1. The Alaska Natural Gas Pipeline Right-of-Way Permitting for an Offshore Route John Goll Alaska Regional Director Department of the Interior U.S. Minerals Management Service Alaska State Legislature Joint Committee on Natural Gas Pipelines July 17, 2001

2. MMS -- Who We Are Outer continental shelfOuter continental shelf –oil and gas and other minerals Full complement of regulationsFull complement of regulations Technical Research ProgramTechnical Research Program Revenues - collect & distributeRevenues - collect & distribute Nation’s oil and gas production Nation’s oil and gas production –oil ~25%gas ~ 27% –Includes ~ 31,000 miles of pipelines

3. 4.1 TCF 6.0 TCF Gulf of Mexico Annual Gas Production Projections

4. Limitations in the Lower 48 Areas Off Limits Atlantic 24-34 tcf EGOM 12 tcf West Coast 15 -23 tcf Rockies 137 tcf

5. Alaska OCS Potential ( Risked, Undiscovered, Conventionally Recoverable) Low to High Estimates Oil Gas Oil Gas billions barrels TCF billions barrels TCF Alaska OCS Total17 - 3555 - 227Alaska OCS Total17 - 3555 - 227 Chukchi 9 - 2514 - 154Chukchi 9 - 2514 - 154 Beaufort 4 - 1213 - 63Beaufort 4 - 1213 - 63 Hope 0 - 0.3 0 - 11Hope 0 - 0.3 0 - 11 Norton 0 - 0.2 0 - 9Norton 0 - 0.2 0 - 9 Cook Inlet0.3 - 1.40.7 - 2.5Cook Inlet0.3 - 1.40.7 - 2.5 » (MMS 2000 National Assessment)

6. UNDISCOVERED GAS RESOURCES (mean estimates, TCF) Valdez NPR-A ANWR CANADA R u s s i a n W a t e r s C a n a d i a n W a t e r s T A P S O R T H E R N A L A S K A 6 4 T C F CENTRAL ALASKA 3 TCF S T. G E O R G E 3. 0 T C F N. A L E U T I A N 6. 8 T C F NAVARIN 6.2 TCF NORTON 2.7 TCF S. ALASKA 2.1 TCF L. COOK INLET (FED.) 1.4 TCF KODIAK-SHUMAGIN 2.7 TCF GULF OF ALASKA 4.2 TCF ALASKA TOTAL CONVENTIONAL GAS RESOURCE = 191 TCF (82% IN ARCTIC) After MMS [2000], USGS [1995], and Dixon et al. [1994] Gas Hydrates: 170,000 TCF offshore 590 TCF onshore

7. Regulatory Authorities If an Offshore Route MMSMMS –Right-of-Way Approval –OPA Contingency Plan/Financial Responsibility Other Pipeline AgenciesOther Pipeline Agencies –Federal Energy Regulatory Commission –State of Alaska Pipeline Coordinators Office (SPCO) –DOT/Office of Pipeline Safety (OPS) CanadaCanada Other AgenciesOther Agencies –EPA, COE, FWS, NMFS

8. Regulatory Process Pre-application surveysPre-application surveys ROW application (30CFR250, Subpart J)ROW application (30CFR250, Subpart J) –includes technical, engineering, site specific reviews Public reviewPublic review NEPANEPA –evaluate environmental issues CZMACZMA Endangered Species ConsultationEndangered Species Consultation

9. Special Considerations Bowhead whalesBowhead whales Subsistence huntingSubsistence hunting Seasonal construction/repairSeasonal construction/repair PermafrostPermafrost Ice gougingIce gouging Strudel scourStrudel scour Leak detectionLeak detection

10. Consultation is Essential Many StakeholdersMany Stakeholders –State, Provincial, and Local Governments –Federal Agencies (U.S. and Canada) –Industry –Domestic and international NGO’s –North Slope Borough government –Affected North Slope villages –Traditional village governing bodies (IRA) –Alaska Eskimo Whaling Commission –The public

11. In Conclusion Alaska has significant untapped natural gas resources, both now and well into the futureAlaska has significant untapped natural gas resources, both now and well into the future Right-of-way procedures are available to review an offshore application, if proposedRight-of-way procedures are available to review an offshore application, if proposed We are not advocates for a routeWe are not advocates for a route Regardless of the route chosen, we will assist, if neededRegardless of the route chosen, we will assist, if needed

12. http://www.mms.gov/alaska/ http://www.mms.gov/ For more information