
Luke Saugier
45:39 - 46:11
"Hill Corp has had internal discussions about how far through the value chain we want to own the gas. And the conclusion that we came to is we want our ownership to stop at the lease line."
“Hill Corp has had internal discussions about how far through the value chain we want to own the gas. And the conclusion that we came to is we want our ownership to stop at the lease line.”
Through the chair, what I can tell you is that Hill Corp has had internal discussions about how far through the value chain we want to own the gas. And the conclusion that we came to is we want our ownership to stop at the lease line. Okay, fair enough. I understand. I think that answers the question for Hilcorp.
Three major North Slope producers told the Alaska Senate Finance Committee they signed gas sale precedent agreements for Alaska LNG Phase 1 and will sell at the lease line. That structure means midstream pipeline and treatment costs won't be deductible against oil production tax.
