DECISION OF THE PRESIDENT

DECISION ON AN ALASKA

NATURAL GAS TRANSPORTATION

SYSTEM

PREFACE STATUTORY REQUIREMENTS FOR A DECISION ON AN ALASKA NATURAL GAS TRANSPORTATION SYSTEM

Section 7(a)(4) of the Alaska Natural Gas

Transportation Act of 1976 (ANGTA) states:

If the President determines to designate for
approval a transportation system for delivery
of Alaska natural gas to the contiguous States,
he shall in such decision-

(A) describe the nature and route of the system
designated for approval;

(B) designate a person to construct and operate
such a system, which person shall be the appli-
cant, if any, which filed for a certificate of
public convenience and necessity to construct
and operate such system;

(C) identify those facilities, the construction
of which, and those operations, the conduct of
which, shall be encompassed within the term
"construction and initial operation" for purposes
of defining the scope of the directions contained
in Section 9 of this Act, taking into considera-
tion any recommendation of the Commission with
respect thereto; and

(D) identify those provisions of law, relating
to any determination of a Federal officer or
agency as to whether a certificate, permit,
right-of-way, lease, or other authorization
shall be issued or be granted, which provisions
he finds (i) involve determinations which are
subsumed in his decision and (ii) require
waiver pursuant to Section 8(g) in order to
permit the expeditious construction and initial
operation of the transportation system.

(1)

As part of these determinations, an Agreement on Principles concluded with the Government of Canada prescribes various terms and conditions applicable to the construction and operation of the pipeline.

The Agreement

on Principles is attached here to as Section 7 of this Decision and made an integral part of the Decision by this reference.

With the incorporation of the aforesaid Agreement, and the finding that it is in the national interest to expeditiously undertake to construct an Alaska Natural Gas Transportation System, the system designation and related statutory determinations are as follows:

SECTION 1

DESIGNATION OF PERSON TO CONSTRUCT AND OPERATE
THE SYSTEM

The Alcan Pipeline Company, now a wholly owned

subsidiary of Northwest Pipeline Corporation, or its successor, is hereby designated to construct and operate the portion of the system within the State of Alaska.

The Northern Border Pipeline Company, a partnership consisting of subsidiaries or affiliates of Columbia Gas Transmission Corporation, Michigan-Wisconsin Pipeline Company, Natural Gas Pipeline Company of America, Northern Natural Gas Company, Panhandle Eastern Pipe Line Company, and Texas Eastern Transmission Corporation, or its successor, is hereby designated to construct and operate the portion of the system from the United States-Canada border near Monchy, Saskatchewan, to a point near Dwight, Illinois.

The Alcan Pipeline Company, or its successor, and the Northern Border Pipeline, or its successor, shall be publicly held corporations or general or limited partnerships, open to ownership participation by all persons

1/ Northwest Pipeline owns and operates a 4,300-mile pipeline system for transporting gas in the states of Colorado, Idaho, Nevada, Oregon, Utah, Washington, and Wyoming. Northwest Pipeline is a wholly-owned subsidiary of Northwest Energy Company, a holding company whose principal asset is all the outstanding common stock of Northwest Pipeline.

without discrimination, except producers of Alaskan

natural gas.

The Pacific Gas Transmission Company is hereby

designated to construct and operate the portion of the

system from the United States/Canada border near Kingsgate, British Columbia, to the border between the States of

California and Oregon.

The Pacific Gas and Electric Company is hereby designated to construct and operate the portion of the system from the border between the States of California

and Oregon through the State of California.