24th Legislature: 1st Session, Hearings/Work Sessions: August 31, 2005

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LB&A Committee Agenda – Interim Hearings
Alaska Natural Gas Pipeline Economics

August 31, 2005

On Wednesday August 31, 2005 the Legislative Budget & Audit Committee will conduct a hearing on Alaska natural gas pipeline economics. The hearing will be held in Anchorage at the Legislative Building, 716 West Fourth Avenue, in the second floor conference room. The schedule for the hearing is set forth below.

Full Minutes

9:30 Introduction of the Legislature’s Gas Pipeline Economic Consultants:
Jeffrey Leitzinger, Ph.D., President, Econ One Research, Inc.
Barry Pulliam, Senior Economist, Econ One Research, Inc.
Minutes
Presentation 1

9:59 Alaska Gas’ Position in the Marketplace
Rick Harper, Consultant, Econ One Research, Inc.
Minutes
Presentation 2

10:42 Natural Gas Prices and Tariffs
Barry Pulliam, Senior Economist, Econ One Research, Inc.
Rick Harper, Consultant, Econ One Research, Inc.
Anthony Finizza, Ph.D., Consultant, Econ One Research, Inc.
Minutes
Presentation 3

11:27 Return on Capital & Cost of Capital: Petroleum & Natural Gas Pipeline Companies
Jeffrey Leitzinger, Ph.D., President, Econ One Research, Inc.
Barry Pulliam, Senior Economist, Econ One Research, Inc.
Anthony Finizza, Ph.D., Consultant, Econ One Research, Inc.
Minutes
Presentation 4

12:15 Lunch Break

1:36 Investment Decision-Making by Oil and Gas Companies
Barry Pulliam, Senior Economist, Econ One Research, Inc.
Anthony Finizza, Ph.D., Consultant, Econ One Research, Inc.
Minutes
Presentation 5

2:06 Analysis of Project Viability with Vertical Components
Jeffrey Leitzinger, Ph.D., President, Econ One Research, Inc.
Minutes
Presentation 6

2:42 Net Present Value, Rate of Return, and Profitability Index on Producer Investments
Barry Pulliam, Senior Economist, Econ One Research, Inc.
Minutes
Presentation 7

3:55 Impact on State and Municipal Economics from Delay in Gas Pipeline’s In-Service Date
Jeffrey Leitzinger, Ph.D., President, Econ One Research, Inc.
Barry Pulliam, Senior Economist, Econ One Research, Inc.
Rick Harper, Consultant, Econ One Research, Inc.
Anthony Finizza, Ph.D., Consultant, Econ One Research, Inc.
Minutes
Presentation 8

4:04 Impact on Net Present Value, Rate of Return, and Profitability Ratio from Increase in Gas Production Severance Tax
Barry Pulliam, Senior Economist, Econ One Research, Inc.
Minutes
Presentation 9

4:28 Executive Session