5-23-13 Notes from the road: Cuenca

23 May 2013 2:44am

Earlier this week Governor Sean Parnell (NGP Photo) proposed state assistance to the federal government in support of developing the Arctic National Wildlife Refuge.  Here is the letter to the Secretary of the Interior which containes the state offer.  -dh


Yesterday, U.S. House of Representatives Resources Committee Chairman, Doc Hastings (NGP Photo), participated in an interview on the Keystone XL Pipeline-here.

 


Yesterday the U.S. House of Representatives 
Subcommittee on Energy and Mineral Resources held hearings critical to Alaska's energy future:

  • H.R. 1964 (Hastings of WA), To amend the Naval Petroleum Reserves Production Act of 1976 to direct the Secretary of the Interior to conduct an expeditious program of competitive leasing of oil and gas in the National Petroleum Reserve in Alaska, including at least one lease sale in the Reserve each year in the period 2013 through 2023, and for other purposes. ‘‘National Petroleum Reserve Alaska Access Act”
  • H.R. 1965 (Lamborn),To streamline and ensure onshore energy permitting, provide for onshore leasing certainty, and give certainty to oil shale development for American energy security, economic development, and job creation, and for other purposes. “Federal Lands Jobs and Energy Security Act”
  • H.R. 1394 (Tipton), To direct the Secretary of the Interior to establish goals for an all-of-the-above energy production plan strategy on a 4-year basis on all onshore Federal lands managed by the Department of the Interior and the Forest Service. “Planning for American Energy Act of 2013”
  • H.R. 555 (Johnson of OH), To amend the Mineral Leasing Act to authorize the Secretary of the Interior to conduct onshore oil and gas lease sales through Internet-based live lease sales, and for other purposes. “BLM Live Internet Auctions Act”
Member Statements:
The Honorable Doc Hastings
Committee Chairman

The Honorable Doug Lamborn
Subcommittee Chairman

Witnesses and Testimony:
PANEL I
Jamie Connell
BLM Acting Deputy Director
U.S. Department of the Interior

Commissioner Dan Sullivan
Department of Natural Resources
State of Alaska

Charlotte E. Brower
Mayor
North Slope Borough

PANEL II

Richard Glenn
Executive Vice President, Lands & Natural Resources
Arctic Slope Regional Corporation
(Truth in Testimony Form)

Jack Ekstrom
Vice President, Corporate and Government Relations
Whiting Petroleum Corporation
(Truth in Testimony Form)

William W. Britain
President / CEO
EnergyNet.com, Inc.
(Truth in Testimony Form)

Debbie Miller
Founder and Member of Board of Directors
Alaska Wilderness League
(Truth in Testimony Form)

Jim Spehar
Former Mayor
Grand Junction, Colorado
(Truth in Testimony Form)

Related Documents:

 

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5-22-13 Notes From the Road (Quito)

22 May 2013 5:22am

Support Tax Reform Law!
 
From our friends at the Resource Development Council for Alaska (RDC).
 
"...there is currently a signature gathering referendum effort taking place to repeal SB21, the oil tax reform bill signed in to law by Governor Parnell.
 
In an effort to give the thoroughly vetted new tax structure time to work, the Alaska Support Industry Alliance is using its independent expenditure group, "We Are Alaska," to run a campaign educating Alaskans on what SB21 has accomplished and explaining why signing the referendum could be extremely harmful for the future of Alaska. 
 
RDC and other business associations across the state support the new tax regime, the More Alaska Production Act (MAP Act), and have a high level of confidence that it will result in new investment, production, jobs, and revenues to fund education and a wide range of public services.
 
To learn more, visit the We Are Alaska website and be sure to like them on Facebook, as well as Twitter


Alaska's contribution to the nation's energy supply has been in decline since the 1980's.  
 
While the resource is there to stem the decline, and perhaps even reverse the trend, Alaska's investment climate has been unfriendly to attract the major investment dollars needed to do so.  
 
After extensive review, analysis, and research, Governor Sean Parnell and the Alaska Legislature passed SB 21 to reform our tax system to make it more competitive. It will help will help invigorate Alaska's energy production and bring jobs and investment to our state. 

Don't let a small minority take us two steps back when it comes to Alaskan jobs and competitiveness. Show your support for Senate Bill 21 and the Alaskan economy.  


The Federal Government Has Broken Its Word Many Times As It Has Sapped Sovereignty From America's States  (Commentary)

Rober Barrus, Utah, IOGCC, Energy Producing States Coalition, Photo by Dave HarbourEarlier this week at an IOGCC (Interstate Oil and Gas Compact Commission) meeting in Alabama, Utah Representative Roger Barrus (NGP Photo) provided the nation's oil and gas conservation commissioners with a high level history lesson.  

