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Appendix, Alaska's Energy Plan 1986
Appendix Alaska’s Energy Plan 1986 BILL SHEFFIELO GOVERNOR STATE OF ALASKA OFFICE OF THE GOVERNOR JuUNEAU Alaska’s Energy Policy, Past and Future by Governor Bill Sheffield Dear Alaskan: Energy programs have been a large and important part of Alaska’s public policy over the past decade. A lot has happened in that time, too. Ten years back, Alaskans were gazing across what looked like a limitless ocean of oil wealth. Now, we can see the other shore. Over the past 10 years, we Alaskans have modified our expectations to fit our income. In the same way, we have modified components in our energy programs to fit the fiscal realities. However, the basic policy behind those programs has not changed. There is a common sense logic and persistent pattern to the State's involvement in energy matters over the last 10 years. That logic continues to motivate our energy program planning. All of Alaska’s energy programs share this primary goal: to use our resources to reduce consumer expenditures on energy. Our programs can be broken down into these general categories: ¢ Identify and assist in the construction of “optimum” electric generation systems. trom hydroelec- tric dams to waste heat systems; e Reduce individual consumption of energy, especially for home heating purposes: e Hold down electric bills in high cost. rural areas. Optimum Generation By far, the State’s major initiative has been to find electric generation systems that would—over the long term—provide electricity at the lowest cost. The Alaska Legislature has pursued this objective primarily through the Energy Program for Alaska. administered by the Alaska Power Authority (APA). These are the major components of the program: e Four hydroelectric dams that are providing power todav in soutneast ana soutncentral Alaska— Tyee Lake. for Wrangell and Petersburg; Swan Lake. for Ketchikari: Terror Lake. for Kodiak: and Solomon Gulch, for Valdez and Glennaiten. e The Bradiey Lake hydro project. which will provide power to the Kena: Peninsula by 1990. Con- struction. should start this spring. e The Susitna River hydro project. which is in :he planning stages. © The Fairbanks-to-Anchorage intertie, a 170-mile 345 kilovolt transmission line connecting the power grids of our two largest cities. The Legislature has committed about $1.4 billion (including appropriations to the Power Develop- ment Fund, a savings account for future Railbelt power projects). That is a powerful commitment to providing the people of Alaska with long-term, dependable power at the lowest possible cost. On a smaller but still impressive scale, this commitment is reflected in other APA programs such as the waste heat recovery program, the Rural Electrification Revolving Loan Fund, and the Power Project Fund. Seventeen waste-heat recovery facilities have been built in rural Alaska since 1981. Numerous low- interest loans and cash grants (some administered by other State agencies) have helped expand and upgrade rural electric distribution systems. Direct grants and loans from the Department of Com- munity and Regional Affairs have allowed villages to purchase and store their diesel fuel in larger bulk quantities, reducing the overall cost to those consumers. Reduced Consumption Energy conservation programs have helped Alaskans reduce their energy costs by using less fuel, especially home heating fuel. State energy conservation measures include consumer education and outreach programs, weatheriza- tion, home energy audits, and better thermal efficiency standards for new buildings. Both federal and State money support our conservation efforts. The agencies include the APA, the University of Alaska, the Cooperative Extension Service. and the State Department of Community and Regional Affairs, which is the lead agency in energy conservation. Direct Energy Support The Power Cost Equalization Program (about $20 million in FY 86) is a major subsidy program. Through a statutory formula, it pays a part of the monthly electric bill of the residents in many high-cost rural communities. It was designed by the Legislature to assist rural communities in attaining some measure of equity in State spending for energy projects. Additionally, the federal Low Income Energy Assistance Program. administered through the State Department of Health and Social Services, helps qualifying housenolds defray eneray costs. Looking Ahead Alaska’s energy programs have entered a new phase. It is a time for consolidation and refinement. As times change, we need to ask ourselves which of our existing energy programs most effectively implement—or can be tailored to implement—our existing energy policy. We need to streamline the programs we have and make them work better. The State of Alaska remains committed to its primary goals of reducing energy costs for Alaskans. We can achieve this by continuing our hydroelectric program and encouraging conservation througn coordinated State programs. We can adapt our programs to chanaing times and conditions. with the cooperation of the public, our Legislature, and local public officials. Sincerely. Bill Sheffield Governor ALASKA’S ENERGY PLAN 1986 VOLUME IV — APPENDIX Bill Sheffield, Governor State of Alaska Prepared by: Department of Commerce & Economic Development Loren H. Lounsbury, Commissioner Alaska Power Authority Robert D. Heath, Executive Director February 1, 1986 For additional copies of this report write to: Alaska Power Authority Box 190869 Anchorage, AK 99519-0869 Speciai Thanks to Wanda Springsted. Carol Whelan, and Barbara Weiss for preparing the typed portions of this document for publication. Editor Mark Miller m Oo OO TABLE OF CONTENTS ENTRODUGTIION Meyeroteysteveieleletere ore lcielle elele icicle! oJere sre/etere ereleisrorerere eretvers ALASKA STATUTE (AS 44.83.1224 2 ooo. nice ce cine ew cciicincesiciceee SUMMARY OF ALASKAN ENERGY STATUTES ........ccceeeeeceeceee SOURCES OF ALASKAN ENERGY PLAN INFORMATION ..........eeeee GLOSSARY OF TERMS ......... areteletelerelolorerelerstelersteteretelerelele prelelerieye ABBREVIATIONS USED IN PLAN ....0.00scccces sceess peteketetclerere 1986 ENERGY PLAN GENERAL CORRESPONDENCE ............00e00- ACKNOWLEDGEMENTS: cisiericccc cre 011010 0 01010 aparelteteteiroreelersielelevetterterere 1986 ENERGY PLAN BUDGET DESCRIPTIONS BY ISSUE AREA ....... ALASKAN BIOMASS PROGRAM STATUS AS OF December 31, 1985 ... RAPES FOR REGULATED UTILITIES 3 0.0.< sieisisie 010 1e1ciee cleleicie soi. BOC FOSSIL FUEL INFORMATION - RAILBELT AND STATEWIDE ......... L.1 State Petroleum Competitive Sales Areas ............. L.2 Summary of Previous Competitive Lease Sales, USES) 6a care 5) spore 1e reser ve) a'e' (oyoi ei os ehe ois} aya\ ova ose Rrorelevererstele L.3 Proposed Oi] and Gas Sale Areas: 1985-1990 .......... L.4 Leasing and Royalty Program for Oil, Gas, Coal, and Geothermal Resources ........ srois wis laletatovevereiel Rye roisTalel glove L.5 Major Petroleum Organizational Contacts In Alaska - 1985 ..... eoleterererercteretetolete(clelelstekererer maroroleletetere L.6 Cook Inlet O11] and Gas Fields ........0..s00- Betetstslelels L.7. Historic Oi] Production In Cook Inlet ............... L.8 Historic Natural Gas Production In Cook Inlet ....... L.9 Cook Inlet Pipeline Services .....26.:.....00. eletelohelele L.10 Average Cook Inlet Oil and Gas Wellhead Prices - 1975-1984 ......... seelcioleleisre/sieleieisie/e eleisielelere 13 17 21 27 85 93 133 151 171 175 181 185 189 199 203 203 203 209 215 TABLE OF CONTENTS (Continued) PAGE L.11 Cook Inlet Gas Reserves (as of January 1, 1985) ..... 215 2s ProvenscookuInletiOnlaReSenvesmsrers strstr cielcisveleleieletseicls 215 L.13 Proven Cook Inlet Natural Gas Reserves .............. 215 L.14 Representative Analysis of Alaskan Coals (Cook Inlet Area) on as Received Basis ............ 221 BIBELOGRAPH VE yarsret-fereyotoreioletateveta\eYolaleleleleleloleleleislelclorelel lefeleversietelolets 225 APPENDIX A INTRODUCTION APPENDIX A. INTRODUCTION 1985 marked a year of transition for Alaska; a year that took us from an oil-rich to an oil-sensitive posture, and one that reminded us that our future destiny must be shaped by comprehensive, cost-effective decisions made through a coordinated plan of economic development balanced by basic needs fulfillment. Within this framework, the four volume "ALASKA'S ENERGY PLAN - 1986" was developed. It is the sixth in a series of reports prepared under Alaska Statute 44.83.244, Previous plans have included information regarding energy demand, assessment of energy supply options, research, conservation, and emergency planning. These plans have provided basic information and examined the long-term view of Alaska's energy future to the year 2000. Emphasis was directed to reporting current energy production and consumption, and assessing Alaska's energy future. Until 1985, those plans failed to highlight energy policy and Alaska's future in the near-term. The 1985 Energy Plan combined the efforts of nine State agencies into a plan that defined each agency's energy programs, provided guidelines for future State action, and set the energy policy direction for Alaska in the coming years. That Plan adopted the view that long-range planning does not deal with future decisions, but with the future of present decisions. Acting as a "snapshot," the 1985 Plan defined the baseline against which all future energy programs could be measured. "ALASKA'S ENERGY PLAN - 1986" prepares the State for a future of reduced oil revenues and increasing energy needs. Working from the basic statute that requires a long-term energy plan addressing five key areas, this Plan includes the identification of specific policies that will be the road map against which the Governor and Legislature may fashion their programmatic appropriations, while providing the basic information to. produce long-term solutions without major upheavals in the near term. "ALASKA'S ENERGY PLAN - 1986" sets the direction for comprehensive, cost-effective energy implementation activities in the coming years, and provides reasonable expectations of where State action will occur on energy issues in the future. "ALASKA'S ENERGY PLAN - 1986, APPENDIX" is a compilation of expanded facts presented summarily in one or more of the other 1986 plan documents. A total of 13 separate appendices over a range of subjects is included. Appendices B-I cover Alaska's energy statutes, general correspondence, information sources useful to energy planners, acknowledgements to those who helped with the 1986 energy planning efforts, and a detailed summary of FY 87 energy budgets listed in priority policy tables. These appendices are general and listed as a primer of what and who is involved with Alaska's energy policy picture today. Appendices J-L present more specific information. Appendix J_ lists Alaska's biomass programs active today, and each program's potential products and completion dates. Appendix K lists electrical generation rates by type of service for each regulated utility. Appendix L is a compilation of fossil fuel related items, including information on oil and gas lease schedules, and historic price and production data from Cook Inlet. Of special interest is a listing of major petroleum oriented contacts in Alaska provided by the Department of Natural Resources. Appendix M is the final section of this document and is a Bibliography of published information used in completion of "ALASKA'S ENERGY PLAN - 1986." APPENDIX B ALASKA STATUTE AS 44.83.224 APPENDIX B. ALASKA STATUTE 44.83.224 The Department of Commerce and Economic Development, assisted by the Alaska Power Authority, shall, after public hearings, prepare and annually revise a long-term energy plan. The plan, and its annual revisions, shall be submitted to the Commissioners of the Departments of the Executive Branch of the government for review and to the Governor for his approval. After approval, the plan shall be submitted to the Legislature not later than February 1, of each year. The plan, and its annual revisions, shall include: (1) an “end-use" study examining and reporting on the nature and amount of energy used and the purpose of its use; and (2) an energy development component for meeting projected thermal, electrical and transportation energy needs in the state at the lowest reasonable cost, including environmental and _ social costs, consistent with acceptable standards of reliability, giving an equal consideration as practicable to all types of energy sources (except those based on nuclear fuels) which are technologically feasible, and which promote the efficient use of facilities and fuels consistent with energy conservation goals, and the considerations specified in AS 44.56.180(e). (3) an energy conservation component, including but not limited to, (A) conservation goals for reducing consumption of energy, identifying the region for which applicable, and the source or type of energy to which the goals are applicable; and (B) specific methods and means for achieving the goals of (A) of this paragraph; (4) a component for emergency energy conservation measures applicable during times of emergency; and (5) a report on areas or subjects of research and development and demonstration projects involving alternative energy systems, local energy sources, and energy conservation. APPENDIX C SUMMARY OF ALASKAN ENERGY STATUTES APPENDIX Title 18 Title 38 Title 41 Title 42 Title 43 Title 44 C. SUMMARY OF ALASKAN ENERGY STATUTES (By Title) - Health and Safety 18.45 Article 1 - Atomic Energy Development S57 Regional Electrical Authority - Public Lands 38.05.181 Geothermal Resources 38.05.182 Royalty on Natural Resources 38.05.183 Sale of Royalty - Public Resources 41.06 Geothermal Resources 41-98 Western Interstate Nuclear Compact - Public Utilities and Carriers 42.06 Pipeline Act - federal regulated carriers 42.05 Alaska Public Utilities Commission Act - appliance testing - Revenue and Taxation 43.20.037 Repealed effective 1/1/86 (Trade or Business Energy Conservation Credit) 43.56 Oil and Gas Exploration, Production, Pipeline Transportation Property Tax 43-55 Oil and Gas Properties Production Tax 43-57 Oil and Gas Regulation and Conservation Tax - tax for extraction from State land - State Government 44.03 Sovereignty of State - ownership of water and land as affects oil and gas exploration and production, hydroelectric siting, resource development 44.83 APA Statute 44.83.162-.165 PCE 44.83.170 Power Project Fund Loans 44.83.177 Reconnaissance Study 44 83.181 Feasibility and Finance 44 83.189 Project Construction 44 83.224 Long-term Energy Plan 44 .83.300 Susitna Project 44 83.361 Rural Electrification Revolving Loan Fund 44 83.380 Energy Program for Alaska 44 .83.382 Power Development Fund - carry out EPFA under 83.380 i 44 .83.400 Energy Conservation 44 83.410 Continuing Appropriation for Susitna Project 44 .83.420 Continuing Appropriation for Bradley Lake Project 1 APPENDIX C. SUMMARY OF ALASKAN ENERGY STATUTES (By Title) (Continued) Title 45 - Trade and Commerce 45.87 Bulk Fuel Revolving Loan Fund 45.88 Alternative Energy Revolving Loan Fund 45.89 Residential Energy Conservation Fund Title 46 - Water, Air, Energy and Environmental Conservation 46.11 Conservation of Energy and Materials 46.11.010 Thermal and Lighting Standards 46.11.060 Recycling 46.12 Alaska Energy Center 12 APPENDIX D SOURCES OF ALASKAN ENERGY PLAN INFORMATION APPENDIX D. SOURCES OF ALASKAN ENERGY PLAN INFORMATION ALASKA POWER AUTHORITY For a complete listing of energy and power related documents, contact Librarian, Alaska Power Authority, P.0. Box 190869, Anchorage, Alaska 99519-0869, telephone (907) 561-7877. ALASKA PUBLIC UTILITIES COMMISSION Identification of Alaskan utilities and utility rates and regulations can be obtained from the Information Officer, 420 L Street, Suite 100, Anchorage, Alaska 99501, telephone (907) 276-6222. DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT Information on energy loans may be obtained by contacting Division of Investments, Department of Commerce and Economic Development, P.O. Box D, Juneau, Alaska 99811, telephone (907) 465-2510. DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS For information on Department of Community and Regional Affairs' energy programs and other energy related information, please contact Librarian, Alaska Energy Library, Office of Energy Programs, Department of Community and Regional Affairs, 949 E. 36th, Room 400, Anchorage, Alaska 99508, telephone (907) 563-1955. DEPARTMENT OF EDUCATION Information on energy related educational programs and curriculum available in the public school system in Alaska can be obtained from Education Program Support, P.0. Box F, Juneau, Alaska 99811, telephone (907) 465-2830. DEPARTMENT OF HEALTH AND SOCIAL SERVICES Information on energy assistance programs can be obtained from Division of Public Assistance, Department of Health and Social Services, P.0. Box H-07, Juneau, Alaska 99811, telephone (907) 465-3058. DEPARTMENT OF LABOR Information on Alaskan economic and business related data can be obtained from the Research and Analysis Section, P.0. Box 25501, Juneau, Alaska 99802, telephone (907) 465-4500 or Employment Security Division, P.O. Box 3-7000, Juneau, Alaska 99802, telephone (907) 465-2700. 15 DEPARTMENT OF NATURAL RESOURCES For information on Department of Natural Resources oil and gas publications, please write Kay Brown, Director, Division of Oil and Gas, Department of Natural Resources, P.0. Box 7034, Anchorage, Alaska 99510, telephone (907) 561-2020. Other resource information may be obtained from Department of Natural Resources, Office of the Commissioner, Box M, Juneau, Alaska 99811, telephone (907) 465-2400. DEPARTMENT OF REVENUE Generated revenue, historic and projected for the State of Alaska can be obtained from Research Section, P.0. Box S, Juneau, Alaska 99811, telephone (907) 465-2300. DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES For a complete list of State Department of Transportation and Public Facilities' technical publications since July 1, 1980, please write Research Program, Department of Transportation and Public Facilities, 2301 Peger Road, Fairbanks, Alaska 99701, telephone (907) 452-1911. UNIVERSITY OF ALASKA - COOPERATIVE EXTENSION SERVICE Information on energy conservation may be obtained from the University of Alaska, Cooperative Extension Service, 2651 Providence Avenue, Anchorage, Alaska 99508, telephone (907) 786-1080. 16 APPENDIX E GLOSSARY OF TERMS APPENDIX E — GLOSSARY OF TERMS 1. Btu energy equivalents: ENERGY FORM A. Electricity ¢ Capacity ¢ Generation B. Oil ¢ Crude Oil ¢ Diesel Fuel ¢ Distillate Fuel Oil ¢ Motor Gasoline e Aviation Gasoline e Jet Fuel e Kerosene ¢ LPG (liquefied petroleum gas) e Lubricants ¢ Resid. (residual fuel oil) 19 STANDARDS UNITS kW (Kilowatt) MW (Megawatt) kWh (kilowatt hour) MWh (Megawatt hour) bbl (barrel) gal (gallon) bbl gal bbl gal bbl gal bbl gal bbl gal bbl gal bbl gal bbl gal bbl gal BTU EQUIVALENT 3,412 3,412,000 5,800,000 138,095 5,825,000 138,690 5,825,000 138,690 5,253,000 125,070 5,048,000 120,190 5,355,000 127,500 5,670,000 135,000 4,011,000 95,500 6,065,000 144,400 6,287,000 149,690 Glossary of Terms (cont.) 1. Btu energy equivalents (cont.) ENERGY FORM C. M a eer Ope hee Gime ees Spee Ghee ee Coal e Alaskan Coal ¢ Domestic anthracite ¢ Domestic bituminous ¢ Coke Natural Gas Peat e Alaskan Peat Wood e Sitka Spruce easurement Equivalents: ton bbl (barrel) MCF therm quad MW (Megawatt) kW (kilowatt) GWh Btu 20 STANDARD UNITS Short ton (2000 Ibs) Ib Short ton Ib Short ton Ib Short ton SCF (Standard cubic foot) MCF (Thousand cubic feet) 1 therm 1 gallon of liquefied petroleum gas Ib cord 2,000 pounds 42 gallons 1,000 cubic feet 100,000 Btu one quadrillion Btu 1,000 kilowatts 1,000 watts 1,000,000 kilowatt hours BTU EQUIVALENT 16,440,000 8,220 23,250,000 11,625 22,430,000 11,215 26,000,000 1,020 1,020,000 100,000 95,475 6,000 - 9,000 17,100,000 The quantity of heat required to raise the temperature of one pound of water one degree Fahrenheit. APPENDIX F ABBREVIATIONS USED IN PLAN APPENDIX F. ABBREVIATIONS USED IN PLAN Arctic Environmental Information Data Center Alaska Public Utilities Commission, DCED Alaska Rural Electric Cooperative Association barrel, where one barrel equals approximately 42 gallons British thermal unit - measure of power or heat Cooperative Extension Service - University of Alaska measure of wood that would fit into 128 cubic feet Department of Commerce and Economic Development Department of Community and Regional Affairs Department of Health & Social Services Department of Transportation and Public Facilities ABBREVIATION ABBREVIATION DESCRIPTION AAC Alaska Administrative Code AEIDC AHFC Alaska Housing Finance Corporation ANGTS Alaska Natural Gas Transport System APA Alaska Power Authority, DCED APUC ARECA AS Alaska Statute ASCC Alaska Systems Coordinating Council bb] BPD barrels per day Btu CES CIRI Cook Inlet Regional Corporation cord DC direct current electricity DCED DCRA DHSS DI Division of Investments, DCED DNR Department of Natural Resources DOA Department of Administration DOR Department of Revenue DOT/PF EIC exploration incentive credits 23 Federal - October 1 to September 30 gigawatt hours (1 million kilowatt hours) Power Cost Assistance Program (expired 10/84) Power Cost Equalization Program (began 10/84) Rural Electrification Revolving Loan Fund ABBREVIATION ABBREVIATION DESCRIPTION FERC Federal Energy Regulatory Commission FY fiscal year: State - July 1 to June 30 gas gallons GWh kV kilovolt (1,000 volts) kW kilowatt (1,000 watts) kWh kilowatt hour 1b pound LIHEAP Low Income Energy Assistance Program LNG liquified natural gas LPG liquified petroleum gas MCF thousand cubic feet MOA Memorandum of Agreement MW megawatts (1,000 kilowatts) MWh megawatt hours (1,000 kilowatt hours) NPS net profit shares O&M operation and maintenance activities ocs Outer Continental Shelf OMB Office of Management & Budget PCA PCE PURPA Public Utilities Regulatory Policies Act RERLF SCF standard cubic foot short ton two thousand (2,000) pounds 24 ABBREVIATION TAGS TAPS TCF WTG ABBREVIATION DESCRIPTION Trans-Alaska (Natural) Gas System Trans-Alaska (0i1) Pipeline System trillion cubic feet wind turbine generator 25 APPENDIX G 1986 ENERGY PLAN GENERAL CORRESPONDENCE APPENDIX G. 1986 ENERGY PLAN GENERAL CORRESPONDENCE LISTING This section includes all general letters of correspondence to the Energy Policy Steering Committee, Working Committee, Energy Groups, and Utilities. General correspondence to individuals or energy groups, or comments received during the energy planning process are not included here. 29 July 1, 1985 The Honorable Ben F. Grussendorf Speaker Alaska State House of Representatives P.0. Box 928 Sitka, AK 99835 Dear Mr. Grussendorf: Governor Sheffield's 1986 Energy Plan will be developed by the Alaska Power Authority (APA). To begin that development, the APA has chosen to use a top level steering committee to promulgate what should be longterm energy implementation plans for Alaska covering the next 5 to 20 years. It would be very valuable to have a representative of the House in the steering committee meetings. As Executive Director of the Power Authority, I am requesting that you assign a member to the steering committee. The steering committee will meet twice. The first meeting, during the week of July 22 - 26, will be to discuss energy issues as outlined by State agencies in a discussion paper, and formulate ideas into general energy implementation plans. Prior to the second meeting, agency staff will work on those ideas to show how programs can be accomplished, what legislative changes may be required, and the costs. At a second meeting, during the week of August 19 -23, the steering committee will review staff recommendations. Finalized energy implementation plans with appropriate legislative and budgetary actions will then become the centerpiece for the 1986 Energy Plan. Please respond to my office with your representative's name. Respectfully, Robert D. Heath Executive Director RDH:tg:cc 9982/413 30 duly 8, 1985 The Honorable Don Bennett President Alaska State Senate P.O. Box 2801 Fairbanks, AK 99707 Dear Mr. Bennett: Governor Sheffield's 1986 Energy Plan will be developed by the Alaska Power Authority (APA). To begin that development, the APA has chosen to use a top level steering committee to promulgate what should be longterm energy implementation plans for Alaska covering the next 5 to 20 years. It would be very valuable to have a representative of the Senate in the steering committee meetings. As Executive Director of the Power Authority, I am requesting that you assign a member to the steering committee. The steering committee will meet twice. The first meeting, during the week of July 22 - 26, will be to discuss energy issues as outlined by State agencies in a discussion paper, and formulate ideas into general energy implementation plans. Prior to the second meeting, agency staff will work on those ideas to show how programs can be accomplished, what legislative changes may be required, and the costs. At a second meeting, during the week of August 19 -23, the steering committee will review staff recommendations. Finalized energy implementation plans with appropriate legislative and budgetary actions will then become the centerpiece for the 1986 Energy Plan. Please respond to my office with your representative's name. Respectfully, Robert D. Heath Executive Director RDH: tg:cc 9982/413 31 MEMORANDUM State of Alaska TO: THRU: FROM: (Departmental Commissioners ) DATE: July 19, 1985 FILE NO.: TELEPHONE NO.: SUBJECT: July 31, Energy Plan Steering Committee Donald Shira Meeting Alaska Power Authority Mark Miller of my staff has spoken to each member of the 1986 Energy Plan Steering Committee and confirmed a meeting date of July 31, 1985, 9:00 a.m. to Noon, in the State Office Building, 9th Floor Conference Room, Juneau. The meeting will be an opportunity for the State's top policy makers to convene aS one group to formulate ideas, set objectives and direction for Alaska's long-term energy policy. Attached is a discussion paper to stimulate your thinking process on energy issues and demonstrate the thinking promulgated within the 1985 energy planning document prepared last year by staff of nine State agencies. This discussion paper is not intended to limit your ideas on energy policy. This meeting is designed to permit a free and open discussion of energy policies and general implementing programs that can benefit Alaska now, in five years, and in the long-term. DS/wfs5D REGLR5 71985c Attachment 32 1986 STATE ENERGY PLAN PROPOSED DISCUSSION ITEMS FOR STEERING COMMITTEE Legislation AS 44.83.224 0 Do we comply more fully with legislation or request modification? Elements of existing statutes: End Use Study Energy Development component Energy Conservation component Emergency Energy Conservation component Report on R & D and Demo projects anno OPWwWNrre aN If not, what approach should Energy Plan take and what legislation will be required? In view of the above, what are your objectives for the Energy Plan? Planning Horizon - 20 years? Review of Concurrence with 1985 Issue Statements and Implementing Strategies. Other Ideas, e.g. 0 Frequency of reporting - Yearly statewide summary? - Regional focus every year on rotating basis? (e.g., Railbelt, S.E., Rest of State} Putting more emphasis on R & D, as it applies to Alaska? Report schedule Now tied to budget cycle 33 ALASKA POWER AUTHORITY July 19, 1985 POUCH D, JUNEAU, ALASKA 99811 Phone: (907) 465-2433 Dear (Energy Groups and Utilities): The Alaska Power Authority is preparing "Alaska's Energy Plan - 1986" and wishes to solicit your opinion and insight as to what energy policies the State should address now and in the next five to twenty years. You are recognized as an expert on Alaska's energy needs and your ideas are solicited to formulate a viable energy policy. In general, we would appreciate your thoughts on the broad energy policy issues and objectives of the 1986 Energy Plan. We also request your views on particular energy problems, including who should address them and the estimated time frame. Your ideas will be consolidated with ideas of others, prioritized and stated as potential policy options in the energy plan. Collectively, these ideas will help set the tone of the Governor's 1986 Energy Plan. To maintain our schedule, we would appreciate your comments prior to August 13, 1985. A draft plan will be prepared for a September public information session. You will be notified of the date for that session and you will receive a copy of the draft prior to that time for review. Thank you for your cooperation. Sincerely, Donald Shira Alaska Power Authority DS/ss0029Z 071885a 34 MEMORANDUM State of Alaska TO: THRU: FROM: (Departmental Commissioners) pate. July 22, 1985 FILE NO.: TELEPHONE NO: 465-2433 SUBJECT: 1986 Energy Plan Steering Committee Donald L. Shira, Manager Meeting Program Planning & Analysis Alaska Power Authority Development of "Alaska's Energy Plan - 1986" will begin with a top level steering committee meeting scheduled for July 31, 9:00 a.m. to Noon, in the Department of Commerce & Economic Development's 9th Floor Conference Room, State Office Building, Juneau. The meeting will be an opportunity for the State's top policy makers to convene as one group to formulate ideas, set objectives and direction for Alaska's long-term energy policy. (Department Name) has not responded to an earlier invitation to be a part of this high level steering committee, but at this time the Alaska Power Authority would like to reissue that invitation and provide the briefing document to be used at the July 31 meeting. A listing of other committee members is included. If (Department Name) would like to attend the July 31 meeting, please provide written confirmation to me as soon as possible. Your ideas can play a valuable part in determining Alaska's energy policy. DLS/cw1911c 72285b Attachment 35 ALASKA POWER AUTHORITY POUCH D, JUNEAU, ALASKA 99811 PHONE: (907) 465-2431 DATE: July 24, 1985 f) TO: Working Committee j y FROM: Don Shira, Manager f" Program Planning & A sis Alaska Power Authori Department of Commerce & Economic Development SUBJECT: | Upcoming Work Assignments You have been designated as your agency's contact for development of "Alaska's Energy Plan - 1986." Each of the Working Committee members has now been contacted by Mark Miller of my staff who has provided copies of energy plan work completed in 1985. At this time, I would like to inform you of this year's proposed planning schedule and solicit your ideas on Alaska's energy future. This year's schedule really begins with a July 31 meeting of top policy makers who will hopefully provide frank statements on what they perceive as energy policy(ies) for the State to pursue in the coming years. From their ideas, work group assignments will be made, and tentatively, an August 12 meeting in Juneau scheduled to discuss the time frames necessary to complete assignments within the short turn-around time provided. That should be the one and only scheduled Working Committee meeting with the balance of the informational and coordination work thereafter conducted on a one-on-one basis. Besides an intense period in August to develop pro- grammatic and budget support for Steering Committee policy ideas, the work to be accomplished will only require the review of draft and final docu- ments, and, potentially, attendance locally at a public teleconferenced informational session on the draft '86 Energy Plan. As your agency's representative, I wish to solicit your ideas on what energy policy(ies) the State should adopt for the future, and specific programmatic ideas that can be used to fully implement those policies. The attached briefing document distributed to Steering Committee members should help get your ideas started. I look forward to meeting and working with the Working Committee in the coming days. Your ideas are welcomed on all aspects of energy planning. MM/1t3476t Attachment 072485b 36 ALASKA POWER AUTHORITY POUCH D, JUNEAU, ALASKA 99811 Phone: (907) 465-2433 July 24, 1985 Dear (Energy Groups and Utilities): The Alaska Power Authority is preparing "Alaska's Energy Plan - 1986" and wishes to solicit your opinion and insight as to what energy policies the State should address now and in the next five to twenty years. You are recognized as an expert on Alaska's energy needs and your ideas are solicited to formulate a viable energy policy. The detail of information we need runs the gamut from general to precise. In general, we are requesting information on your planning cycles, energy committees or divisions, and staff contacts. More specifically, your comments on the broad energy policy issues and objectives of an Energy Plan. Finally, a statement of the programs you consider important to resolve particular energy problems, including who should be doing them, the estimated cost, and time frame. Programmatic ideas should be prioritized. Your ideas on these topics will be consolidated with ideas submitted by others under broad issue areas, then prioritized and stated as potential policy options within the energy plan. Collectively, these ideas will set the tone of the 1986 Energy Plan. In "Alaska's Energy Plan - 1986," the need for local involvement was expressed, but decreased budgets and manpower have reduced that involvement to letter and telephone contacts, as opposed to active participation in energy meetings and workshops. Despite that, expression of ideas by representative groups such as yours make this energy planning effort worthwhile and lead to long-term energy policy adoption for Alaska. 