Reader Comment

Scroll down to review current comment periods.

NGP Reader Kaye Laughlin (NGP Photo) sends us this copy of the testimony/comment she provide the USFWS re: the ANWR wilderness threat.  

Here is a position paper on the ANWR issue provided by Acting Executive Director of the Resource Development Council for Alaska,Carl Portman (NGP Photo-L).  

We are aware of hundreds of other comments but have these additional examples for our readers:

Alaska legislator, Representative Bob Lynn (NGP Photo-L), gave the USFWS a comment, reading in part: "I want to see ANWR open to oil exploration and production."

Alaska legislator, Representative Charisse Millett (Photo below) has continued to be -- with Senator Cathy Giessel (Photo below) -- among Alaska's most prolific commenters on federal policy issues.  As examples, for reader reference, we  note comments on: Beluga Whale Critical Habitat, ANWR Conservation Plan Review, BOEM SEIS Chukchi Sea, NMRS Resolution HJR 40 re: Beluga, BOEMRE's 2012-2017 Leasing Program, EPA Air Permits-Chukchi and Beaufort Seas, BOEMRE re: OCS moratoria, BOEMRE's 2007-2012 Leasing Program.

NPG Readers: Please Comment on EPA O&G Emissions Regs  Before October 24, 2011 send comments re: unnecessary natural gas emissions rules that will further slow down America's economy and employment without significant benefit.  Federal Register notice with filing instructions

NPG Readers: Please Comment on ANWR.  Here's how. Comment Against Federal Government Lockup of ANWR’s 1002 Area Testify: Fairbanks 10-19-11, Anchorage 10-20-11 Written testimony due: 11-15-11 Governor Sean Parnell (NGP Photo) Rebukes Federal Government Petroleum News Alaska Story  (We are pleased to note House Joint Resolution 11 sponsored by by Charisse Millett (NGP Photo) in the House urging the Congress to not convert the 1002 area of ANWR to a status that prevents oil and gas development.   NGP Readers can refer to this resolution in their own comments and rely on the information conveyed by Representative Millett's resolution.  -dh)

October 14 ends the comment period for the Wishbone Hill Coal Permit Renewal and we urge readers to file electronic comments early.  Don't be technical if that's not your background; just say, "I support the Wishbone Hill Coal Permit Renewal".  Here's the state webpage and here is a very good letter penned by Alaska State Senator Cathy Giessel (NGP Photo).  We would be delighted to post other legislative and citizen comments on this and other comment period issues -- such as those coming up in the blocks above.  Write us here. We urge citizens and public officials to take just a few minutes to influence a process that will determine what kind of economy our children will inherit.  -dh

Has Commentary Gone Crazy?

Commentary by

Dave Harbour

Yesterday, after we sent out this email alert, an elected official said, "I've commented to these d___ federal agencies six times on the need to have Chukchi and Beaufort Sea OCS and ANWR exploration.  Now you're asking me to do it again on the 'final' version of a 'Supplemental Environmental Impact Statement' for Chukchi and on the USFWS effort to convert ANWR's 1002 oil and gas section into wilderness.  How many times to I have to comment?" he asked.  

"As many times as we have to," is the answer.  We've warned readers over the years that the federal Administration's overreaching jurisdiction (in cahoots with environmental extremists) uses the regulatory process to stifle development.  We've labeled this group the "Governmental-Enviroextremist Cabal" after giving readers plenty of evidence to support the label.  We've demonstrated the deadly nature of this regulatory 'death by a thousand cuts' and the 'cumulative burden' it creates on free enterprise and on our very way of life.  

Another reader wrote yesterday along the same lines.  Reed Christensen (NGP Photo) of Dowland-Bach, subsidiary of an Alaska Native Regional Corporation said, The very fact that the public needs to comment yet again in opposition of the wilderness designation of the 1002 area of the ANWR Coastal Plain, shows the insincerity of the environmental activists with whom the “compromise” was reached during the ANILCA process.  Then people wonder why there is such gridlock in Washington? How can common ground be found with opponents who do not honor their prior promises?  This area was set aside for future resource development then and is now being considered for permanent wilderness lock up now?  Exploration and development should be allowed and encouraged in this designated area.  We need the jobs.  We need the supply of domestic energy. Responsible development can and does occur all the time. This area can be developed with minimal impact to the environment.  Responsible resource development and environmental protection are not mutually exclusive terms although honest debate and environmentalist seem to be mutually exclusive concepts.  

Northern Gas Pipelines (NGP) readers know that we have harped for a couple years now on the need for normal citizens and their leaders to insert their views into the legal records of public hearings and regulatory comment periods.  Later in the day, yesterday, another elected official said, "Hey, we mean well.  We passed resolutions supporting OCS and ANWR development.  Maybe elected officials need educating.  Maybe we need to know that just because we passed a resolution six months ago doesn't mean the particular record of decision on a particular issue considers our earlier action."  