The founders and their successors made it clear that the states were to manage state resources.

He noted that on October 10, 1780 Congress passed a Resolution affirming that it will hold title to western lands only “to create new states” and to pay the national debt “and for no other use or purpose whatsoever”.

Barrus then provided a series of examples of actions by the 
Country's founders and their successors supporting state control over state lands.  Here is his PowerPoint presentation containing the useful history of references.
 
We are grateful to Representative Barrus for his initiative and research documenting the degree of state sovereignty which has been erroded by federal overreach.  We believe that this research may well hold a key to unlock the chains of administrative and regulatory burden placed in recent years on the states and private industry by an unrelentingly aggressive federal bureaucracy.
 
-dh

E&E Publishing by Margaret Kriz Hobson.  At a time when international competition is heating up to export liquefied natural gas into Asia, Alaska is scrambling to become a major player in foreign export markets, while also giving state consumers access to local fuel.

America's northernmost state wants to commercialize the 34 trillion cubic feet of natural gas available on its North Slope, roughly a tenth of all U.S. natural gas reserves.

But although Alaska has plenty of gas, transporting it from the frozen north to the world's markets has been the subject of one of the most contentious and long-running battles in the state's history.

Recently, Alaska officials expanded the authority of a state corporation in hopes of giving it enough flexibility and muscle to get a natural gas pipeline built.

During the 2013 legislative session, state lawmakers converted the Alaska Gasline Development Corp. (AGDC) into an independent state corporation.

They gave the new body broad powers to take part in two projects: a large-volume LNG export project proposed by the energy industry and a small, in-state gas pipeline.

"We are currently on two parallel but merging paths" on building a natural gas pipeline, Alaska Gov. Sean Parnell (R) said in a recent interview. "We're closer now to getting a pipeline than we were before passage of that bill."


 

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5-21-13 - Notes from the road....

21 May 2013 3:02am

Cathy Giessel, Alaska State Senate, Bristol Bay Assessment, Watershead, Photo by Dave Harbour
Governor Sean Parnell (NGP Photo) announced an exploration proposal for the state to finance development of the Arctic National Wildlife Refuge (ANWR) 1002 Area, that the Congress designated for oil and gas development.
 
Alaska Governor Sean Parnell, a“Accurately defining the oil and gas resource potential is a critical part of understanding the value of the 1002 Area to the nation,” Governor Parnell said. “The federal government has the responsibility to do this under federal law, but is clearly reluctant to do so. Therefore, we are stepping forward with our expertise and financing to provide a detailed resource evaluation and exploration proposal.”
 
Parnell outlined the proposal in a letter sent to Interior Secretary Sally Jewell, and he and Department of Natural Resources Commissioner Dan Sullivan rolled out the 187-page document during a press event at the U.S. Chamber of Commerce headquarters in Washington, D.C. 
 
Alaska Senator Cathy Giessel (NGP Photo) has again set the example for public officials by commenting during a federal agency comment period.  In March she wrote the Environmental Protection Agency (EPA) urging it to extend its comment period for the Revised Draft Bristol Bay Assessment (BBA).   See her full comment here.  Go here, to the Resource Development Council for Alaska website for directions on how our readers may also comment before the May 31 deadline.  -dh

Consumer Energy Alliance Energy Leads: 
 
POLITICO: Finding truth in the Keystone debate - Our national debate over the Keystone XL pipeline has reached a critical point as we await a decision. The decision to allow development of this pipeline is long overdue, and hopefully may finally come in just a few weeks or months. Despite the economic benefits its construction is sure to provide, critics continue to argue that the project poses too great a risk to American citizens and our environment.
 
Washington Post: Overheated rhetoric on climate change doesn’t make for good policies - Climate change is an issue that needs to be discussed thoughtfully and objectively. Unfortunately, claims that distort the facts hinder the legitimate evaluation of policy options. The rhetoric has driven some policymakers toward costly regulations and policies that will harm hardworking American families and do little to decrease global carbon emissions. The Obama administration’s decision to delay, and possibly deny, the Keystone XL pipeline is a prime example.
 
New York Times: A Black Mound of Canadian Oil Waste Is Rising Over Detroit - Assumption Park gives residents of this city lovely views of the Ambassador Bridge and the Detroit skyline. Lately they’ve been treated to another sight: a three-story pile of petroleum coke covering an entire city block on the other side of the Detroit River. Detroit’s ever-growing black mountain is the unloved, unwanted and long overlooked byproduct of Canada’s oil sands boom.
 