37 To maintain our schedule, we would appreciate your comments prior to August 13, 1985. A draft plan will be prepared for a September public information session. You will be notified of the date for that session and you will receive a copy of the draft prior to that time for review. Thank you for your cooperation. Sincerely, Donald Shira, Manager Program Planning and Analysis Alaska Power Authority DS/ssG@5 072485b 38 ALASKA POWER AUTHORITY POUCH D, JUNEAU, ALASKA 99811 Phone: (907) 465-2433 DATE: July 26, 1985 TO: (Departmental Commissioners) FROM: Donald Shira, Manager Program Planning and Analysis Alaska Power Authority SUBJECT: Follow-up: pre Energy Steering Committee Paper This is a brief follow-up to my July 19, 1985 memo reminding you of the Energy Steering Committee meeting scheduled for July 31, 1985, 9:00 a.m. to Noon, in the State Office Building, 9th Floor Conference Room. That meeting has been designed to provide a forum for the State's top policy makers to formulate long-term energy policies and strategies for Alaska. As a member of that steering committee, you are an invaluable part of that energy policy development process. Included with this reminder is some additional information that you may find useful. This information includes a timetable for completion of the 1986 Energy Plan, a copy of the statute requiring an annual energy plan, and letters sent to the public thus far to gather their ideas on energy planning. I look forward to seeing you there. DS/ssG9 072585b Attachments 39 Alaska State Legislature Advisory Council Members Senator Bennett, Chairman Pouch V Kerttul State Capitol =e Abood. ° Juneau, Alaska 99811 Senator Sackett Phone: (907) 465-3114 SENATE ADVISORY COUNCIL MEMORANDUM m03 Energy Steering Committee Members FROM: Kurt S. DzinichXs Senior Advisor KD DATE: July 31, 1985 RE: 1986 Long-Term Energy Plan The purpose of the following comments is to provide you with additional insight as to why the long-term energy plans to date have been less than successful. They are offered from my perspective of having watched the preparation and submittal of three plans to date and are in the nature of constructive criticism which hopefully will result in a more useful 1986 plan. To begin with, none of the plans to date have fully complied with AS 44.83.224. That statute specifically requires the plan to address five areas or subjects. The long-term energy plans to date have addressed these five areas with varying degrees of success ranging from adequate to inadequate. The major shortcomings to date have been: 1. Not enough emphasis on thermal and transportation energy requirements, i.e., past plans have mostly dealt with the electrical energy issues. Ze Integration of the energy development with the economic development, i.e., if it is in the state's interest to develop certain industries or enhance economic development then the long-term energy plan should take these factors into account. 3. The planning horizon has been defined anywhere from five to over twenty years. Since the statute specifies long-term, I would suggest that a twenty year term would be appropriate. 4. There has been reluctance in proposing solutions, i.e., past plans have been long on discussion of alternatives and planning almost as an end in itself. In order for any plan to be useful it must have clearly established measurable objectives and clearly defined policies designed to achieve those objectives. 40 What are the essential tasks or decisions facing the Steering Committee? I believe they are as follows: 1. Determine whether the 1986 Long-Term Energy Plan will be prepared in a manner designed to aa, specifica! y to the requirements of AS 44.83.224. The alternatives are to comply with the statute or to propose changes to the statute. 2. Define the planning horizon. This is crucial for a number of reasons. First, the length of the planning horizon has a major impact in the determination of the best alternative. Second, in the utility business, planning to completion of construction often requires ten or more years. Finally, the existing statute specifies long-term. For these reasons I feel that a 20 year planing horizon would be most appropriate. 3. Define goals, objectives and policies in order to enhance discussion of what the plan will be designed to accomplish. 4. Establish the goals, objectives and policies of the plan. 5. Determine the linkage between economic development and energy development, i.e., one would expect and hope that the energy development is designed to enhance any economic development goals that the state may choose to pursue. The above comments are intended to stimulate discussion among the members of the Steering Committee. KSD;crb 41 POUCH D. JUNEAU, ALASKA 99811 ALASKA POWER AUTHORITY DATE: August 1, 1985 710: State Energy Policy Steering Committee / FROM: Donald Shira, me) , dé Program Planning a [ Al Analysis |b Alaska Power Author; if SUBJECT: July 31, 1985 Committee Meeting ea The first meeting of the State Energy Policy Steering Committee PHONE: (907) 465-2431 commenced on July 31, 1985 from 9:00 - 11:00 a.m. in the State Office Building, Ninth Floor Conference Room. A list of meeting attendees is attached. The salient points arising from that meeting are: o Present energy legislation for energy plan is inadequate, and should be changed to make the effort a worthwhile purposeful exercise, or eliminated. o Regional planning is important, and perhaps a letter outlining administrative guideline mechanisms for interagency, private-public cooperation would mitigate problem. o Utilize "Tuesday Club" type policy group to coordinate interagency activities. oO The budget controls energy expenditures, and the Governor and Legislature control the money, so a plan or policy must be a tool to help them spend wisely. o Energy data inventories are very important to legislators and should be current. o An energy document should represent more than inventory of electrical energy needs, and should also emphasize thermal and transportation energy parameters. o Timing of energy plans or other documents needs to be changed to begin preparation by November 15 and conclude by August 15 to better mesh with routine business. 42 State Energy Policy Steering Committee -2- August 1, 1985 o A good analytical review of energy plans since 1980 needs to be completed to see what they did and did not do. o Need to be specific in how State completes energy projects and what role each agency will play. oO The State energy policy is to reduce energy costs to consumers and promote conservation to use less energy. Follow-up procedures to this meeting include: o Itemize State energy policy as perceived (Harrison). o Meet with legislators and/or legislative staff (Dzinich to prepare primary list). o Meet with agencies individually for problems, policies, recommended changes to plan energy legislation and procedures (Shira/Miller). o Legislation review that suggests acceptance, revision, or repeal (Shira/Miller in consultation with departments). o Series of policies (goals) need to be prepared for departmental review (Shira/Miller). o Summary of Recommendations to the Steering Committee. Draft report back to Steering Committee by August 15 to meet initial August 30 deadline for submission of legislative changes (Shira/Miller). o Continue with annual data summary, emphasizing all energy data including electrical, thermal and transportation information (Shira/Miller). The next meeting of the State Energy Policy Steering Committee will be held in late August or early September to discuss the impacts of recommendations made in the summary of recommendations to the Steering Committee. Accepted recommendations of that report will be the foundation of the 1986 Energy Plan on which specific legislation and/or budget actions may be based. The 1986 energy document will also report State energy data as outlined. DS/ssH30 073185a Attachment cc: Robert Heath Edwin Morris 43 MEMORANDUM State ot Alaska TO: Energy Policy Steering Committee DATE: August 2, 1985 FILE NO.: THRU: TELEPHONE NO.: 465-9431 SUBJECT: Follow-up questions to July 31 meeting FROM: Don Shira, Manager Program Planning and Analysis Alaska Power Authority Attached is a series of questions you will be asked when we meet to discuss your thoughts on energy policy/planning for Alaska. These are provided to give you a general idea of the types of information needed to prepare a response to the questions raised at the Energy Policy Steering Committee meeting of July 31. DS/MM/dg1/2406D 8185A Attachments 44 A. B. QUESTIONS FOR DEPARTMENTS AND LEGISLATORS LEGISLATION Is there one or several pieces of energy legislation that needs to be changed to make that legislation more effective? 2. Is there legislation that is ignored or used improperly? 3. Is there good legislation that has not received adequate funding? 4. Do you use any part of the present energy plan, or would you use any energy plan other than one your department or group has completed? POLICY 1. What do you perceive would be the State's short and long term energy policies? 2. Can you define specific objectives to accomplish those policies, and could you prioritize them? 3. Do you agree with the recommended strategies and options listed for your agency in the 1985 plan, and could you prioritize them? 4. Would your agency be willing to commit to nonbinding but realistic appraisals of the cost of energy programs in an interagency presentation on energy in the Governor's budget request? 5. What ideas do you have that would make a statewide or regional energy plan or report worth all our time and effort? 6. If an energy plan is completed, what time horizon should be used? 7. What do you see as the key energy issues, and in what priority should they be given attention? 8. Is there value in placing all energy programs in one department? 9. Is there a need for the State to conduct applied energy research, or should the State get out of the energy research business? 10. What do you perceive as the largest impediment to cooperation on energy development in Alaska? 45 Questions For Departments and Legislators -2- August 1, 1985 C. AGENCY 1. How do energy programs in your agency benefit the economic development in Alaska and can you quantify the benefit in program dollars spent to provide what economic benefits? 2. How do you collect energy information, can the information be accessed easily, and would that information be useful in a coordinated interagency energy document? DS/MM/dg12406D 8185A 46 Advisory Council Members Senator Bennett, Chairman Senater Kerttula Senator Abooa Alaska State Legislature Pouch V State Capitol Juneau, Alaska 99811 Senator Sackett Phone: (907) 465-3114 SENATE ADVISORY COUNCIL MEMORANDUM TO: FROM: DATE: RE: For ALL SENATORS Kurt S. Dzinichis) Senior Advisor August 6, 1985 1986 Long-Term Energy Plan your information, in response to a request from the Executive Director of APA the Senate President designated me to represent the Senate on the Governor's Energy Steering Committee to assist in the preparation of the 1986 mandates The policies a The Attached steering 1 Long-Term Energy Plan. As you are probably aware, AS 44.83.224 preparation of such a plan. purpose of the committee is to review the past energy plans and and determine: Whether the requirement for a long-term energy plan is still valid? If yes to above, whether AS 44.83.224 requires changes in order to make the product a more useful document to decisionmakers? Whether any of the statewide goals, objectives and policies related to energy require updating? steering committee held its first meeting on July 31, 1985. is a copy of the membership list. As a result of the meeting, the committee directed the staff to: Proceed with updating the 1985 energy plan with the goal of meeting the legislatively mandated submittal date of February 1 for the 1986 plan. 47 Coordinate with appropriate agencies and parties and prepare Proposed changes to the existing statute for consideration at the next meeting of the steering committee (tentatively scheduled for late-August time frame). The objective is to submit proposed changes to the next session of the legislature. Prepare for a discussion of state energy goals, objectives and policies. In order to be better able to represent your views and needs to the steering committee, I would appreciate your thoughts and suggestions as to: Ts ee 3. Whether there is a requirement for a long term energy plan? If yes, whether the existing statute AS 44.83.224 is structured to best meet these requirements or can improvements be made? What are the appropriate long term and short term energy goals, objectives and policies for the state? I am available to discuss these issues further and in greater detail at your convenience. KSD;crb Attachment: 48 ALASKA POWER AUTHORITY 7 90501 Phone: (907) 277-7641 134 WEST Sth AVENUE - ANCHORAGE, ALASKA oon 278-000! August 12, 1985 The Honorable Mike Davis Representative P.O. Box 81435 College, Alaska 99708 Dear Representative Davis: Enclosed are the minutes from the first meeting of the State Energy Policy Steering Committee held on July 31, 1985. The Steering Committee membership list is also enclosed for your information. The purpose of this high level steering committee is to review past energy planning efforts, determine policy and make recommendations regarding changes in present energy legislation, or development of new legislation, specifically: 1. whether the need for a long-term energy plan {s still valid; 2. if so, does AS 44.83.224 still meet the intended requirements when enacted or should the statute be changed to make the product a more useful document to decision makers; 3. Whether any of the existing energy related legislation on statewide goals, objectives, and policies require updating. As a result of the Steering Committee meeting, the staff was directed to: 1. proceed with developing an energy plan document to meet the legislatively mandated submittal date of February 1 for the 1986 plan. 2. coordinate with the Legislature, appropriate agencies, other interested individuals and groups, and prepare proposed Changes to the existing statute for consideration at the next Steering Committee meeting (tentatively scheduled for late August). The objective will be to submit proposed changes to the next session of the Legislature. 3. prepare a discussion of State energy goals, objectives and policies, 609/311 49 August 12, LysD Page 2 To assure your views receive proper evaluation within the Steering Committee forum, please provide your thoughts and ideas on the following: a. Do you feel there is a requirement for a long-term energy plan? b. Is the existing statute AS 44,.83.224 structured to best meet these requirements? c. What are the appropriate long-term and short-term energy goats plus policies and measurable objectives for the tate? I am available to discuss these matters at your convenience, or please feel free to contact, directly, Mr. Donald Shira in Juneau at 465-2433, ELAS Robert D. Heath Executive Director ROH: it 609/311 50 Letters have been SENT TO THE FOLLOWING individuals from the House of Representatives who serve on Special Committees for Loans and Oil and Gas: Representative Representative Representative Representative Representative Representative Representative Representative Representative Representative REGLR1E8985a Sam Cotten Mike Davis Jim Duncan John "Jack" Fuller Andre Marrou Marco Pignalberi Pat Pourchot John Sund Mike Szymanski Rick Uehling 51 Loans, Oil & Gas Oil & Gas Loans Loans Oil & Gas Oil & Gas Oi] & Gas Loans, Oi] & Gas Oil & Gas Loans MEMORANDUM TO: FROM State of Alaska Energy Policy Steering Committee _ vate: August 12, 1985 FILE NO: l TELEPHONE NO: Donald Shira ; susyect: Status Report - 1986 Alaska Power Aufhppity Energy Plan This is a status report on the activities accomplished to date by the staff (Shira/Miller) as a result of the July 31, 1985 Steering Committee meeting. The staff was directed to: al proceed with developing an energy plan document to meet the legislatively mandated submittal date of February 1 for the 1986 plan. coordinate with the Legislature, appropriate agencies, other interested individuals and groups, and prepare proposed changes to the existing statutes for consideration at the next Steering Committee meeting. The objective will be to submit proposed changes to the next session of the Legislature. prepare a discussion of State energy goals, objectives and policies. Accomplishments to date: 0 Summary and follow-up procedures of July 31 meeting sent to Steering Committee members on August 1, 1985. A list of questions prepared for departments and legislators on energy policy/planning for Alaska sent out August 2. Letters sent to all State Senators from Kurt Dzinich requesting thoughts and suggestions on long-term energy planning (copy attached). Letters sent to several members of the House of Representatives from Bob Heath requesting same information (copy attached). Shira/Miller held discussions with DNR, DCRA, DOT/PF, OMB and Governor's Office, during period of August 2-8. Completed review of current energy legislation (copy attached, if incomplete, please notify). 52 Energy Policy Steering Committee -2- August 12, 1985 With the information gathered to date, our recommendations are: 1. Update the 1985 Energy Plan (proposed outline attached) ° comply with requirements of AS 44.83.224, preparing a three report format that consists of: a. Executive Report - illustrate policy and legislation proposals, summarily answer all points of statute, and outline action for coming year. b. Energy Data Report - update statistical data and document what types of data should be in an annual statistical review and what it would take to obtain that data in the future while incorporating data for transportation and thermal energy, propose an emergency energy plan, and review applicable technologies for Alaska per statute. c. Appendix Document - expansive information for the Executive Report and Energy Data Report, technology review, an emergency energy plan, and information on other energy programs. 2. Changes in legislation/establish energy policy 0 document shortcomings of AS 44.83.224 and recommend changes to the legislation conduct similar activity for other legislation as suggested by Steering Committee, Working Committee, and energy/ utility groups recommend new reporting schedule, with plan completion due by August 15 define goals, objectives, and policies prepare State energy policy statements in consultation with Steering Committee members or designees (Gordon Harrison will take lead). Timetable is to prepare statements through September for Governor sign off by early November. The result of these recommendations will conclude with a policy/ overview document that spells out State energy policy and summarizes energy findings. Those energy findings would flow from a second document which is a statistical report and analysis of energy use, production, and technologies in Alaska. These will be supported by expansive information compiled in an appendix document. An emergency energy component can be part of the appendix or a separate document. 53 Energy Policy Steering Committee -3- August 12, 1985 Procedurally, each agency Working Committee member will be given specific assignments to update or expand data generated in the 1985 plan. Steering Committee members will be asked to review policy statements and background information as they develop. A draft document will be prepared by mid-November, at which time a public notice, indicating that the draft is available, will be printed in newspapers statewide, and potentially an informational teleconference will be held. A 30-day period to receive comments will be used prior to finalization of the 1986 Energy report. We will proceed with the above efforts and adhere to the attached timetable unless notified of Steering Committee objection by August 20. If you agree with this approach, we would not intend to call a meeting of the Steering Committee until mid-October. At that time, we would have a draft report, proposed policy statements, and unresolved problems for your action. TELCO1/T1lwfs81285c Attachments 54 PROPOSED SCHEDULE TO COMPLETE 1986 ENERGY PLAN DATE June 17, 1985 June 18 July 1 July 15 July 19 July 20 July 24 July 31 August 1 August 2 August 1-9 August 12 August 15 September 15 October 1 REVISION AUGUST 9, 1985 ACTIVITY Letters to Working Committee Begin data summary work, canvas agency reps, determine scope of data collection, budget analysis. Invitation letters to high level Steering Committee. Follow-up calls to agencies on Working Committee membership. Shira aboard in Juneau. Briefing document to Steering Committee members. Letters to energy related groups inviting ideas for 1986 plan. Follow-up letter to Steering Committee with proposed schedule and energy plan statute. Letters to Working Committee members. Steering Committee meeting, one-half day. Minutes of July 31 meeting to Steering and Working Committees. Energy questions list to Steering Committee. Interviews with Steering Committee members or designees. First status report to Steering and Working Committees along with legislation review, letters to select legislators. Work assignments to agencies, begin follow-up calls to energy groups. Submit draft energy policy statements to agencies, continue assemblage of energy data, draft report section of 1986 Plan underway. Comments on draft energy policy statements incorporated into final lists and reviewed by Steering Committee. 55 PROPOSED SCHEDULE TO COMPLETE 1986 ENERGY PLAN October 10 November 1 November 15 November 16-30 November 30 December 15 February 1, 1986 TELCO1/Tlwfs81285b REVISION AUGUST 9, 1985 (Continued) Second Steering Committee meeting to present draft 1986 energy report, review policy state- ments, analyze any problems needing further resolve. Draft available for distribution to all committee members and public. Notice of availability and teleconference public information session an- nounced in newspapers statewide. Public informational meeting and teleconference. Incorporate comments into draft and complete other revisions. Final submission of comments, begin finalizing document. Final document to graphics for set-up. Distribution to public. 56 MEMORANDUM State of Alaska TO: FROM: Energy Workgroup Members vate. August 12, 1985 FILE NO: TELEPHONE NO Alaska Power Author Completion of 1986 Energy Plan and Update on Plan Activities t Don Shira { susvect: Work Assignments for Ue" We are in the process of assembling information for completing the 1986 Energy Plan. The four attached documents will guide your individual and collective activities in completion of work assign- ments. Attachment 1 is a copy of a status report to the 1986 Energy Plan Steering Committee members outlining what has been accomplished to date and what is proposed to be done so that a completed document(s) is before the Legislature and the public by January 30, 1986. The attachment includes a timetable for completion of the 1986 plan, and a skeleton outline of the final document format. Updating the 1985 Energy Plan has been set as one of several pri- orities by the Steering Committee. The type and scope of data requested from each Working Committee member is shown as Attach- ment 2. Information is requested no later than September 15 and I will be calling each of you the week of August 19 to confirm each assignment. As in the original July 24 memo, Working Committee members are again requested to submit their ideas on energy policy for the State. A series of energy policy statements will be prepared for Steering Committee review throughout the month of September and your ideas will play a valuable part in that preparation. As those statements evolve, you may also be contacted for background information that would support such policy statements. With receipt of this memorandum, the August 2 memo listing 16 questions on energy legislation and energy information (Attach- ment 3), and the Steering Committee guideline comments from the July 31 meeting (Attachment 4), each Working Committee member should be able to commence assembling the information that will complete the a Energy Plan. If you have questions, please contact me or Mark Miller. TELCO1T381285b Attachments 57 ATTACHMENT II AGENCY ASSIGNMENTS 1986 ENERGY PLAN 1. REQUEST TO ALL AGENCIES oO Summary energy program budgets, FY '84, FY '85, and FY '86. Total, not line item, for each program and number of posi- tions in each. Separate state (general and CIP) from other funding. Prior year budget forms acceptable in lieu of above. Appropriation amounts acceptable unless reappropri- ated in later years. Programmatic measures, if known. An example would be BTU's saved per so many dollars spent on weatherization or number of people (or homes) serviced per dollars of subsidy. Update tables from 1985 Energy Plan as the above programmatic measures are completed. Indicate new programs or expansion (contraction?) of old programs since 1985 Energy Plan. Briefly outline changes to energy legislation since 1985 Energy Plan and cite new statute. Provide any planning documents which include reference to your energy programs. If document is very expansive and energy is but a small part, copy introductory scope, goals, and general objectives portion and only those sections directly related to your energy programs. If you know of a local, private, or nonprofit energy pro- gram, please provide name of organization, contact person, and telephone number. List energy grants or programs you monitor that fall outside your direct agency program, such as RSAed money between agencies for specific, perhaps one time projects, in FY '85-FY '86. 