Loeffler, Robert H., counsel, on behalf of the Governor and State of Alaska.. 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 Mark J. Millard, chairman and senior managing director, Loeb Frank P. Moolin, Jr., president, Frank Moolin & Associates, and former senior project manager for the pipeline portion of the trans- 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- Additional material submitted for the hearing record from: Subcommittee on Oversight and Investigations of the Committee on Interior 1. Report entitled, "Alaska Natural Gas Transportation System: Status 2. Appendix I: Section 301 of Public Law 93-153 3. Appendix II: Public Law 94-586 4. Appendix III: Reorganization Plan No. 1 of 1979 APPENDIX-Continued Foothills Pipe Lines (Yukon) Ltd.: 1. Prepared statement of Robert Pierce 2. Letter from Hon. Harold Runnels, chairman, Subcommittee on Oversight and Investigations, to Robert Pierce, president, Foothills Pipe Lines (Yukon) Ltd., dated October 23, 1979, transmitting additional questions to Mr. Pierce 3. Letter from Robert Pierce to Hon. Harold Runnels, dated December 3, 1979, responding to questions in Mr. Runnels' letter of October 23, 1979... Northwest Alaskan Pipeline Co.: 1. Prepared statement of John G. McMillian (with exhibits) A. Exhibit A: Letter from John G. McMillian, chairman, Board of C. Exhibit C: Filings before the Federal Energy Regulatory Com- F. Exhibit F: Document entitled, "A Review of Alaska Natural Gas Page 412 420 422 425 469 471 486 514 519 587 704 2. Letter from Hon. Harold Runnels to John G. McMillian, dated October 23, 1979, transmitting additional questions to Mr. McMillian 707 3. Letter from John G. McMillian to Hon. Harold Runnels, dated November 9, 1979, enclosing responses to questions in Mr. Runnels' letter of October 23, 1979 709 4. Letter from John G. McMillian to Hon. Harold Runnels, dated November 6, 1979, enclosing specific information requested at the hearing of October 15, 1979, dealing with governmentally caused delays as evidenced in the Alaska highway gas pipeline project 5. Prepared statement of Mark J. Millard 6. Prepared statement of Frank P. Moolin, Jr.. ........ 716 719 724 Pacific Gas & Electric Co.: 1. Prepared statement of John A. Sproul 780 2. Letter from Hon. Harold Runnels to John Sproul, dated October 23, 1979, transmitting additional questions to Mr. Sproul 796 2. Letter from Harold Runnels to J. Conrad Pyle, dated October 23, 1979, transmitting additional questions to Mr. Pyle 3. Letter from John Sproul to Hon. Harold Runnels, dated November 27, 1979, enclosing responses to the questions in Mr. Runnels' letter of October 23, 1979 4. Letter from John Sproul to Hon. Don Clausen, ranking minority member, Committee on Interior and Insular Affairs, dated October 30, 1979, responding to Mr. Clausen's request at the hearing of October 15, 1979, for additional details concerning regulatory problems Northern Border Pipeline Co.: 1. Prepared statement of J. Conrad Pyle 798 808 811 828 3. Letter from J. Conrad Pyle to Hon. Harold Runnels, dated November 28, 1979, responding to the questions in Mr. Runnels' letter of October 23, 1979 (with an attachment) 830 A. Attachment entitled, "Agreement Dated as of October 25, 1979, 834 APPENDIX-Continued The State of Alaska: 1. Prepared statement of Robert H. Loeffler..... 2. Letter from Hon. Harold Runnels to Robert Loeffler, dated October 23, 1979, transmitting additional questions to Mr. Loeffler 3. Letter from Robert Loeffler to Hon. Harold Runnels, dated November 19, 1979, responding to the questions in Mr. Runnels' letter of October 23, 1979 Office of the Federal Inspector, Alaska Natural Gas Transportation System: 1. Prepared statement of John T. Rhett, Jr. Page 869 878 880 884 2. Letter from Hon. Harold Runnels to John T. Rhett, dated October 23, 1979, transmitting additional questions to Mr. Rhett 3. Letter from John T. Rhett to Hon. Harold Runnels, dated November 6, 1979, responding to the questions in Mr. Runnels' letter of October 23, 1979 4. Document entitled, "Quarterly Report to the President and Congress on the Construction of the Alaska Natural Gas Transportation System," dated October 1979.... U.S. Department of the Interior: 1. Prepared statement of Hon. James W. Curlin 2. Letter from Hon. Guy Martin, Assistant Secretary for Land and Water 3. Letter from Hon. Harold Runnels to Hon. James W. Curlin, dated 5. Letter from Hon. James W. Curlin to Hon. Harold Runnels, dated Federal Energy Regulatory Commission: 1. Prepared statement of Hon. Charles B. Curtis (with attachments)........... B. Attachment 2: Letter from Don S. Smith, Vice Chairman, FERC, 2. Letter from Hon. Harold Runnels to Hon. Charles B. Curtis, dated 900 902 908 934 944 959 961 965 968 976 986 993 995 4. Document from the Canadian National Energy Board identified as Order No. GH-4-79, and including notice of hearing 1002 5. Document from the Canadian National Energy Board identified as Order No. RH-2-79, and including a notice of hearing 1013 6. Commission opinion issued August 6, 1979, docket Nos. CP78-123, et al., entitled, "Order Approving Alaska Segment Design Specifications and Initial System Capacity". 1027 Office of the Chief of Engineers, Department of the Army: 1. Prepared statement of Brig. Gen. Hugh G. Robinson 1035 ALASKA NATURAL GAS TRANSPORTATION SYSTEM MONDAY, OCTOBER 15, 1979 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS, COMMITTEE ON INTERIOR AND INSULAR AFFAIRS, The subcommittee met, pursuant to notice, at 9:47 a.m., in room 1324, Longworth House Office Building, Hon. Harold Runnels (chairman of the subcommittee) presiding. Mr. RUNNELS. The subcommittee will come to order. Today the Oversight and Investigations Subcommittee will begin hearings on the Alaska Natural Gas Transportation System. This subcommittee has been assigned legislative jurisdiction over this project by the House Committee on Interior and Insular Affairs, a responsibility conferred upon the committee under rule X of the rules of the House of Representatives through assignment of jurisdiction over public lands. I have called these hearings because I feel it is essential for all Members of Congress and the public to be kept informed of the progress toward construction of what will likely be the largest privately financed international business venture of all time. Because the pipeline will transport a domestically produced energy resource from the North Slope of Alaska, through Canada, to critical markets in the Midwest and the west coast, it is unique in an otherwise complicated and uncertain national energy picture. Two factors, the pipeline's impact on our domestic energy supply picture and the reorganization of Government to accomplish a specific energy goal, underscore my interest in holding these hearings. Today, we will hear from the four project sponsors who will be building the pipeline. We hope to find out how much it will cost and when it is expected to be completed. Tomorrow we will hear testimony from the new Federal inspector, Mr. John Rhett, who will function as the "one window" contact point with the project sponsors and will carry with him all Federal authority on matters pertaining to preconstruction, construction and initial operation of the system. I believe that Mr. Rhett fully appreciates that the success of this approach will depend on his ability to achieve prompt, coordinated decisionmaking. There are questions about the pipeline which cannot yet be answered. We want to learn about these issues, whether they are environmental, technical, or financial, and about the issues which have already been resolved through the diligent efforts of the sponsors and the Federal agencies. This subcommittee intends to |