He was right.  Elected officials and the rest of us need to understand the nature of a legal record.  The Governor, Mayors, Legislators, Assembly Members carry a lot of weight in a legal record, since they represent the people of a state.  If they don't send in a comment or testify on the federal issue du jour, regulators can say, "we didn't get any comment from Alaskan elected officials."  Meanwhile, Alaskans are scratching their heads saying, "Gee whiz, we passed a resolution a year ago; what happened?"  What happened is that no one took that resolution and sent it in with a comment on the current issue du jour and, as a result, the current record shows no public official opinion on the matter.

Alaskans and Americans in general better start realizing that special interests aligned with this administration have designed a strategy to wear down normal citizens.  Congress is funding (maybe unwittingly) more and more federal agencies to build up bloated offices of "public outreach".  Outreach efforts include announcing comment periods on issues that constrict development and supporting that effort with a dazzling array of public hearings, meetings and so-called 'listening sessions'.  Environmental groups use these as opportunities to raise money from people who honestly want to 'save the whales and the world they live in'.  Full time environmental 'organizers' organize volunteers to encourage armies of well intended allies to send in public comments and testify at hearings.  The normal Alaskan/American looks around and thinks, "I'm just trying to make a living.  Everyone knows what we think.  I can't spend two days a week writing comments for federal regulatory agencies and going to their "listening sessions", public hearings and other meetings.

In the past, we trusted the rule of law and the basic honesty of public officials to do the best job they could to enact and regulate policies in the public interest.  

We cannot trust those in charge of federal power today.  We have seen them manipulate power in a way that will destroy Alaska's economy and thwart the entire American economic and job recovery.  Whether this activist alliance produces stupid or devious policy is immaterial for the result is the same: the weakening of America and a shortchanged legacy for America's children.

Yes, we must go out of our way during the day and on date night to participate in governmental comment periods.  If we commented or took a position a year ago, we need to do it again.  If we don't participate, if we are too tired, if we give up ... well, the legal record of the federal 'public outreach' offices will bend in favor of activists who did take the time to participate and our way of life will take another hit.  Never give up.  Never, never.  (See current comment periods below.)

(Below, we are pleased to note a state effort to evaluate how to improve local regulatory processes.)

The departments of Natural Resources, Fish and Game and Environmental Conservation are evaluating their permitting processes for efficiency improvements.  “We welcome public input on how to make our permitting system more timely, efficient and predictable,” said DNR Commissioner Dan Sullivan (NGP Photo).  DNR will host public forums  this fall to gather additional public input on the permitting review. The meeting schedule will be posted on this web page. 

NPG Readers: Please Comment on OCS before September 26, 2011   Comment in support of the Final Supplemental Environmental Impact Statement (SEIS) for the Chukchi Sea Oil and Gas Lease Sale 193, against further delay and 'affirming Lease Sale 193"  Send Comments: COMMENTS: Final SEIS, Chukchi Sea Lease Sale 193 c/o Regional Director, BOEMRE Alaska OCS Region 3801 Centerpoint Drive Ste. 500 Anchorage AK 99503-5820.

NPG Readers: Please Comment on EPA O&G Emissions Regs  Before October 24, 2011 send comments re: unnecessary natural gas emissions rules that will further slow down America's economy and employment without significant benefit.  Federal Register notice with filing instructions

NPG Readers: Please Comment on ANWR.  Here's how. Comment Against Federal Government Lockup of ANWR’s 1002 Area Testify: Fairbanks 10-19-11, Anchorage 10-20-11 Written testimony due: 11-15-11 Governor Sean Parnell (NGP Photo) Rebukes Federal Government Petroleum News Alaska Story  (We are pleased to note House Joint Resolution 11 sponsored by by Charisse Millett (NGP Photo) in the House urging the Congress to not convert the 1002 area of ANWR to a status that prevents oil and gas development.   NGP Readers can refer to this resolution in their own comments and rely on the information conveyed by Representative Millett's resolution.  -dh)

October 14 ends the comment period for the Wishbone Hill Coal Permit Renewal and we urge readers to file electronic comments early.  Don't be technical if that's not your background; just say, "I support the Wishbone Hill Coal Permit Renewal".  Here's the state webpage and here is a very good letter penned by Alaska State Senator Cathy Giessel (NGP Photo).  We would be delighted to post other legislative and citizen comments on this and other comment period issues -- such as those coming up in the blocks above.  Write us here. We urge citizens and public officials to take just a few minutes to influence a process that will determine what kind of economy our children will inherit.  -dh

Here is more evidence of the challenges we describe today, in this news summary from the Consumer Energy Alliance.  -dh

 ...more stories coming next week.

AP by Becky Bohrer.  Alaska is pushing back what it says will be one of the biggest oil and gas lease sales in the U.S. this year, citing the potential for more acres to be added and a desire to give companies more time to prepare bids.