2. REQUEST BY INDIVIDUAL AGENCY A. Department _of Administration oO update information in Table 22, page 85, of 1985 Energy Plan to include FY '86 appropriations. B. Department _of Commerce and Economic Development Bl. Alaska Power Authority a. Hydroelectricity 0 update Table 6, page 26 of the 1985 Energy Plan, hydroelectric projects operating in Alaska Geothermal 0 review and update 1985 Energy Plan, pages 27-30, and include recent development activities and project appropriation Biomass/Wood 0 summarize most recent projects and projects ongoing Waste Heat 0 indicate all projects active, new projects to come on line and when, and appropriations to fund this season 0 revise Chart 10, page 90, and Chart 11, page 91, in 1985 Energy Plan Wind 0 update on projects ongoing, especially St. Paul 0 other wind information updates Transmission Systems 0 update on railbelt intertie, energy transferred, utilities serviced Loans 0 by loan fund, new projects on-line as of September, by community and funding source Power Cost Equalization 0 report on PCE including total number of utilities participating, first nine month expenditures, total KWH financed, and KWH consumption per customer Status of DCRA/APA memorandum of understanding Updated reconnaissance, feasibility, licensing, con- struction evaluations in progress, and name of project manager for each 59 B2. B3. Division of Investments/Accounting and Collections 0 update number of energy loans granted during FY '85 and loan appropriations for FY '86, alternative and resi- dential energy, plus bulk fuel loans 0 update outstanding loan balance for alternative and residential energy, bulk fuel loans, and number of defaults in FY '85 0 list communities receiving bulk fuel loans in last four fiscal years, amount/percent rate of each community's loans, and rate of default, if any Alaska Public Utilities Commission 0 changes in regulations affecting APUC for electrical, telecommunication or pipeline regulations Department of Community and Regional Affairs oO update on conservation education programs, progress of thermal and lighting standards for residences update grants programs for FY '84, FY '85, and FY '86 by organization or community receiving grant, amount of grant, and short description of grant, updating Table 30, page 82, Table 21, page 84, and Table 22, page 85 in the 1985 Energy Plan update on weatherization program, funding from federal and State sources, homes serviced by community final summary of Cape Beaufort Coal project indicate any new programs like furnace retrofits or the like, instituted as pilot or demonstration projects in FYOo MEN TNOOsmandieyieo! status of fuel tank grants (bulk fuel storage) program in FY '84, FY '85, and FY '86, including funding level by grant, listed by community status of DCRA/APA memorandum of understanding inventory of energy grants by nonprofit community groups itemized by project and funding amount Department of Health and Social Services oO update Table 24, page 94, of the 1985 Energy Plan and review LIHEAP writeup on page 93 60 Fe G. DS/wfsENGPLNE2 81485b oO Oo update communities receiving assistance at what award level provide fuel prices for communities serviced by individual fuel type Department of Natural Resources ° updated oi] and gas leasing schedule, including Table 1, page 13, Table 3, page 16, and Table 4, page 8, of the 1985 Energy Plan update Alaskan Petroleum Refineries, Table 5, page 21, of the 1985 Energy Plan update on coal leasing by area and acreage if changed from the 1985 Energy Plan update and inventory of DGGS inventory of energy resources oi] and gas consumption/production, change in reserve estimates for 1984 Department of Transportation and Public Facilities 0 number of gallons used by highway (on-road, off-road), aviation, marine sectors for the years 1983 and 1984 number of miles of new or upgraded roads completed under the direction of DOT/PF by community 1983 and 1984 number of State buildings receiving weatherization upgrades progress on development of public facility thermal and lighting standards, rural mini-cabinet project(s) price of transportation fuels in Alaska where known for 1983, 1984, and 1985 University of Alaska 0 o update of energy research underway at UA campuses, in short paragraph, detail by project and funding source energy education program inventory for UA, from Cooperative Extension Service handout information to classes offered by UA to students publication list of energy related documents available through UA or State library system information update for page 115 in 1985 Energy Plan 61 ALASKA POWER AUTHORITY POUCH D, JUNEAU, ALASKA 99811 Phone: (907) 465-2433 DATE: September 18, 1985 /! TO: Steering Committee Member [; ee / Ms FROM: Don Shira ee ae Alaska Power Authorit ? SUBJECT: 1986 Energy Plan Policy Statements The attached represents the thoughts and ideas collected so far cn where Alaska should emphasize energy development in the coming years. These statements were formulated from letters and telephone conversations received by this office from Alaskans in and out of State Government. In some cases, ideas may contradict one another, and these are marked. This memo is prepared to show how these statements are organized, explain how each term is defined, and to request further recommendations and comments for policy or objective options. These ideas have been organized into a series of energy policy statenients separated into eight issue areas. Each issue area has a general goal statement followed by a more specific list of policies, policy objectives and proposed implementing actions. Combined, these represent a first cut at defining the State's responsibility to energy solutions for Alaska. It is lengthy, but very important that each policy and objective be scrutinized carefully. To facilitate a concurrence or understanding of how each term is used in this presentation, the following definitions are offered as a guide: ISSUE AREA: This is a short definition of the subject area to be discussed and sets the tone for those discussions. Many issue areas are defined such that a discussion of related policies may appear in more than one issue area. GOAL: This is the general, long-term statement which indicates hoped-for results through attainment of one or more policies. 62 Policy Reviewer -2- September 18, 1985 POLICY: Measurable result of enacted programs defined by individual objectives that resolve part of each goal statement. Objectives: Specific actions or programs that produce a result that has direct measurement. Completion of one or more objectives will answer the policy directive to which the objective is attached. Implementing Action: What needs to be done to meet the needs of each objective. Actions are defined under "legislation" and budget.” Legislation: Recommend legislative modifications (revisions, new jegislation enacted, cr old legislation eliminated) or administrative orders. Budget: Cost of legislation items or identification of appropriation needs within cngoing programs. The eight issue areas are: Energy Planning Energy Conservation Energy Assistance Thermal Energy Transportation Major Projects Fossil Fuels Alternative Technologies and Small Scale Hydroelectric Please review these policies and propose new or revised policies and objectives before returning your comments to this office by September 27, 1985. MM/DS/wfsE1lENGPLN 91885e Attachments ALASKA POWER AUTHORITY POUCH D, JUNEAU, ALASKA 99811 Phone: (907) 465-2433 DATE: September 19, 1985 TO: Energy Policy, men FROM: Donald Shira f~ SUBJECT: October 7 Energy Policy Steering Committee Meeting The second meeting of Governor Sheffield's Energy Policy Steering Committee will be held on October 7, 1985, from 9:00 a.m. to noon, in the ninth floor conference room, State Office Building. This time and date have been reserved with your personal secretary, and please note that this cancels the October 10 tentative date set at the first Steering Committee meeting. Under separate cover, you have received the policy recommendations assembled by this office since our first meeting. We will be working with your staff to prepare a final list for distribution on October 2. The second Steering Committee meeting will provide a forum to review a final policy list, and to resolve any interagency differences that may exist. This office will continue to work with and between agencies to resolve as many interagency differences as possible prior to the second Steering Committee meeting so we keep the meeting as short as possible. DS/ssM22 091885a 64 ALASKA POWER AUTHORITY POUCH D, JUNEAU, ALASKA 99811 Phone: (907) 465-2433 DATE: September 20, 1985 TO: Energy Groups eZ FROM: Donald Shira ifr SUBJECT: Energy data compiled in annual statewide Energy Plan Enclosed is the kind of data that was presented in "Alaska's Energy Plan - 1985 Regional Data Summary." There were a total of 23 tables presenting a variety of energy information. As the 1986 edition of this statistical review begins to be assembled, your input on additions or deletions of energy data type is needed. Is there additional information you would like to see presented in this report, or is there information you would like to see deleted? Do you have a source of information that could help update information? Do you prefer the 23 region format, or would some other arrangement be preferred? Any suggestions you may wish to make, or information you may want to provide, should be received in this office by October 20. Thank you in advance for your suggestions. DS/ssM23 092085a Enclosure 65 MEMORANDUM State of Alaska to: Energy Policy Steering Committee pate: September 27, 1985 FILE NO: TELEPHONE NO: FROM: Don Shira sussect: Priority Policy Alaska Power Authorit Options List On September 19, you were sent a series of policy options compiled by this office based on comments received from individuals in and out of State government. A total of 38 policies with 76 associated objec- tives were outlined for your consideration and review. Given our collective human and monetary resources, it appears impractical to address all these policies adequately at one time. It would appear more practical to select a subset of energy policies and concentrate our efforts toward implementing those policies in the coming year. This does not negate the importance of those policy options not proposed for implementation this year. Instead, it only delays action until next year. Thirteen selected policies were chosen from each of the eight issue areas (see table attached). Selected policies were based on five criteria which were: a Impact - What is the effect of implementing this policy now instead of sometime in the future? - Would failure to act on this policy in 1986 rigorously effect the social or economic viability of the State? - How many Alaskans would the policy effect? - Does the policy selected compliment or enhance ongoing programs? 2. Expense - Will a new expense be added either to the State or the Alaskan consumer and is the cost short-term or long-term? - If there is no immediate cost, will the policy entail expense in the future or will the policy increase the economic well being of the State? - Are there other hidden costs? 66 Energy Policy Steering Committee -2- September 27, 1985 3. Return on Costs - If the State or private sector expends dollars now, will there potentially be an adequate return on investment? - Can the State leverage economic development to provide long-term energy security? 4. Political Feasibility - Is the political climate ripe for policy change or would valuable time and effort be lost by challenging the system? - Have commitments been made that morally cannot be changed? 5. Legislation - Does timing for program development and implementation require that specific legislation be promulgated or changed in the 1986 legislative session to meet future policy requirements? Note that selected policy options based on these criteria are con- sidered top priority as a group, and not prioritized within the 12 listed. Please review these 13 priority policy statements and see if they mirror your departmental priorities as related to energy programs. We will be in touch with you next week so that a revised list can be prepared prior to the October 7 Steering Committee meeting date. DS/wfsENGPLNa 92785F 67 ISSUE AREA Planning Conservation Conservation Conservation Energy Assistance Energy Assistance Thermal Energy Major Projects POLICY PRIORITIES FOR 1986 ENERGY PLAN POLICY Prepare an annual energy report that provides an update for energy policies and programs. Encourage private sector funding of energy conservation programs and projects, especially in the development of alternative technologies. Continue to seek federal Low Income Housing Energy Assistance Program (LIHEAP) funds to complete weatherization projects and to suppo specific conservation programs offering reduc reliance on nonrenewable energy resources. Amend the power cost equalization program to provide incentives to increase efficiencies, encourage conservation, and provide for long- term reduced costs of power in rural Alaska. Establish the Alaska Power Authority as the lead agency for State programs dealing with electrical energy and distribution systems to assure safe, reliable, cost effective powe to all consumers. Encourage reductions in consumptions of home heating fuels and electricity through home loan incentives and a strong commitment to the low-income weatherization grant program. Establish a pricing mechanism for Cook Inlet natural gas that will provide royalty gas to the region to cushion the price shock poten- tially in store when new sales contracts are negotiated in the coming years. Manage major energy project development to provide for the lowest energy costs to jin-State consumers. RESPONSIBLE AGENCY APA DCED DCRA DH&SS rt ed APA DCRA OMB APA r DCED DCRA DNR APA POLICY PRIORITIES FOR 1986 ENERGY PLAN (Continued) RESPONSIBLE ISSUE AREA POLICY AGENCY Major Seek terms and conditions for the transfer OMB Projects of federal hydroprojects in Alaska to State or local control, such that adverse rate impacts are avoided. Fossil Institute royalty oi] contract measures that DNR Fuels will reduce the long-term price of refined petroleum products to in-State consumers. Fossil Alaska will pursue ways to provide economical DNR Fuels and consistent fuel supplies for heating and DOT/PF (Transpor- transportation uses. tation) Fossil Seek exemptions from federal law that DCED Fuels restricts or curtails the marketing of Alaska DNR fossil fuels on the international market. *Alternative Alaska will utilize alternative technologies DH&SS Technologies to reduce the State's reliance on fossil fuels DCRA and to provide reliable, long-term power by APA providing an attractive private investment climate and by promoting demonstration of applied research on residential and commercial applications through the use of federal and State appropriations. *NOTE: New statement consolidating several alternative technology policy statements provided earlier. ENGPLNa92785f 69 ALASKA POWER AUTHORITY POUCH D, JUNEAU, ALASKA 99811 Phone: (907) 465-2433 DATE: September 27, 1985 TO: Policy Steering Committee Enérgy Groups FROM: Donald Shira Alaska Power Auth SUBJECT: Energy Data compiled in annual statewide Energy Plan The 1986 Energy Data Report will include information previously displayed in "Alaska's Energy Plan - 1985, Regional Data Summary" and the federal Alaska Power Administration Report, "Alaska Electric Power Statistics, 1960-1983." To assess the adequacy of that information and to provide an opportunity for expansion of the data base, we are requesting that you review the attached information and answer the following questions: 0 Is there additional information you would like to see presented in this report, or is there information you would like to see deleted? 0 Do you have a source of information that could help update information? 0 Do you prefer the 23 region format, or would some other arrangement be preferred? Any suggestions you may wish to make, or information you may want to provide, should be received in this office by October 20, 1985. Thank you in advance for your suggestions. DS/wfsENGPLNe 92785a Attachment 70 ALASKA POWER AUTHORITY POUCH D, JUNEAU, ALASKA 99811 Phone: (907) 465-2433 DATE: October 2, 1985 TO: Energy Poligy)Steerjpg £ommittee r FROM: Don Shira cal SUBJECT: October 7 meeting Attached is an agenda for the October 7, 1985 Energy Policy Steering Committee meeting scheduled for the State Office Building, 9th Floor conference room, 9:00 a.m. to noon. Also attached are expanded outlines for the Executive Report and the Energy Report. This meeting will provide the opportunity to discuss the energy policy statements sent to you September 18, the subset of energy policies sent on September 27, and the role your agency will play in completion of this year's planning effort, especially as to general fund and capital projects budgets and program information. As noted in our September 19 memo, the second Steering Committee meeting will be kept as short as possible while providing a forum to review a final policy list and resolve any interagency differences that may exist. DS/ssN10 100185c Attachments 71 MEMORANDUM State of Alaska To: Energy Plan Steering Committee pate: Qctober 10, 1985 FILE NO: yy le TELEPHONE NO: FROM: Don Shira ae susvect: Minutes of rity Alaska Power Second Steering Committee Meeting The second meeting of the 1986 Energy Plan Steering Committee met on October 7, 1985 in the 9th Floor Conference Room of the State Office Building in Juneau. Both an agenda (Attachment 1) and a list of meeting attendees (Attachment 2) are included. The following points were discussed: 0 Review of activities to date 0 Approval of goals 0 Discussion of priority energy policies and approval of final policies (Attachment 3) 0 Set future activities Energy goals (Attachment 4) for each issue area were determined as an adequate introduction to each major discussion action, but lacked a cohesive force of one or more overall goal statements. The committee supported one overall goal which was: "Seek to assure that all Alaskans have an adequate supply of energy at lowest reasonable costs to the consumer, the environment, and the State." Energy goals will be presented under each issue as shown on the attached "1986 Energy Goals" summary, tied together by the one overall goal accept- ed by the committee. Thirteen priority energy policy statements were reviewed. The primary results of those discussions were: 0 Energy planning should be coordinated with regional and local planning units, and as a long-term policy should reflect the need and budgets for such coordination. 0 Conservation policy should be separated into weatherization and appropriate technology components that stress joint private/ public financing expressed as federal tax credits and State loan and grant opportunities. 0 Without identifying any one energy assistance program, reword amendment of PCE to say "Evaluate all energy assistance pro- grams." 72 Energy Plan Steering Committee -2- October 10, 1985 0 Using royalty gas to cushion Cook Inlet price shocks was deleted. 0 Under Alaska Power Authority as lead coordinator for State funded electrical programs, show APA as technical coordinator and drop reference to "safe, reliable, and cost effective" which is construed as accepted in identifying energy projects. 0 Major projects single issue replaced by specific reference to Susitna and Bradley Lake projects, and to major projects in general. 0 Transfer of federal hydroelectric projects to begin with "Evaluate the desirability of transferring." 0 Eliminate reference to royalty oi] as stated. DNR to provide policy statement on royalty oil by October 21. 0 Eliminate policy on thermal and transportation supplies, re- placing with individual policy statements on each. DOT/PF to provide policy statements for both by October 21. ° Seeking federal export approval for crude oil determined to be a revenue, not energy, issue. This policy deleted. 0 Alternative technology statement absorbed in revised conservation policy outlined previously. In addition to these, DNR requested addition of a leasing policy statement which reads: Generate revenue and encourage the diversification of the development of Alaska's energy resource base by offering for lease appropriate state lands for exploration and potential development of oil, gas, coal, and geothermal energy resources. Briefly, Executive Report and Energy Report formats were discussed. Expansion to more fully address the legislation (AS 44.83.224) five main points will be undertaken, and regional summaries will include a review of regional or local energy planning activities. Additions or deletions to the format outlines were requested prior to October 21. A completion schedule for the 1986 Energy Plan was the last discussion item. Final priority policy statements are now scheduled to be prepared in concert with fiscal information flowing from state agencies in support of individual policies. APA Juneau staff will be working with agencies to itemize fiscal notes to address each policy. These will be combined into a rough draft for review in early November. A third and final Steering Committee meeting may be held at that time to give approval of a document to be made public by mid-November for a public meeting/teleconference review. Finally, the final documents will be completed on or before February 1, 1986 as required by statute. REGLR6R2101085b 73 MEMORANDUM State of Alaska TO: THRU: FROM: DATE: October 23, 1985 Alaska Teleconference System - Juneau FILE NO.: TELEPHONE NO.: SUBJECT: Confirmation of December 4 Teleconference Mark Miller, Development Specialist Alaska Power Authority Please accept this as confirmation for a 10:00 a.m. to noon teleconference on December 4, 1985. A form has previously been provided to your office to show Juneau as the chair site, and Anchorage, Fairbanks, Ketchikan, Dillingham and Kotzebue as the satellite locations. I am the contact person and can be reached at 465-2431. Billing telephone number is 465-2433. MM/wfsREGLR1A6 102285a 74 ALASKA POWER AUTHORITY POUCH D, JUNEAU, ALASKA 99811 Phone: (907) 465-2433 DATE: November 1, 1985 102 Energy Policy Steering Committee FROM: Don Shira, Manager Program Planning and Anal 9” Alaska Power Authority SUBJECT: Energy Policy Support and Review Attached are the final priority policy statements developed by members of the Steering Committee. These are the policies selected for attention during the FY 87 budget process, which, as we are all aware, is in full swing. This year's development process has now reached a critical point which requires each agency to indicate what programs and program budgets will be used to support each policy statement. This fiscal information from your FY 87 operations and capital budgets should be provided by November 8. Additionally, if there are increments not in your FY 87 proposed budgets that you deem necessary to meet the intent of individual priority policies, please indicate those as well. A final draft of the 1986 Energy Report will be prepared and provided to you by November 12 in preparation for a tentatively scheduled Steering Committee meeting on Monday, November 18. If the draft meets the concurrence of all Steering Committee members, the November 18 meeting will be cancelled. On November 22, the draft document will be distributed to the general public for review prior to a statewide teleconference on December 4. Written comments will be accepted through the week of December 13. Collectively, the Steering Committee has requested these policy statements receive top priority and be supported by information on programs and budgets necessary to their successful implementation. Please provide your agency's best available information by November 8, and keep the November 18 date, 10:00 a.m. to noon, period open for a potential third Steering Committee meeting. DS/wfsREGLR1R2 11185b Attachment 75 MEMORANDUM State of Alaska TO: FROM. Mark Miller OATE: November 18, 1985 Energy Coordinator FILE NO: TELEPHONE NO: Marnie Isaacs : SUBJECT: Upcoming Meetings Public Information Officer or 1986 Energy Plan Attached are several items to announce the upcoming public meetings on the 1986 Alaska Energy Plan. The display ad and press release will be mailed to the following papers later this week, pending your comments: Anchorage Daily News Anchorage Times Aleutian Eagle Bristol Bay Times Fairbanks Daily News-Miner Juneau Empire Nome Nugget Southwest Journal Tundra Drums Ketchikan Datly News Frontiersman The week prior to the meeting I will call the following radio stations and offer them the option of a recorded announcement: Keni Anchorage KJNO Juneau KTOO Juneau KUAC Fairbanks KFAR Fairbanks KRBD Ketchikan KYUK Bethel NAO Pwr e I will also send the press announcement to the Assoctfated Press, This notice may seem excessive but I believe, since there has not been a formal opportunity for public comment to this point and since the plan 1s broad in scope, the effort is justified. 1 look forward to your comments. Attachments as stated. MI/fs 1961/497 76 ALASKA POWER AUTHORITY 334 WEST 5th AVENUE - ANCHORAGE, ALASKA 99501 Phone: (907) 277-7641 (907) 276-0001 For Immediate Release Contact: Marnie Isaacs November 22, 1985 276-0001 COMMENTS INVITED ON ENERGY PLAN The Alaska Power Authority has scheduled a statewide teleconference on December 4 to take public comment on the draft 1986 Alaska Energy Plan. The plan, prepared each year for the Governor's submittal to the legislature, considers policies and programs the administration believes are important to meet thermal, electrical and transportation energy needs throughout the state. The public session on December 4 will present draft policy and informational findings for consideration during the upcoming legislative session. The two-hour teleconference will begin at 10:00 a.m. It will be chaired in Juneau and include Anchorage, Fairbanks, Ketchikan and Bethel. Copies of the draft 1986 Alaska Energy Plan are available at each teleconference site and from the Alaska Power Authority offices in Anchorage and Juneau. Written comments may be submitted through December 13 to: Don Shira Manager Program Planning and Analysis Alaska Power Authority Pouch D Juneau, Alaska 99811 1993/491 77 334 West Sth Avenue Anchorage. Alaska 99501 State of Alaska ON Alaska Power Authority Comments are invited on the 1986 Alaska Energy Plan via a teleconferenced meeting on December 4, 1985 Testimony will be taken at teleconference centers in Anchorage, Bethel, Fairbanks, Juneau, Ketchikan Copies of the draft plan are available at the meeting locations or by contacting: Marnie Isaacs Alaska Power Authority 276-0001 78 MEMORANDUM State of Alaska To: Steering Committee and pate: December 2, 1985 FROM Working Committee FILE NO: TELEPHONE NO Don Shira, Manage SUBJECT: Completion of 1986 Energy Program Planning an sis Plan and Budget Submissions Alaska Power Auth ly The 1986 Energy Plan is nearing completion. This memo is sent to request additional information to complete the planning process and to present a final time line for that completion. Final information to appear in the 1986 Energy Plan should be submitted prior to December 16. This includes your agency's final energy program budgets as presented in the “Governor's Budget Request," and updated infor- mation on other parts of the plan. Program and budget numbers should be attached to specific policy objectives, and if you need to modify the objectives, please do so. Examples of how these will be presented in the final report are shown in the attached two tables. Increments needed to complete a policy but not in your base request should be shown and necessary appropriations placed in parentheses (). Other program receipts and federal dollars go in the "Others" column. On December 4, from 10:00 a.m. to Noon, there will be a statewide tele- conference to discuss the draft 1986 plan. Copies of the draft have been distributed to you and energy groups, utilities, and interested private individuals statewide for review. Comments received during the teleconfer- ence, and by written comment through December 13, will be incorporated into the final plan. To reiterate one more time, the last day for all information submissions is Monday, December 16. The plan will go to the printers the first full week of January and be made available to you by January 31, 1986. To conclude, I would like to thank each member of the Steering Committee and Working Committee for the work completed in a very short period. With these final informational pieces, we may have begun to make the annual energy plan a document that is both directive and informational for the Legislature and the people of Alaska. DS/mst2979m 120285b Attachments 79 MEMORANDUM State of Alaska TO: THRU: FROM: DATE: October 23, 1985 FILE NO.: Juneau Information Office TELEPHONE NO.: SUBJECT: Scheduled December 4, 1985 Teleconference Mark Miller, Energy Specialist Alaska Power Authority Please change my earlier teleconference request to include Bethel as one of the teleconference sites. I now show Anchorage, Fairbanks, Juneau (chair), Dillingham and Ketchikan as sites where teleconference offices can accommodate participants. I'l] let you know later if I need a bridge number for Kotzebue. MM/wfs3121W 11585a 80 ALASKA POWER AUTHORITY POUCH D, JUNEAU, ALASKA 99811 Phone: (907) 465-2433 DATE: January 14, 1986 TO: Energy Plan Steering Committee & Working Committee FROM: Don Shira Alaska Power Authority SUBJECT: December 4, 1985 teleconference minutes and final 1986 Energy Plan comments. The final comment period for the 1986 Energy Plan is now passed. Comments received at the December 4, 1985 teleconference are shown in the attached minutes. In addition, other modifications have been suggested. First, strong comment was received on the background statement objectives attached to energy assistance programs analysis. An entire new energy assistance section now titled "Energy Support and Efficiency" is attached. Second, Governor Sheffield has stated that a new appropriation for Susitna ($200 million) will not be pursued at this time, but the Administration will seek to reinstate part of the continuing appropriation struck down in a recent Superior Court ruling. Third, DCRA has requested major revisions to the policies and actions which are solely DCRA responsibilities, therefore, they too were changed. A new "Energy Conservation" section is attached. Finally, a prefinal copy of the Executive Summary is also attached. Publication of the Executive Summary and main Planning Report will be next week, going to the printers on Friday, January 17. Any further comment for incorporation in this 1986 plan must be received by 10:00 a.m. Friday, January 17. DS/wf sREGLR2/2H 11486d Attachments 81 Minutes of December 4, 1985 Energy Plan Teleconference The draft "Alaska's Energy Plan - 1986" was aired at a statewide telecon- ference on December 4, 1985 from 10:00 a.m. to 10:55 a.m. Teleconference sites included Anchorage, Fairbanks, Bethel, Ketchikan and Juneau. Don Shira, Alaska Power Authority - Juneau, opened the teleconference by reviewing the history of Alaska's energy planning and describing the procedures used to develop this year's plan. Explanation of the Steering Committee and community outreach aspects of this development was