Legislative committee has no oil and gas consultants under contract, chair says

The Legislative Budget and Audit Committee has no oil and gas consultants under contract, its chair confirmed Wednesday, Oct. 7. Senators on the committee said that leaves lawmakers without independent advice as another gas pipeline project comes before them.

Sen. Bert Stedman raised the issue after scheduled business ended. About 15 years ago, he said, the Legislature had no consultants when the governor at the time took action, leaving lawmakers in a precarious position. Hiring consultants and bringing them up to speed takes time, Stedman said, and the state's oil and gas system is among the most complex on the planet.

Stedman pointed to expected turnover in the Alaska State House and a new administration. Lawmakers need an adviser other than the administration because the two branches often disagree on oil and gas details, he said. Many qualified consultants are conflicted out by contracts with oil companies, energy companies or the administration. Without outside help, the Legislature would rely on data a decade old.

Sen. Elvi Gray-Jackson, the committee chair, said she agreed. "The contracts that we had expired before we had an opportunity to even talk about renewing them, but that's something that we can definitely look at," she said.

Sen. Cathy Giessel said she agreed and tied the need to the pipeline: "We will certainly have another gas pipeline project on our table, so it'd be very prudent to secure a consultant." The Alaska LNG project calls for an 807-mile pipeline from a gas treatment plant near Prudhoe Bay to a liquefaction facility and export terminal in Nikiski. Lead developer Glenfarne is targeting first gas from the project's first phase, an in-state pipeline, in 2029, according to a federal Energy Department project summary. The Alaska Department of Natural Resources' Oct. 5 project-status update reported that the pipeline right-of-way leases remain conditional and listed no construction dates.

The committee took no formal action. It has authority to hire consultants on oil and gas and other issues affecting the state budget and economy. Gray-Jackson said the committee plans to meet in December and hold a final meeting Monday, Jan. 18, and that members would work out how to bring a new contract on board before then.