Reuters: At margins of shale oil boom, a tempered euphoria - For the past three years, the boom in the U.S. shale oil industry has outstripped all expectations. Production surged far faster than any forecasts; drillers raced to secure space in new pipelines to get their crude to market. Now, at the periphery, that may be changing - at least for a while.
 
The Hill: The irony of energy - It is estimated that there is enough shale gas in our country to supply our energy needs for as long as 200 years.  This coupled with Canadian tar sands oil gives us an exceptional competitive advantage in the world.  The positive implications of this for our economy and our prosperity are difficult to overstate.  It is simply huge ... and ironic.
 
National Journal (Energy Experts Blog): What's at Stake with Natural-Gas Exports?  Even though the administration holds most of the decision-making power on the export issues, Capitol Hill is making sure its voice is heard. The Senate Energy and Natural Resources Committee on Tuesday holds the second of a series of forums on natural gas. This one deals exclusively with the export question. The House Energy and Commerce Committee held a similar hearing a couple of weeks ago. In addition to these official events, policymakers are holding briefings and other smaller events on the topic.
 
The average price for regular gasoline at U.S. pumps rose 11.19 cents a gallon in the past two weeks to $3.6566 a gallon, according to Lundberg Survey Inc. The survey covers the period ended May 17 and is based on information obtained at about 2,500 filling stations by the Camarillo, California-based company. The average, which reached a year-to-date peak of $3.795 in the period ended Feb. 22, is 12.67 cents below the year-earlier price of $3.7833 a gallon.

 

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5-20-13 - Notes From the Road

20 May 2013 4:47am

(Note from the road: meeting with members of the Interstate Oil and Gas Compact Commission Today, Point Clear, Ala.  -dh)


Fairbanks News Miner by Dermot Cole.  The eventual cost to the consumer and the number of new consumers who would be able to hook up to natural gas are key questions for the Regulatory Commission of Alaska as it decides which entity will be allowed to serve portions of the Fairbanks area beyond the current Fairbanks Natural Gas service area.

Oil and Gas Journal, by Nick Snow.  The US Department of Energy conditionally approved Freeport LNG’s request to export domestically produced LNG from its Quintana Island, Tex., terminal to countries that do not have a free trade agreement with the US.

Petroleum News: ConocoPhillips Alaska Inc. expects to bring its Shark Tooth satellite online by late 2015.

Petroleum News: Fueled by growth in situ development and production in its oil sands, Alberta posted a 14 percent rise in conventional oil production in 2012, a 10 percent jump in crude bitumen output and a 9.5 percent increase in reserves, intensifying the challenge of how to get those volumes to market.

 

 

 

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5-17-13 On The Road...From Seattle

17 May 2013 4:57am

Rebecca Logan, Alaska Support Industry Alliance, tax reform, referendum, Photo by Dave HarbourADN by Lisa Demer.  The group "We Are Alaska" is coming out against the referendum with radio ads, a Facebook page and Twitter feed. It is being funded by the Alaska Support Industry Alliance. The Alliance is a trade organization with some 500 member groups that support the oil industry and employ people such as engineers, drillers and electricians, but also bankers, caterers and educators. The career and technical education department of the Anchorage School District is listed as an Alliance member, for instance.  There are now organized efforts on both sides of the emerging ballot battle.  "It's to provide the other side of the story," Alliance general manager Rebecca Logan (NGP Photo) said -- that many jobs and much government spending in Alaska stems from oil revenue.  (We respect and support both the courage of this organization and its investment climate position.  -dh)


Gitga'at Evict Pipeliners, Canadian Press.  Members of the Gitga'at Nation say they have evicted a Northern Gateway Pipelines crew from their territory on the north coast of British Columbia as it tried to conduct oil spill response surveys.  The small First Nation of Hartley Bay says the crew showed up to carry out work on the project that has not been approved, and that the Gitga'at continue to oppose.  Coun. Marven Robinson said the band received a fax informing them that the crew would be coming to conduct an oil spill response survey. 

Respect is Key to Aboriginal Support for Gateway Pipeline, Globe and Mail

by Brian Lee Crowley.  

Contrary to what regular readers of newspapers might believe, aboriginal communities in Canada are not knee-jerk opponents of development. On the contrary, a careful reading of their recent responses to development proposals gives reason for optimism.  Perhaps the highest-profile example of a major natural resource project facing roadblocks in large part because of aboriginal opposition is the Northern Gateway pipeline to link Alberta’s oil sands to Asian markets through the West Coast. While other players (such as the B.C. government) matter too, without aboriginal support, Northern Gateway (or its equivalent) almost certainly will not succeed. With that support, it has a fighting chance. Can that support be achieved?