presented. Three individuals testified during the teleconference and the audience was composed of 30 observers. Jack Roderick, private citizen and former director of the Office of Energy, commented first. Mr. Roderick contrasted the 1985 and draft 1986 plans, detailing areas needing expansion or further definition. The good points of the 1986 draft were the ability to refine points made in the 1985 plan, providing the continuity necessary to complete a long-term plan in 1987. Delaying further comment on an emergency plan component was good, and the "Non-State" program section was excellent. Mr. Roderick suggested that discussions of alternatives to Susitna, the need for greater local plan- ning, definitions of "incentives," and development of small, rural gas fields needed expansion. One area that needs to be put back into the plan was the export of crude oi] issue. Also suggested was the need to put utility planning elements for rural Alaskan needs as an essential element of the long-range plan. Included in this was a strong statement for a completed Memorandum of Understanding between the Alaska Power Authority and the Department of Community & Regional Affairs on definition of responsibilities. Deputy Commissioner Smith (DCRA) commented that such an agreement was in the final stages of development and should be available in January, 1986. Mr. Roderick also asked how implementing actions would be defined in the final plan? Mark Miller, Alaska Power Authority Energy Coordinator, explained that budgets presented in the main plan would receive more expansive explanation in the plan's appendix document. The second commentor was Mr. Wayne Beckwidth of the Anchorage Chamber of Commerce. Mr. Beckwidth felt that the draft 1986 plan was a good histori- cal document, but was weak in defining long-term funding and planning for Railbelt power needs. More should be mentioned on the use of coal and gas for electricity generation in the next three to five years, and a statement on continual funding for Railbelt energy development must be included. The third and final speaker was Mr. Chris Effgen. Mr. Effgen thought the 1986 draft plan was just another in a series of non-plans that will permit the continuing subsidy of energy programs without an eye to when the subsidies will end. Mr. Effgen also believes that there is a lack of definition as to who is responsible for what with energy in Alaska. Mr. Shira summarized the completion schedule for the 1986 plan, that the written comment period would run through December 16, 1985 and that the 1987 planning process will begin during the upcoming legislative session. MM/wfs 2BREGLR2 12985c Attachment 82 STATE OF ALASKA / “r= DEPARTMENT OF COMMERCE & eet etal ASKA) S981 ECONOMIC DEVELOPMENT PHONE: 465-2500 OFFICE OF THE COMMISSIONER Dear Alaskan: February 1, 1986 "Alaska's Energy Plan - 1986" is the sixth in the series of reports prepared under Alaska Statute 44.83.224. The 1986 plan identifies specific goals and policies that will provide the executive branch and the Legislature with important information on which to base the difficult decisions facing all of us regarding the direction of Alaska's energy future. The overall energy goal for Alaska has been defined as follows: "Seek to assure that all Alaskans have an adequate supply of energy at lowest reasonable costs to the consumer, the environment, and the State." To address this overall goal, energy policies were developed from recommendations submitted by the general public and State agencies. An Energy Policy Steering Committee, comprised of State Cabinet officials, representatives from the Governor's Office, Office of Management and Budget, and the House and Senate, was assembled to formulate energy policies and outline the direction of the energy planning report, given lower revenue projections for FY 87. The Energy Policy Steering Committee's primary recommendations are: ° Energy appropriations should be made to those projects and programs that provide energy at the lowest competitive cost to the consumer, increases system reliability, protects the scenic and cultural aspects of Alaska's environment, and help build the State's economy. ° Reliable thermal availability for all Alaskans should be accomplished through weatherization, conservation, use of Alaska's indigenous resources, and the use of appropriate technology application. ° Alaska's resource base should continue to provide primary economic advantage for the State both in revenue dollars generated and potential for use as an alternative to historical energy sources as it is incumbent on the State to use Alaska's abundant natural resources to assure the maximum, long-term quality of life of its citizens. ° With decreased State revenues available for implementation of energy programs, the State should encourage private development through State incentives. "Alaska's Energy Plan - 1986" sets the stage for implementing the important long-range policies that will help direct the State's future energy activities. Only through the public political process can those recommendations be fulfilled. eal oren H. Lounsbury, Comfnissioner Department of Commerce & Economic Development DS/cwES-L - 12RR6hH APPENDIX H ACKNOWLEDGEMENTS APPENDIX H. ACKNOWLEDGEMENTS Alaska's Energy Plan - 1986 has been completed by the Alaska Power Authority with the assistance and guidance of many people in and out of State government. Special thanks are mentioned here. First, to the members of the Energy Plan Steering Committee for their constant support and advice. Second, to Gordon Harrison, Pete Spivey, and Ben Harding for their attention to accurately expressing Sheffield Administration policy. Third, to Wanda Springsted, Carol Whelan, and Barbara Weiss for typing this final report and several previous drafts. And finally, to the workgroup members and their staff who worked diligently throughout the plan development process. Acknowledgements are expressed to those individuals and to others as shown on the following list. Mark Miller, Energy Coordinator Alaska Power Authority Donald Shira, Manager Program Planning and Analysis Alaska Power Authority STATE AGENCY PARTICIPATION A. Steering Committee: NAME F. Gregory Baker Robert Arnold Kurt Dzinich Ben Harding Gordon Harrison John Hartle Richard Knapp Loren H. Lounsbury Emil Notti Jeff Smith Warren Sparks Pete Spivey 87 OFFICE/DEPARTMENT Department of Commerce and Economic Development Department of Natural Resources Alaska Senate Advisory Council Office of the Governor Office of Management & Budget Alaska House of Representatives Department of Transportation and Public Facilities Department of Commerce and Economic Development Department of Community and Regional Affairs Department of Community and Regional Affairs Department of Transportation and Public Facilities Office of the Governor Steering Committee: John Sund Esther Wunnicke Working Committee: NAME Robert Brean Kay Browne Carol Bruce Robert Butz Michael Cushing Dr. Ted Eschenbach Ned Farquhar John Hope Ron Lind Dan Malick (Continued) Lt. Col. Michael Murray Kristina O'Connor Eileen Rehweld Peter Sokolov Mike Tavella Jim Tozer Vince Wright 88 Alaska House of Representatives Department of Natural Resources OFFICE/DEPARTMENT Department of Community and Regional Affairs Department of Natural Resources Department of Revenue Department of Natural Resources Department of Community and Regional Affairs University of Alaska - Anchorage Department of Natural Resources Department of Community and Regional Affairs Department of Transportation and Public Facilities Department of Transportation and Public Facilities Department of Military & Veterans Affairs Department of Natural Resources Department of Health & Social Services - LIHEAP Program Alaska Public Utilities Commission Alaska Public Utilities Commission Department of Education Department of Revenue Comments and Assistance: Steve Baden Gary Badder David Denig-Charkroff Paul Engleman Jim Gurke Marni Issacs Gretchen Keiser Don Markle Ted Morinski Ed Morris Craig Olson Brent Petrie Susan Rogers Robert Schiller Richard Seifert Jackie Stewart Cheryl Young Sue White 89 Division of Community Development - Department of Community and Regional Affairs Department of Administration Alaska Power Authority Economic Analysis Section - Department of Commerce and Economic Development Alaska Power Authority Alaska Power Authority House Research Agency University of Alaska - Cooperative Extension Service Alaska Public Utilities Commission Department of Commerce and Economic Development Alaska Power Authority Division of Forestry - Department of Natural Resources Alaska Power Authority Alaska Power Authority Economic Analysis Section - Department of Commerce and Economic Development University of Alaska Economic Analysis Section - Department of Commerce and Economic Development Alaska Power Authority Alaska Power Authority Administrative Support: Zona Cafferata Wanda Springsted Barbara Weiss Carol Whelan Teleconference Staff: Linda Hoff Public Participation and Comments: NAME David Allison Wayne Beckwith Art Chance Neil Davis Michael Deman Robert Hufman Verdell Jackson Mike Kelley Nancy Lee Fred Nishimura Peter Poray John Rainier Gene Rutledge Steve Shows 90 Department of Administration of Commerce and Development Department Economic of Commerce and Development Department Economic of Commerce and Development Department Economic Legislative Information Office Juneau AFFILIATION Attorney - Juneau Anchorage Chamber of Commerce Southeast Solar - Juneau Energy Specialist - Fairbanks Southeast Alaska Community Action Program - Juneau Utilities Consulting Service - Anchorage Juneau Energy Committee Golden Valley Electric - Fairbanks Energyfocus - Anchorage Bristol Bay Native Association - Dillingham Municipality of Anchorage U.S. Forest Service - Juneau Energy Specialist - Anchorage Juneau Energy Committee ec Public Participation and Comments: (Continued) NAME Michael Barton Honorable Don Bennet Patricia Book Al Borrego Robert Cross Representative Mike Davis Chris Efgen Clint Elston Col. William T. Gregory Honorable Ben Grussendorf Charles Hawley Lloyd Hodson Karin Holser Michael Keich Bart Koehler Robert A. Lohr Cole McFarland Richard Mauer Richard Newland Adeline Roboff Jack Roderick Richard Rainery Jim Springer 91 AFFILIATION U.S. Forest Service President, Alaska Senate Fairbanks North Star Borough University of Alaska - Juneau Alaska Power Administration Alaska House of Representatives Private Citizen Human Endeavors Alaska District, Corps of Engineers Speaker, Alaska House of Representatives Hawley Resource Group Alaska Village Electric Cooperative Alaska Bush Energy Systems Anchorage Municipal Light & Power Southeast (SEACC) Rural Alaska Community Action Program Placer U.S., Inc. Anchorage Daily News Ketchikan Public Utilities Kiivijuk Development Private Citizen Rural Research Agency Anchorage Times Public Participation and Comments: (Continued) NAME Tom Stahr Michelle Straube Representative John Sund Bob Taylor Mead Treadwel1 Joe Usibelli Jeff Wetzlin 92 AFFILIATION Anchorage Municipal Light & Power Alaska Consumer Advocacy Program Alaska House of Representatives Maniilaq Association - Kotzebue Yukon Pacific Corporation - Anchorage Usibelli Coal, Inc. Tanana Chiefs Conference - Fairbanks Appendix | — 1986 Energy Plan Budget Descriptions By Issue Area This section of “Alaska’s Energy Plan—1986, Appendix” relates the costs of energy programs and projects summarily described in energy policy issue discussion sections of the Executive Summary and Planning Report. Each descriptive page is identified by specific energy issue, policy, objective, and implementing action shown in summary tables, preceding each issue area section. State figures shown are included in the Governor's FY 87 budget request. Budget numbers in parenthesis are estimated fiscal requirements considered necessary to complete the intent of the proposed objective but are not included in the FY 87 request. “Other” budget figures represent Federal or program receipt funds. 95 ISSUE AREA: POLICY: OBJECTIVE: IMPLEMENTING ACTION: PLANNING Prepare an annual energy report that provides an update of energy policies and programs and coordinates the efforts and activities of energy planning statewide. Prepare a document that will describe Alaska's “long-term” (specified in years, i.e., 10, 20, 30, etc.), incorporate a summary of statewide economic and energy forecasts, and provide for a completion date in line with executive budget preparation. Modify Alaska energy planning statutes to reflect the need for a policy document, an energy inventory report, and a completion date of August 15 to coincide with annual budget preparations. BUDGET: STATE — 75.0 OTHER — FY 87 BUDGET RESPONSIBLE (000ie) AGENCY PROGRAM STATE OTHER DESCRIPTION APA Preparation of an annual long- 75.0 Maintain a full-time energy coordinator position. term energy policy options document. ( ) Indicates budget estimate for planning purposes to complete action, but not included in Governor's FY 87 Budget Request. OTHER — Federal or receipt funds. 96 ISSUE AREA: POLICY: OBJECTIVE: IMPLEMENTING ACTION: PLANNING Prepare an annual energy report that provides an update for energy policies and programs and coordinates the efforts and activities of energy planning statewide. Prepare a report on energy information that is historic, most recent year, and comparative. Information type determined by definable core group of State agency and legislative designees, provide for review of data type every five years, an end-use study, and provide a date of publication initially and annually coinciding with long- term energy policy document. Modify Alaska energy statute to require and to designate lead agency to request appropriation to support data collection by agencies and provide formulae for distribution of those funds through separate agencies. Includes the consolidation and compilation of agency information. BUDGET: STATE — (150.0) OTHER — FY 87 BUDGET RESPONSIBLE one's) AGENCY PROGRAM STATE OTHER DESCRIPTION APA Data collection coordination (85.0) Requires one full-time coordinator at the level of a and reporting Research Analyst III position, one time purchase of micro-computer for database management, and travel. (65.0) RSA funds to other state and non-profit agencies to support data collection efforts and to provide means of communicating data base information to APA data coordinator. ( ) Indicates budget estimate for planning purposes to complete action, but not included in Governor's FY 87 Budget Request. OTHER — Federal or receipt funds. 97 ISSUE AREA: MAJOR PROJECTS POLICY: Bradley Lake - Support the completion of the Bradley Lake hydroelectric project by 1990, as part of the least cost, most reliable energy strategy for the Railbelt. OBJECTIVE: Continue ongoing process to project completion. IMPLEMENTING ACTION: Continue annual State appropriation for the project. (50,000.0) BUDGET: STATE — 50,000.0 OTHER — FY 87 BUDGET RESPONSIBLE {000's) AGENCY PROGRAM STATE OTHER DESCRIPTION APA Bradley Lake Construction 50,000.0 Final design and start up construction in 1986 will require expenditures of $56 million, and a continuing appropriation of $50 million is required to continue project on schedule. ( ) Indicates budget estimate for planning purposes to complete action, but not included in Governor's FY 87 Budget Request. OTHER — Federal or receipt funds. 98 ISSUE AREA: POLICY: OBJECTIVE: IMPLEMENTING ACTION: MAJOR PROJECTS Susitna - Continue State support required for acquisition of the FERC license, including encouraging utility support and other evaluations and activities necessary to determine financial feasibility and completing the construction of the Susitna hydroelectric project. Continue ongoing process to project completion. Continue State pursuit of FERC license. Reinstatement of $200 million FY 86 appropriations. Reinstatement NOTE: BUDGET: STATE — (300,000) OTHER — FY 87 BUDGET RESPONSIBLE (00's) AGENCY PROGRAM STATE OTHER DESCRIPTION APA Susitna Hydroelectric Project (100,000) Continued state pursuit of FERC license. Susitna Appropriation (200,000) Request to reinstate continuing appropriations from previous years, not a new budget request. Due to recent events relating to the Susitna hydroelectric project, an overview of current developments, including elements of the Susitna plan of finance, is now being prepared by the Alaska Power Authority and will be provided to the Legislature in the near future. ( ) Indicates budget estimate for planning purposes to complete action, but not included in Governor's FY 87 Budget Request. OTHER — Federal or receipt funds. 99 ISSUE AREA: POLICY: OBJECTIVE: IMPLEMENTING ACTION: MAJOR PROJECTS Evaluate the desirability of transferring federal hydroprojects in Alaska to state or local control. To determine whether acquisition of federal projects would be financially prudent and in the best long-term interest of the State and the citizens these projects serve. Specific enabling legislation will be required to incorporate projects under State control. Will depend upon recommendations of ongoing state/federal study to determine consequences of transfer. Report to be completed about January 1986. BUDGET: STATE — To be determined OTHER — FY 87 BUDGET RESPONSIBLE (000’s) AGENCY PROGRAM STATE OTHER DESCRIPTION APA Alaska Power Administration To be A draft summary report with initial evaluation results OMB Transfer Determined of this program will not be available until January 1986. ( ) Indicates budget estimate for planning purposes to complete action, but not included in Governor’s FY 87 Budget Request. OTHER — Federal or receipt funds. 100 ISSUE AREA: POLICY: OBJECTIVE: IMPLEMENTING ACTION: MAJOR PROJECTS Continue evaluating and seeking to identify major energy projects that result in the lowest life cycle costs, as determined by reconnaissance and feasibility studies. Large scale hydroelectric projects (5 MW or greater) should continue to be investigated. Continue reconnaissance and feasibility of technical and economic viability of large-scale hydroelectric projects. BUDGET: STATE — (125.0) OTHER — 50.0 FY 87 BUDGET , RESPONSIBLE a AGENCY PROGRAM STATE OTHER DESCRIPTION APA Lake Dorothy Hydroelectric (125.0) Investigate the potential of developing Lake Dorothy, Feasibility south of Juneau, as the next logical increment of new hydroelectric capacity to serve the Juneau power market in the mid-to-late 1990's. APA Lake Dorothy Hydroelectric 50.0 Shared cost for five year operations analysis provided Feasibility by major utility serving Juneau. ( ) Indicates budget estimate for planning purposes to complete action, but not included in Governor's FY 87 Budget Request. OTHER — Federal or receipt funds. 101 ISSUE AREA: POLICY: OBJECTIVE: BUDGET: IMPLEMENTING ACTION: MAJOR PROJECTS Continue evaluating and seeking to identify major energy projects that result in the lowest life cycle costs, as determined by reconnaissance and feasibility studies. Alaska will promote electrical interties that result in lower long-term costs for consumers and where a reasonable return on State investment may be expected through economic development. in Southeast and rural Alaska. _ 400.0 STATE — O00) OTHER — Continue reconnaissance and feasibility assessment of technical and economical viability of interties, especially RESPONSIBLE AGENCY PROGRAM FY 87 BUDGET (000's) STATE OTHER DESCRIPTION APA APA APA Southeast Intertie Feasibility Klawock - Thorne BayePOW & Design Anchorage - Kenai Peninsula Intertie 400.0 (400.0) (630.0) Second phase of Southeast Intertie and power systems development project would fund load forecast and verification, load flow and stability analysis, and economic and financial analysis that can lead to the future intertieing of Southeast com- munities into a grid that maximizes the utility of power sharing between Southeast hydroelectric pro- jects and available, low cost Canadian power. Update the Black Bear Lake feasibility study and prepare phased plan for a Prince of Wales power system development, including acquisition of a right- of-way and design for a 28-mile transmission line between Klawock and Thorne Bay. Determine feasibility, design and routing of trans- mission line proposed to provide reliable electric power transfers between the Kenai Peninsula and Anchorage. ( ) Indicates budget estimate for planning purposes to complete action, but not included in Governor's FY 87 Budget Request. OTHER — Federal or receipt funds. 102 ISSUE AREA: MAJOR PROJECTS POLICY: Continue evaluating and seeking to identify major energy projects that result in the lowest life cycle costs, as determined by reconnaissance and feasibility studies. OBJECTIVE: Evaluate State regulations to replace those of FERC and design regulations to fit Alaska’s unique environment. IMPLEMENTING ACTION: Analyze potential legislation parallel to governing federal legislation that exerts State authority over project development. BUDGET: STATE — To be determined OTHER — FY 87 BUDGET , RESPONSIBLE (00's) AGENCY PROGRAM STATE OTHER DESCRIPTION + APA Evaluate options for replacing) To be Enactment of legislation could be done within routine FERC regulations with state) determined. budgets of state agencies, and additional appropria- regulations. tions would be required to carry out project by Project licensing of proposed projects. ( ) Indicates budget estimate for planning purposes to complete action, but not included in Governor’s FY 87 Budget Request. OTHER — Federal or receipt funds. 103 | | ISSUE AREA: POLICY: OBJECTIVE: ENERGY SUPPORT & EFFICIENCY Institute a two-year analysis of all state supported energy programs beginning in FY 87. Institute a two-year analysis and review of energy assistance costs and effects, generating a series of policy and funding recommendations to the 1988 Legislature. IMPLEMENTING ACTION: Administrative order directing one agency to complete analysis. BUDGET: STATE — OTHER — FY 87 BUDGET RESPONSIBLE (00's) AGENCY PROGRAM STATE OTHER DESCRIPTION OMB Analysis of all state supported | To be Set up administrative budget to cover salary, travel energy programs. determined and per diem for existing personnel. ( ) Indicates budget estimate for planning purposes to complete action, but not included in Governor’s FY 87 Budget Request. OTHER — Federal or receipt funds. 104 ISSUE AREA: POLICY: OBJECTIVE: IMPLEMENTING ACTION: ENERGY SUPPORT & EFFICIENCY Review existing and develop new avenues for state and private sector financing of energy capital projects. Complete review within routine budget in FY 87 and FY 88. Begin review process after July 1, 1986. BUDGET: STATE — OTHER — FY 87 BUDGET RESPONSIBLE (000's) AGENCY PROGRAM STATE OTHER DESCRIPTION APA Provide direction to analysis of | Within routine To be accomplished within existing administrative DCRA alternative financing methods. | budget request budgets with existing personnel. DHSS ( ) Indicates budget estimate for planning purposes to complete action, but not included in Governor's FY 87 Budget Request. OTHER — Federal or receipt funds. 105 ISSUE AREA: POLICY: OBJECTIVE: ENERGY SUPPORT & EFFICIENCY Establish an accountability system to insure State agency statutory compliance and maximum delivery of ser- vice of State agency programs Determine maximum effectiveness of State delivered programs. IMPLEMENTING ACTION: Internal Review Process. BUDGET: STATE — OTHER — FY 87 BUDGET , RESPONSIBLE (00's) AGENCY PROGRAM STATE OTHER DESCRIPTION APA Internal review of effectiveness | Within routine Accomplish within existing administrative budgets. DCRA of State delivered energy budget. DHSS programs. ( ) Indicates budget estimate for planning purposes to complete action, but not included in Governor's FY 87 Budget Request. OTHER — Federal or receipt funds. 106 ISSUE AREA: POLICY: OBJECTIVE: IMPLEMENTING ACTION: ENERGY SUPPORT & EFFICIENCY Institute the recently completed Memorandum of Agreement between the Alaska Power Authority and the Depart- ment of Community and Regional Affairs. , Coordinate agency rural energy programs within Memorandum of Agreement. Enact projects in agency FY 87 request. budget request. Alaska. BUDGET: STATE — OTHER — FY 87 BUDGET . RESPONSIBLE eis) AGENCY PROGRAM STATE OTHER DESCRIPTION APA Coordinate and enact agency | To be New MOA will provide for more effective coordination DCRA projects included in FY 87 determined of financial support and technical assistance in rural ( ) Indicates budget estimate for planning purposes to complete action, but not included in Governor’s FY 87 Budget Request. OTHER — Federal or receipt funds. 107 ISSUE AREA: POLICY: OBJECTIVE: IMPLEMENTING ACTION: ENERGY CONSERVATION Energy efficiency will be encouraged through development of minimal thermal and lighting standards. Complete thermal and lighting standards presently being prepared under the direction of Community and Regional Affairs and enact them into statute no later than 1987. Adopt regulations establishing standards for new construction on non-public buildings financed with state funds. standards and enact them by 1987. BUDGET: STATE — 58.7 OTHER — 133.4 FY 87 BUDGET RESPONSIBLE (00's) AGENCY PROGRAM STATE OTHER DESCRIPTION DCRA Complete thermal and lighting 58.7 133.4 Provide funding for one full-time position and implement standards. ( ) Indicates budget estimate for planning purposes to complete action, but not included in Governor’s FY 87 Budget Request. OTHER — Federal or receipt funds. 108 ISSUE AREA: POLICY: OBJECTIVE: IMPLEMENTING ACTION: ENERGY CONSERVATION Facilities which are constructed or where construction costs are funded by the State of Alaska will comply with state thermal standards. Complete thermal and lighting standards presently being prepared under the direction of the Department of Transportation and Public Facilities. Design Standards Manual for Buildings and contract specifications for buildings would be updated to include these standards. Modify Transfer of Responsibility Agreement Regulations to require recipients to comply with the standards. Utilize AS 35.10.160-.200 as a means to institute conservation standards in state financed buildings. BUDGET: STATE — OTHER — FY 87 BUDGET T RESPONSIBLE (00's) AGENCY PROGRAM STATE OTHER DESCRIPTION - a DOTPF Update Design Standards Manual] None Programs will be completed within existing admini- for Buildings. strative budgets. Implementation cost will be deter- mined later. DOTPF Modify Transfer of Responsibility) None Agreement Regulations. DOTPF Implement AS 35.10.160-.200. To be determined. ( ) Indicates budget estimate for planning purposes to complete action, but not included in Governor's FY 87 Budget Request. OTHER — Federal or receipt funds. 109 ISSUE AREA: POLICY: OBJECTIVE: IMPLEMENTING ACTION: ENERGY CONSERVATION Continue to seek federal Low Income Housing Energy Assistance Program (LIHEAP) funds to complete weatherization projects and to support specific conservation programs offering reduced reliance on nonrenewable energy resources. Develop energy consumption reduction targets for government buildings (both owned and leased) at the state and local level. Use annual federal appropriations to finance assistance to low income families to pay energy bills. LIHEAP funds on an annual basis. Work with Congressional staff to enhance funding formulas to Alaska that will garner a larger share of the seek larger share of LIHEAP funds for Alaska. later. BUDGET: STATE — OTHER — FY 87 BUDGET RESPONSIBLE (000's) AGENCY PROGRAM STATE OTHER DESCRIPTION DHSS Work with Congressional staff to, To be provided ( ) Indicates budget estimate for planning purposes to complete action, but not included in Governor’s FY 87 Budget Request. OTHER — Federal or receipt funds. 110 ISSUE AREA: POLICY: OBJECTIVE: IMPLEMENTING ACTION: ENERGY CONSERVATION Continue to seek federal Low Income Housing Energy Assistance Program (LIHEAP) funds to complete weatherization projects and to support specific conservation programs offering reduced reliance on nonrenewable energy resources. To decrease annual fuel bills and increase comfort and health of assisted households. Annual appropriations from state and federal sources to fund weatherization activities. weatherization activities which will decrease annual fuel bills. BUDGET: STATE — 1,000 OTHER — 1,600 FY 87 BUDGET RESPONSIBLE (000's) AGENCY PROGRAM STATE OTHER DESCRIPTION DCRA Continue strong emphasis on 1,000 1,600 | Continue weatherization of homes in Alaska. ( ) Indicates budget estimate for planning purposes to complete action, but not included in Governor's FY 87 Budget Request. OTHER — Federal or receipt funds. 111 ISSUE AREA: POLICY: OBJECTIVE: IMPLEMENTING ACTION: ENERGY CONSERVATION Alaska will pursue appropriate technologies that provide reliable, long-term power by using federal and State incentives to promote demonstration of applied research by private investors. Alternate energy demonstration projects will emphasize applied research and commercial applications. Budget for project manager procedure which establishes tasks, data requirements, etc., for alternative energy demonstration projects that are completed by State agencies, utilizing coordinator position. BUDGET: STATE — (100.0) OTHER — FY 87 BUDGET , RESPONSIBLE (00's) AGENCY PROGRAM STATE OTHER DESCRIPTION APA Establish AT Coordinator position| (100.0) Alternative technologies coordinator to encourage DCRA responsible for program private sector financing of State AT projects, coor- DHSS management. dinate local and vendor contracts, and sets up correct procedures for loans or grants to implement projects. Requires one full-time coordinator and travel/adminis- trative expenses for the first year. ( ) Indicates budget estimate for planning purposes to complete action, but not included in Governor's FY 87 Budget Request. OTHER — Federal or receipt funds. 112 ISSUE AREA: POLICY: OBJECTIVE: IMPLEMENTING ACTION: ENERGY CONSERVATION Alaska will pursue appropriate technologies that provide reliable, long-term power by using federal and State incentives to promote demonstration of applied research by private investors. Establish regulations and tax laws that favor investments in alternative energy and evaluate the merits of such investments through careful analysis of proposals. Expand State loan terms and provide tax credits for alternative energy development projects in Alaska. BUDGET: STATE — OTHER — FY 87 BUDGET RESPONSIBLE 00's) AGENCY PROGRAM STATE OTHER DESCRIPTION APA Expand State loan terms and To be Need to determine loan program modification and DCED provide tax credits. determined new funding levels. DOR ( ) Indicates budget estimate for planning purposes to complete action, but not included in Governor's FY 87 Budget Request. OTHER — Federal or receipt funds. 