Commentary

Alaska Oil and Gas Congress Returns to Anchorage.  Find Details In Lower Right Column.  Here is Dave Harbour's Video Description.

TransCanada set for new pipeline - Calgary Herald - By Dina O'Meara, Calgary Herald August 2, 2012 4:05 AM. Tweet. TransCanada Corp. has been selected to build a $660 million pipeline connecting two long-delayed ... The energy and pipeline company, which runs Canada's largest natural gas pipeline ... See all stories on this topic » 

S&P revises northern natural gas outlook to negative - Reuters - Rating Action On July 31, 2012, Standard & Poor's Ratings Services revised its outlook on Nebraska-based pipeline company Northern Natural Gas Co. (NNG) to negative from stable. We also affirmed the 'A' issuer and issue credit ratings.  (Note:  your author worked for Northern Natural Gas to reorganize its external affairs function.  This happened in 1979 as plans were being made for the company to invest in the 'Pre-built Eastern Leg' of the Northern Border Pipeline, designed to move Canadian gas into the U.S. until Alaska supplies arrived.  The company was subsequently acquired by Enron and then Warren Buffet's (Photo, with Buffett)  MidAmerican Energy.  -dh)

Today's other Alaska Gas Pipeline Updates:

ADN by Lisa Demer.  Shell Oil Co. has scaled back its plans for drilling in Alaska's Arctic this year, and now is aiming for two complete wells, one each in the Chukchi and Beaufort seas. The company also plans to begin an as-yet-unspecified number of additional wells, said spokesman Curtis Smith (NGP Photo).

Government's Public Servants Mistreat Corporate Citizens

by

Dave Harbour

A year ago we commented on the Administration's cozy relationship with those dedicated to destroying Alaska's natural resource-based constitution and economy.  We further opined that this year's exploration activity still faced uphill opposition from dug-in environmentalists and passive-aggressive (i.e. hostile) permitting agencies.  Shell has taken abuse like a real trooper, even as a prisoner of war.  She invested billions in leases and exploration with the expectation of reasonable regulatory treatment.  Instead, the company has been constantly delayed even while -- in our opinion -- presenting the most conscientious exploration plan and related materials ever assembled for this purpose. 

But prisoner, we imagine the company must feel itself to be.  Permits have continuously been granted late, or not at all ... accompanied by continuous environmental litigation.  And now, in confessing its program is too aggressive for conditions, it takes more abuse without complaint or counterattacking the Federal authorities.  Yes, our respect for America's 'rule of law' has further diminished as we calculate that a mistreated permit applicant really can't complain lest it attract future regulatory wrath.  So, does it sue the government to get back its lease money and other costs?   Good luck.  So Shell really seems confined to a bureaucratic straight jacket tied up by Federalists who show little concern for human society, economy, jobs, wealth creation, energy security, currency value, balance of payments deficits and, yes, the 'rule of law' which formerly placed huge value on 'due process' and a reasonable but not overbalanced weight on environmental effects of exploration.  - dh   Endnote: this morning, Becky Bohrer correctly reports that opponents to a coastal management initiative are outraising supporters.  We side with the opponents for reasons oft stated herein {Google subjects, upper left column} but will provide more analysis demonstrating why passage of this initiative violates the constitutional role of the Executive Branch, provides power over the state's majority of citizens by a minority of special interests and drives a dagger into the heart of the State's investment climate with devastating results on TAPS throughput, all state programs and the future of Alaska's children, rural and urban.) 

AP/ADN by Becky Bohrer.  TransCanada Corp. on Monday announced that it would hold a solicitation of interest from Aug. 31 through Sept. 14. The announcement came hours before a group of lawmakers were scheduled to get an update on efforts to commercialize Alaska North Slope gas -- and two years to the day from which the company ended its first market test.  Terms of TransCanada's agreement with the state require that it gauge market interest every two years.

 GAS PIPELINE NEWS: Today, July 30, from 1-4 p.m. in the Anchorage Legislative Information Office, Room 220, 715 W. 4th Avenue, the Legislature's Joint "In-State Gas Caucus" is hosting a meeting of state, federal and industry officials to hear updates on efforts to monetize the state's natural gas and Point Thompson resources.

