ADMINISTRATIVE ORDER NO. 70
JAY S. HAMMOND
OFFICE OF THE GOVERNOR
September 1, 1981
For the management system to monitor design and construction
of the Alaska Natural Gas Transportation System (ANGTS), including
the Sales Gas Conditioning Facility, if that Facility is the
subject of a lease issued pursuant to A.S. 38.35.
1) It is in the best interests of the people of the State
of Alaska that ANGTS is designed and constructed safely, with
minimum practicable effect on the environment, with positive
effects on the socioeconomic climate of Alaska, and as expeditiously
2) Construction of the ANGTS will involve most State agencies
to some degree in preconstruction review, construction monitoring,
permitting, licensing, taxing, or offsetting the impacts on Alaska's
environment, its economy and its people. For this reason, close
coordination among these agencies is necessary.
3) Duplicative regulation, monitoring, permitting and paper
work must be eliminated to ensure that ANGTS is constructed as
expeditiously as practicable while meeting requirements of the
State of Alaska.
4) The President of the United States, through the Office
of the Federal Inspector, has established a single point of contact
with the Federal Government for matters relating to ANGTS.
5) Pursuant to A.S. 38.35.140(b), the sponsors of ANGTS are
required to reimburse the State for reasonable costs of monitoring
the construction of ANGTS. It is essential that the State provide
a management system which identifies and accounts for its monitoring
efforts and the associated costs so that reimbursement is justified
and proper, and costs are properly controlled.
6) Complete administrative records must be maintained to document
the construction efforts of the ANGTS.
In light of the foregoing, I, JAY S. HAMMOND, Governor of
the State of Alaska, order and declare the following:
1) Each State agency shall comply with applicable provisions
of this order.
2) The Department of Natural Resources, through the Office
of the Pipeline Coordinator, shall be the lead State agency for
monitoring preconstruction and construction of ANGTS.
3) Each department shall immediately appoint a liaison officer
to the State Pipeline Coordinator. These liaison officers shall
represent their departments in matters relating to monitoring
of ANGTS, assist the State Pipeline Coordinator and his staff
in carrying out his responsibilities, and keep the State Pipeline
Coordinator informed of monitoring and other ANGTS-related activity
of the liaison officer's department. For those departments which
have a major role in monitoring the ANGTS, liaison officers will
be assigned full time and be collocated with the Office of the
Pipeline Coordinator. At present, these agencies include the
Departments of Natural Resources, Fish and Game, Environmental
Conservation, and Transportation and Public Facilities. Other
agencies are expected to assign a liaison officer who has other
duties as well. If an agency's monitoring responsibilities expand
to the point where a full time liaison officer is needed, it
will appoint one, with the concurrence of the State Pipeline
4) If a department's monitoring responsibilities require staff
additional to the liaison officer, the department shall, with
the concurrence of the State Pipeline Coordinator, appoint such
staff. This staff will be under the supervision of the liaison
officer or his designee and shall be collocated with the Office
of the Pipeline Coordinator or at a location designated by the
State Pipeline Coordinator.
5) The State Pipeline Coordinator shall be responsible for
planning and managing ANGTS monitoring programs carried out or
coordinated by the agency liaison officers and their staffs.
6) All applications for permits and other authorizations which
the State may require of the sponsor of ANGTS shall be submitted
by the sponsor to the State Pipeline Coordinator. The State Pipeline
Coordinator shall forward the applications to the appropriate
department liaison officer, who shall ensure that they are properly
processed. The State Pipeline Coordinator shall receive a copy
of the permit or other authorization issued.
7) To the extent consistent with applicable law, departments
shall delegate permit or other authorization signatory authority
to their liaison officers and/or to staff of the liaison officer.
8) Except for routine or follow-up informational inquiries
by or to departmental liaison officers or other department staffs,
as may be mutually agreed upon by the respective commissioner
and the State Pipeline Coordinator, all correspondence relating
to pipeline monitoring between a department and the ANGTS sponsor
or the United States Government shall be routed through the Office
of the Pipeline Coordinator and be reviewed by him. This does
not apply to agency liaison officers' communications with their
respective agencies. The State Pipeline Coordinator and a department
commissioner may, if mutually agreeable, modify or amend this
provision as it relates to that department's communications regarding
9) Each department shall keep a full set of files in a central
location on all aspects of its activities relating to ANGTS.
10) The State Pipeline Coordinator shall establish those field
monitoring teams and activities pertaining to ANGTS and related
facilities he determines, with the concurrence of affected agencies,
are in the best interests of efficiency and effectiveness. Such
monitoring teams may be composed of staff from a number of agencies.
Responsibilities and authorities of affected agencies may, consistent
with law, be delegated to team members regardless of their department
affiliation, and those team members shall conduct the entire
field monitoring program of the agencies involved. The State
Pipeline Coordinator shall appoint the team leader.
11) All applicable departments shall prepare and submit an
annual budget request for those costs which are reimbursable
under AS 38.35.140(b) (and the President's Decision and/or other
FERC/Federal regulations). These budget requests will be reviewed
and approved by the State Pipeline Coordinator. All such budget
requests will be submitted as a consolidated unit to the Division
of Budget and Management in a manner established by the division.
Costs will not be reimbursable unless proposed budgets are approved
by the State Pipeline Coordinator. The State Pipeline Coordinator
shall ensure that reimbursement is secured promptly for costs
incurred under approved budgets.
12) To the extent allowed by law, before taking enforcement
action against the ANGTS project sponsor, its agents or contractors
for violation of State law relating to design, preconstruction
or construction of ANGTS, the department involved shall consult
with the State Pipeline Coordinator and consider his advice.
Whenever feasible, and the department involved and the State
Pipeline Coordinator agree on a particular course of action,
such enforcement action shall be undertaken under the grant of
lease and right-of-way issued by the Department of Natural Resources.
For the purposes of this section, consultation is considered
"infeasible" only if the nature of the violation requires
prompt or immediate action, and the State Pipeline Coordinator
or his designee is not available.
13) In the event of a dispute between departments regarding
a matter covered under this order, including matters involving
annual budget requests, the departments involved will consult
with the Department of Law, and (a) if the dispute involves the
right-of-way lease and the matter cannot be resolved between
a department and the State Pipeline Coordinator, the affected
department commissioner should attempt to resolve this matter
with the Commissioner of Natural Resources, and the decision
of the Commissioner of Natural Resources shall be final; (b)
if the dispute involves a question clearly covered by a department's
statutory or regulatory authority, the dispute will be resolved
by the department responsible for administering that law, and
the decision of that department commissioner is final. In all
such disputes, affected commissioners shall seek the views of
the State Pipeline Coordinator, and consider these views before
making a decision; (c) in disputes between commissioners other
than in cases subject to (a) and (b) above, the Office of the
Governor shall resolve the matter. However, before bringing the
matter to me, the commissioners involved shall avail themselves
of the services of the Department of Law, and that department
will attempt to moderate the dispute based upon legal authorities
of the departments involved.
14) The terms of this order do not apply to those subject
areas specifically excluded from the jurisdiction of the State
Pipeline Coordinator, such as financing and in-state use of royalty
15) This order is for administrative purposes only, and is
not intended to create any third party rights.
DATED at Juneau, Alaska, this 1 day of September 1981.
S/S Jay S. Hammond
Jay S. Hammond