113 ISSUE AREA: POLICY: OBJECTIVE: BUDGET: IMPLEMENTING ACTION: ENERGY CONSERVATION Alaska will pursue appropriate technologies that provide reliable, long-term power by using federal and State incentives to promote demonstration of applied research by private investors. Consider the use of third party financing in order to provide the State with a market test for a proposed project and to tap state-of-the-art expertise. Enact legislation to provide third party financing with revolving fund to supply loans and recycle interest back into fund, and review existing statutes to remove limitations, if any, to third party financing. STATE — To be determined. OTHER — FY 87 BUDGET RESPONSIBLE (00's) AGENCY PROGRAM STATE OTHER DESCRIPTION DCED Tax Incentives To be Consider tax law changes to encourage AT DOR determined. development. ( ) Indicates budget estimate for planning purposes to complete action, but not included in Governor’s FY 87 Budget Request. OTHER — Federal or receipt funds. 114 ISSUE AREA: POLICY: OBJECTIVE: IMPLEMENTING ACTION: ENERGY CONSERVATION Alaska wil! pursue appropriate technologies that provide reliable, long-term power by using federal and State incentives to promote demonstration of applied research by private investors. Utilize the federal wood waste and biomass program to demonstrate cost effective use of alternative technologies associated with biomass, municipal solid waste, and other discard products. Continue to seek federal appropriations and define projects to implement effective programs. Administration. BUDGET: STATE — (152.0) OTHER — 150.0 FY 87 BUDGET , RESPONSIBLE dls AGENCY PROGRAM STATE OTHER DESCRIPTION im APA Palmer Correctional Facility (20.0) Three State agency coordinated program testing the Wood Heat System. use of a solid fuel wood combustor to heat the Alaska Correction Industries Sutton greenhouse, and to pur- chase, install, and monitor automated fuel handling equipment. APA Woodwaste Energy — Fort Yukon (32.0) Purchase and installation of combustion wood capable of burning waste wood from the Ft. Yukon sawmill operation to provide supplementary heat to a greenhouse. APA Dillingham Peat Resource (100.0) Study to determine the amount of and quality of local Reconnaissance Study. peat resources before mining feasibility can be assessed. APA Federal Biomass Program 150.0 Provide position and contractual money to operate Alaskan bioenergy program from federal monies. ( ) Indicates budget estimate for planning purposes to complete action, but not included in Governor's FY 87 Budget Request. OTHER — Federal or receipt funds. 115 ISSUE AREA: POLICY: OBJECTIVE: IMPLEMENTING ACTION: ENERGY CONSERVATION Alaska will pursue appropriate technologies that provide reliable, long-term power by using federal and State incentives to promote demonstration of applied research by private investors. The State loan program for alternative technologies should be examined to permit appropriate modification to larger residential and commercial installation loans. Expand loans for alternative energy technology installations. later. BUDGET: STATE — To be provided later. OTHER — FY 87 BUDGET RESPONSIBLE (00's) AGENCY PROGRAM STATE OTHER DESCRIPTION DCED Expand State AT loan program. | To be provided Depending on the outcome of assistance programs, the amount of budget and scope for loan expansion will be determined later. ( ) Indicates budget estimate for planning purposes to complete action, but not included in Governor's FY 87 Budget Request. OTHER — Federal or receipt funds. 116 ISSUE AREA: POLICY: OBJECTIVE: IMPLEMENTING ACTION: BUDGET: ENERGY CONSERVATION Alaska will pursue appropriate technologies that provide reliable, long-term power by using federal and State incentives to promote demonstration of applied research by private investors. Small scale hydroelectric (less than 5 MW) and other renewable power generation technologies will be evaluated within each reconnaissance and feasibility study undertaken by the State. STATE — 1,300.0 (4,120.0) OTHER — 6,070.0 Continue to request annual capitol projects appropriations. RESPONSIBLE AGENCY FY 87 BUDGET (000’s) PROGRAM STATE OTHER DESCRIPTION APA APA APA APA APA APA APA APA Humpback Creek Hydroelectric Project Nikolai Electrification King Cove Small Hydroelectric Project Larsen Bay Small Scale Hydroelectricity Tazimina Hydroelectric Project Wind Implementation — Phase i Akutan Small Scale Hydroelectricity Ouzinski Hydroelectric Feasibility Study 1,300.0 (250.0) (2,200.0) 2,600.0 (1,050.0) 2,450.0 (300.0) (60.0) (180.0) 1,020.0 (80.0) Design and construct an 800 KW run-of-river hydroelectric plant on Humpback Creek near Cor- dova. Cordova Electric has been proceeding with the initial investigation, licensing, and permitting process for the project expected to cost in total $3.25 million in FY 87 dollars. Reconstruction of power plant and distribution system for city of Nikolai, correcting a system in severe disrepair with numerous safety hazards and very inefficient. Design and construction of a 575 KW run-of-river hydroelectric project on Delta Creek near the rural community of King Cove (total cost $5.2 million in FY 87 dollars.) The $2.6 million is from revenue bonds. Design and construction of a 270 KW run-of-river hydroelectric facility at Larsen Bay, total cost of project is $3.5 million. The $2.45 million is from revenue bonds. Fund the licensing, power sales agreement negotia- tions, development of financing options, and secure land agreements for a proposed 1.2 MW run-of-river hydroelectric project. Seed funding to conduct general review of wind sites at 45 community sites in Alaska to identify further application of St. Paul wind farm technology to other Alaskan locations. Complete construction of a small hydroelectric installation in Akutan. The $1.02 million will come from revenue bonds. Feasibility study of Katmai Creek site for Ouzinski 80 KW run-of-river hydroelectric project development. ( ) Indicates budget estimate for planning purposes to complete action, but not included in Governor's FY 87 Budget Request. OTHER — Federal or receipt funds. 117 ISSUE AREA: POLICY: OBJECTIVE: BUDGET: ENERGY CONSERVATION Alaska will pursue appropriate technologies that provide reliable, long-term power by using federal and State incentives to promote demonstration of applied research by private investors. Construct waste heat geothermal projects in those locations found appropriate in reconnaissance and feasibility studies. IMPLEMENTING ACTION: Continue to request annual capital projects appropriations. STATE — 351.3 OTHER — 3,160.4 (4,528.7) (2,550.8) PAGE 1 of 3 RESPONSIBLE AGENCY FY 87 BUDGET (000’s) PROGRAM STATE OTHER DESCRIPTION APA APA APA APA APA APA APA APA APA Yakutat Waste Heat Project 47.2 424.8 Installation of a waste heat system utilizing diesel generation waste heat to provide space and waste heating, saving annually 35,000 gallons of fuel oil and saving approximately $45,000 for the community. The $424.8 is from revenue bonds. Aniak Waste Heat Project $1.3 461.7 | Installation of a waste heat system utilizing diesel generation waste heat to provide space and waste heating, saving annually 26,490 gallons of fuel oil and saving approximately $46,000 for the community. The $513.0 is from revenue bonds. Shishmaref Waste Heat Project 48.8 439.2 | Installation of a waste heat system utilizing diesel generation waste heat to provide space and waste heating, saving annually 23,480 gallons of fuel oil and saving approximately $45,600 for the community. The $488.0 is from revenue bonds. Chevak Waste Heat Project 36.7 330.3 Installation of a waste heat system utilizing diesel generation waste heat to provide space and waste heating, saving annually 26,560 gallons of fuel oil and saving approximately $54,000 for the community. The $330.3 is from revenue bonds. Togiak Waste Heat Project 37.2 334.8 | Installation of a waste heat system utilizing diesel generation waste heat to provide space and waste heating, saving annually 25,420 gallons of fuel oil and saving approximately $47,000 for the community. The $334.8 is from revenue bonds. Lower Kalsag Waste Heat Project 32.0 288.0 | Installation of a waste heat system utilizing diesel generation waste heat to provide space and waste heating, saving annually 10,930 gallons of fuel oil and saving approximately $36,600 for the community. The $288.0 is from revenue bonds. Noatak Waste Heat Project 39.9 358.6 Installation of a waste heat system utilizing diesel generation waste heat to provide space and waste heating, saving annually 16,300 gallons of fuel oil and saving approximately $31,800 for the community. The $358.6 is from revenue bonds. Gambell Waste Heat Project 49.7 447.3 Installation of a waste heat system utilizing diesel generation waste heat to provide space and waste heating, saving annually 25,800 gallons of fuel oil and saving approximately $42,500 for the community. The $447.3 is from revenue bonds. Shaktoolik Waste Heat Project 8.5 76.5 | Installation of a waste heat system utilizing diesel generation waste heat to provide space and waste heating, saving annually 5,000 gallons of fuel oil and saving approximately $12,450 for the community. The $76.5 is from revenue bonds. ( ) Indicates budget estimate for planning purposes to complete action, but not included in Governor's FY 87 Budget Request. OTHER — Federal or receipt funds. 118 ISSUE AREA: POLICY: OBJECTIVE: IMPLEMENTING ACTION: BUDGET: ENERGY CONSERVATION Alaska will pursue appropriate technologies that provide reliable, long-term power by using federal and State incentives to promote demonstration of applied research by private investors. Construct waste heat geothermal projects in those locations found appropriate in reconnaissance and feasibility studies. STATE (cont.) — 351.3 (4,528.7) OTHER (cont.) — 3,160.4 (2,550.8) Continue to request annual capital projects appropriations. PAGE 2 of 3 RESPONSIBLE AGENCY FY 87 BUDGET (000’s) PROGRAM STATE OTHER DESCRIPTION APA APA APA APA APA APA APA APA Wales Waste Heat Project Birch Creek Waste Heat Project Nikoli Waste Heat Project Selawik Waste Heat Project Ft. Yukon Waste Heat Project Hoonah Waste Heat Project Manakotak Waste Heat Project Klukwan Waste Heat Project (229.0) (15.0) (18.0) (399.0) (283.0) (207.0) (210.0) (323.0) Installation of a waste heat system utilizing diesel generation waste heat to provide space and waste heating, saving annually 6,230 gallons of fuel oil and saving approximately $10,280 for the community. Installation of a waste heat system utilizing diesel generation waste heat to provide space and waste heating, saving annually 6,000 gallons of fuel oil and saving approximately $10,380 for the community. Installation of a waste heat system utilizing diesel generation waste heat to provide space and waste heating, saving annually 3,540 gallons of fuel oil and saving approximately $6,018 for the community. Installation of a waste heat system utilizing diesel generation waste heat to provide space and waste heating, saving annually 17,230 gallons of fuel oil and saving approximately $26,534 for the community. Installation of a waste heat system utilizing diesel generation waste heat to provide space and waste heating, saving annually 21,250 gallons of fuel oil and saving approximately $38,675 for the community. Installation of a waste heat system utilizing diesel generation waste heat to provide space and waste heating, saving annually 10,000 gallons of fuel oil and saving approximately $13,300 for the community. Installation of a waste heat system utilizing diesel generation waste heat to provide space and waste heating, saving annually 11,830 gallons of fuel oil and saving approximately $13,131 for the community. Installation of a waste heat system utilizing diesel generation waste heat to provide space and waste heating, saving annually 11,800 gallons of fuel oil and saving approximately $14,986 for the community. ( ) Indicates budget estimate for planning purposes to complete action, but not included in Governor’s FY 87 Budget Request. OTHER — Federal or receipt funds. 119 ISSUE AREA: POLICY: OBJECTIVE: IMPLEMENTING ACTION: ENERGY CONSERVATION Alaska will pursue appropriate technologies that provide reliable, long-term power by using federal and State incentives to promote demonstration of applied research by private investors. Construct waste heat geothermal projects in those locations found appropriate in reconnaissance and feasibility studies. Continue to request annual capital projects appropriations. BUDGET: STATE (cont.) — 351.3 OTHER (cont.) — 3,160.4 (4,528.7) (2,550.8) PAGE 3 of 3 FY 87 BUDGET . RESPONSIBLE (000's) AGENCY PROGRAM STATE OTHER DESCRIPTION APA Unalaska Geothermal Project (495.0) Funding for preparation of official statement of land offering and acquisition of power sales agreements for a power plant, road, and transmission line for Unalaska use of geothermal power generation. APA Summer Bay Hydrothermal (150.0) Analysis of technical and economic feasibility and Space Heating completion of a development plan for using hydrothermal resources for space heating at Summer Bay on Unalaska Island. APA Cordova Waste Heat (450.0) 2,550.0} Design and construction management for a waste heat recapture and district heating system to two canneries and for larger downtown buildings. The $2,550.0 is from revenue bonds. APA Pilgrim Hot Springs Hydro- (50.0) Analysis of technical and economic feasibility and thermal Space Heating completion of a development plan for using hydrothermal resources for space heating at Pilgrim Hot Springs. APA Kotzebue Geothermal (1,700.0) Drill a 2,000 foot test well to determine the potential use of geothermal resources at Kotzebue. ( ) Indicates budget estimate for planning purposes to complete action, but not included in Governor’s FY 87 Budget Request. OTHER — Federal or receipt funds. 120 ISSUE AREA: POLICY: OBJECTIVE: IMPLEMENTING ACTION: THERMAL ENERGY Generate revenue and encourage the development of Alaska's energy resources by offering for lease appropriate state lands for potential development of oil, gas, coal, and geothermal energy resources. Also provide oppor- tunities for obtaining firewood from state-owned lands. Conduct the State’s Five-Year Oil and Gas Leasing Program, issue competitive leases, and administer existing oil and gas leases. Conduct four oil and gas lease sales during FY 87 and complete all necessary steps for oil and gas lease sales planned beyond FY 87. Prepare award notices, issue leases to successful bidders, and administer all existing oil and gas leases. sales during FY 87. BUDGET: STATE — 2,196.3 OTHER — FY 87 BUDGET RESPONSIBLE (000’s) AGENCY PROGRAM STATE OTHER DESCRIPTION DNR Conduct four oil and gas lease 2,196.3 ( ) Indicates budget estimate for planning purposes to complete action, but not included in Governor's FY 87 Budget Request. OTHER — Federal or receipt funds. 121 ISSUE AREA: POLICY: OBJECTIVE: THERMAL ENERGY Generate revenue and encourage the development of Alaska's energy resources by offering for lease appropriate state lands for potential development of oil, gas, coal, and geothermal energy resources. Also provide oppor- tunities for obtaining firewood from state-owned lands. Evaluate proposed oil and gas lease sale areas, and assess other state-owned lands for inclusion in the leasing program. IMPLEMENTING ACTION: Conduct sale-specific geological, geophysical, and economic evaluations of oil and gas lease sale areas prior to each lease sale to determine appropriate bidding terms. BUDGET: STATE — 1,664.3 OTHER — FY 87 BUDGET RESPONSIBLE {000's) AGENCY PROGRAM STATE OTHER DESCRIPTION DNR Presale analysis to determine 1,664.3 appropriate bidding terms. ( ) Indicates budget estimate for planning purposes to complete action, but not included in Governor's FY 87 Budget Request. OTHER — Federal or receipt funds. 122 ISSUE AREA: POLICY: OBJECTIVE: IMPLEMENTING ACTION: THERMAL ENERGY Generate revenue and encourage the development of Alaska’s energy resources by offering for lease appropriate state lands for potential development of oil, gas, coal, and geothermal energy resources. Also provide oppor- tunities for obtaining firewood from state-owned lands. Continue efforts to determine Alaska’s marine boundaries in areas where state and federal oil and gas lease sales are planned and create leasing tract maps and legal descriptions for state oil and gas lease sales. Continue technical and legal efforts to establish the location of the boundary between the state offshore submerg- ed lands and those of the federal government and create accurate legal descriptions and tract maps for state oil and gas lease sales. BUDGET: STATE — 983.8 OTHER — 550.0 FY 87 BUDGET RESPONSIBLE {000's) AGENCY PROGRAM STATE OTHER DESCRIPTION vs DNR Determine location of boundary 983.8 550.0 areas. between state and federal submerged lands in oil and gas ( ) Indicates budget estimate for planning purposes to complete action, but not included in Governor’s FY 87 Budget Request. OTHER — Federal or receipt funds. 123 ISSUE AREA: POLICY: OBJECTIVE: IMPLEMENTING ACTION: THERMAL ENERGY Generate revenue and encourage the development of Alaska’s energy resources by offering for lease appropriate state lands for potential development of oil, gas, coal, and geothermal energy resources. Also provide oppor- tunities for obtaining firewood from state-owned lands. Continue to determine the location, size and power potential of Alaska’s geothermal resources so that the feasibility of developing these sources can be evaluated. Complete a regional geothermal atlas for the Alaska Peninsula and Aleutian Islands, conduct geochemical studies of the Copper River basin geothermal area, complete studies of the Mt. Spurr and St. Augustine Volcano geothermal areas, complete a bibliography of references on geothermal studies in Alaska, and initiate a “Call for Comments” in response to a request for a geothermal lease. atlas. Possible lease of geother. mal areas near Mt. Spurr. BUDGET: STATE — 95.5 OTHER — FY 87 BUDGET RESPONSIBLE (000’s) AGENCY PROGRAM STATE OTHER DESCRIPTION DNR Prepare regional geothermal 95.5 ( ) Indicates budget estimate for planning purposes to complete action, but not included in Governor’s FY 87 Budget Request. OTHER — Federal or receipt funds. 124 ISSUE AREA: POLICY: OBJECTIVE: IMPLEMENTING ACTION: THERMAL ENERGY Generate revenue and encourage the development of Alaska's energy resources by offering for lease appropriate state lands for potential development of oil, gas, coal, and geothermal energy resources. Also provide oppor- tunities for obtaining firewood from state-owned lands. Make available state-owned lands for coal development and continue studies and appraisals in preparation for expected additional coal extraction in Northern Alaska and in the Railbelt. Competitively lease state lands with high to moderate coal potential, offer lands with low potential non- competitively, administer existing coal leases, and implement the Alaska Surface Coal Mining and Control and Reclamation Program. Conduct field work and laboratory studies of coal and overburden samples, and provide technical assistance to land-management agencies. studies of coal samples. BUDGET: STATE — 642.6 OTHER — FY 87 BUDGET , RESPONSIBLE ers) AGENCY PROGRAM STATE OTHER DESCRIPTION ONR Lease state lands with coal 355.5 potential, continue administering, existing coal leases and imple- ment Alaska Surface Coal Mining and Control and Reclamation program. DNR Conduct field and laboratory 287.1 ( ) Indicates budget estimate for planning purposes to complete action, but not included in Governor's FY 87 Budget Request. OTHER — Federal or receipt funds. 125 ISSUE AREA: THERMAL ENERGY POLICY: Generate revenue and encourage the development of Alaska’s energy resources by offering for lease appropriate state lands for potential development of oil, gas, coal, and geothermal energy resources. Also provide oppor- tunities for obtaining firewood from state-owned lands. OBJECTIVE: Make firewood available from state-owned lands. IMPLEMENTING ACTION: Continue to open selected state-owned lands for firewood collection near population centers, and to offer small- scale timber sales designed for firewood suppliers. BUDGET: STATE — 284.0 OTHER — FY 87 BUDGET RESPONSIBLE (000’s) AGENCY PROGRAM STATE OTHER DESCRIPTION DNR Provide state lands for firewood 284.0 supply. ( ) Indicates budget estimate for planning purposes to complete action, but not included in Governor's FY 87 Budget Request. OTHER — Federal or receipt funds. 126 ISSUE AREA: POLICY: OBJECTIVE: FOSSIL FUELS Disposals of royalty oil shall be made to optimize benefits to citizens of the State. Proposals for purchase of royalty oil shall be evaluated to determine whether they maximize State revenues, supply existing in-state refineries and oil and gas based utilities at market prices, promote new in-state refineries and oil and gas based utilities which are economically feasible at market prices, or promote foreign markets. Conduct short-term competitive royalty oi! sales that will increase the price received for the State's royalty oil relative to taking the oil-in-value. IMPLEMENTING ACTION: Conduct at least one short-term competitive royalty oil sale during FY 87. BUDGET: STATE — 35.0 OTHER — FY 87 BUDGET RESPONSIBLE ears) AGENCY PROGRAM STATE OTHER DESCRIPTION DNR Conduct at least one short-term 35.0 royalty oil sale during FY 87. ( ) Indicates budget estimate for planning purposes to complete action, but not included in Governor's FY 87 Budget Request. OTHER — Federal or receipt funds. 127 ISSUE AREA: POLICY: OBJECTIVE: IMPLEMENTING ACTION: FOSSIL FUELS Disposals of royalty oil shall be made to optimize benefits to citizens of the State. Proposals for purchase of royalty oil shall be evaluated to determine whether they maximize State revenues, supply existing in-state refineries and oil and gas based utilities at market prices, promote new in-state refineries and oil and gas based utilities which are economically feasible at market prices, or promote foreign markets. Consider and make decisions on proposals for long-term royalty oil contracts which include in-state process- ing of the royalty oil at new or existing refineries. Complete negotiations and submit to the Alaska Legislature a long-term royalty oil contract with Petro Star, Inc. and Chevron Oil Company, U.S.A. Also, continue to analyze proposals presented by Arctic Energy Company and Valdez Refining Company, Inc. to determine whether the proposals protect the State's economic interests and whether these long-term contracts would otherwise optimize overall benefits to Alaska residents. BUDGET: STATE — 35.0 OTHER — FY 87 BUDGET RESPONSIBLE (00's) AGENCY PROGRAM STATE OTHER DESCRIPTION DNR Long-term royalty oil contracts 35.0 ( ) Indicates budget estimate for planning purposes to complete action, but not included in Governor’s FY 87 Budget Request. OTHER — Federal or receipt funds. 128 ISSUE AREA: POLICY: OBJECTIVE: FOSSIL FUELS Disposals of royalty oil shall be made to optimize benefits to citizens of the State. Proposals for purchase of royalty oil shall be evaluated to determine whether they maximize State revenues, supply existing in-state refineries and oil and gas based utilities at market prices, promote new in-state refineries and oil and gas based utilities which are economically feasible at market prices, or promote foreign markets. Continue efforts to export Alaska crude oil and natural gas to Pacific Rim countries. IMPLEMENTING ACTION: Conduct a competitive sale of Cook Inlet royalty oil for export to Japan. BUDGET: STATE — 35.0 OTHER — FY 87 BUDGET RESPONSIBLE Os) AGENCY PROGRAM STATE OTHER DESCRIPTION DNR Sale of Cook Inlet royalty oil 35.0 for export to Japan. ( ) Indicates budget estimate for planning purposes to complete action, but not included in Governor's FY 87 Budget Request. OTHER — Federal or receipt funds. 129 ISSUE AREA: POLICY: OBJECTIVE: IMPLEMENTING ACTION: FOSSIL FUELS Disposals of royalty oil shall be made to optimize benefits to citizens of the State. Proposals for purchase of royalty oil shall be evaluated to determine whether they maximize State revenues, supply existing in-state refineries and oil and gas based utilities at market prices, promote new in-state refineries and oil and gas based utilities which are economically feasible at market prices, or promote foreign markets. Obtain a short-term royalty oil back-up contract to be used in conjunction with the Cook Inlet export competitive sale. Negotiate contract. BUDGET: STATE — 35.0 OTHER — FY 87 BUDGET RESPONSIBLE (00's) AGENCY PROGRAM STATE OTHER DESCRIPTION DNR Negotiate short-term contract in} 35.0 conjunction with Cook Inlet export sale. ( ) Indicates budget estimate for planning purposes to complete action, but not included in Governor's FY 87 Budget Request. OTHER — Federal or receipt funds. 130 ISSUE AREA: POLICY: OBJECTIVE: FOSSIL FUELS Disposals of royalty oil shall be made to optimize benefits to citizens of the State. Proposals for purchase of royalty oil shall be evaluated to determine whether they maximize State revenues, supply existing in-state refineries and oil and gas based utilities at market prices, promote new in-state refineries and oil and gas based utilities which are economically feasible at market prices, or promote foreign markets. Assume the timely and correct receipt of royalties, rentals, and net profit share payments due to the State from the production and marketing of its royalty oil and gas, and from its proportionate share of federal receipts from oil and gas production on federal leases. IMPLEMENTING ACTION: Maintain a current accounting of all oil and gas production and corresponding royalty payments from State and federal lands, and review and approve lessees’ allowable net profit share expenditures from “Net Profit Share” leases. BUDGET: STATE — 654.0 OTHER — FY 87 BUDGET ] RESPONSIBLE (00's) AGENCY PROGRAM STATE OTHER DESCRIPTION DNR Maintain accounting system for’ 654.0 oil and gas production and payments. ( ) Indicates budget estimate for planning purposes to complete action, but not included in Governor’s FY 87 Budget Request. OTHER — Federal or receipt funds. 131 ISSUE AREA: POLICY: OBJECTIVE: IMPLEMENTING ACTION: TRANSPORTATION Impact on projected energy use of alternative routes for new transportation links and traffic management deci- sions shall be evaluated. Implement use by July 1, 1986. Preconstruction Manual and Environmental Project Development Manual would be revised to include a pro- cedure for energy analysis on state funded projects (currently required on federal projects). July 1, 1986. BUDGET: STATE — OTHER — FY 87 BUDGET RESPONSIBLE (00's) AGENCY PROGRAM STATE OTHER DESCRIPTION DOTPF Revise PM & EPD Manual by No Impact ( ) Indicates budget estimate for planning purposes to complete action, but not included in Governor’s FY 87 Budget Request. OTHER — Federal or receipt funds. 132 APPENDIX J ALASKAN BIOMASS PROGRAM STATUS APPENDIX J. ALASKA BIOMASS PROGRAMS STATUS AS OF DECEMBER 31, 1985 Several bioenergy projects are active in Alaska. As of December 31, 1985, those projects are: oO 0 State of Alaska Bioenergy Technical Assistance Program. Valley Sawmill Residue Utilization Study. Feasibility Study of Charcoal Production and Electrical Co-Generation. Open Burn Modeling for the Upper Cook Inlet Basin. Palmer Correctional Center Wood-Fired Greenhouse. Biomass Inventory and Disposal Costs on State Agricultural Lands. Estimation of Potential Timber Volume in the Tanana Valley Available for Conversion to Wood Chip Fuel. Each of these projects is listed in this section. Information includes project allocation, project location, and period of contract performance. For further information, please contact Ms. Pat Woodell at the Alaska Power Authority in Anchorage, telephone (907) 561-7877. 135 Research Area: REGIONAL Subprogram: PACIFIC NORTHWEST & ALASKA — ve Tite State of Alaska Bioenergy Alaska Power Authority ; : fl fast Toor Rod sagittcmge fasisance Pros pal Inve: lor, jation, ir Anchorage, AK 99501 Pat Woodell, Development Specialist Alaska Power Authority, (907) 561-7877 Work Pertormed Under Direction of: (Organization) Obligated U.S. DOE Fiscal Year 89 Funding Pat Woodell (907) 561-7877 $50,000 Department of Commerce & Economic Development, Alaska Power Authority Cumulative U.S. DOE Funding Through Fiscal Year _o5 __ 701 E. Tudor Road., Anchorage, AK $260 ,000 | Work Location (Site or Facility) | Matching Funds through Fiscal Year —35—_ Source: State Anchorage, Alaska Amount: $25,000 (FY85 only) Period of Contract or Project Performance Contract Number —January 1, 1984 - July 30, 1986 DE-FG79-84 BP 14984, M002 Rationale, Objectives, Approach, Status, Future Efforts, Publications Rationale: One of Alaska's largest energy challenges is the high cost of fuel oil, particularly in rural areas. Biomass has the potential to provide alternatives to this conventional fuel. Alaska's location often makes it difficult to receive information on product development, new trends in industry and items that are;perti- nent to it's economy and infrastructure. The Bioenergy Technical Assistance Program provides an in-state biomass center for receiving and distributing this information. Awareness of biomass opportunities improves the economics of use in related indus- tries. This program supports state policies which influence the use of biomass as an energy resource. Objectives: The Alaska State Program objectives include the following: 1) to promote the efficient and environmentally sound use of biomass for energy and other applications in Alaska, 2) to assist in resolving institutional barriers to biomass production and use. This includes education and information to policy makers who can influence resolutions to institutional problems, 3) to direct program activities and information towards self-sustaining biomass production and consumption activities. This includes an emphasis on economics, environmental and technical feasibility for industry and municipal projects, 4) to clarify major, environmental resource re- covery and use issues and to seek solutions to environmental problems, 5) to con- tinue technology transfer to target users. Economic, environmental and technical feasibility for industry and municipal projects are emphasized in this objective, and 6) to continue development and operation of a statewide institutional framework to promote biomass development issues. Approach: Activities under the State Technical Assistance Program are divided into the following work areas: *Task Force and Policy Group Participation - attend regional meetings, participate in regional planning activities, and support the regional program through effective communication of in-state bioenergy activities, goals and policies. Development and evaluation activities for the regional program are also included in this section. (Continued on next page) Prepared by Pat Woodell, Development Specialist December 31, 1985 477/8 136 Alaska Bioenergy continued... 