19–010 

Calendar No. 269 

112TH CONGRESS REPORT " ! SENATE 2d Session 112–107 

DENALI NATIONAL PARK AND PRESERVE NATURAL 

GAS PIPELINE 

JANUARY 13, 2012.—Ordered to be printed 

Filed, under authority of the order of the Senate of December 17, 2011 

Mr. BINGAMAN, from the Committee on Energy and Natural 

Resources, submitted the following 

R E P O R T 

[To accompany S. 302] 

The Committee on Energy and Natural Resources, to which was 

referred the bill (S. 302) to authorize the Secretary of the Interior 

to issue right-of-way permits for a natural gas transmission pipeline in nonwilderness areas within the boundary of Denali National 

Park, and for other purposes, having considered the same, reports 

favorably thereon without amendment and recommends that the 

bill do pass. 

PURPOSE

The purpose of S. 302 is to authorize the Secretary of the Interior 

to issue right-of-way permits for a natural gas transmission pipeline in non-wilderness areas within the boundary of Denali National Park. 

BACKGROUND AND NEED

Currently, electricity in south-central Alaska is largely generated 

by burning natural gas produced from the gas fields in Cook Inlet, 

south of Anchorage, although production from Cook Inlet has been 

declining. There are concerns regarding the region’s ability to 

produce sufficient gas to support the area’s population. Plans for a 

large-volume natural gas pipeline to run from the Prudhoe Bay oil 

fields to the Lower 48 States may not be finished in time to provide 

needed gas to south-central Alaska. Therefore, Alaska is considVerDate Mar 15 2010 04:49 Jan 14, 2012 Jkt 019010 PO 00000 Frm 00001 Fmt 6659 Sfmt 6602 E:\HR\OC\SR107Q1.XXX SR107Q1

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ering investing in a smaller pipeline to meet medium-term demand. 

The in-state pipeline would run from Alaska’s North Slope region, past Fairbanks, through the Nenana River Canyon and 

Denali National Park and Preserve following the existing highway, 

7 miles of which pass through the park. The proposed pipeline 

makes use of the existing highway right-of-way, and comes near, 

but does not cross the wilderness boundary in Denali. The pipeline 

would provide for natural gas transportation until a pipeline to the 

continental United States. 

S. 302 authorizes the Secretary of the Interior to permit the pipeline to run through a small portion of the park, along an existing 

highway right-of-way, subject to appropriate analysis under the 

National Environmental Policy Act and National Park System 

laws. Although gas pipelines rights-of-way are not generally issued 

through units of the National Park System (gas pipelines may only 

be issued through a national park if authorized by an Act of Congress), the Park Service has preliminarily indicated that running 

the pipeline along the existing highway right-of-way would be better for the park than constructing a new right-of-way through a 

scenic vista just outside the park’s boundary. 

LEGISLATIVE HISTORY

S. 302 was introduced by Senators Murkowski and Begich on 

February 8, 2011. The Subcommittee on National Parks held a 

hearing on the bill on May 11, 2011 (S. Hrg. 112–124). 

During the 111th Congress, the Committee considered similar 

legislation introduced by Senator Murkowski, S. 302. The measure 

was included in section 354 of S. 1462, the American Clean Energy 

Leadership Act of 2009, which was reported favorably by the Committee on Energy and Natural Resources on July 16, 2009 (S. Rept. 

111–48). 

COMMITTEE RECOMMENDATION

The Committee on Energy and Natural Resources, in open business session on November 10, 2011, by voice vote of a quorum 

present, recommends that the Senate pass S. 302. 

SECTION-BY-SECTION ANALYSIS

Section 1(a) defines key terms used in the bill. 

Subsection (b) authorizes the Secretary of the Interior to issue 

right-of-way permits for a high-pressure natural gas transmission 

pipeline and appurtenances within non-wilderness areas of Denali 

National Park, along the 7-mile segments of the George Parks 

highway that runs through the park. The Secretary would also be 

authorized to issue rights-of-way for distribution and transmission 

pipelines and appurtenances, if the Secretary determines they are 

necessary to provide a natural gas supply to the park. 

Subsection (c) provides that the Secretary may only issue a permit authorized under subsection (b): if the permit is consistent with 

the laws and regulations generally applicable to utility rights-ofway within units of the National Park System; if it is in accordance 

with section 1106 of the Alaska National Interest Lands Conservation Act (16 U.S.C. 3166(a)); and if, following appropriate analysis 


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under the National Environmental Policy Act of 1969 (42 U.S.C. 

