexico
KEITH G. SEBELIUS, Kansas
DON YOUNG, Alaska

STEVEN D. SYMMS, Idaho

JAMES P. (JIM) JOHNSON, Colorado
ROBERT J. LAGOMARSINO, California
DAN MARRIOTT, Utah

RON MARLENEE, Montana
MICKEY EDWARDS, Oklahoma
RICHARD B. CHENEY, Wyoming
CHARLES PASHAYAN, JR., California
ROBERT WHITTAKER, Kansas
DOUGLAS K. BEREUTER, Nebraska
MELVIN H. EVANS, Virgin Islands

CHARLES CONKLIN, Staff Director
LEE MCELVAIN, General Counsel
STANLEY SCOVILLE, Special Counsel for Legislation
GARY G. ELLSWORTH, Minority Counsel

SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS

HAROLD RUNNELS, New Mexico, Chairman

PAT WILLIAMS, Montana JIM SANTINI, Nevada JAMES WEAVER, Oregon DAWSON MATHIS, Georgia MORRIS K. UDALL, Arizona

DON H. CLAUSEN, California
DON YOUNG, Alaska

ROBERT J. LAGOMARSINO, California
MELVIN H. EVANS, Virgin Islands

TIMOTHY W. GLIDDEN, Staff Director-Counsel

JAMES C. ROGERS, Jr., Minority Counsel on Oversight and Investigations

NOTE.-The first listed minority member is counterpart to the subcommittee chairman.

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67

Statements:

Loeffler, Robert H., counsel, on behalf of the Governor and State of Alaska..
Panel consisting of:

John G. McMillian, chairman and chief executive officer, Northwest
Energy Co., Northwest Pipeline Corp., Northwest Alaskan Pipeline
Co., and chairman of the board of partners of the Transportation
Co
Mark J. Millard, chairman and senior managing director, Loeb
Rhoades Shearson

Frank P. Moolin, Jr., president, Frank Moolin & Associates, and
former senior project manager for the pipeline portion of the trans-
Alaska pipeline project

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Pierce, Robert L., president and chief executive officer, Foothills Pipe Lines (Yukon) Ltd..

3

Pyle, J. Conrad, project manager, Northern Border Pipeline Co
Sproul, John A., executive vice president, Pacific Gas & Electric Co., and
chairman of the board and chief executive officer, Pacific Gas Transmis-
sion Co.

61

53

TUESDAY, OCTOBER 16, 1979

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Statements:

Curlin, Hon. James W., Deputy Assistant Secretary for Land and Water
Resources, U.S. Department of the Interior...

Curtis, Hon. Charles B., Chairman, Federal Energy Regulatory Commission, U.S. Department of Energy

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Robinson, Brig. Gen. Hugh G., Deputy Director of Civil Works, Office of the
Chief of Engineers, U.S. Department of the Army

105

Rhett, Hon. John T., Jr., Federal Inspector, Officer of the Federal Inspector, Alaska Natural Gas Transportation System

APPENDIX

Additional material submitted for the hearing record from:

ubcommittee on Oversight and Investigations of the Committee on Interior and Insular Affairs:

1. Report entitled, "Alaska Natural Gas Transportation System: Status Report" (with appendixes)..

2. Appendix I: Section 301 of Public Law 93-153

3. Appendix II: Public Law 94-586

109

158

159

4. Appendix III: Reorganization Plan No. 1 of 1979 5. Appendix IV: Executive Order No. 12142 (EPB).

173

178

6. Appendix V: Agreement on Principles

180

7. Prepared statement of J. Dexter Peach, Director, Energy and Minerals Division, U.S. General Accounting Office.

205

8. Alaska study entitled, "Perspectives on Major Issues Impacting the Alaska Gas Pipeline," dated October 17, 1979, prepared by the Congressional Research Service of the Library of Congress.

214

9. Report entitled, "Issues Relating to the Proposed Alaska Highway Gas Pipeline Project"

260

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