477/9 *Information and Technology Transfer - Emphasis is to increase public awareness of opportunities to use biomass as an energy resource. The goal here is maintain an effective network of information on technolo- gies, resource management techniques and other topics applicable to the private and public sectors. *Technical Assistance - Identification of biomass use barriers and assistance to industry and public agencies in developing biomass use opportunities are the major goals of this area. *Interagency Coordination - Determining common interests in the develop- ment o omass use opportunities is emphasized. Coordination also helps define common problems among agencies in project implementation. Successful interagency planning improves likelihood of project success. *Contract Management - This area includes completing earlier contracts and initiating new agreements with state agencies to support their biomass-related priorities. *Other Biomass Activities - The Technial Assistance Program will com- plete several one-time activities during the FY85 grant period. These; include: a) a statewide, biomass resource assessment, b) identification of in-state biomass projects, c) an environmental permit handbook and d) annual and biennial operating plan. *Reporting - This activity includes quarterly legislative, project, and financial reporting on program activities. A year end report summariz- ing activities will also be prepared. Status: The covering quarterly report describes the status of activi- ties in the areas above. Future Efforts: Continuation of activities described above. Publications: State of Alaska Bioenergy Technical Assistance Program Quarterly Reports will be completed in September and December 1985, and March and June 1986. Year-end report will be completed in April 1985. 137 Sel ACTIVITY JUL Task Force & Policy Group Paticipation x Annual & Biennial Operating Plans Xx Interagency Coordination x Information & Technology Transfer Xx Contract Management X Biomass Resource Assessment In-State Project Identification Environmental Permit Handbook Reporting - Quarterly - Year End - Leislative ALASKA BIOENERGY PROGRAM SCHEDULE OF ACTIVITIES July 1 - June 30, 1985 - 1986 AUG SEP OcT NOV DEC JAN FEB MAR APR MAY JUN Research Area: REGIONAL Subprogram: PACIFIC NORTHWEST & ALASKA Greg Belts dwner: Valley Sawmill 6231 Old Seward Highway Anchorage, AK. 99502 Work Performed Under Direction of: (Organization) Pat Woodell (907) 561-7877 Department of Commerce & Econonmic Development Alaska Power Authority 701 E. Tudor Rd., Anchorage, AK 99503 it T f i “Walley Sawmill Residue Utilization Study Principal Investigator, Affiliation, Phone Number - Pat Woodell, Development Specialist Alaska Power Authority, (907) 561-7877 | Obligated U.S. DOE Fiscal Year Bs $23,757 | Cumulative U.S. DOE Funding Through Fiscal Year ——— a $23 ,757 Funding Work Location (Site or Facility) Matching Funds through Fiscal Year ar Anchorage, Alaska Source: Valley Sawmill . Amount: $16,400 Period of Contract or Project Performance Jan 24 - August 18, 1985 Contract Number DE-FG79-84BP14984, M002 Rationale, Objectives, Approach, Status, Future Efforts, Publications Rationale: The Valley Sawmill cuts about one million board feet of logs per year. It manufactures rough, green dimension lumber and timbers. Residue accumulation from this operation results in an accumulation of wood residue and creates a costly solid waste disposal problem. Objectives: To measure, model, produce, and market fuel wood. Approach: Residue by-products will be modeled to predict types and amounts of waste wood. Marketing research will suggest volumes and prices of consumer-preferred fuelwood. Product specifications will be written and wood manufactured for market testing. Status: "Manufacture of Fuelwood" -- Milestone 4 -- was completed on schedule in early December. This interim report evaluated waste wood product specifications that were developed based on the project's recent marketing survey. The evaluation of manufactured products from sawmill wastes included an analysis of residue processing costs. Trim ends, slabs and stickers, woodchips, wood shavings and firewood bundles were evaluated. The cost of manufacturing products was the only section of this report we commented on. It appeared that overhead costs were not included in the profit and loss analysis. The sub-contractor noted that he looked at four types of accounting methods when he examined labor and equipment costs on The Valley Sawmill's books. None of these methods appeared to fit in with the sawmill's method of recordkeeping. To round out the final report, the sub-contractor agreed to provide a few paragraphs of explanation on how profit and loss figures for production were developed. In early December we approved The Valley Sawmill's outline for the final report. We agreed that the report would -- in part -- have a "handbook" focus, to provide useful information on small sawmill production economics and marketing for other smal] sawmill owners. The sub-contractor hired a forester to review the final report for clarity and direction towards the target audience. (Continued on next page) Prepared by Pat Woodell, Development Specialist December 31, 1985 477/2 139 Valley Sawmill .....Continued Future Efforts: Submission of draft and final reports. Publications: "Small Sawmill Residue Utilization Study" due on December 31, 1985. 477/3 140 Lvl Legend: work complete to date: time remaining to complete milestone: (First of the month, 1984/85/86) Oct. Nov. Dec. Jan. Feb. MILESTONE NUMBER 1: Mill Study X Xx 2: Predictive Model X X 3-1: Market Questionnaire Development and List of Wood Sales Outlets X 3-2: Analysis of Questionnaire Data and Fuelwood Product Specifications 4: Manufacture of Fuelwood 5: Final Report Draft Final Revised 12/31/85 THE VALLEY SAWMILL Mar. Contract Approval Date: 9/28/84 Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. X X X X X Xe X X Research Area: REGIONAL Subprogram: PACIFIC NORTHWEST & ALASKA Contractor and Address | Tile Feasibility Study of Charcoal Theodore G. Smith Production & Electrical Co-gen | Resource Managenent _ Prine SE ARTE BREA EBE cial ist i We ooee Alaska Power Authority (907) 561-7877 —Witlow,AK Work Performed Under Direction of: (Organization) Obligated U.S. DOE Fiscal Year __ 83 Funding Pat Woodell (907) 561-7877 $13,200 Department of Commerce and Economic Cumulative U.S. DOE Funding Through Fiscal Year 84 Development, Alaska Power Authority $13,200 —701 Tudor Rd, Anchorage, AK > Work Location (Site or Facility) Matching Funds through Fiscal Year 84 . Source: Theodore G. Smith Willow, Alaska Amount: ¢9 999 Period of Contract or Project Performance Contract Number Oct. 16, 1984 - Nov. 15, 1985 DE-FG79-84BP 14984, M002 Rationale, Objectives, Approach, Status, Future Efforts, Publications Rationale: To develop a prospectus for establishment of a charcoal manufacturing facility. Objectives: To examine the utilization of waste or non-merchantable wood fram land clearing or logging operations, to determine the possibility of generating electri- city as a by-product, and to find potential marketing outlets for charcoal. Approach: Prospectus will be developed from a feasibility study which calculates wood volume in the Matanuska-Susitna area, examines manufacturing and equipment costs and performs a marketing survey to determine product forms and outlets for charcoal. Status: The draft and final report for this project were completed on schedule. After reviewing the draft, we made several organizational changes in the format and rewrote portions of the summary. While qualitative analysis of the in-state charcoal market is weak, the report provides a good summary on transportation and marketing factors affecting Pacific Rim export. In the plant and equipment area, future investors should examine the economics of a smaller plant -- preferably geared to 2,000 ton per year output. Consideration should also be given to siting near a sawmill to improve the econo- mics of supply. A copy of the final report is enclosed for your files. Distribution to the State Depository Library System has been completed (20 libraries statewide). Final payment to the contractor has been made, and accounts have been closed. Future Efforts: Project complete. No further reports on this project will be forthcoming. Publications: "Alaska Charcoal Production Feasibility Study", Theodore G. Smith; Willow, Alaska; November 1985. Prepared by Pat Woodell, Development Specialist December 31, 1985 477/1 442 evl Legend: work complete to date: time remaining to complete milestone: (1984/85 dates) 10/16 =-11/16 MILESTONE NUMBER 1: Approval of Subcontract Xx Xx 2: Raw Material Assessment Xx 3: Market Study 4: Development of Manufacturing Costs; Site Selection 5: Final Report Draft Final Revised 12/31/85 12/16 RESOURCE MANAGEMENT Contract Approval Date: 10/16/84 1/16 2/16 3/16 4/1 4/16 5/16 6/16 7/16 8/16 9/16 10/16 11/15 Research Area: REGIONAL Subprogram: PACIFIC NORTHWEST & ALASKA wisainit erald uay » Environmental Engineer | TB pen Burn Modeling for the Upper Cook era Division of Environmental Quality MELO e CN BaSi TMM rea} of Environmental Conservatiopyincipal investigator, Attiliation, Phone Number ouc _.___ Juneau, Alaska 99811 Gerald Guay (907) 465-2666 __ Work Performed Under Direction of: (Organization) Obligated U.S. DOE Fiscal Year 85 Funding Pat Woodell (907) 561-7877 £11,836 .40 Department of Commerce and Economic 35 Development, Alaska Power Authori ty | Cumulative U.S. DOE Funding Through Fiscal Year OY 701 E. Tudor Rd., Anchorage, AK 99504 $11,836.40 Work Location (Site or Facility) Matching Funds through Fiscal Year 85 Source: State Matching Funds EPA Anchorage, Alaska Amount: $15,000.00 25,000 Period of Contract or Project Performance Contract Number April - December 1986 DE-FG79-84BP 14984, M002 Rationale, Objectives, Approach, Status, Future Efforts, Publications RATIONALE: Removal of forest biomass through open burns has long been the accepted method of slash disposal. During the past 5 years an increased emphasis on wildlife habitats and agricultural development in southcentral Alaska have caused the number of large scale, open burns within 150 miles of Anchorage to increase significantly. This trend will continue for at least the next 10 years, as presently scheduled land lot- teries and agricultural projects occur. OBJECTIVES: To evaluate and tailor an existing air pollution dispersion model to serve as the basis for a control strategy to manage large scale, open burns in the Upper Cook Inlet Basin and other interior Alaska locations. APPROACH: This project will be jointly supported by EPA Region 10. Prior to the beginning of spring burns, equipment sites will be selected and a monitoring network installed throughout the Upper Cook Inlet Basin area. Ambient air quality field monitoring will take place over the months when large scale burning normally occurs. Emissions monitoring will also take place at the burn site. Data analysis, dispersion model analyses and selection or optimization of the preferred model will follow. STATUS: State match funding for this project has been approved. Project initiation depends upon approval of EPA matching funds. EPA Region 10 is currently completing an evaluation of region-wide funding requests, and will make a decision in January, 1986. A copy of the proposal is included for your information.* FUTURE EFFORTS: Upon approval of EPA funding, a Reimbursable Services Agreement between Department of Environmental Conservation and Alaska Power Authority will be completed. Alaska Power Authority will develop a Request for Proposal to complete services described above. PUBLICATIONS: A report titled " Open burn Modeling for the Upper Cook Inlet Basin" will be completed at the conclusion of this project. * Bonneville Power Administration copy of the quarterly report contains this proposal. i Available to others upon request. Prepared by Pat Woodell, Development Specialist December 31, 1985 144 2381/524/1 i Research Area: REGIONAL Subprogram: PACIFIC NORTHWEST & ALASKA Contragtoy anc ACERS production Manager T'paimer Correctional Center Wood- Alaska Correctional Industries Fired Greenhouse P.O. Box 919 Palmer, Alaska 99645 (907) 745-5054 ae Moodat Ts “Kesha Boner’ Rethori ty a <7 561-787? - woe aE Woodell Toor) SeleyerT ome SCO te sce! Year Sane Department of Commerce and Economic Development, Alaska Power Authority Cumulative U.S. DOE Funding Through Fiscal Year «85 701 E. Tudor Rd., Anchorage, AK 99503 $5,000.00 “85 Work Lo} S imental neta ated PORT ract OY state Matching funds Anchorage, Alaska Amount: $8,0000 (Minimum) Period of Contract or Project Performance Convact November 1985 - February 1986 | DE- FG79~ *84BP14984, moo2 Rationale, Objectives, Approach, Status, Future Efforts, Publications RATIONALE: There is strong potential for the commercial use of waste wood for energy in the Matanuska-Susitna Valley. Large clearing sites are located in the area, containing tons of potential biomass. The Palmer Correctional Center in Sutton, Alaska, currently heats its facility with oi] and electricity. The installation of a wood-fired heating system for the agricultural complex will help to offset -- or entirely avoid -- current oil heating costs. In recent years, no small-commercial, wood-fired system has been installed in a state institution in Alaska. This project will provide a local example of system performance. OBJECTIVES: 1. To promote the use of wastewood in an institutional facility. 2. To evaluate the operating parameters of a wood-fired system in an arctic, greenhouse application. 3. To determine comparative annual costs of heating with oi] versus 0i1/wood combination for the agricultural complex. APPROACH: The agricultural complex at the Correctional Center contains two greenhouses and a shop/office area. The wood-fired, hot water system will be linked with the existing oi] boiler, and the combined distribution system will service the entire complex. Data will be gathered on temperatures, fuel use, workability of system configuration (storage, handling, distribution), operations, and maintenance costs associated with the project. Data will provide a basis for design decisions in future institutional applications. STATUS: Reimbursable Services Agreement between Alaska Power Authority and Department of Corrections currently in process. FUTURE EFFORTS: Upon approval of Office of Management and Budget, project will begin. PUBLICATIONS: Alaska Department of Corrections Wood-Fired Greenhouse. ATaska Correctional Industries, Agriculture; Palmer Correctional Center, Sutton, Alaska. To be published. Prepared by Pat Woodell, Development Specialist December 31, 1985 2381/524/6 145 Research Area: REGIONAL Subprogram: PACIFIC NORTHWEST & ALASKA Contractor and Address Mike Peacock Alaska Department of Natural Resources Division of Forestry, State Office Pouch 7-005 | Title Biomass Inventory and Disposal Costs on State Agricultural Lands Pri , Affiliation, Phone N neem ke | macock init) sion ‘OF Forestry (907) 561-2020 Work Portontied Under Direction of: (Organization) Pat Woodell (907) 561-7877 Department of Commerce and Economic Development, Alaska Power Authority 701 E. Tudor Rd., Anchorage, AK 99503 Work Location (Site or Facility) Anchorage, Alaska Obligated U.S. DOE Fiscal Year 85s Funding $20 ,081.00 Cumulative U.S. DOE Funding Through Fiscal Year 85 $20 ,081.00 Matching Funds through Fiscal Year 85 _ Source: : aca Contractor, State Matching Funds Period of Contract or Project Performance January - September 30, 1986 Contract Number DE-FG79-84BP 14984, M002 Rationale, Objectives, Approach, Status, Future Efforts, Publications RATIONALE: The State's agricultural, opportunity for the use of wood residue. In the future, 245,000 acres are slated for In the past, the primary method of biomass disposal has been controgled or Because of environmental concerns and a desire for wise resource 170,000 acres of agricultural land. disposal. uncontrolled fire. land disposal program presents a promising Since 1978, the State has disposed of use, the Department of Natural Resources will explore alternatives to burning. OBJECTIVES: This project has five main objectives: 1. To quantify biomass on proposed and disposed agricultural lands. 2. To establish a cost center that can be used in economic analysis of large-scale clearing projects. 3. To compare fire as a biomass disposal method with other methods of forest biomass disposal (to provide incentive for rechanneling money spent on fire into investment in a permanent wood-use industry). 4. To provide a decision matrix for state administrators on cost considerations associated with biomass disposal. The purpose of this is to provide a basis for making reasonable requirements on clearing projects such as rights-of-way, schools, or public buildings. 5. To improve the air quality and visibility by providing environmentally-sound alternatives to open burning of woodwaste. APPROACH: cost for agricultural lands. will be made, based on available inventory data. developed for each biomass unit (acres, tons). First, state fire records will be audited to develop a wildfire suppression Biomass estimates for existing agricultural projects Cost of fire suppression will be Cost information will be applied to future projects, and cost comparisons will be made between disposal by fire or dis- posal by alternative methods. removal costs will be made. Prepared by Pat Woodell, Consideration of project location as it affects biomass Development Specialist December 31, 1985 2381/524/2 146 Biomass Inventory.....Continued STATUS: A Reimbursable Services Agreement between Alaska Power Authority and Division of Forestry is currently in process. A copy of the Division of Forestry Proposal is enclosed for your information.* FUTURE EFFORTS: Project will commence upon approval of State Office of Management and Budget approval. PUBLICATIONS: "Biomass Inventory and Disposal Costs on State Agricultural Lands" -- to be available September 30, 1986. * Bonneville Power Administration copy of the quarterly report contains this Proposal. Available to others upon request. 2381/524/3 147 Research Area: REGIONAL Subprogram: PACIFIC NORTHWEST & ALASKA _Contragtps and pe? chmond ee Estimation of Potential Timber Volume School of Agriculture & Land Resources| in the Tanana Valley Available for Conver- University of Alaska, Fairbanks PrinthalinvOstQQe atglibRor, 303 O'Neil] Building. | Papelera P8395 "4997079 Fairbanks, Alaska 99775-0100 George Sampson (907) 474-7271 Work Performed Under Direction of: (Organization) : onto 38 0 Fiscal Year 85 Funding Pat Woodell (907) 561-7877 Department of Commerce and Economic Development, Alaska Power Authority | Cumulative U.S. DOE Funding Through Fiscal Year 85. 701 E. Tudor Rd., Anchorage, AK 9950 $17 ,588 .00 Work Location (Site or Facilit Matching Funds through F 85 ‘ — a Source: aa Tniv. "OF Alaska/US Forest Serv. Anchorage, Alaska Amount: $24,223.00/$6 ,500.00 Period of Contract or Project Performance Contract Number March - November 1986 DE-FG79-84BP14984, moo2 Rationale, Objectives, Approach, Status, Future Efforts, Publications RATIONALE: Over the past two years, the University of Alaska and the U.S. Forest Service have been working to evaluate the feasibility of burning wood chips mixture with coal at power generating stations in the Fairbanks area. Long term feasibility of burning wood chips depends on whether there is enought Interior Alaskan timber to supply power generators with a guaranteed, minimum, annual volume. present, there is no summary of the total volume of timber available on the land ownerships of interest to this evaluation. OBJECTIVES: This project has three objectives: 1. To determine the volume of various timber species available for chipping in the Fairbanks, Delta Junction and Nenana areas on a sustained annual basis. 2. To estimate the cost of harvesting and delivering wood chips from these lands to concentration points in Fairbanks, Delta Junction and Nenana. 3. To determine the feasibility of harvesting the estimated volume based on manage- ment constraints, costs, volumes per acre and accessibility. APPROACH: Forested land in the following categories will be included in biomass estimates: Tanana Valley State Forest (1.7 million acres), military (250,000 acres), Native (33,000), and agricultural disposals (192,000). Estimates of total volume available for chipping will include hardwood and softwood timber in three stand classes: sapling, pole and saw timber. Logging residue will be determined by line transect analysis of a minimum of 3 timber sales completed during 1985. BTU loss to decay will be estimated by comparing residues on the sales with values for older residues and green timber. Samples will be analyzed using a "Bomb" calorimeter. Estimation of volumes present in sapling, pole and saw timber stands will be achieved through the analysis of existing inventory data and the collection of additional data. Estimation of delivered price for woodchips will be determined based on harvesting Prepared by Pat Woodell, Development Specialist December 31, 1985 2381/524/4 148 cost information presently available in Fairbanks and it's comparison with U.S. wide and Canadian harvesting costs. STATUS: Reimbursable Services Agreement between University of Alaska and Alaska Power Authority circulating for approval signatures. A copy of the University's proposal is enclosed for your information.* FUTURE EFFORTS: Project will commence March 1, 1986. PUBLICATIONS: "Estimation of Potential Timber Volume in the Tanana Valley Available for Conversion to Wood Chip Fuel" -- to be available November 30, 1986. * Bonneville Power Administration copy of the quarterly report contains this proposal. Available to others upon request. 2381/524/5 149 APPENDIX K RATES FOR REGULATED UTILITIES APPENDIX K. RATES FOR REGULATED UTILITIES The Alaska Public Utilities Commission publishes electrical utility rates for the 33 regulated utilities in Alaska. This section indicates those rates in effect as of November 9, 1985. Each utility is listed in Alphabetical Order. 153 RATES FOR REGULATED UTILITIES AS OF NOVEMBER 8, 1985 ' ' ' t TENERGY {RATE tKWHL 4TH: (c/ KWH) | BLOCK 14TH BLK ' ' RATE (c/KWH) SRD BLK i | RATE ENERGY 1 ! 1 1 BLOCK 12ND BLK; BLOCK RATE 1ST BLK ' i 1 ‘ 1 1 1 1 KWH STI (c/KWH) (KWH QND! (c/KWH) {KWH SRD BLOCK ENERGY 1 i ! i 1 i 1 i 1 ' RATE SCHEDULE EFF DATE 1 SRCHRE 1 CREDIT 1 (c/KWH) (c/KWH) tEFF DATE AREAS SERVED UTILITY ALL KW @ $5.48 ALL KW @ $3.29 ' i ! ' ' 1 1 1 1 i 1 1 1 i 1 ' ' i ' i 1 1 ' ' 1 i ' i 1 1 ! ' 1 i 1 1 ' ' ' ' ' i 1 ‘ ' ' ! 1 1 i 1 i ' i ' 1 ' i ' i ' 1 +} W/DEMAND METERING 3/9/85 CHE 00 PEAK SEASON HAY) PEAK SEASON JUN-0CT) RES. W/HOT tWTR. HIR. 1 ' 1 ' 1 1 ! ' 1 ' 1 1 1 i 1 1 1 1 1 i ' 1 ! ' 1 i ! ‘ ' i 1 ' 154 RATES FOR REGULATED UTILITIES AS OF NOVEMBER 8, 1985 1 1 ! 1 ' 1 1 ' 1 1 1 1 ' ' i ' ‘ ' ' ' ' ' 1 ' i 4TH BLK KWH 4THI (c/KWH) ‘ ' (c/KWH) BLOCK 13RD BLK ENERGY | RATE {ENERGY | RATE RATE | tKWA SRD: 2ND BLK: 1 ‘ ' ‘ ' ‘ 1 1 ' i ! t ' i 1 ' ' i ' ' ' 1 ' ' 1 i 1 1 ' i ' i ‘ i 1 ‘ 1 ‘ 1 i 1 1 1 1 1 i 1 ' 1 ‘ ! ' ' 1 1 ' ' i 1 1 1 1 1 ' i 1 i 1 1 1 1 KWH 2NDi (c/KWH) BLOCK RATE {ENERGY 1 i ' ' 1 ' 1 i 1 1 ! i 1 i 1 ' 1 1 1 ' 1 ' 1 1 1 ' 1 ' C ' ' t i i 1 i 1 i ' ' ! i ' 1 ! 1 1 1 1 t 1 ' 1 i 1 1 1 1 ' 1 1 i ' 1 ' ' 1 1 1 1 1 i 1 i KWH IST! (c/KHH) RATE — {ENERGY BLOCK 1 i ' 1 + SRCHRG t CREDIT i(c/KWH) { PCE (c/KWH) {EFF DATE! EFF DATE | BLOCK {1ST BLK 1 1 ' ' ' 1 ' ' ! ' 1 i 1 ' 1 1 1 ' 1 1 ‘ i ' i ! ' ' ! ' i 1 i ' ' ' i 1 i ' i 1 i ' 1 ' ' ' ' ' ‘ ' 1 ' 1 ' 1 ! i 1 ' ' 1 ' i 1 i ' 1 ' ' 1 ' 1 ' ' ' ! ' ' 1 1 1 1 1 1 1 1 1 1 t 1 1 1 ‘ 1 ' 1 ' 2222285 gdsbegs a8? f3 1 1 1 1 1 1 ' 1 1 ' 1 1 1 1 1 i 1 1 1 i 1 1 1 ' 1 t i ! ‘ ' i ! ' i i ! ! : i 1 ' 1 ' ' 4 ' ' ' ' ' i 1 ' 1 i ' i 1 ' 1 1 1 1 1 i 1 1 1 1 1 1 1 1 1 ‘ 1 i 1 ‘ 1 ' 1 ' 1 ' 1 1 1 1 1 i 1 ‘ 1 1 1 i 155 RATES FOR REGULATED UTILITIES AS OF NOVEMBER 8, 1985 DEMAND CHARGE RATE (c/KWH) 4TH BLK ' ' ' 1 ' ' 1 1 1 1 ' ' 4 ' 1 ' 1 ! ' ' ' ' ' 1 ' ' i i ' 1 ' 1 1 1 ' ' 1 1 1 ' ' i 1 1 1 ' 1 ‘ 1 1 ! ' 1 t ’ ' ENERGY KWH 4TH (c/w) BLOCK {3RD BLKi BLOCK ENERGY | RATE KWH OND: (c/KWH) BLOCK {2ND BLK ENERGY | RATE ENERGY | RATE | KWH IST! (c/KWH) | BLOCK {1ST BLKi 1 ' eae i RATE EFF DATE SRCHRG (c/KWH) (c/KWH) (EFF DATE i 1 1 ' PCE CREDIT (CONTINUED) : OFF-PEAK | ALL LE L ' ' ' ' i ' ' t ' 1 1 1 ' ' ‘ ' ' ’ i 1 ‘ 4 1 1 1 1 ‘ 1 1 ' 1 1 i 1 ' 4 1 ' ' SEASON JUN-OCT) SMALL: COMMERCIAL ALL ELEC W/O DEMAND METERING 156 RATES FOR REGULATED UTILITIES AS OF NOVEMBER 8, 1985 (c/KWH) 4TH BLKi ' ' 1 1 1 1 1 ‘ 1 1 RATE | DEMAND CHARGE RATE ‘ENERGY {| RATE {ENERGY | RATE {ENERGY (c/KWH) {KWH 2ND! (c/KWH) {KWH SRD! (c/KW) KWH 4TH 1 1 1 1 i 1 i i IST BLKi BLOCK {2ND BLK: BLOCK 13RD BLK} BLOCK 1 i 1 1 1 1 ' ' ' ! ' 1 ! ' ! i ' ' r ' 1 1 1 t 1 ‘ 1 i 1 ' 1 i ' i ' i 1 1 ' i ! i ENERGY BLOCK RATE (c/KWH) | SCHEDULE iXWH IST EFF DATE i SHALL 11/1/85. i COMMERCIAL ra a i | ' 1 1 ' 1 i 1 t 1 i ' t 1 ' METERING 1/0 DEMAND! 1 i 1 METERING + ALL ELEC. 1 W/DEMAND RATES FOR REGULATED UTILITIES AS OF NOVEMBER §, 1995 DEMAND CHARGE ALL KW @ $4.17 TALL KW @ $5.57 RATE KWH SRDi (c/KWH) KWH ATHY (c/KUH) 4TH BLK TENERGY BLOCK RD BLK RATE 3 ENERGY BLOCK 1 i ! i ! 1 1 i ENERGY | RATE ENERGY 1 RATE RATE (c/KHH) + SCHEDULE IKWH 1ST! (c/XWH) EFF DATE: EFF DATE BLOCK 12ND BLK KWH NDI (c/ KWH) 4.35 4.35 M4 3.83 457 ' i ' ' 1 i 1 i t 1 1 1 ' 1 1 i 1 ' 1 i 1 i 1 ' 1 i 1 i 1 ' 1 i ' 1 1 i ! i 1 ' ' ' ' i : 1 1 t 1 i ' ' 1 1 1 1 ALL ALL BLOCK {1ST BLK ALL ALL “PEAK | PEAK SEASON 1 (JUN-0CT) LARGE COMMERCTAL SEASON (NOV-HAY) PEAK TIBLE t ELECTRIC HEAT 1 8/9/85 MFG $ PRO- SEASON t(JUN-OCT) LINTERRUP- 1 i 1 ' i 1 1 1 8/9/85} CUST. CHG. $80.00 PEAK SEASON T(NOV-HAY) | SRCHRG 0 1.34 11/1/85 1 CESSING | ' t ! i ' ' ' i ' i ' I ' i 1 1 1 1 1 i 1 1 1 1 1 1 i 1 ' ' 1 ' 1 ' 1 ' 1 ' ' ' ' i ' 1 ' i ' ' ' ' ' 1 ' 1 ' 1 ' i 1 ' 1 ' ! i 1 i 1 1! 1 1 ' 1 t 1 ' ! ' ' ' ' ' ' 1 ' t 1 1 1 t t ‘ 1 1 ' i 1 1 ! i ! ' 1 1 1 ' ' i ' ‘ 1 i 1 1 1 ' 1 ‘ 1 1 CREDIT (c/KWH) | —— SS Qa 1 Se | Sa | | | ' RATES FOR REGULATED UTILITIES AS OF NOVEMBER 8, 1985 DEMAND CHARGE (c/ KWH) 4TH BLK RATE {ENERGY | RATE (c/KWH) {KWH 4TH} | BLOCK | ins BLOCK 13RD BLK 1 1 ' ' 1 RD ENERGY 3 (c/KWH) KWH 2ND BLK ENERGY i RATE KWH OND 1 i 1 ' 1 ' 1 2.74 RATE (c/KWH) BLOCK !1ST BLK} BLOCK 1 ' 1 i 1 i ENERGY KWH IST EFF DATE RATE SCHEDULE ! ' i 1 1 ' ' i SRCHRGE (c/KWH) i EFF DATE PCE i CREDIT 1 (c/KNH) TALL KW # $6.70 ' ! ' i i ' ' i ALL ! ' PEAK i ' i 134 i11/1/85 {SEASON ALL KW @ $4.10 18.01 13.66 1 15.83 | OVER 60 ALL KW @ $130.14 ' ' i ' i i 1 ' 1 1 1 1 ' ! ‘ ' i 1 ' 1 i ' 1 ! t RESIDEN- ; 40 1.93 10/20/85 TIAL & TCOMMERCIAL ¢ ' 1 6/11/85 aye iBULK POWER: 1.93 10/20/85; ' ' t 1 ' i ! 1 ' ' ! t ' 1 ' 1 ' 1 ‘ ' 7.03 11/8/85 5.09 1/8/85 ' ' ' t ' i 1 1 ! i 1 1 ' 1 ' i 1 ‘ ' ' ' ' ' 1 1 ‘ i ' i ! i ! ‘ ' 1 ' 1 RATES 6/1/85 | 1 ‘ i i 1 1 ! i 1 ‘ 1 ' 1 i ! ‘ ' ' 1 ' i ‘ 1 i ' 1 19.21 100} "21.80 | WER $19.21 O 4 (4 i ' 1 — + 24.40 40 RESTDEN- TIAL & 1.40 1 9/20/85 HYDABURG ' ' 10/25/85: O/1/8S COMMERCIAL | TALL KW @ $155.01 1 15.31 'BULK POWER! ALL 1.40 80 10/25/85i9/20/85 | RATES 1 10.49 1 1 1 6/11/85 $ SKAGHAY 43 5.13 111/8/85 110/20/85; TIAL & | BULK POWER 11/8/85 110/20/85i RATES COMMERCTAL + 6/1/85 43 1 t 1 ' ' 1 i i 1.31 100 6/11/85 ' ' ' 21.01} 100 RESIDEN- TIAL & iCOMMERCIAL i 931 1 145 4 i i 1TOK APaT (CONTINUED) !DOT LAKE 1 ' 1 i 1 6/11/85 11/8/85; 10/20/85 BULK POWER: ‘ i ' i 1.45 11/8/85. {10/20/85 ’ ! RATES 1 6/11/85 TIAL 3/1/78 11/8/85 10/15/85: 1 ' ' 1 AK VILLAGE | 48 VILLAGES { 29.69 | 6.95 | RESIDE { ALL C0-P, INC. (avec) ELECTRIC DEMAND CHARGE ) BLK 4TH ’ ' TENERGY | RATE KWH ATHY (c/Ai BLOCK ’ i (c/KWH) TENERGY | RATE 1 ' 1 1 ENERGY | RATE (c/KHH) KKH ND! (c/ KH) {KN SRD IST BLK} BLOCK 2ND BLK; BLOCK {SRD BLK TENERGY | RATE KWH IST E RATE ! : ' ' 1 ' 1 ' SRCHRG (c/KWH) RATES FOR REGULATED UTILITIES AS QF NOVEMBER 8, 1985 (c/XWH) {EFF DATE! EFF DATE | BLOCK ' ! ' 1 ' ' 1 ' PCE CREDIT ’ ' t ' 1 ' ! ! ' ‘ SERVED AREAS ' ' ' ' ' ‘ ' 1 ' 1 ' ! 5 ' 1 ‘ ' ‘ ' ' ' UTILITY tIST 100 KW @ $10.00 TOVER 10 KW @ $10/KW TOVER 100 KW @ $5.00 | 4.20 ' ' ' ALL 2 ae ALL are 1 ' ' i ! ' ' t ' t ' ! ' ' It ' ' ' i i i ! 1 1 1 ! ! 1 1 i 3/1/78 TIAL 10/17/84 SEASONAL | RESIDER- | TIAL & ICOMMERCIAL | 10/17/; TIAL & 10/17/84 TIBLE COMMERCIAL | RESIDEN- | 1 10/17/84 SHALL COMMERCIAL { RESIDEN- | 200 1 15.00; 300 1 12.0 ! + 10/6/75 1 i {COMMERCIAL aL SERVICES t 10/17/84 | STANDBY RESIDEN- TIAL & iCOHMERCTAL | ‘ 1 1 1 1 1 1 1 1 1 ! ! 1 i ' i ' ' ! ' 1 1 ‘ ! ‘ ' 4 1 t ' ' 6.95 10/15/85 2.50 6/1/85 S| (3.00) | RESIDEN- 17/26/85 + 7/1/85 | 29.69 11/8/85 a ANTAK ANIAK LIGHT! & POWER AVEC (CONTINUED) INC. (AUT) 160 RATES FOR REGULATED UTILITIES AS OF NOVEMBER 8, 1985 1 i YENERGY { RATE iENERGY | RATE {ENERGY | RATE iENERGY (c/KWH) | SCHEDULE {KWH 1ST! (c/KWH) DEMAND CHARGE RATE 4TH BLK BLOCK KWH SRD! (c/KWH)1KWH 4TH! (c/KHH) 200 | 18.0 BLOCK 12ND BLK} BLOCK {3RD BLK KWH ND! (c/KWH) BLOCK {1ST BLK RESIDEN- i; SO ' 1 ' i RATE EFF DATE SRCHRG EFF DATE 1 2.851 PCE CREDIT (c/KWH) 1 1 1 1 1 1 1 ‘ 3.5 1 OVER 1.60 2 é 6 B io, B ba a is vg xZ eS a = iB a 1oo iP a ' ' { le 13 z ie 3 1a ie3 250 TIAL 1/1/82 10/1/85 STH ENERGY BLOCK COMMERCIAL! 