4321 et seq.), the Secretary finds that the route of the right-of-way 

is the route through the park with the least adverse environmental 

effects for the park. The permit shall be subject to any other terms 

and conditions the Secretary determines to be necessary. 

COST AND BUDGETARY CONSIDERATIONS

The following estimate of costs of this measure has been provided 

by the Congressional Budget Office: 

S. 302—A bill to authorize the Secretary of the Interior to issue 

right-of-way permits for a natural gas transmission pipeline in 

nonwilderness areas within the boundary of Denali National 

Park, and for other purposes 

S. 302 would authorize the National Park Service (NPS) to issue 

permits to construct a natural gas pipeline in the Denali National 

Park, Alaska. Based on information provided by the NPS, CBO estimates that implementing the legislation would have no significant impact on the federal budget. S. 302 could increase offsetting 

receipts (from permit fees) and associated direct spending; therefore, pay-as-you-go procedures apply. However, CBO estimates that 

the net effect on direct spending would be negligible. Enacting the 

legislation would not affect revenues. 

If potential owners or operators of a pipeline seek permits from 

the NPS, the agency could collect a fee to recover any costs associated with issuing such permits. Based on information from the 

NPS, CBO estimates that receipts from permits would total less 

than $5,000 over the 2012–2021 period. Those amounts would be 

retained and spent by the agency, and CBO estimates that the net 

effect on direct spending would be negligible. 

S. 302 contains no intergovernmental or private-sector mandates 

as defined in the Unfunded Mandates Reform Act and would not 

affect the budgets of state, local, or tribal governments. 

The CBO staff contact for this estimate is Jeff LaFave. The estimate was approved by Theresa Gullo, Deputy Assistant Director 

for Budget Analysis. 

REGULATORY IMPACT EVALUATION

In compliance with paragraph 11(b) of rule XXVI of the Standing 

Rules of the Senate, the Committee makes the following evaluation 

of the regulatory impact which would be incurred in carrying out 

S. 302. 

The bill is not a regulatory measure in the sense of imposing 

Government-established standards or significant economic responsibilities on private individuals and businesses. 

No personal information would be collected in administering the 

program. Therefore, there would be no impact on personal privacy. 

Little, if any, additional paperwork would result from the enactment of S. 302, as ordered reported. 

CONGRESSIONALLY DIRECTED SPENDING

S. 302, as ordered reported, does not contain any congressionally 

directed spending items, limited tax benefits, or limited tariff benefits as defined in rule XLIV of the Standing Rules of the Senate. 


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EXECUTIVE COMMUNICATIONS

The testimony provided by the National Park Service at the May 

11, 2011, Subcommittee on National Parks hearing on S. 302 follows. 

STATEMENT OF STEPHEN E. WHITESELL, ASSOCIATE DIRECTOR, PARK PLANNING, FACILITIES AND LANDS, NATIONAL

PARK SERVICE, DEPARTMENT OF THE INTERIOR

Mr. Chairman, thank you for the opportunity to testify 

and provide the views of the National Park Service (NPS) 

on S. 302, a bill to authorize the Secretary of the Interior 

to issue right-of-way permits for a natural gas transmission pipeline in nonwilderness areas within the boundary of Denali National Park, and for other purposes. 

The Department has no objection to the bill as written. 

The potential owners and operators of such a pipeline 

have not, at this time, determined whether such a line carrying natural gas to south-central Alaska is financially feasible, nor have they determined the best route for a pipeline. This legislation provides flexibility for the backers of 

a proposed pipeline, and provides assurance to the NPS 

that the National Environmental Policy Act analysis will 

be completed before any permit for work in the park would 

be issued by the Secretary. 

The legislation also provides authority for the Secretary 

to permit distribution lines and related equipment within 

the park for the purpose of providing a natural gas supply 

to the park. We support this provision, but remind the 

committee that at this time no decisions have been made 

about the financial or engineering feasibility, nor the exact 

configuration of equipment needed to facilitate tapping the 

larger line to allow local use of natural gas in or near 

Denali National Park. 

Thank you for the opportunity to testify and we would 

welcome any questions you or other members may have. 

CHANGES IN EXISTING LAW

In compliance with paragraph 12 of rule XXVI of the Standing 

Rules of the Senate, the Committee notes that no changes in existing law are made by the bill S. 302 as ordered reported. 

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