Here's another deadline today.  Alaska's Lower 48 brethren by the hundreds of thousands have helped with comments on our issues and the Keystone XL Pipeline directly affects national defense as well as Alaska's security.  The Obama Administration has stalled the project as it has our Beaufort and Chukchi OCS projects and a comment period for Keystone XL expires today.  Once again we urge elected officials, citizens and companies to weigh in if they have not.  Here is general background on the project from Consumer Energy Alliance.  Here's how to comment (Change the draft any way you wish.)  Here's a recent letter from Resource Development Council for Alaska.  Here are some letters from various officials.  Here is our earlier comment on the importance of public official involvement.  -dh

 Calgary Herald by Deborah Yedlin.  If you want to do the equivalent of waving a red flag in front of a bull to an Albertan, just utter the words, "fair share".  But that's exactly what the B.C. government did on Monday, when it outlined the five thresholds that must be met for the Enbridge Northern Gateway oil pipeline to proceed.  Most Albertans will recall the last time a politician used the words "fair" and "share" together. It was former premier Ed Stelmach's misguided royalty review and it all ended very badly.  (Note: Certain elements of the Alaska government constantly use the term 'fair share', as though the state were not already taxing oil companies like modern-day highway robbers.  One would think Stelmach royalty experience would have rubbed off on both Alaskan lawmakers and Premier Christy Clark.  -dh)  

Vancouver Sun by James Wood and Chris Varcoe.  As Alberta and British Columbia rumble in Canada’s newest energy war over the Northern Gateway pipeline proposal, echoes of pitched jurisdictional battles of the past ring out.

GAS PIPELINE NEWS: On Monday, July 30, from 1-4 p.m. in the Anchorage Legislative Information Office, Room 220, 715 W. 4th Avenue, the Legislature's Joint "In-State Gas Caucus" is hosting a meeting of state, federal and industry officials to hear updates on efforts to monetize the state's natural gas and Point Thompson resources.

B.C. releases requirements for new heavy oil pipelines - Calgary Herald - Calgary Herald facebook page .... The British Columbia government has today outlined five requirements that must be met before it approves any new heavy-oil pipeline, such as the Enbridge Northern Gateway.

Commentary: For several years now we have been recognizing all elected officials in Alaska who take time to comment at federal public hearings or supply written comment during federal agency comment periods.

Recently we recognized Alaska State Senator Cathy Giessel as one of the most dedicated members of the state Senate in this regard.  Today, we make special note of Alaska State House of Representatives  Member Charisse Millett (NGP Photo).  We recall her superb testimony given to Secretary Salazar in April 2009, as the Secretary visited Alaska in the course of deliberating on his agency's 2007-12 OCS lease sale schedule and an upcoming 2012-2017 OCS lease sale schedule.  

She has been characteristically active in defending Alaska (and America) against poor Federal energy policies in recent weeks, as follows:

On July 9, she wrote U.S. House of Representatives Natural Resources Chairman, Doc Hastings, saying, "This letter is to express my unwavering support for H.R. 6082, legislation to replace President Obama’s job killing and energy restricting Outer Continental Shelf Oil and Gas Drilling Plan with a sensible and environmentally responsible drilling strategy."  

 On July 17, she wrote Secretary of State Clinton: I am writing to express my strong support for the Keystone XL pipeline. The country needs the energy and jobs it will bring to our side of the border. Your department should approve the Presidential Permit immediately so construction can begin as soon as possible.

On the 18th of this month, Representative Millett wrote the EPA about an issue that could forever throttle Alaska's economy and remove hope of a secure future from many of our children, as we ourselves editorialized.  She wrote, "The Environmental Protection Agency is conducting an assessment of the Bristol Bay watershed that could have a chilling effect on any future natural resource development projects in Alaska. The EPA was petitioned two years ago to use its powers under section 404(c) of the Clean Water Act to preemptively veto any dredge or fill permits related to the proposed Pebble Mine Project."

While we have noted the appearances of a number of Alaska Republican Governors, Senators, Representatives and local elected officials, we have yet to make note of one single Democrat -- except U.S. Senator Mark Begich -- standing up to defend Alaska during Federal comment periods or at Federal agency hearings or 'listening sessions'.  We hope that as the November elections approach, we see more of Alaska's local, state and statewide elected officials fully participating in federal regulatory processes.  And, we will be honored to place their testimony here, preserving it for future reference.  This is one tangible way that elected officials can truly defend Alaska's constitution and most ably represent the views of their constituents.  -dh

Yesterday, we participated in an outstanding presentation delivered to members of the National Association of Regulatory Utility Commissioners by "Fueling California" Chairman, Bob Sturtz (NGP Photo).  The presentation sought to demonstrate how California's experience could help energy consumers everywhere.   Since our readers know that state and federal energy policies are overlapping, we present this link that provides much useful information.  In general, California's experience is that political manipulation of energy programs, subsidies, regulations and a greenhouse gas emissions voter initiative has dramatically increased energy costs for consumers.  -dh

EPA Deadline For Alaskans Today; Please Comment.  We Also Continue To Hope For Massive Republican and Democrat Elected Leader Participation.  This Is Not A 'Pebble' Issue.  This Is A Federal Overreach Issue Affecting All Resource Development.  It's About The EPA Defying Due Process And The Rule Of Law.  Send Us Your Comments and We Will Post Them!   -dh (Here is my comment.)

