Jim Clark talks to ABM.

• Author: McCorkle, Vern
• Position: From the Publisher - Interview

McCorkle: What would you most like our readers to know about the gas pipeline contract that you have been negotiating for the last eight months?

Clark: Well, several things. We have gotten to the end of negotiating the policy issues that are in the contract and we are now completing some exhibits to the contract that are illustrative-like the accounting exhibit-some sample calculations, which show how we intended for certain tax calculations to be made.

We are working on the Fiscal Interest Finding that needs to accompany the 300-page contract. It explains the process producers are going through to determine if they have a project that will allow them to build a gas line, and how our contract fits into that process.

McCorkle: Recently the governor announced that his agreement was for "fiscal aspects" of the contract. Are there other aspects to be negotiated?

Clark: We called it the fiscal contract because it nails down for the producers what the economics are in Alaska. They need to see what impacts like permits might have on the economics, FERC approval, what going through Canada will have on the project. They need to compile all of these economics to make a "Go/No Go" decision.

McCorkle: Making a "Go/No Go" decision reminds me of Exxon's statement that the agreement is only about major provisions of the contract, leading one to ask, "What are the other provisions?"

Clark: All of the issues that are important to the state and the producers are in the contract. We have a contract that, should the project go forward, there are no fatal flaws in the economic analyses, as they look at Canada, and other things. Should the project go forward, we have a contract in place that requires them to make payments, to hire Alaskans, provide access to third-party producers, to allow us to use our gas in state-all of those things. We have a contract that is ready to go, everything's been negotiated, except for minor technical, wording issues.

McCorkle: You have said: "Should the project go," several times.

Clark: Just keep in mind-and this is something...