 

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5-16-13

16 May 2013 2:40am

Fairbanks News Miner.  Congressman Don Young  (NGP Photo) has filed legislation that would toss out the recently completed managCongressman Don Young, NPR-A, Photo by Dave Harbourement plan for the National Petroleum Reserve-Alaska.
   ...   The bill, HR1964, would nullify a plan adopted by the U.S. Department of the Interior’s Bureau of Land Management in February, Young said. The plan administratively withdrew about half the reserve from oil and gas leasing.  (See more on this story below.)

Alaska Dispatch by Pat Forgey.  "We're in a process of evaluating how we want to adjust the capital program," says Matt Fox, ConocoPhillip's executive vice president for exploration and development. "I'd like to see us adjust the capital program so we can completely arrest the decline in production in Alaska, or even turn it around."


Next Wednesday, May 22nd, the House Natural Resources Subcommittee on Energy and Mineral Resources will hold a legislative hearing on four bills to protect and expand onshore energy production on federal lands in Alaska and elsewhere.

Subcommittee Hearing Notice - May 15, 2013 - Read more below:

H.R. 1964 (Hastings of WA, with Alaska Congressman Don Young), To amend the Naval Petroleum Reserves Production Act of 1976 to direct the Secretary of the Interior to conduct an expeditious program of competitive leasing of oil and gas in the National Petroleum Reserve in Alaska, including at least one lease sale in the Reserve each year in the period 2013 through 2023, and for other purposes.  ‘‘National Petroleum Reserve Alaska Access Act.”
H.R. 1965 (Lamborn),To streamline and ensure onshore energy permitting, provide for onshore leasing certainty, and give certainty to oil shale development for American energy security, economic development, and job creation, and for other purposes.  “Federal Lands Jobs and Energy Security Act.”
H.R. 1394 (Tipton),  To direct the Secretary of the Interior to establish goals for an all-of-the-above energy production plan strategy on a 4-year basis on all onshore Federal lands managed by the Department of the Interior and the Forest Service,“Planning for American Energy Act.”

H.R. 555 (Johnson, OH), To amend the Mineral Leasing Act to authorize the Secretary of the Interior to conduct onshore oil and gas lease sales through Internet-based live lease sales, and for other purposes, “BLM Live Internet Auctions Act.”  


Our friend, Steve Borrell urges us to review this Fuel Fix article describing 'unequal treatment under the law'.  It is a good preamble to the notes below.  -dh

Banghazi, IRS, AP: Government is the Problem
 
by Nick Adams
 
America is in debt.
 
Most notably, it owes its remarkable exceptionalism and the durability of its experiment to the men who founded it.
 
With a penetrating prescience, these men grasped better than any before them the true nature of man, and the circumstances under which he flourishes. Where every other Constitution in the world stipulates the rights of government, the American declares the rights of the individual.
 
Limited government is an American value.
 
Sadly, the greatest nation in the world has drifted from the spirit of that hallowed document, its authors and this exceptional value.
 
Countless administrations and agencies evidence a massively expanding federal government.
 
And this week, a trifecta of problems promptly arrives: Benghazi, IRS persecution and AP records seizure.
 
More salient examples of precisely what the founders of the magnificent America dreaded and insulated against cannot be conceived.
 
No citizen should fear any portion of the government in a healthy republic. No arm of government should be a weapon of intimidation or political retribution. And yet the IRS under Kennedy, Nixon, Johnson, Obama and possibly others has served not just as the pipeline of wealth distribution, but also for these exact nefarious purposes.
 
The matter of Benghazi is deeply perturbing. One thing has always been true about America: it never leaves one of its own behind. It is a message steeped in military code that has been reinforced ceaselessly in history and popular culture. Yet increasingly it appears this may well have happened on September 11, 2012.
 
Ambassador Stevens, Sean Smith, Glen Doherty, and Tyrone Woods deserve justice, as do the American people.
 
More information on the legal basis must emerge before we can render a judgment on the Department of Justice (DOJ) seizure of AP record logs, but the threats the action poses to a free press and the newsgathering process are alarmingly clear.
 
This ‘scandal’ trio has the press corps in a lather not seen since the George W Bush administration.
 
Suddenly they find their skepticism dissipating; their backsides on the very same bleachers as conservatives. Suddenly, they understand, at least momentarily, what the fuss has been about. But it’s not enough. It’s shameful. For too long, the mainstream media has protected and disseminated liberal ideology to the detriment of the nation. Reporting on the Boston terror attack, and Benghazi prior to the emergence of whistleblowers and clear changes to talking points, by major US media, unmistakably revealed their automatic assumption: American guilt. Nothing could be more pernicious than this mindset; nothing more offensive or contrary to the American narrative.
In just days, voices that for years were derided and traduced were vindicated and recognized as visionary. Those voices had, and have, a prescience America’s founders would be proud of; they were, and remain, in keeping with a tradition of exceptionalism. Social reform to the limited government value of America will lead to its evolution to the moribund mediocrity of a European state.
 
