The Municipal Advisory Gas Project Review Board continues to work on the infrastructure for financial plans of the Alaska LNG Project.
Kenai Peninsula Borough Mayor Mike Navarre said he and other mayors are working to further define the preliminary Payments In Lieu of Taxes(PILT) model which has been split geographically.
Mayor Navarre: “It’s actually in three parts, there’s a gas treatment plant on the North Slope, there’s the LNG facility which will be in Nikiski in the Kenai Borough, and then the pipeline. So separating it into three separate portions of the project so that the PILT will have some relationship to where the asset is actually sited.”
Mayor Navarre said that works in the Kenai Peninsula Borough’s favor since 40% or more of the total project(specifically the plant, pipeline, and the LNG facility) will be located within the borough.
PILT payments will begin once the liquefied natural gas begins being shipped out of Alaska, the revenues will be dispersed through the Payment In Lieu of Taxes process.
Another financial matter being discussed is how communities along the project will be impacted and compensated for.
Mayor Navarre: “We’re also waiting for additional information to determine exactly where the work camps are going to be sited along the project, etc. because that will also determine which communities are going to have direct impacts. So we’re just discussing and going back and forth about where the impacts are going to be and how we allocate the impact aid money that’s going to be coming to the state as part of the project.”
One example the mayor gave was the possibility of Ketchikan losing half of their police force because officers take jobs as security on the pipeline project.
