Wyden Challenges Order Authorizing Export of Alaskan Natural Gas




      Tuesday, September 9, 2008


      WASHINGTON, D.C. - Citing projections that natural gas will cost
Americans an average of 22% more this winter than last, U.S. Senator Ron
Wyden asked Energy Secretary Samuel Bodman to review and revoke the
Department of Energy's recent order authorizing the export of 98.1 billion
cubic feet of Alaskan natural gas -- enough gas to meet the needs of 1.4
million American families -- to Japan other Pacific Rim countries.

       "The Administration is trying to have it both ways - arguing that we
need to drill everywhere because we don't have adequate energy supplies,
while finding that we have so much energy that big oil companies can export
it overseas and keep prices here at home higher than they would otherwise
be," wrote Wyden.

       In his letter to Secretary Bodman (below) Wyden contends that in
authorizing the export of Alaskan natural gas, the Department failed to meet
the public interest test required by the Natural Gas Act.  Not only did the
Department fail to consider options for delivering Alaskan natural gas to
the lower 48 United States, it rejected repeated requests made by the
largest electric utility in Alaska that the Department "condition the export
of Alaskan gas on assurances that Alaska's own need for natural gas was
 met."

       "It is hard to see how the Department concluded that the proposed
export of Alaskan natural gas met the required public interest test with
regard to either Alaskan or lower-48 energy needs," wrote Wyden. "For the
Department to categorically reject an opportunity to provide additional
supplies of energy to American consumers,  both in Alaska and on the West
Coast at a time of record energy prices, and instead let these companies
send that energy to overseas markets, demands a Secretarial-level review."

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http://fossil.energy.gov/programs/gasregulation/authorizations/lng_export_application_0702LNG.html
      ConocoPhillips Alaska Natural Gas Corporation and Marathon Oil Company
      Application to Export LNG (FE Dkt. No. 07-02-LNG)
      The Office of Fossil Energy gives notice of receipt of a joint
application filed on January 10, 2007 by CPANGC and Marathon, requesting
blanket authority to export on their own behalf or as agents for others on a
short-term (2-years), or spot market basis from existing facilities near
Kenai, Alaska up to 99 Trillion British thermal units of liquefied natural
gas to Japan and/or one or more countries on either side of the Pacific Rim
over a two year period commencing April 1, 2009 and terminating March 31,
2011.

      Order 2005 granting export authorization was issued June 3, 2008, and
Order 2005-A Denying Request for Rehearing was issued July 30, 2008.