50 VOVER 25,000 # 13.0 CENTS/ KWH 1 ' ' i ! i 50,000 | 12.2 150,000 1 11.9 STH ENERGY BLOCK 1000 + 12.5 50,000 + 13.00 ; BULK PRIME: ' t ' i t ' ‘ ' ' ' 1 i ' ‘ 1000 @ 11.5 CENTS 1 i ' ' 1000 @ 11.2 CENTS 000 @ 10.7 CENTS 6TH ENERGY BLOCK STH ENERGY BLOCK 1OVER 350,000 # 17TH ENERGY BLOCK 110.4 CENTS (2.7 TALL KW @ $7.93 10/1/85 | SERVICE RESIDEN- 10/7/85 1CUST. CHE. 30.51 TOVER 10 KW NEI | SERVICE ELECTRIC i KENAT LAKE ASSN., INC.; MOOSE PASS (CHGACH) | WHITTIER 161 DEMAND CHARGE iMATANUSKA ELECTRIC ASSN. $14.73 4TH BLK RATE KWH ATH (c/KWH) | ENERGY BLOCK (c/KWH) BLOCK {28D BLK ENERGY | RATE RD 3 KWH ' ‘ ' ' 1 ' 1 ' ND BLK TENERGY { RATE KWH ND! (c/ KWH) BLOCK 1 1 1 ' ' ‘ i i 1 ' ' ' ' ' t ' ' ' ' (c/KHH) IST BLK 1.06 ' ' 1 ‘ ' i ' ' 1 ENERGY | RATE BLOCK “AL KWH IST 4 ‘ 1 1 1 1 i ' 1 ' RATE SCHEDULE SALES FOR 1 i ' ' 1 ' 1 i 017 RATES FOR REGULATED UTILITIES AS OF NOVEMBER 8, 1985 10/1/85 | RESALE ! ' (c/*WH) (c/KWH) {EFF DATE! EFF DATE 1 SRCHRG | CREDIT PCE SERVED tHOMER ELECTRIC ASSN. ($14.23 - CITY OF SEWARD $12.10 ALL XW @ $8.00 1 1 ! ! 1 ‘ 1 i ' i 1 i 7.0 16.0 1 1 1 ' ' i 1 ' i i ' 1 1 1 ' i ' ' ' ‘ 1 i ' t ' ' ' ' ' ' ' ' ' ! i ! ! ' ' ' ' ' ' ! 400 J “OVER 140,000 18.9 18.9 ' ' ' ' ' t ' 1 ' ' i ' i ' ' 1 ' ‘ ' ' ' ' ' 1 1 tAPPLI- CABLE iCOHMER-{ CTAL RATE PLUS 1$10/KVAt 5 :000 ALL 1,500. ' 1 ' I ! 1 1 ' ! 1 1 ' ' 1 ' ' 10/7/85 132.8 | CUST.. CHG. | RESIDEN- | 400 TIAL 18/23/85 | COMMERCIA! {.39) ' i ' ' i ' i ' 1 ' ' 1! ' ' ' 1 i 1 ‘ 1 i 1 1 ' ' ' 1 1 1 1 ' ' i ' i ' i ' ' ! 1 1 ‘ "OE (39) | RESTDEN= 600 9/25/85 ' ' ' ‘ ' ' 162 RATES FOR REGULATED UTILITIES AS OF NOVEMBER 9, 1985 DEMAND CHARGE (CAPM) ' i ' i ' ' ' ! ' ! ' ' ' ' ' ' ' ' i 1 i \ i ' ! ' ' \ i ' \ t ' ' \ ' 4TH BLK ' ' ' ' ' HENERGY | RATE i BLOCK SWH 4TH ' i 1 ' ' ' 1 ! ’ 1 ' ' ' ' ! I ' ' ' ' ' i RATE {c/KuH) SRD BLK 1 tI 1 ' 1 i ' 1 ERGY iwH SRD BLOCK waz [0 | a aa ar apr pc pc ce ae ee a Bas | Is =e = | ee Se we |SYSouee z 3 ee eae a Se JESRSs53 = — . . | —le o_ — = === —= wy 2 wy bae8s jgysgeeks aoe B58 og oP og= Bbsesse5 EFF DATE: EFF DATE (.39) 1 STANDBY 8/23/85 | SERVICE SRCHRG CREDIT (c/KWH) (c/KWH) ' i ' ' ' ‘ 1 i ' 1 ' i ' ' ' ' i i 1 ! i 1 1 ' ' 1 i 1 ' ' ' ' i i 1 i i ' 1 t i 1 1 1 i 1 i 1 1 1 i i ' 1 1 1 ' ' ' 1 ' ' ' ' ' ' 1 1 1 ' 1 i ' i 1 i ' ' 1 ‘ ' ' 1 i ‘ i 1 i ' i 1 1 ! ! ‘ 1 ! i 1 ' i i ! 1 1 i ' i 1 ' 1 i ' 1 1 1 1 ' ! 1 ' ! i ' i 1 i ' I 1 ' ' 1 ' 1 ' 1 i ' i ' 1 1 ' ' i ' i ' i ! 5 ‘ i 1 ' ! 1 1 1 1 1 1 ' ' ' 1 ' i ' ' ' 1 ' AREAS SERVED TNORTH POLE tHEALY ELECTRIC i NENANA ASSN. , INC.iDELTA JUNCTION UTILITY VALLEY (GVEA) 163 RATES FOR REGULATED UTILITIES AS OF NOVEMBER 8, 1985 1 i 1 DEMAND CHARGE RATE 1 1 1 1 ' RATE ENERGY RATE (ENERGY | RATE ‘ENERGY ENERGY 1 ‘ 1 1 RATE SCHEDULE ' ' ' 1 SRCHRG {c/KWH) (c/KWH) (EFF DATE EFF DATE | BLOCK PCE CREDIT AL iW # $6.25 3.12 {STH EXERGY LOCK ' ' 1 1 ' 1 ' ' ' 1 1! ' ' ' ' ' ' ' ' 1 ‘ ' ' ' 1 ' ' 1 (c/ KWH) 4TH BLK ' i ' i ! i ' 1 ' 1 ' i ' I ' i ! i 1 1 1 1 1 i i 1 1 i 1 1 BLOCK ' ' 1 ' 1 1 1 1 ' ' 1 i 1 i 1 ' 1 ' i ' i ! ‘ 1 i 23.62 38.62 1 1,000 BLOCK 13RD BLK OVER 500 (c/KWH) iKWH SRD! (c/KWH) {KKH 4TH 31.12 ' 1 ' i 4,500} 9.9 (10,000 1 9.34 1 OVER : 7.58 400 1 4611} {KH 240 “400 1 93.60 IST BLKi BLOCK i2ND BLK 11.36 i 46.11 ' 1 1 1 1 ‘ 1 i ' i ’ ' ' ' i ! 1 1 ‘ 1 1 ' 1‘ ' ' 500 100 KWH 1ST{ (c/KHH) 100 1 1 1 ' 1 ' i 10/26/85 + $40.00 TTAL 25 KW 9/21/82 1CUST. CHG. RESIDEN- COMMERCIAL | GENERAL | SERVICE tEXCEEDING 1 1 ' t i ! ' i ' 1 ' ' ' ' 1 ' 1 ' ' 1 ! ' 1 1.463 (10/20/34; 10/26/83 1 21.27 (CONTINUED) | QVER 2,000 @ 23.13 1CENTS & GOV. 10/26/83 1 i ' ' 1 ' ' ' 1 1 t | OVER 117.1 ' i 625 3 26. 100} 1 (1.1L) 1 RESIDEN- 1 6.31 14/20/85 | 1 i 0561 1 i HAINES 725 6/14/85 OVER 25 KW @ $2.20 OVER 1 ' 54,500 | 16.2 GWITCHYAA i FART YUKON ! ' 1 \ ' ' ' 1 ' 1 { ' i 000 16.1 | OVER 1 3,500 17.1 | OVER | 15 ‘ ' 1 i 1 1 1 1 625 1000 32.8 | 3,400 1 26.3 100 1 i NINILCHIK SOLDOTNA STERLING KENAT ! I ' ' ' ' ! i (HEA) ASSH., INC. OVER 25 KW @ $4.29 RATES FOR REGULATED UTILITIES AS OF NOVEMBER 8, 1985 (c/KWH) 4TH BLK ' 1 ' i 1 1 ' ' ' ' ' ' ' ' ' ' ' i 1 ' ! ' = 5 & wo 6 ENERGY | RATE {ENERGY | RATE {ENERGY | RATE {ENERGY | RATE | CREDIT i(c/KWH) | SCHEDULE iKWH 1ST} (c/KWH) {KWH 2ND!(c/KWH) i KWH SRD! (c/KWH) iKWH 4TH i(c/KWH) iEFF DATE: EFF DATE | BLOCK {1ST BLK} BLOCK :2ND BLK’ BLOCK !3RD BLK; BLOCK 1 1 i ! 1 INTERRUP- | ALL 1 i RATE | DUSTRIAL | TIBLE IN- 1 SRCHRG + 9/12/85 ‘ i ' i ' ' ' ' ' 1 ! i ' ' ' 1 i i ' ! ' ' I 1 1 1 ‘ 1 i 1 PCE AREAS 1 SERVED 1 HALIBUT COVE PORT GRAHAM i ! 1 1 ! ! ' 1 ' 1 ' ' ' ' ' ‘ ' ' ' ' ' ' ' ' UTILITY! WE (CONTINUED) OVER 10 kW @ $3.29 ' 1 1 1 1 i COMMERCIAL 2/24/84 RESIDEN- TIL n/ye4 COMMERCIAL 11/1/94 LARGE POWER L/l/s4 NINTERRUP- } ALL! 12.8 TIBLE 11/1/94 ' i ' i ' 1 1 i 1 i 1 1 1 1 1 1 1 ‘ 1 ' 1 1 1 ‘ ' ' ' ' 1 1 ' ' ' ' 1 i ! ' ' 1 1 165 ' | DEMAND CHARGE ' i 21.69 1 RATE 4TH BLK BLOCK 10,000 ENERGY KWH ND! (c/KWH) {KWH SRD} (c/KHH) !KWH 4TH! (c/#WH) 1 ' 1 ' ' ' 1 ' RD BLK 79 + OVER 3 NERGY 1 RATE BLOCK oh naa ' ' ' ! 1 ‘ 2ND BLK 1 ' ‘ ' 1ST BLK} BLOCK i ENERGY | RATE {ENERGY | RATE RATE (c/KWH) | SCHEDULE IXWH IST! (c/KHH) RESIDEN- 1 t 1 i (1.72) 9/13/85 | 7/1/85 | TIAL & RATES FOR REGULATED UTILITIES AS OF NOVEMBER 8, 1985 | SRCHRG | (c/KWH) EFF DATE! EFF DATE : BLOCK CREDIT PCE 1 1.31 AREAS SERVED KOTZEBUE TALL KW @ $3.73 ' ‘ 1 1 ' ' ' ' 1 ' ! ' ' ! ! 1 ' 1 10,000 8.549 1 OVER 1,300 a_i 23.34 1 OVER t 1 I ' ' ! ' i i 1 1 ' ' i 1 1 ' ! 1 ! 1 i ' 1 ' 1 ' i ' i 1 SOUTHWEST REGION SCHOOL DISTRICT 12/11/84 SHALL ICOMMERCTAL t RESIDEN- | ALL TIAL & TIAL i 1/1/82 1 i ' t ' ‘ ' ' ' ‘ 1 i It ' t 1 1 "3.92 | RESIDEN- 3.2 4/1/85 11/8/85 10/10/85; ELECTRIC COOPERATIVE: INC. (LECT) a ee ee Po la= n= a= lnk | iS eS, [aks SSS iS ae aa a le ae eal a al a en ET = ta Log 1 a 3 = Bayes iz # izz222 1s eae ee ee ee aaa te |e | { \ (KOTZEBLE) HANIKOTAK POWER COMPANY (HEA) ~~ (HEA) ASSN., INC. ASSN. , INC. 166 RATES FOR REGULATED UTILITIES AS OF NOVEMBER 8, 1985 ALL KW @ $7.14 DEMAND CHARGE a g 3 = = ig Pa & = 5 STH ENERGY BLOCK OVER 25,000 @ ICONTRACT RATE iCENTS ' ! 1 | { | t ! ' ' t ' | ' { ' ' ' 1 1 ' 1 1 i ' ' ' ' ' i ' i ' ' ' 1 ' 1 1 1 ' ' 1 i 1 ‘ 1 119.32 | OVER ! 15.30 {OVER 10 KW @ $4.00 (c/kWH) KWH 4TH BLOCK 34.2 47H BLK 1 1 1 ' ' ! A 4,500 4.2 122,000 1 52.2 = J SRD BLK 1 36.4 1 i ' 1 1 ' prec Eeoer BLOCK rae IST BLK} BLOCK 12ND BLK 50 “150 300 1 ' 1 1 1 ' 1 ' ' ' ' ' 1 ' ' ' ' ' ' ! ' i ' 1 ! ‘ 1 ' i 1 ' ' i ' 1 ' ' ' ! ! 7.4 3 1 25.77 | i 1 i ' ' 1 ‘ i i ' 1 ' ' ' ' ! ' ! 1 i ‘ 1 1 1 ' i i ' 1 ' 5 ! i ‘ 4 1 ! ' i 1 i 1 t 1 ' 1 1 1 i 1 1 1 i ! i ' 5 ' 1 ' i ' 4 ' ' ! i 1 ' ' ' ' ' 1 ' 1 i ' i ' 1 1 i 1 ‘ ' i ' i ‘ i ' i ' ' ! i 1 ' ! 1 ' i ' i ! i 1 1 i i 1 i ' i 1 i 1 i 1 1 1 ‘ ' ! ! ' ' 1 ' i ! 1 ! t 1 1 1 1 5.801 {7PM TO | 2.381 {7PH T 416 16.175 68 1 38.65 | 1 ' 1 ' ' i 1 i ‘ 1 ' i 1 ' ‘ i ‘ i ' i ' ' ! 1 1 i ' 1 ' 1 1 1 1 ' 1 1 ! ' 1 ' 1 1 ' 1 1 ' ‘ ' ' ' 1 i 1 ' ! ' ' ' ' 1 ‘ENERGY { RATE {ENERGY | RATE {ENERGY | RATE ENERGY | RATE 50 {CREDIT i(c/KWH) { SCHEDULE iKWH IST! (c/KWH) {KWH 2ND: (c/KWH) iKHH SRD! (c/KWH) 1 ' i i 1 i i ' i ‘ ' ' ' I ' i ' i 1 i 1 i ' 1 ' ' 1 BLOCK a w iz 1a 12 | HES gees Bee BS | 236 £ Sr | ees £5 ; oo lee” 12 iB ga. | [gs ; = a8 le | aa arne ae a us (= i @ 3 iE ei 13 is iz ist i (a ! a ies SSG S 5 = ' 2 — i 1 s | = 167 ENERGY | RATE KWH SRD BLOCK RATES FOR REGULATED UTILITIES AS OF NOVEMBER 8, 1985 DEMAND CHARGE ALES. 1 i 1 ‘ 1 1 1 i 1 i 1 1 1 ' ! ' ' i ‘ i 1 ' ' 1 ' ' ! ' 1 ' ' t 1 1 1 i ! i ! 1 ' 1 1 ' i 1 ! 1 1 1 ' 1 1 1 i i 1 i wee | 2 % 2s=z | 3 iss SS ee ee ee eee Se ooo eee ee ee ee zz t 1 ——— Bas | es ig | wea | z7 185 oes] UT =. 1S ed | | = ca] | a aa ee SS Se nee ares ease = Za 8 2 ir | ee | = is IS ! ! 1 ' 1 ! ' 1 ' 1 1 ' i 1 ‘ 1 ‘ 1 1 ‘ ! 1 i ' ' ' i ' t ' ! 1 ! i ' ' ' ' 1 ' ' 1 1 ' ! i ! i 1 1 1 1 ' ' 1 1 ‘ i RATE (c/KWH) OND BLK 1 1 ' I 1 1 ‘ 1 1 i 1 1 1 1 1 ! 1 1 1 1 ' 1 ‘ H ' i ‘ i ' ' 1 1 1 i 1 1 1 i 1 1 1 ‘ 1 i 1 i 1 ‘ 1 i 1 i ' 1 i 1 i 1 i 1 1 1 ' i ' 1 1 ' i BLOCK ENERGY KWH 2HD RATE | i 1 ' 1 ' ' 1 1 i ' ‘ 1 t ‘ ' ' t ' ' ' t ' 1 1 i ' 1 ! 1 1 ' ' 1 1 i 1 i ! ' i ' i ' i ' ' 1 I 1 i ' 1 1 1 1 i 1 i 1 i 1 1 ' ' ! ' 1 ‘ ‘ 4 ' 1 ' ' 1 ' 1 1 1 1 (c/KMH) ' ' ' ‘ ' t 1 i 1 1 1 i 1 i ' i 1 i i ' 1 ' ' 1 ' ' ' ' ' 1 1 i 1 1 ! 1 1 1 ‘ ' ENERGY KWH 1ST 1 ! ' 1 1 ' 1 i i i 1 ' 1 ' 1 i RESIDENS | ALL TIA. & TIAL & | RATE CREDIT i(c/KWH) | SCHEDULE KW OR MORE 1 11/21/83 t NORTHAAY | 1 ATRPORT ENTERPRISE 1/2ujes i I 1 ALL MAND THAN KW 1/83 ICOHMERCIAL: 5,000 1 & INDUS- | TRIAL DEMAND 20 ' ' 1 ' ' ' 1 1 1 i ' 1 3 SRCHRG EFF DATE: EFF DATE + BLOCK 11ST BLK 1 (1.90) 1 RESID ' i 1 1 1 1 1 ' 1 ' 1 ' 1 ' ! t ' t ' 1 ! t ' i ' ' 1 1 1 1 1 ' i 1 ( 1 i 1 i i 9.61 (1.115) 1 PCE 13/29/85 16/25/85 1 (c/KHH) 7/12/85 ' ' 1 ' 1 ' i 1 1 i ‘ ! ' 1 ' 1 ! i AREAS SERVED UTILITY ELECTRIC COOPERATIVE: INC. (HECI); “NISHAGAK 168 RATES FOR REGULATED UTILITIES AS OF NOVEMBER 8, 1985 RATE | DEMAND CHARGE (c/KWH) 4TH BLK RATE (c/KWH) SRD BLK ENERGY TENERGY | RATE TENERGY | RATE RATE CREDIT i (c/KWH) | SCHEDULE :KWH IST (c/KWH) SRCHRG | AREAS =} PCE. UTILITY (c/KWH) 1ST BLK ' ' 1 1 ' i 1 ' ' ' 1 ' ' ' 1 i ' 1 1 i 1 i 1 1 1 ' ' ' 1 1 ' i 1 ' ' i ' 1 ' 1 ' ‘ ' ' ' ' ' ' ' i ' i ' i ! 1 i i ' 1 1 ' KWH 4TH BLOCK ' ' 1 4 1 ' ' i ' 1 ' ' ' 1 ' ' ' ' ‘ BLOCK (c/#!H) KWH SRD: BLOCK 12ND BLK ' 1 KWH ND ' 1 ' 1 ' 1 ' i ' 1 ' i EFF DATE { SLOCK EFF DATE: 1 SERVED t 13.01 ALL INDUSTRIAL 1 ' ! i ' i 1 i ' ' ' ' ‘ 1 ' ' ‘ ' ' 1 1 1 i ! 5/9/85 Tt) | Fae OVER 10 KW @ $5.62 ' ' ' i t ' 1 1 ' ' i ' i 1 i 1 1 ' t 1 1 1 ' 1 t ' 1 89 AS AP 10,000 ALL ' ' i ' ' ' ' ' 1 ' 1 i ! i ' ' ' i ' ' 1 ! ' 1 i i 1 ' ' 1 1 ' ' 1 i 1 ' ' ' SERVICES 9/7/82 200 {COMMERCTAL!10,000 1 26.9 110,000 135.6 | VER | 33.7 ALL OTHER | COMMERCIAL OVER 1,000 KWH ' ‘ ' i 1,000 KWH FAR & HOME 1 9/7/82 3 i 7/1/85 ' i ' 1 ' ‘ 1 1 1 ' 1 i ' i 4 1 ‘ 1 ! i ' ! ' i 10/1/84 (3.17) 10/1/84 ats ors ye le oy 8 io 2 xs 2S As in 8 Ae ig’ ae S Se Sic gs 8s a5 & cn nk em ato Fe TN cy aed see ota ts re rn oR Can fas ea Cae ese a IN nee ee ea ce, oc gS ee ee ee ' ' ' t 1 t ‘ 1 ' PELCA (CONTINUED) SAND POINT TANANA TELLER ' 1 ' i ' 1 i i ! ' 1 1 ' i ! ‘ ' i ' ' 1 1 ' 1 1 ! ‘ 1 ‘ ! i ' ' ' ' i ' 1 ' 1 ' 1 1 1 1 i 1 ' 4 4 ' ' ’ 1 1 i 1 i 1 ‘ 1 ‘ ' ' 1 ‘ ! ' 1 ' ' ' 1 i 1 ' ' ' ' ' 1 i i ' ' ' 1 INC. (TPC) TELLER POWER CO. (TELLER POWER) 8a POWER CO., RATES FOR REGULATED UTILITIES AS OF NOVEMBER 8, 1985 DEMAND CHARGE HOVER 10 KW @ $14.34 1 1 1 ' 1 1 ' t ' 1 1 1 ' ' ' i 1! ' ' t ' i 1 i ' ' ' ' ' i ' 1 i ) K 1 1 TENERGY | RATE BLOCK {4TH BL! ' ' ' ' ' ' ! 1 i ' ' 1 1 1 (c/KWH) {KWH 4TH} (c/ KWH SRD BLK (c/KWH) {KWH SRD! 1 BLOCK | TEE ' t 1 t ' 1 Rie 1 , Enis eet ' ! t ' SUNT ane a WE ae UE a i ' ' ' 1 ' ‘a ' ' ' ' ' ' ee dae ee cca renee eet BLOCK {2ND BLK ' ' ' ' ’ ' ' ' ' ' ‘ i ' i ' i i ‘ ' 1 ' ' 1 ' ' i ' i 1 ' ' t ' ' ' i ' 1 ' ENERGY | RATE (ENERGY | RATE 309 OVE 300 ' 1 ' i ! ' ' ' (c/¥HH) KWH QND 1ST BLK ABLE i RATE RATE | APPLIC- RATE 1 CIAL + ABLE COMMER- tAPPLIC- ' ' ' t ' ' ' i ' i ! i 1 1 1 ' ' ‘ ' 1 ' i ' ' ENERGY KWH IST BLOCK ALL ' 1 ' ' ' ' ' 1 1 1 RATE SRCHRG CREDIT | (c/KWH) | SCHEDULE (c/XWH) {EFF DATE EFF DATE TIAL ! ' ' 1 1 i ' ' 1 i ' ' ' 1 ' ' 1 1 1 ‘ 1 i ' i ' 1 1 1 1 ‘ 1 1 1 1 1 i ' 1 ' ' ' ' ' ' 1 i ' ' ' ' ' ' ' ' ' ' 1 ' ' ' 1 ' ' i 1 t 40 | (1.07) | RESIDEN- | 300 | 38.08 1 OVER 11/8/85. 110/31/85 ‘ ' ' 1 PCE ' ' 1 ' ' ' 1 1 1 ' ' i ' 1 ' ' ' ' ' ' 199 ipeee ' ' 1 i ' 1 1 1 1 ' 1 ' 1 ' 1 ' ! ' ' ‘ 4 ' ' i ! 1 ' i ' 1 1 ' i i ' ' ' 1 1 ' AREAS SERVED HOONAH KAKE KASAAN KLAWOCK 170 APPENDIX L FOSSIL FUEL INFORMATION RAILBELT AND STATEWIDE APPENDIX L. FOSSIL FUEL INFORMATION - RAILBELT AND STATEWIDE This appendix discusses information related to fossil fuels, including oil, gas, and coal (geothermal is also included in the leasing section) resources of Alaska. Historic oil and gas leases issued and projected leases expected are presented, followed by a detailed coverage of how royalty sales and leases are determined. Major petroleum contacts are listed in Appendix L.5, and Cook Inlet petroleum and coal information is reprinted and summarized from the Cook Inlet Transportation Plan. Appendix L.1 also includes a map of oi] and natural gas basins in Alaska. 173 APPENDIX L.1 STATE PETROLEUM COMPETITIVE SALE AREAS 175 Appendix L.1 State Petroleum Competitive Sale Areas Bidding Sale Date Description Method 1. Wide Bay; offsh. Kenai to Ninilchik; 12/10/59 Offshore Cash Bonus, Kachemak Bay Fixed Royalty 2. Kenai Peninsula; West Forelands; 7/13/60 Offshore/Uplands Cash Bonus, Nushagak Bay Fixed Royalty 3. Katalla; Kalifonsky Beach; 12/7/60 Offshore Cash Bonus, Herendeen Bay; offsh. Kodiak Fixed Royalty 4. Uplands Ninilchik 1/25/61 Uplands Cash Bonus, Fixed Royalty 5. Tyonek; Controller Bay; Paviov Bay 5/23/61 Offshore/Uplands Cash Bonus, Fixed Royalty 6. Controller Bay (Special Sale) 8/4/61 Tidelands Cash Bonus, Fixed Royalty 7. Icy, Yakutat & Kachemak Bays; 12/19/61 Offshore/Uplands Cash Bonus, So. Kenai Penin.; N. Cook Inlet Fixed Royalty 8. Big Lake 4/24/62 Uplands Cash Bonus, Fixed Royalty 9. Tyonek; W. Forelands; Knik Arm/Kalgin Island; 711162 Offshore/Uplands Cash Bonus, Chisik Island; So. Kenai Penin.; Wide Bay Fixed Royalty 10. Tyonek; Kenai Offshore & Uplands 5/8/63 Offshore/Uplands Cash Bonus, Fixed Royalty 11. Yakutat Bay CANCELLED 12. Below Forelands; Knik & Turnagain Arms; Upper 12/11/63 Offshore/Uplands Cash Bonus, Cook Inlet; Kenai Penin.; Tyonek to Katunu River Fixed Royalty 13. Fire Island; W. Forelands; Trinity Islands; 12/9/64 Offshore/Uplands Cash Bonus, Prudhoe West Fixed Royalty 14. Prudhoe West to Canning River 7/14/65, Offshore/Uplands Cash Bonus, Fixed Royalty 15. Fire Island & N. Cook Inlet; Kalgin Island & 9/28/65 Offshore/Uplands Cash Bonus, Redoubt Bay; Knik; S. Kenai Peninsula Fixed Royalty 16. Kenai Penin. & Knik; Middleton Island; Fire 7/19/66 Offshore/Uplands Cash Bonus, Island, Redoubt Bay; Kalgin Island, Fixed Royalty Iliamna Mt.; N. Cook Inlet 17. Big Lake; Kenai 11/22/66 Offshore/Uplands Cash Bonus, Fixed Royalty 18. Katalla; Prudhoe 1/24/67 Offshore/Uplands Cash Bonus, Fixed Royalty 19. Lower Cook Inlet 3/28/67 Offshore/Uplands Cash Bonus, Fixed Royalty 20. Big Lake; Knik; Illiamna Mt.; Beluga; N. Cook 7/25/67 Offshore/Uplands Cash Bonus, Inlet; Kalgin Island; Ninilchik Fixed Royalty 21. Port Heiden & Port Moller 3/26/68 Offshore Cash Bonus, Fixed Royalty 22. Big Lake; Knik; Beluga; West Forelands; 10/29/68 Uplands Cash Bonus, Ninilchik; Kachemak & Kenai Fixed Royalty 23. Colville to Canning River 9/10/69 Offshore/Uplands Cash Bonus, 177 Fixed Royalty Appendix L.1 State Petroleum Competitive Sale Areas (Continued) 24. Big Lake; Knik; Kenai; West Forelands 5/12/71 Uplands Cash Bonus, Fixed Royalty 25. Big Lake; Knik; Beluga; North Cook Inlet 9/26/72 Offshore/Uplands Cash Bonus, Fixed Royalty 26. Cook Inlet (Between Forelands & Turnagain 12/11/72 Offshore/Uplands Cash Bonus, Arm) Fixed Royalty 27. Tuxedni; Ninilchik; Kenai; Kalgin 5/9/73 Offshore/Uplands Cash Bonus, Fixed Royalty 28. Ninilchik; Kachemak Bay; Beluga 12/13/73 Offshore/Uplands Cash Bonus, Fixed Royalty 29. Kalgin & West Forelands; Chisik; Ninilchik 10/23/74 Offshore Uplands Cash Bonus, N. Cook Inlet; Turnagain; Big Lake Fixed Royalty 29A. Point Thomson CANCELLED 29B. Copper River Basin 7/24/79 Uplands Cash Bonus, Fixed Royalty 30. Beaufort Sea (Joint Federal & State Sale) 12/12/79 Offshore Cash Bonus wiFixed Sliding Scale Royality; Net Profit Share (NPS) Bid Variable w/Fixed Royalty and Fixed Cash Bonus 31. Prudhoe Uplands 9/16/80 Uplands Cash Bonus Bid Variable with Fixed Royalty and Fixed NPS 32. Lower Cook Inlet 8/25/81 Offshore/Uplands Royalty Bid Variable with Fixed Cash Bonus 33. Upper Cook Inlet 5/13/81 Offshore/Uplands Royalty Bid Variable with Fixed Cash Bonus 35. Lower Cook Inlet 2/2/82 Offshore/Uplands Royalty Bid Variable with Fixed Cash Bonus 36. Beaufort Sea 5/26/82 Offshore/Uplands Cash Bonus Bid Variable with Fixed Royalty and Fixed NPS 37. Middle Tanana & Copper River Basins 8/24/82 Uplands Cash Bonus Bid Variable with Fixed Royalty and Fixed NPS 37A. Chakok River, Exempt 8/24/82 Uplands Cash Bonus, Fixed Royalty 34. Prudhoe Uplands 9/28/82 Uplands Cash Bonus Bid Variable with Fixed Royalty and Fixed NPS 38. Norton Basin CANCELLED 39. Beaufort Sea 5/17/83 Offshore/Uplands Cash Bonus Bis Variable with Fixed Royalty and Fixed NPS 40. Upper Cook Inlet 9/28/83 Offshore/Uplands Cash Bonus Bid Variable with Fixed Royalty 41. Bristol Bay Uplands 9/18/84 Uplands Cash Bonus with Fixed Royalty 43. Beaufort Sea and 43A. Colville River Delta/Prudhoe Bay Uplands 5/22/84 Offshore/Uplands Cash Bonus Bid Variable with Fixed Royalty and Fixed NPS 46A. Cook Inlet 2/26/85 Offshore/Uplands Cash Bonus with Fixed Royalty 178 AND GAS BASINS OF ALASKA KAY BROWN, DIRECTOR DIV. OIL & GAS Compiled by 0.0. SMITH, CARTOGRAPHER UNITED STATES DEPARTMENT OF THE INTERIOR S MINERALS MANAGEMENT SERVICE ( DRAFT PROPOSED PROGRAM DEIS JAN. 1986 1986 OFFERINGS = 1987 OFFERINGS 92 N. ALEUTIAN BASIN 107 NAVARIN BASIN 100 NORTON BASIN 97 BEAUFORT SEA 89 ST.GEORGE BASIN 109 CHUKCHI SEA «1988 OFFERINGS 1989 OFFERINGS 86 SHUMAGIN 101 ST. GEORGE BASIN GULF OF ALASKA N. ALEUTIAN BASIN NORTON BASIN 1990 OFFERINGS NAVARIN BASIN BEAUFORT SEA CHUKCHI SEA BUREAU OF LAND MANAGEMENT OFFERINGS [1] }y STEESEWHITE MOUNTAIN 1986-87 CENTRAL YUKON 1967-88 VENETIE 1988-89 & ALASKA DEPARTMENT OF NATURAL RESOURCES B8 sss SER esse Bas DIVISION OF OIL & GAS 1986 SALES | | KUPARUK UPLANDS FEBRUARY MIKKELSEN FEBRUARY COOK INLET MAY BEAUFORT SEA SEPTEMBER NECHELIK §SEPTEMBER 1987 SALES [ PRUDHOE BAY UPLANDS JANUARY CAMDEN BAY MAY ICY CAPE SEPTEMBER HOLITNA BASIN SEPTEMBER 1988 SALES [} KUPARUK UPLANDS JANUARY COOK INLET JANUARY DEMARCATION POINT MAY ALASKA PENINSULA SEPTEMBER 1989 SALES [ NORTH SLOPE FOOTHILLS JANUARY HOPE BASIN MAY OFFSHORE ICY CAPE SEPTEMBER 1990 SALES [| . COOK INLET JANUARY a POINT FRANKLIN MAY WHITE HILLS SEPTEMBER SCALE 1:10,100,000 Ct goes ae tov SS Noten a NORTH SLOPE UNIT MAP ALASKA DEPARTMENT OF NATURAL RESOURCES, DIVISION OF OIL AND GAS KAY BROWN, DIRECTOR COMPILED BY 0.0. SMITH, CARTOGRAPHER AMERADA HESS, TAR ISLAND aA KUPARUK RIVER GNIT Ee Ss feed FE SLAND Bay rea. ig MIKKELSEN BAY HEMPSPRINGS UNIT | +— — STATED @ | AFCO. RAVIK STATE @ dh Ride wise EXPLANATION Pump Station #1 PS-1 Net Profit Share Leases =) Central Production Facility Central Facilities Pad SCALE 1.506.880 Selected Selected State Exploratory Wells Federal Exploratory Wells . linch = Bmiles fonimate lite ‘Appronimate limit . ° 3 10 » » pmees Approximate liits ofthe pprosimate limits of the a Endicott Reservoir Lisburne Reservoir meeeereretaees Development Oil Wells epee Oil and Gas Unit Boundaries: 12/85 BASE MAP: Trensposed From U.T.M. Projection By U.8.0.8., Original Scale 1:280,000, All Townships - Umiat Meridian. APPENDIX L.2 SUMMARY OF PREVIOUS COMPETITIVE LEASE SALES, 1959-1985 181 Appendix L.2 — Summary of Previous Competitive Lease Sales, 1959-1985 Acres Percent Acres Tracts Tracts Bonus Sale No. and Date Offered Leased Leased $/Acre Offered Leased Received 1. Dec. 10, 1959 88,055.00 87.66 77,191.00 52.08 37 31 $4,020,342.43 2. July 13, 1960 17,567.51 93.96 16,505.57 24.70 27 26 407,654.54 3. Dec. 7. 1960 73,047.70 31.30 22,866.70 1.55 26 9 35,325.31 4. Jan. 25, 1961 400.00 100.00 400.00 679.04 3 3 271,614.40 5. May 23, 1961 97,876.00 98.06 95,980.00 74.71 102 99 7,170,464.88 6. Aug. 4, 1961 13,257.00 100.00 13,257.00 8.35 6 6 110,671.55 7. Dec. 19, 1961 255,708.44 73.14 187,025.40 79.47 68 53 14,863,049.33 8. April 24, 1962 1,061.70 100.00 1,061.70 4.80 8 8 5,097.00 9. July 11, 1962 315,668.93 87.77 264,437.13 59.43 89 76 15,714,112.60 10. May 8, 1963 167,583.06 84.43 141,490.51 29.23 200 158 4,136,224.92 11. CANCELLED 12. Dec. 11, 1963 346,782.40 71.25 247,089.00 12.31 308 207 3,042,680.74 13. Dec. 9, 1964 1,194,373.00 60.51 722,659.00 7.66 610 341 5,537,100.94 14. July 14, 1965 754,033.00 53.45 403,000.00 15.25 297 159 6,145,472.59 15. Sept. 28, 1965 403,042.06 74.87 301,751.28 15.49 293 216 4,674,343.74 16. July 19, 1966 184,410.05 72.66 133,987.29 52.55 205 153 7,040,880.17 17. Nov. 22, 1966 19,229.70 96.67 18,589.70 7.33 36 35 136,279.67 18. Jan. 24, 1967 47,729.00 88.82 42,397.00 34.88 23 19 1,478,777.23 19. Mar. 28, 1967 2,560.00 REJECTED 12/9/74 20. July 25, 1967 311,249.89 82.39 256,447.31 73.14 295 220 18,757,340.88 21. Mar. 26, 1968 346,623.00 47.59 164,961.00 18.24 308 147 3,009,224.00 22. Oct. 29, 1968 111,199.48 54.20 60,272.15 17.29 230 125 1,042,219,90 23. Sept. 10, 1969 450,858.47 91.50 412,548.47 2,181.66 179 164 900,041,605.34 24. May 12, 1971 196,635.07 47.10 92,617.97 4.92 244 106 455,640.57 25. Sept. 26, 1972 325,401.42 54.78 178,244.71 7.43 259 152 1,324,673.40 26. Dec. 11, 1972 399,920.96 44.50 177,972.56 8.75 218 105 1,557 ,848.84 27. May 9, 1973 308,400.81 36.93 113,891.71 9.93 210 96 1,130,324.51 28. Dec. 13, 1973 166,648.04 58.69 97,803.69 253.77 98 62 24,819,189.91 29. Oct. 23, 1974 278,269.43 50.00 127,119.65 8.19 164 82 1,040,909.98 29A. CANCELLED 29B. July 24, 1979 34,678.04 100.00 34,678.04 4.56 20 20 158,041.78 30. Dec. 12, 1979 341,140.18 86.80 296,307.65 1,914.87 71 62 567,391,497.48 31. Sept. 16, 1980 196,268.00 100.00 196,268.00 63.12 78 78 12,387 ,469.60 33. May 13, 1981 815,000.00 50.99 429,978.16 10.00 202 103 4,299,781.60 32. Aug. 25, 1981 202,836.74 75.15 152,428.22 10.00 78 59 1,524,282.20 35. Feb. 2, 1982 601,171.50 21.82 131,190.69 10.00 149 31 1,311,906.90 36. May 26, 1982 56,862.41 100.00 56,862.41 573.02 13 13 32,583,451.87 37. Aug. 24, 1982 852,603.08 19.80 168,849.00 3.33 217 33 562,943.90 37A. Aug. 24, 1982 1,874.60 100.00 1,874.60 52.00 1 1 97,479.20 34. Sept. 28, 1982 1,231,517.00 46.44 571,954.00 46.71 261 119 26,713,018.17 38. CANCELLED 39. May 17, 1983 211,988.08 100.00 211,988.08 99.05 42 42 20,998,100.98 40. Sept. 28, 1983 1,044,745.02 42.44 443,354.88 7A7 284 140 3,177,178.26 41. Sept. 18, 1984 1,437,930.46 19.39 278,938.96 3.03 308 63 843,964.92 43. & 43A May 22, 1984 374,152.89 95.64 357.863.02 94.53 84 81 33,827,377.15 45A. Sept. 24, 1985 606,385.00 27.19 164,885.00 28.25 113 32 4,657,478.08 46A. Feb. 26, 1985 248,584.64 76.45 190,041.54 13.28 65 50 2,523,333.71 47. Sept. 24, 1985 192,568.81 94.80 182,559.81 63.79 50 48 11,645,003.26 Totals 15,329,933.00 53.77 8,242,589.56 212.64 6,579 3,833 1,752,671,378.33 183 APPENDIX L.3 PROPOSED OIL AND GAS SALE AREAS 1985-1990 185 Appendix L.3. Proposed Oil and Gas Sale Areas: 1985-1990 The table below lists proposed sales comprising the State's current Five-Year Oi] and GAs Leasing Program. Each of the proposed sales is at various points in the leasing process. PROPOSED STATE OF ALASKA FIVE-YEAR OIL AND GAS LEASING PROGRAM Sale Number Sale Name Proposed Date 47 Kuparuk Uplands May 1985 45A North Slope September 1985 48 Kuparuk Uplands February 1986 48A Mikkelsen February 1986 49 Cook Inlet May 1986 52 Beaufort Sea September 1986 52A Nechelik September 1986 51 Prudhoe Bay Uplands January 1987 50 Camden Bay May 1987 53 Icy Cape September 1987 46 Holitna Basin September 1987 54 Kuparuk Uplands January 1988 62 Cook Inlet January 1988 55 Demarcation Point May 1988 56 Alaska Peninsula September 1988 57 North Slope Foothills January 1989 45 Hope Basin May 1989 58 Offshore Icy Cape September 1989 59 Cook Inlet January 1990 60 Point Franklin May 1990 61 White Hills September 1990 187 APPENDIX L.4 LEASING AND ROYALTY PROGRAM FOR OIL, GAS, COAL, AND GEOTHERMAL RESOURCES 189 APPENDIX L.4. LEASING AND ROYALTY PROGRAM FOR OIL/GAS, COAL, AND GEOTHERMAL RESOURCES Alaskan resources are obtained through the leasing of State and federal land and sales of royalty to in-State and out-of-State markets. Leasing of tracts for fossil and geothermal power sources is done by the Department of Natural Resources. Sales of royalty oil and natural gas are handled by the Department of Natural Resources, while the Department of Commerce and Economic Development through the Office of Energy, fosters opportunities for public and private sales agreements with national and world markets. ROYALTY PROGRAM As a result of the lessees' production from both the Prudhoe Bay and Kuparuk River Units on the North Slope, the State is entitled to receive as its royalty share 12.5 percent of the oil and gas_ produced. AS 38.05.182(a) states, in part, that any royalty "may be taken in-kind rather than in money if the Commissioner (iebeeticnt of Natural Resources) determines that taking in-kind would be in the best interest of the State." When royalties are taken in money (in-value), individual lessees market the State's share of production. The State subsequently receives the money value the lessee realizes from the sale of the oil as measured by several alternatives provided in the lease forms. These include the actual sales price, the reported prices of neighboring leases and, when available, posted field prices. When the State takes its share of production in-kind, the State actually receives the oil and the Commissioner of Natural Resources, acting on behalf of the State, disposes of the oil to third parties through noncompetitive, negotiated sales or through competitive sales to the highest qualified bidder. In 1983, about 78 million barrels of royalty oi] were produced (214,000 barrels per day). Of the total royalty oi] produced, about 45 million barrels or 123,000 barrels per day were taken in-value. About 33 million barrels or 91,000 barrels per day were taken in-kind and sold to in-State refiners. State royalty income is about $1.5 billion per year. Taxes from the petroleum industry amount to $1.5 billion per year. Together these amount to 85 percent of total State income. The statutes which govern the Department's sale of royalty oi] clearly favor competitive sales to maximize economic gain, unless it is determined that no competition exists, or that it is not in the State's best interest to sell competitively. Although the State of Alaska has conducted both competitive and noncompetitive disposals, most disposals have _ been long-term, negotiated contracts with in-state processors. The State currently has contracts with Chevron for 18,000 barrels per day from Prudhoe Bay, Tesoro for 7,000 barrels per day from Cook Inlet fields and 40,000 barrels per day from Prudhoe Bay (this will increase by 26,000 barrels per day in 1985), MAPCO for 35,000 barrels per day from Prudhoe Bay and Golden Valley Electric for 5,000 barrels per day from Prudhoe Bay. 191 Rather than attempting to maximize economic benefit alone, in most recent sales of royalty oil, the Commissioner of Natural Resources has determined that it was in the State's best interest to provide a secure supply of royalty oil to in-state refiners at prices at or above the in-value price of the State's oil. These decisions were based on the applicable statutes and regulations, which require that the in-state needs be met before oil can be sold for export from the State. In each instance where noncompetitive sales have been favored, other factors, such as a secure in-state supply of refined products and increased tax base and expanded employment were considered in addition to price offered in the negotiated contracts. A competitive royalty oil sale was held December 11, 1984. About 90,000 barrels per day from Prudhoe Bay and Kuparuk reservoirs were offered in 5,000 barrel per day lots. Eight lots were sold under six-month contracts, and 10 were sold under 12-month contracts. Companies that sell refined petroleum products in Alaska received a bidding priority to allow them to meet the highest bid prices. Backup contracts were solicited prior to the sale in case all of the offered oi] was not sold or a successful purchaser defaults on its contract. Backup contracts were established with USA, Inc.; Texaco; U.S. Oi] and Refining Company; and Chevron U.S.A., Inc. The State received an extra $17.6 million from the sale, and all lots were sold. Companies won the lots by submitting bids on a premium over and above the base price of the oil. U.S. Oil and Refining Company was the high bidder, offering the State $18.96 per barrel, $1.04 over the base price for Prudhoe Bay oil of $17.92 per barrel. Kuparuk River oil, with a base price of $16.92 per barrel, received bids ranging from 17 cents to 82 cents over the base price. Successful bidders included Texaco, Inc. with a premium bid of 64 cents for eight lots (40,000 barrels); Chevron U.S.A., Inc. with a premium bid of $1.03 for four lots of Prudhoe Bay oi] (20,000 barrels) and bids of 17 cents and 82 cents for two lots of Kuparuk River oi1 (10,000 barrels); U.S. Oil and Refining Company with a bid of $1.04 for two lots of Prudhoe Bay oil, Sohio Alaska Petroleum with a bid of 51 cents for one lot of Prudhoe Bay oil, and Union Oi] Company with a bid of 53 cents for one lot of Kuparuk 0Oi1. In 1983, about 1.07 billion cubic feet of royalty natural gas was produced, most of it from Cook Inlet fields. There is no system in place to transport natural gas from the North Slope; however, the State does receive compensation for royalty gas used in the maintenance of the oi] production at Prudhoe Bay and Kuparuk Units. A total of 1.02 billion cubic feet of natural gas was taken in-value. This generated about $6.8 million for the State. Approximately 45 million cubic feet were taken in-kind from Cook Inlet fields and sold to Enstar Natural Gas Company for consumption in Southcentral Alaska. The State received $147,000 as the result of this contract which ended July 1, 1984. OIL AND GAS LEASING Through identification and inventory of oil and gas resources, the Department of Natural Resources (DNR) selects lands with oil and gas potential and places them on its five-year oil and gas leasing schedule. (See "Five-Year 0i1 and Gas Leasing Program," DNR, Division of Oil and Gas, 192 January 1985). The schedule is put together on the basis of nominations by industry, State and local interests. The current schedule is shown on Table 3. Title 38 of the Alaska Statutes, Public Lands, charges DNR with primary responsibility for management of the State of Alaska's subsurface hydrocarbon and mineral resources. Title 38 was amended in 1978 to include a requirement that DNR submit to the Legislature an annual report detailing a five-year schedule for the leasing of State land for oil, gas, and coal exploration. In FY 85, DNR has been appropriated $2.6 million to carry out activities related to leasing and resource investigations. The objectives of the oi] and gas leasing schedule are: 1. To adhere to an oil and gas leasing program, as required: by State statute, that is predictable and dependable, so that the petroleum industry, the public, and the federal and State governments may efficiently plan oil and gas related activities and fiscal expenditures. 