Calgary Herald by Lee Yee, Reuters.  China’s top offshore oil producer CNOOC Ltd has agreed to buy Calgary-based Nexen Inc for about $15.1 billion in one of the most ambitious acquisitions by a Chinese company to date that may test Ottawa’s tolerance of foreign takeovers.

ADN by Richard Mauer.  With the governor and conservative Republicans targeting members of the bipartisan coalition that governs the Alaska Senate, the public interest group Backbone is stirring to life again to defend those senators in the conflict over oil taxes. ... "We don't have members, we don't have bylaws, we're not a 501(c)(3), we're not a PAC," said (Malcolm) Roberts (NGP Photo-L). ... Backbone members met Wednesday in the Anchorage law office of Bill Walker (NGP Photo-Below), a leading advocate of a large diameter, "all-Alaska" gas line, who lost to Parnell in the 2010 Republican primary. After they approved an announcement of the first public event in their campaign -- a news conference next week featuring past and current state leaders -- they discussed their plans with a Daily News reporter.  ...  But as other members sat around Walker's conference table, David Gottstein (NGP Photo-R), an investment advisor and a founder of Backbone, said the 2012 election would be "a historic vote" because of the implications for the state's future.  Most of the state treasury is built on oil revenues. Giving billions back to industry on a "highly speculative" bet that it would lead to more drilling would be a big mistake, Gottstein said.   (Commentary:  We've already commented (here) on the selfish, socialist, anti-investor mentality advocated by the "It's Our Oil" activists and the destructive economic policy burden such advocates would place on the backs of our children.  In coming days, we will provide more analysis for readers.  Until then, we wonder how many of the 'Backbone' activists--so anxious to demonize Alaska's largest investors--have stood up and been counted defying the ACTUAL, demonic assaults by the Obama Administration on Alaska's economy.  We further wonder how many candidates for public office have commented on the federal assaults.  Are those who defend Alaska against federal overreach mostly of one party?  Are most critics of federal overreach of one House or Senate coalition?  We believe the answers will help citizens illuminate election decisions.   We believe defense of Alaska's sovereignty against federal overreach would be an important factor in calculating grades of legislators as future 'Legislative Report Cards' are designed.  

P.S.  We also challenge the ADN writer's characterization of Backbone activists as a 'public interest group', unless he characterizes his report as an 'opinion' piece.  If such work is cast as objective journalism when it should be labled as opinion a great disservice is done to readers and the professionalsm of the 'newspaper' can be appropriately questioned.  -dh

EPA DEADLINE FOR ALASKANS TODAY (We Thank the Alaska State Chamber of Commerce for This Leadership.  See our earlier 'federal overreach' links here.  -dh)

From: Consumer Energy Alliance:

Saskatchewan's other Bakkan, from Gary Park, Petroleum News

Comment:  How many Alaskans/Americans are now in the mood for another TEA PARTY?  In fact, Shouldn't we celebrate that original 1773 event this coming November 4?  

We've continually cautioned in these pages that for almost four years the state of Alaska -- especially the natural resources sector upon which our economy depends -- has received nothing but harassment and negative treatment by an authoritarian and ...

... overreaching Federal government.  King George's spirit is alive and well in the bowels of Congress and the Federal Administration, constipating, castigating and criticizing the free enterprise economy which so many have defended through the decades at such a great price.  Wouldn't hundreds of thousands of patriots be turning in their graves right now were they aware that while they were fighting abroad, America's greatest threat was growing like cancer from within, protected by the honorable yet naive host it seeks to destroy.  The latest federal fuselage about to detonate on our shores, within our economy, is another federal environmental initiative cloaked in wolf's clothing.  Read below, weep, recover, prepare, organize and commit to excise this political malaise from our formerly free country in the next three months.  -dh

From the Alaska State Chamber of Commerce:

In March and April 2009, the United States submitted a petition to the International Maritime Organization to create a special North American Emission Control Area (ECA).  The ECA requires large vessels to use more expensive fuel while operating within 200 miles of the coastline.  Neither the EPA or Congress have excluded Alaska from the new ECA requirements.   "The ECA will have a significant negative impact upon Alaskans and our economy," stated Rachael Petro (NGP Photo), President and CEO of the Alaska Chamber.  Most of the goods Alaskans consume and retail products sold by our businesses, as well as much of the equipment used by our resource development based industries all arrive via waterborne cargo vessels.  "In effect," Petro said, "The ECA levies a shipping tax upon Alaskans without demonstrating any legitimate scientific justification or proving there will be any measurable environmental benefits of such extreme regulations."