Resource Development Council

RDC Comment Letter:
TA 316-8 – Contract between Chugach and Marathon

May 7, 2010

Regulatory Commission of Alaska
701 West Eighth Avenue, Suite 300
Anchorage, AK 99501

Re: TA 316-8 – Contact between Chugach Electirc Association, Inc., and Marathon
Alaska Production LLC

Dear Commissioners Pickett, Giard, Lisankie, Patch, and Wilson:

On behalf of the Resource Development Council for Alaska (RDC), I write to offer support for Chugach Electic Association’s (CEA) request for the Commission to approve the proposed base contract between CEA and Marathon Alaska Production LLC (Marathon). The contract will allow for the sale and purchase of much needed natural gas between CEA and Marthon for the Alaska market.

RDC is a statewide membership-funded organization founded in 1975. Our membership is comprised of individuals and companies from Alaska’s oil and gas, mining, timber, tourism, and fisheries industries, as well as Alaska Native corporations, local communities, organized labor, and industry support firms. RDC’s purpose is to link these diverse interests together to encourage a strong, diversified private sector in Alaska and expand the state’s economic base through the responsible development of our natural resources.

RDC is supportive of stable and cost effective supply of natural gas. TA 316-8 will help CEA meet this need for consumers in Anchorage and along the Railbelt, encouraging certainty for electric supply. Contracts for gas purchase provide for a more stable market to suppliers, thereby encouraging additional exploration and development in Alaska. Subsequently, additional exploration and development will create essential jobs for Alaskans.

In conclusion, RDC supports the expedited approval of TA 316-8 by the Regulatory Commision of Alaska. Thank you for your consideration.

Resource Development Council for Alaska, Inc.