2. To coordinate leasing with nearby owners of subsurface rights, particularly the federal government, so that: (1) statewide oil, gas and coal leasing activities are cohesive regardless of land ownership; (2) geologic and environmental data may be shared if possible; (3) drainage of commonly owned petroleum reservoirs may be equitable; and (4) oi], gas, coal and other mineral exploration and development may continue while ownership disputes are being resolved. 3. To collect resource information adequate to estimate a fair return to the State when developing leasing procedures and terms of sales and for long-term fiscal planning. 4. To obtain the maximum economic return to the State and its citizens from the sale of State-owned oi] and gas resources by using an optimal mix of bidding methods and by encouraging competition. 5. To lease first in the most prospective areas and near areas in which development has been or is taking place so that potential additional development may take advantage of existing facilities wherever possible. 6. To maintain access to promising oi], gas and coal areas by reserving access corridors and by avoiding commitments to incompatible surface uses in key transportation corridors. 7. To avoid hindering development or placing an undue burden on industry, by simplifying necessary regulations so they are fair and effective. 193 8. To work with local citizens, local governments, special interest groups, and other government agencies when selecting areas for leasing, designing lease sales, and when approving permits. 9. To encourage the petroleum industry to provide local training programs and to hire local people for available jobs. 10. To protect the integrity of affected cultures, the environment, and fish and wildlife resources through plans of operations, leasing and permit stipulations, and comprehensive monitoring operations. The Five-Year Leasing Program is developed within a framework of private and public fiscal considerations. Although it is impossible to accurately forecast future State revenue requirements and future hydrocarbon developments, it is worthwhile to look at projected revenue from existing reservoirs and determine the magnitude and timing of future discoveries that would be needed to maintain an adequate level of State revenues. Both physical production and revenue (estimated price at which the oil may be sold) are considered in developing forecasts on State leasing opportunities. In 1978, the Legislature amended the State's oil and gas leasing statutes in an effort to infuse a broader range of public purposes in the leasing process. AS 38.05.180(a) states: "The Legislature finds that: (1) the people of Alaska have an interest in the development of the state's oi] and gas resources to (A) maximize the economic and physical recovery of the resources; (B) maximize competition among parties seeking to explore and develop the resources; and (C) maximize use of Alaska's human resources in the development of the natural resources; (2) it is in the best interests of the state to encourage an assessment of its oil and gas resources and to allow the maximum flexibility in the methods of issuing lease to (A) recognize the many varied geographical regions of the state and the different costs of exploring for oil and gas in these regions; and (B) minimize the adverse impact of exploration, develop- ment, production, and transportation activity." Although the simultaneous maximization of these various purposes is mathematically impossible, the amended statutes provide the Department of Natural Resources with a variety of options for their realization. AS 38.05.180(f) authorized seven different leasing methods that are combinations of cash bonuses, royalties, net profit shares (NPS), and work commitments. 194 These leasing methods are composed of two types of payments, up front payments, such as a bonus, and contingency payments, such as royalties and/or net profit shares. The contingency payments are a liability to the firm only if a commercial discovery is made and production occurs, whereas the bonus is a payment for the right to explore and develop. These methods of payment distribute geological and economic risks between lessor (State) and the lessee as well as influencing incentives to explore and develop. With bonus payments, geological and economic risks reside with the lessee. Contingency payments redistribute some of these risks to the lessor. The one risk not shared is the dry hole risk. That is, the full cost of an exploratory well is still borne by the lessee even though the lessee may have a substantial royalty or NPS liability should a commercial discovery occur. Thus, there is a fundamental asymmetry between who bears the costs and who receives the benefits in leasing systems that rely heavily on royalties, severance taxes or NPSs. This asymmetry is a disincentive to the drilling of exploratory wells. Exploration Incentive Credits (EICs) are designed to offset these disincentives and encourage frontier exploration. Exploration Incentive Credits are authorized by AS 38.05.180(i) which states in part: "The Commissioner (DNR) may provide for the establishment of an explor- ation incentive credit system under which a lessee of State land drilling an exploratory well on that land may earn credits based upon the footage drilled and the region in which the well is situated .... Credits may be used during a limited period established by the Commissioner and may be assigned during that period. Credits may be applied against (1) oi] and gas royalty and rental payments payable to the State or (2) taxes payable under AS 43.55.011 -- 43.55.150." Sale 36, Beaufort Sea near Flaxman Island, held May 26, 1982, was the first sale to employ EICs. A total of 13 tracts covering approximately 56,862 acres were put up for lease and all were leased. Lease terms included a 40 percent NPS and EICs of $750 per foot drilled not to exceed 40 percent of the total exploratory well cost. This credit was applicable to the initial exploratory well on a given tract. Since Sale 30 (December 12, 1979), the State has issued 317 NPS leases of which 223 are combined with EICs. A very small percentage of these EICs will be exercised because most tracts probably have’ insufficient hydrocarbon potential to justify the drilling of an exploratory well. Even so, the program may result in significant State expenditures in the long run. It should be remembered that the EIC program is designed to offset some of the disincentives (royalties, severance taxes, NPS, and income taxes) to exploration inherent in the State's posture toward the oil and gas industry. Even with minimal taxes and royalties, the State collects from 25 to 28 percent of each dollar of oi] revenue from commercial discoveries. However, commercial discoveries require’ the drilling of an exploration well. It seems obvious that 25 to 28 percent of zero revenue adds little to the State's future. The EIC program will 195 encourage the drilling of exploration wells by sharing the dry hole risk with the lessee. The planning and execution of an oil and gas lease sale is lengthy, taking up to 61 months to complete a 21 step process. Involved are DNR, other State agencies, the public, local communities and private sector business interests. The early announcement of a potential sale encourages the early mobilization of public and private resources for the purpose of gathering geological/geophysical, environmental and socioeconomic information relevant to the proposed sale area. COAL_ LEASING Coal lease sales are completed in conjunction with the development of coal atlases. Five-year lease schedule proposals call for work in the Chignik-Herendeen, Kenai, Farewell, Bering River, and North Slope fields. Scheduled coal lease sales have included the western one-third of the Matanuska coal field in 1984, and the middle and eastern sections of the Matanuska field will be leased throughout the next six years. GEOTHERMAL LEASING Geothermal sites are found throughout Alaska. Lease sales for development of this natural power source are anticipated. There are no specific lease sales planned at present and there are no active geothermal prospecting permits. During the State's first geothermal lease sale in 1983, only one bid was offered, and one lease issued. Most geothermal resources are located too far from potential markets to be of interest based upon current economies and technology. 196 APPENDIX L.5 MAJOR PETROLEUM ORGANIZATIONAL CONTACTS IN ALASKA — 1985 199 APPENDIX L.5. (Source: MAJOR PETROLEUM ORGANIZATIONAL CONTACTS IN ALASKA - 1985 Alaska Department of Natural Resources) BUSINESS CONTACTS Major Private Companies ALASKA CRUDE CORPORATION 550 West 7th, Suite 1600 Anchorage, Alaska 99501 Telephone: (907) 338-6363 AMOCO PRODUCTION COMPANY P.0. Box 100779 Anchorage, Alaska 99510-0779 Telephone: (907) 272-8471 BP ALASKA EXPLORATION, INC. 100 Pine Street San Francisco, California 84111 Telephone: (415) 951-4200 CITIES SERVICE OIL AND GAS CORPORATION P.O. Box 939 Bakersfield, California 93302-0939 Telephone: (805) 861-6420 EXXON COMPANY, U.S.A. Pouch 6601 Anchorage, Alaska 99502-0601 Telephone: (907) 564-3770 MARATHON OIL COMPANY P.O. Box 102380 Anchorage, Alaska 99510-2380 Telephone: (907) 561-5311 PHILLIPS PETROLEUM COMPANY 550 W. Seventh Avenue, Suite 1330 Anchorage, Alaska 99501 Telephone: (907) 276-7866 SOHIO ALASKA PETROLEUM COMPANY Pouch 6-612 Anchorage, Alaska 99502-0612 Telephone: (907) 564-5423 201 AMERADA HESS CORPORATION 550 West 7th, Suite 1150 Anchorage, Alaska 99501-1150 Telephone: (907) 274-4512 ARCO ALASKA, INC. P.O. Box 100360, ATO2100 Anchorage, Alaska 99510-0360 Telephone: (907) 265-6511 CHEVRON U.S.A., INC. P.O. Box 107839 Anchorage, Alaska 99510 Telephone: (907) 786-6600 CONOCO, INC. 2525 C Street, Suite 100 Anchorage, Alaska 99503-2639 Telephone: (907) 279-0611 GULF OIL CORPORATION 1720 S. Bellaire Street Denver, Colorado 80222 Telephone: (303) 759-6722 MOBIL OIL CORPORATION Box 5444, Terminal Annex Denver, Colorado 80217-5444 Telephone: (303) 298-2936 SHELL OIL COMPANY P.O. Box 527 Houston, Texas 77001-0527 Telephone: (713) 870-4440 TENNECO OIL COMPANY P.O. Box 2511 Houston, Texas 77001-2511 Telephone: (713) 752-2077 TEXACO, U.S.A. 3350 Wilshire Boulevard Los Angeles, California 90010-1890 Telephone: (213) 739-7451 YUKON PACIFIC CORPORATION P.O. Box 101700 Anchorage, Alaska 99510 Telephone: (907) 279-1596 Regional Native Corporations COOK INLET REGION, INC. P.O. Drawer 4-N Anchorage, Alaska 99510 Telephone: (907) 274-8638 BRISTOL BAY NATIVE CORPORATION P.O. Box 100220 Anchorage, Alaska 99510 Telephone: (907) 278-3602 DOYON LIMITED 201 First Avenue Fairbanks, Alaska 99701 Telephone: (907) 452-4755 Government Contacts ALASKA DEPARTMENT OF NATURAL RESOURCES Division of Oi] and Gas P.O. Box 7-034 Anchorage, Alaska 99510 Telephone: (907) 762-4241 Associations ALASKA OIL AND GAS ASSOCIATION 505 W. Northern Lights, Suite 219 Anchorage, Alaska 99503 Telephone: (907) 272-1481 202 UNION OIL COMPANY OF CALIFORNIA P.O. Box 6247 Anchorage, Alaska 99502-0247 Telephone: (907) 276-7600 Ext. 600 ARCTIC SLOPE REGIONAL CORPORATION P.O. Box 129 Barrow, Alaska 99723 Telephone: (907) 852-8633 CALISTA CORPORATION 516 Denali Street Anchorage, Alaska 99520 Telephone: (907) 279-5516 MINERALS MANAGEMENT SERVICE U.S. Department of Interior P.O. Box 10-1159 Anchorage, Alaska 99510 Telephone: (907) 261-4000 APPENDIX L.6 COOK INLET OIL AND GAS FIELDS APPENDIX L.7 HISTORIC OIL PRODUCTION IN COOK INLET APPENDIX L.8 HISTORIC NATURAL GAS PRODUCTION IN COOK INLET 203 APPENDIX L.6. GAS * Albert Kaloa Beaver Creek Beluga River Birch Hill Falls Creek Ivan River Kenai Lewis River McArthur River Middle Ground Shoal Moquawakie Nicolai Creek North Cook Inlet North Fork North Middle Ground Shoal Sterling Stump Lake Swanson River Theodore River Trading Bay West Foreland * Still on production during 1984. DISCOVERY DATE (1968) (1967) (1962) (1965) (1961) (1966) (1959) (1975) (1968) (1982) (1965) (1966) (1962) (1960) (1964) (1961) (1978) (1960) (1979) (1979) (1962) 205 APPENDIX COOK INLET OIL AND GAS FIELDS on * * * * * * Beaver Creek Granite Point McArthur River Middle Ground Shoal Redoubt Shoal Swanson River Trading Bay DISCOVERY DATE (1972) (1965) (1965) (1962) (1968) (1957) (1965) APPENDIX L.7. ANNUAL CUMULATIVE YEAR (BBL) (BBL) 1958 35,754 35,754 959 186,590 222,344 1960 5575999 780 ,343 1961 6,326,501 7,106,844 1962 10,259,110 17,365,954 1963 10,739,964 28,105,918 1964 11,053,872 39,159,790 1965 Docu 50,291,061 1966 14,364,432 64,655,293 1967 28,913,488 93,568,981 1968 66,145,673 159,714,654 1969 74,314,218 234,029,874 1970 83,614,089 317,643,961 206 HISTORIC OIL PRODUCTION IN COOK INLET ANNUAL CUMULATIVE YEAR (BBL) (BBL) 1971 78,784,865 396 ,428 826 1972 73,562,103 469,990,929 1973. 73,139,415 543,130,344 1974 72,243,865 615,374,209 1975 71,980,167 687,354,376 1976 67,008,789 754,363,165 1977 56,095,147 810,458,312 1978 50,131,629 860,589,941 1979 42,922,734 903,512,675 1980 36,249,519 939,762,194 1981 31,075,237 970,836,431 1982 27,404,652 998,242,083 1983 24,762,905 1,023,004,988 202 vIT Spy‘ O€l OL6T 260° 620‘ 96T e861 L91°7S0°92 696T §90*60S*68T 2861 €£9°1p9° 8b 896T 862°869*08T T861 208° S00‘ 0v L961 Tel *S/2°S9T O86T vST* 968‘ rE 996T T€z‘80E*ZZT 6261 vez‘ z1e°8 S961 TET ‘S2°99T 8L61 699° TE9°8 S96T Tel‘ 1Se*Ost LL6T 80¢‘200°8 £96T 8€2°€06*2bT 9L6T S60‘ 209°T e961 8LT* 601° 8ET Slot BIL‘ p12 T96T 698° 7S6°E2T vl6t 6eL° Le 0961 8E0*212°92T eZ6t -0- 6S6T 612°922°S2T IZ6l -0- 8S6T 4QW uWdA JQW aWdA LAINI 00D NI NOILINGONd SVD IIYOLSIH “8° 1 XLONAddy APPENDIX L.9 COOK INLET PIPELINE SERVICES 209 APPENDIX L.9. COOK INLET PIPELINE SERVICES (Reprinted from Cook Inlet Transportation Plan, 1985) Introduction This section provides a description of petroleum and natural gas pipelines in the study area. The purpose of this inventory is to develop a data base providing information on pipeline ownership, facilities, capacities, throughput and costs. This information will be used in later phases of the Cook Inlet Study to help identify potential problem areas or the need for further development. Pipelines in the area are not owned by either private corporations or utilities, and this ownership pattern will most likely continue for any future development. Inventory There is an extensive network of petroleum and natural gas pipelines serving the Cook Inlet region. The following is a description of each ea pipeline system in the study area. Pipeline routes are shown (next page). Cook Inlet Pipeline Company System (Crude 0i1) This pipeline was constructed in 1966 and 1967 to provide common carrier transportation for crude oil from production facilities at Granite Point to the Drift River Terminal on the west side of Cook Inlet. It is owned by Marathon 0i1 Company (30%), Union Oi1 Company of California (30%), ARCO Alaska (20%) and Mobil 0i1 Company (20%). Crude oi] is stored in tanks at the Drift River Terminal and is periodically loaded into tankers bound for the Lower 48 states at an off-shore loading facility. A small proportion of this crude oil] is also tankered to the Nikiski refinery on the east side of Cook Inlet. This pipeline system is 41.5 miles long from granite Point to Drift River, with a 2.5 mile lateral line from the West Forelands station. The main line is 20 inches in diameter and the lateral is a 12-inch pipe. The terminal and off-shore loading facility are connected by two 30-inch submarine pipelines. The loading facility is approximately two miles from the Drift River terminal. In 1983, 18.8 million barrels of crude oil were transferred through this system. Due to declining crude oil production in Cook Inlet, the Cook Inlet Pipeline Company is planning to abandon operation of this line in 1992. Kenai Pipeline Company (Crude 0i1 This pipeline system provides common carrier transportation for crude oil to the Nikiski Marine Terminal. There are two branches to the pipeline, one carrying crude oil from the Swanson River field to the Nikiski terminal, and the other carrying crude to the terminal from Shell and Amoco production facilities at the East Forelands. 211 > q a ete, ee salt? XK TALKEETNA \ as ( NORTH SCALE 1°= 40? ~~ Xa of We Fy, 2 ay Rivet 7 gk? J qorom™ S \ WAQLLA @)PALMER g os Ark \ = YAS ENSTAR ~: ae PIPELINE 4 i" SS on ( / ay Y/Y face RIVER 7 e BUTLER A TYONEK AVIATI KR HORAGE e PIPE ° ° aH ee COOK INLET{ jsse7 “YCIGS a un LT PIPELINE) 47 prenie \\ ee Z | A TESORO y oN J gy PIPELINE / RADING BAY 7 S ‘ KENAI / “ GY © PIPELINE AW PIPELINE miTTER/ 7S (> NIKISKI “ “ ORIFT. SN KENAI 2 Figure 9-1 RIVER KENAI V7 NIKISKI 9 MAJOR PIPELINE PIPELINE c¢ SOLDOTNA SYSTEMS hilok OIL lLoke —————_ ——— _- GAS Tustumeno lLoke 212 Tesoro Pipeline (Petroleum Products) The Tesoro pipeline was constructed in 1976 to carry refined petroleum products from the Nikiski Refinery to the Port of Anchorage. Construction of this pipeline resulted in a dramatic drop in liquid bulk tonnage handled by the Port of Anchorage. Products transported through the pipeline include gasoline, jet fuel, diesel fuel, and fuel oi]. The maximum capacity of this pipeline is 2,000 barrels per hour. Throughput since pipeline operation began has been: Million Year Barrels 1983 9.97 1982 10.01 1981 8.67 1980 7.69 1979 Teas 1978 6.66 1977 5.54 The pipeline is approximately 70 miles long and is constructed of 10-inch diameter steel pipe. It is buried the entire length of the route except at block valve locations. Whittier-Anchorage Pipeline (Petroleum Products) This pipeline carries jet fuel, diesel fuel, and gasoline from the port of Whittier to Elmendorf Air Force Base. It first passes through the Alaska railroad tunnels, then along the Seward Highway, and then finally over a pass in the Chugach Mountains into the Anchorage Bowl. It is owned by the Department of Defense, and was put into operation in 1967. The design pipeline capacity is 24,000 barrels of jet fuel per day. The pipeline is approximately 62 miles long and is 8-inch steel pipe. The system includes a major boosting station to lift the petroleum products over the Chugach Mountains and a pressure reducing station on the Anchorage side of the mountain range. Butler Aviation Pipeline This pipeline, now owned by Butler Aviation, was constructed in 1962 by Shell O0i1. It is approximately 7.5 miles long and is constructed of 6-inch diameter steel pipe. It is used to transport jet fuel (A Type) from the Port of Anchorage to Anchorage International Airport. It is operated at its maximum capacity of 1,020 barrels per hour. Enstar Natural Gas Pipeline Enstar owns two major pipeline systems bringing gas into the Anchorage area for domestic, industrial, and commercial use. One conveys natural gas from the Kenai fields to Anchorage and Nikiski, and the other, not yet in operation, brings gas to Anchorage and the Palmer/Wasilla area from the Beluga fields. The Kenai line, which is approximately 95 miles long, was constructed in 1960, with major improvements completed in 1980. 213 This steel pipeline varies from 10 to 6 inches in diameter, and is buried throughout. Average annual flows through the pipeline are approximately 32 billion cubic feet per year. The Beluga pipeline is scheduled to be operational in 1985, and has a design capacity of 200 million cubic feet per day. This pipeline is constructed of 20-inch diameter steel pipe and is approximately 95 miles long. It is buried for the entire route. Union 0i1 Gas Pipelines Union Oi] owns two major pipeline systems carrying natural gas to its liquefied natural gas (LNG) plant at Nikiski. The Cook Inlet Gas System (CIGS) pipeline brings natural gas from production facilities at Trading Bay on the west side of Cook Inlet to Nikiski, while the Kenai-Nikiski pipeline carries natural gas from the Kenai gas fields to Nikiski. Constructed in 1982, the CIGS pipeline is approximately 50 mile long, has a capacity of 175 million cubic feet per day, and an average annual daily flow rate of 12 million cubic feet, or only seven percent of capacity. This line is buried steel pipe, with 16-inch diameter lines on either side of Cook Inlet and dual 10-inch lines under the inlet. The Kenai-Nikiski pipeline was built in 1965, and has a capacity of 260 million cubic feet per day. It has average annual daily flow rate of 220 million cubic feet per day, or 85 percent of capacity. This pipeline is 17.5 miles long and is constructed of buried 29-inch steel pipe. 214 APPENDIX L.10 AVERAGE COOK INLET OIL AND GAS WELLHEAD PRICES 1975-1984 APPENDIX L.11 COOK INLET GAS RESERVES APPENDIX L.12 PROVEN COOK INLET OIL RESERVES APPENDIX L.13 PROVEN COOK INLET NATURAL GAS RESERVES 215 APPENDIX L.10. AVERAGE COOK INLET OIL AND GAS WELLHEAD PRICES YEAR $/BBL $/MCF 1975 $ 5.06 $ .31 1976 4.76 42 1ge7 5.66* ~44 1978 6.03* 254 1979 10. 74* 283 1980 16.14 99 1981 32.00 -55 1982 28.90 257 1983 25.20 -56 1984 25.20 56 * Statewide average. Source: Alaska Oil and Gas Conservation Commission. 217 APPENDIX L.11. COOK INLET GAS RESERVES* (Billions of Cubic Feet) REMAINING STATE FIELD RECOVERABLE GAS ROYALTY SHARE nn (as of Jan. 1, 1985) (as of Jan. I, 1985) Kenai 850 17 North Cook Inlet 650 81 Beluga River 800 60 Swanson River 260 0 Cannery Loop 300 9 McArthur River & Trading Bay 650 81 Beaver Creek 230 0 Cook Inlet Associated Gas 60 7 Ivan River - Lewis River - Pretty Creek - Stump Lake 600 75 Other TI K63 INNS TOTALS 4,463 338 = Department of Natural Resources Division of Oil and Gas Updated March 1985 218 APPENDIX L.12. PROVEN COOK INLET OIL RESERVES FIELD * RESERVES (MM STB) Beaver Creek 1 Granite Point 27 McArthur River 74 Middle Ground Shoal 16 Swanson River 22 Trading Bay 3 T42 * As of January 1, 1984 (AOGCC). 219 APPENDIX L.13. PROVEN COOK INLET NATURAL GAS RESERVES FIELD Beaver Creek Beluga River Birch Hill (ST) Falls Creek (ST) Granite Point Ivan River (ST) Kenai Lewis River (SI) McArthur River Middle Ground Shoal Nicolai Creek (ST) North Cook Inlet North Fork (ST) Sterling Swanson River Trading Bay West Foreland (ST) West Fork ST = Shut in Field *DRY GAS RESERVES (BSCF) 230 778 11 13 26 845 22 60 3 859 12 23 30 20 6 2,938 * As of January 1, 1984 (AOQGCC). 220 * ASSOCIATED GAS RESERVES (BSCE) 1 26 26 11 259 APPENDIX L.14 REPRESENTATIVE ANALYSIS OF ALASKAN COALS 221 APPENDIX L.14. REPRESENTATIVE ANALYSIS OF ALASKAN ON AS RECEIVED BASIS Volitile Fixed COALS (COOK INLET AREA) Moisture Matter Carbons Ash Sulphur Coal Area (%) (%) (%) (%) (%) Nenana 10-31 21-43 24-45 3-30 0.2-1.2 Jarvis Creek 20-25 35-45 25-35 5-15 0.3-1.5 Broad Pass 20-35 27-35 20-28 10-20 0.2-0.4 Susitna Lowland 10-30 28-40 25-45 3-30 0.1-0.7 Kenai 20-27 30-38 25-35 3-25 0.2-0.4 Matanuska Valley Wishbone Hil] 3-9 32-45 38-51 4-22 0.2-1.0 Chickaloon 1-5 14-24 60-72 5-22 0.4-0.7 Anthracite Ridge 3-9 7-11 65-81 7-20 0.2-0.7 L/S Sa = semianthracite Lvb = low-volatile bituminous Mvb = medium-volatile bituminous Hvbb == high-volatile B bituminous Hvcb == high-volatile C bituminous Subb = sub-bituminous B Subc. = sub-bituminous C Lig = lignite Heating Value (Btu/1b.) 6,200-9,800 7,800-9,500 5,500-7,100 6,200-9,500 6,500-8,500 Rank LY Subc Subc Lig Subc Sube 10,400-13,200 Hvbb 11,960-14,400 Lvb 10,720-14,000 Sa Source: Alaska Office of Minerals Development, Alaska's Mineral Industry, 1983. 223 APPENDIX M. BIBLIOGRAPHY This Bibliography represents those publications that have been sued as references in the Executive Summary, Planning Report, and Regional Data Summary documents. This Bibliography is not a complete index of Alaskan energy information. Extensive compilations of energy information can be obtained from: 1. Alaska Power Authority Librarian Box 190869, 701 East Tudor Road Anchorage, Alaska 99519 Telephone: (907) 561-7877 2. Arctic Environmental Information Data Center University of Alaska - Anchorage 3221 Providence Drive Anchorage, Alaska 99508 Telephone: (907) 786-1410 3. Alaska State Library Box G Juneau, Alaska 99811 Telephone: (907) 465-2910 4. Department of Community and Regional Affairs Energy Library 949 E. 36th, Suite 400 Anchorage, Alaska 99508 Telephone: (907) 563-1955 227 Acres American, Inc. "A comparative Economic Analysis of Electric Energy Alternatives for Angoon, Alaska, 1984. 1 volume. Acres American, Inc. "City of Fairbanks, Alaska District Heating System Development: Final Engineering Report," 1981. One volume. Acres American, Inc. "Preliminary Assessment of Cook Inlet Tidal Power: Phase I Report." Alaska Division of Policy Development and Planning, 1981. Two volumes. Acres American, Inc. “Reconnaissance Study of Energy Requirements and Alternatives: Main Report." Alaska Power Authority, 1984. One volume. AeroVironment, Inc. "Monitoring and Appraisal Evaluation of Wind Energy Potential for Electric Power Generation in the Bristol Bay Area: Final Report." Alaska Power Administration, 1983. One Volume. Alaska Division of Energy and Power Development, "Geothermal Energy in the Aleutians: An Untapped Resource: Adak Island," 1981. 4 p. Alaska Division of Energy and Power Development, "Nelson Lagoon Diesel Intertied Windgenerator Data Monitoring Project: Final Report." Prepared for S&S Electric, Inc., 1983. One volume. Alaska Division of Oi] and Gas. "Historical and Projected Oi1 and Gas Consumption." Prepared for the First Session, Fourteenth Alaska Legislature, 1985. 69 p. Alaska Division of Strategic Planning. "The Energy Program for Alaska: Origins and Evolution." March 1985. One volume. "Alaska Forest Service Market Report," U.S. Forest Service, Volume 6, March 1984. "Alaska Historical and Projected 0i1 and Gas Consumption," Institute of Social and Economic Research, University of Alaska; and Division of Minerals and Energy Management, Department of Natural Resources, January, 1981. Alaska Power Administration - USDOE, Alaska Electric Power Statistics, 1960-1983, Ninth Edition, September, 1984. Alaska Power Administration. "Small Hydroelectric Inventory of Villages Served by Alaska Village Electric Cooperative, 1979. One volume. Alaska Power Authority - Alaska Electric Power Statistics, 1960-1984, 10th Edition, December, 1985. 228 Alaska Power Authority "Chignik Waste Heat Feasibility Study." November 1985. One volume. Alaska Power Authority. "Humpback Creek Reconnaissance Report." 1985. 20 p. Alaska Power Authority. "Unalaska/Dutch Harbor Reconnaissance Study Findings and Recommendations," 1985. 4 p. "Alaska Solar and Weather Information." Western SUN, 1980. 73 p. "Alaskan North Slope Operators Push Projects to Recover Third-Generation 0i1," Oi] and Gas Journal, June 25, 1984. "Alaska's Energy Resources - 0i1," Gene Rutledge, Alaska's Energy Resources, Alaska Journal of Commerce, May 25, 1984. "Alaska's Energy Resources - Wind," Gene Rutledge, Alaska's Energy Resources, Alaska Journal of Commerce, March 19, 1984. American Petroleum Institute. "Oil, Gas, and the Challenge of the Arctic," 1984. 22 p. Aspnes, J.D. et al. "Rural Alaska Electric Power Quality: Final Report." Prepared for Alaska Department of Transportation and Public Facilities, Division of Planning and Programming, 1984. 69 p. Battelle Pacific Northwest Laboratories. "Examination of the Feasibility of High Capacity Batteries as a Storage Option for Arctic Village Power." No date. 13 p. Battelle Pacific Northwest Laboratories. "Preliminary Evaluation of Wind Energy Potential, Cook Inlet Area, Alaska." Alaska Power Administration, 1980. One volume. Battelle Pacific Northwest Laboratories. "Wind Energy Resource Atlas: The Alaska Region." 1980. 168 p. R. W. Beck and Associates. "Small Scale Hydropower Reconnaissance Study: Southwest Alaska. U.S. Corps of Engineers, Alaska District, 1981. One volume. "Biomass to Electricity for 50-500 kW Systems," Systems Engineering & Manufacturing, 1983. Burns and McDonnell. "The Need for a Fuel Cell Power Plant Demonstration Among Rural Electric Cooperatives." National Rural Electric Cooperative Association, 1981. 38 p. 229 CH2M Hill. "Regional Inventory and Reconnaissance Study for Small Hydroelectric Power Sites in Southeast Alaska. U.S. Army Corps of Engineers, Alaska District, 1979. 171 p. Commonwealth Associates, Inc. "Feasibility Study of Electrical Interconnection Between Anchorage and Fairbanks." Alaska Power Authority, 1981. One volume. "Conservative Flourescent Light Regulating System Test Report," Longstaff, T.W., PE, Longstaff Engineering, June, 1981. Coutts, H.J., Low Temperature Automotives Emmissions and Inspection and Maintenance Effectiveness, Volume 1, Department of Transportation and Public Facilities, 40 pp., 1983. Coutts, H.J., Low Temperature Automotives Emmissions and Inspection and Maintenance Effectiveness, Volume 2, Department of Transportation and Public Facilities, Appendix (test data), 164 pp., 1983. Dames and Moore. "Assessment of Coal Resources of Northwest Alaska, Phase II." Alaska Power Authority, 1981. Two volumes. Contents: Draft--Assessment of the Feasibility of Utilization of the Coal Resources of Northwest Alaska for Space Heating and Electricity, Draft Report; Vol. III--Assessment. 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Department of Commerce & Economic Development, Division of Energy and Power Development, "Technical Energy Audit Manual," 1982. 230 Department of Commerce and Economic Development, Division of Energy & Power Development, "Wind - A Technical Assessment," February, 1984, Department of Commerce and Economic Development, "Evaluation of Ice Problems Associated with Hydroelectric Power Generation in Alaska: Final Report to the State of Alaska," 1981. Department of Commerce and Economic Development, Office of Mineral Development, Department of Natural Resources, Division of Geological and Geophysical Survey, "Alaska's Mineral Industry - 1983," June, 1984, Department of Commerce and Economic Development, "1981 Long Term Energy Plan," April 1981. Department of Commerce and Economic Development, "1982 Long Term Energy Plan," May 1982. Department of Commerce and Economic Development, "1983 Energy Report," May 1983. 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