At the commencement speech to the graduating class of Ohio State less than a fortnight ago, President Obama made the following observation:
“Unfortunately, you’ve grown up hearing voices that incessantly warn of government as nothing more than some separate, sinister entity that’s at the root of all our problems.
 
"Some of these same voices also do their best to gum up the works. They’ll warn that tyranny always lurking just around the corner. You should reject these voices. Because what they suggest is that our brave, and creative, and unique experiment in self-rule is somehow just a sham with which we can’t be trusted.”
 
Under the menacing shadows of Benghazi, the IRS and the AP, these words now return to haunt him.
Commentary.  (We intentionaly placed this Alaska issue next to a comment on overreaching government actions.  The subjects are different; the principles are in common.)
 
According to our friends at the Resource Development Council for Alaska, "The Environmental Protection Agency (EPA) has released a revised assessment of the Bristol Bay region." The revised draft prematurely tries to inventory the effects of a large mining project on state -- not federal -- lands before a project submits its plans.
 
RDC notes that the EPA initiative is flawed because it cannot possibly know the development plan and mitigating measures a large mining interest will take until an entity has filed for permits.
 
RDC believes, "that any project ... should be allowed to be vetted through existing permitting processes, and be properly evaluated through the National Environmental Policy Act."
 
We are also concerned that, should the agency continue to seek to determine the merits of a project before an advocate files plans for such a project, it will set a dangerous precedent for all natural resource work requiring EPA permit approvals.
 
The precedent could well enable a rogue EPA to use its power to conduct faulty "assessments" of oil and gas, mining, timber, road, bridge, or other human activities before advocates have even perfected their plans and filed complete permit applications with the EPA--or other agencies.  It could extend that power by announcing that the assesment had produced evidence that such and such a project should not occur.
 
Furthermore, the EPA's threatening action to stop leaseholders of state lands to file permits for a project endangers the statehood compact among Alaska Citizens, the state government, the Congress and the Administration.  In short, we see this action as a "taking" or stripping away of Alaska statehood rights.  It is a "Taking" if the EPA uses this strawman "Assessment" to prematurely veto a project.  It is a "Taking" even if the project goes forward to the extent that the Feds, with Enviro-extremist and special interest encouragement, has (already) dearly cost the taxpayers of America, the citizens of Alaska, the State as a lessor and a company lessee of state lands.
 
We join with RDC in encouraging everyone to submit written comments by the May   31st deadline, discouraging the EPA from preemptively vetoing projects in the Bristol Bay area--or, anywhere else, for that matter.
 
"Tell the EPA to stop undermining existing regulatory processes and avoid setting a dangerous precedent for development", RDC urges.
 
This week, the current administration stands accused of ignoring or defying the "rule of law" with respect to three current crises it faces.  We believe that developing "assessments" before anyone files for a natural resources related permit that might affect that watershed is arbitrary and capricious regulatory behavior that provides more evidence of federal willingness to violate due process and the rule of law.
 
See RDC's full Action Alert for more a historical perspective and direction for how to file your comment.  Please comment and then send your comment to us so that we may reprint it.
 
-dh

Yesterdaythe House Natural Resources Committee approved H.R. 1613, the “Outer Continental Shelf Transboundary Hydrocarbon Agreements Authorization Act” with a bipartisan vote of 25-16.  The bill would lift the current moratorium on drilling along the maritime border and provide new access to an area estimated to contain as much as 172 million barrels of oil and 304 billion cubic feet of natural gas.  This will expand energy development, create new American jobs, lower energy prices, generate new revenue, and make America more energy secure. 
 
Congressman Doc Hastings, Resources Chairman, Photo by Dave Harbour“Approval of this legislation by the Committee is important to finalizing this agreement and expanding American energy production.  This bill would create jobs, lower energy prices by increasing our domestic supply, generate new federal revenue to help lower the debt and strengthen our economy, and make America more energy secure by opening up new areas in the Gulf of Mexico to exploration and development.  In addition, this important legislation would lay the framework for transboundary agreements with other nations that will allow America to fully utilize its shared natural energy reserves.” said Natural Resources Committee Chairman Doc Hastings (NGP Photo).

Rigzone: Washington Must Find a Way to Say 'Yes' to Offshore Exploration

 
 
 
 
 

 

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