ANGDA'S first report to Alaskans lays it all out-publicly.

• Author: McCorkle, Vern C.
• Position: Alaska Natural Gas Development Authority

It has been one month since the Alaska Natural Gas Development Authority distributed more than 100,000 copies of its much anticipated and first "Report To The People" of Alaska on the all-Alaska LNG project. It was promised as one of the essential features of Proposition No. 3 of 2002.

The 12-page, full-color, tabloid-size report was tucked into every newspaper published in Alaska so that distribution of the report would be broad and wide. It contained a primer on what liquefied natural gas is and does, together with brief, factual outtakes from several world-class experts on the matter. To prepare the report, ANGDA retained the services of a number of qualified consultant companies to assist it in bringing forth facts that, eventually, may help Alaska's Legislature decide how best to market 35 trillion cubic feet of proven and 211 additional trillion cubic feet of undiscovered but recoverable natural gas.

Not wishing to appear too optimistic or forward looking, ANGDA has been walking about on tippy-toes, fearful of coming off too strongly in favor of an all-Alaska project that might not be supported by independent analysis and research. But since issuing its report last month, ANGDA and its board of directors have been able to take a slightly more positive stance, albeit reflective of the board's extremely conservative outlook.

The experts have proven many of the authority's early projections to be pretty near the mark, particularly one of the most important aspects, total overall project costs. Originally ANGDA has estimated those costs to be $12 billion, paid by revenue bonds, not taxpayers. The experts, Stone and Webster Inc., say the cost may be more like $11.5 billion. The return to Alaska, however, has turned out to be less than the $1 billion annually that ANGDA had hoped, and according to Stone and Webster will likely be more in the $330 million per year range. If the LNG facilities were owned by private interests, the annual return to Alaska would be only about $236 million, Stone and Webster says.

Harold Heinze is the chief executive officer for the authority. He is the past president of ARCO Alaska and former commissioner of the Alaska Department of Natural Resources. He says, "I believe an all-Alaska LNG project is a viable option for bringing Alaska's gas to market and can maximize the benefits to Alaskans."

The history of Alaska's stranded gas is filled with failed projects and unfulfilled potential, he says. "Natural gas can...