January 29, 2009

Sen. Mark Begich Supports Point Thomson Development

Commends State, Exxon for working together

U.S. Senator Mark Begich today praised the decision by Alaska's Natural Resources Commissioner, Tom Irwin, to allow Exxon Mobil Corp. to pursue development at Point Thomson. After a long-standing dispute over state leases at Point Thomson, Commissioner Irwin issued a decision Tuesday allowing Exxon to build ice roads and drill exploratory wells on two leases, contingent on the company's commitment to begin work immediately and other terms.

"I'm encouraged to see the parties choose negotiation over litigation and get this field moving toward production," Sen. Begich said. "We know Point Thomson is believed to hold trillions of cubic feet of natural gas and is key to getting an Alaska natural gas line built."

Exxon has made a commitment to drill wells this winter and start producing oil by 2014. The company has estimated spending more than $1 billion, creating hundreds of jobs in Alaska. The Point Thomson field is east of Prudhoe Bay, on Alaska's North Slope.

"As we continue to deal with our economic crisis and rising energy costs, this is good news for Alaska and the rest of the country." Sen. Begich added. "Developing our natural resources can only help meet the energy needs across the nation and bring costs down for consumers."

In a statement from Exxon, the company says the commissioner's decision will clear the way for construction of nearly 50 miles of ice roads and needed to transport the massive drilling rig and other equipment, materials, and personnel to Point Thomson.

From a Mark Begich press release