Deborah Brollini (NGP Photo) places on her blog this morning testimony she gave yesterday to the Alaska Senate Labor and Commerce Committee:  We can argue job numbers all day.  However, we are not going to have jobs for our children and grandchildren if we do not have a safely operational pipeline.   Alaska’s Supreme Court did decide on Alaska hire back in 1986 when Alaska’s economy crashed in 90 days.  January 1st 1986 oil reached $20 dollars, and by April 1st, 1986, our economy had totally crashed.   We were able to dig ourselves out after the crash because we had lots of oil in TAPS.  I’ve testified on HB 110 last session to House Resources, and House Finance.  I would like to caution you that if we are not careful, we might relive a painful past of our own making, where Alaskans were packing up their families and leaving in droves, and throwing their keys at the bank where I was foreclosing on those homes as a paralegal.  Alaska has a bright future if we think long-term, and with vision.  I attended the Alaska Native Claims Settlement Act, and the Trans Alaska Pipeline forum back in May.  What stood out to me was that policy makers, Alaska Native people, and the public at the time thought not about themselves or their children.  But, their decisions were based on their desire to have a grand future for their great grandchildren, and great great grandchildren.  I believe we have lost our way.   We all need to un-dig our heels, get our heads out of the weeds, put down our swords, and think and believe in our children’s future.  By not doing so, we are only hurting ourselves.

ADN by Lisa Demer.  Lawmakers say too many well-paying jobs are going to people who live out of state. They express dismay over a state Labor Department finding that more than half of the new hires in Alaska oil and gas jobs during the third quarter of 2010 weren't state residents.

Alaska State Senate Resouces Meeting Today: Alaska Stand Alone Gas Pipeline

Fairbanks News Miner Editorial re: Feds Want To Lock Up ANWR's 1002 Area.  Our Comment:  We believe the Alaska National Interest Lands Conservation Act (ANILCA) which created the 1002 area as an oil and gas province violated the Alaska Constititution and Statehood Act.  The wild and distructive actions of the U.S. Fish and Wildlife Service and its Salazar/Obama masters will contribute to the dismantlement of the US economy and put one more nail into the coffin of Alaska's economy--and a 50-year statehood experiment.  ANWR, NPR-A and OCS are three of the four possibilities for sustaining Alaska's economic lifeline, the Trans Alaska Pipeline System (TAPS)...and the Obama-Salazar-EnviroExtremist cabal has blocked energy development in all of those areas.  Alaska's economic survival is truly at stake and, ironically, the feds will not protect any wildlife values by expanding ANWR wilderness designations, since exploration would occur in the winter months when migrating species are absent.  Alaskans should prepare for upcoming hearings and here's how.   (See our 5-11-10 ANWR Hearing Report)  -dh

Note from reader: Big THANK YOU for ---as ever---keeping Alaskans up to date on ANWR and the new public comment opportunities.  Keep up the good work!  -AVR

NWT's Bob Mcleod (NGP Photo) urges federal support for Mackenzie Valley Natural Gas Pipeline Project.

Alaska Gas Pipeline Report and Commentary

(See Patti Eppler's thorough gas pipeline status report in today's Alaska Dispatch)

by

Dave Harbour

Friday, the Federal Coordinator of the Alaska Gas Pipeline project to be, told members of Commonwealth North that the Alaska Gasline Inducement Act (AGIA), designed to provide a $500 million incentive, was never designed to produce a pipeline.  The Coordinator, Larry Persily (NGP photo) said citizens misunderstood or were misled if they believed incentive legislation could force a pipeline into existence, "AGIA won't get you a pipeline," he said, "AGIA gets you permits...."

Your author raised the issue of fiscal certainty for those who might desire to invest in the $40 billion project.  Persily agreed that the investors could not move forward without fiscal certainty.  Your author asked how FERC could issue a certificate if project proponents lacked a financing plan which would require fiscal certainty.  He responded that the 2004 Act does not require FERC to evaluate a financing plan but to meet an expedited time deadline.  The Act presumes the project to be in the public interest.  A review of the state's analysis of the 2004 act, produces an understanding that the FERC is under heavy obligation to produce project approvals within 20 months of the filing of a "complete" application, assuming lack of a financing plan does not make the application "incomplete" (See Persily's PowerPoint slides here).  (See Bill McAllister's Channel 11 Television report here.  KTVA Photo-Left).  Persily added that the Federal Coordinator has the authority to null conditions imposed by any permitting agency which may seem to the Coordinator excessive.

Persily pointed out that the FERC is moving ahead to determine the perameters of an anticipated project Environmental Impact Statement (EIS).  His website, www.arcticgas.gov, describes a scoping process that was triggered by an August 5 FERC notice in the Federal Register.

Your author made reference in the meeting to the 6% annual decline in production and the Trans Alaska Pipeline System (TAPS) CEO's concern about the potential for an unanticipated winter pipeline shutdown.  "Were that to happen and the pipeline to permanently cease operations would the producers, in your opinion, operate the North Slope production area just to produce gas for a gas pipeline?"  Persily noted that while an operating gas line will "do as much as anything to get more oil into TAPS...you need the oil to carry the fixed cost of operating the North Slope fields."  He observed that it is expensive to operate Arctic oil fields and that, "gas will not do it alone."

Finally, Persily addressed citizen expectations.   He said it is unreasonable for, "Alaskans to expect to get filthy, stinking rich off of a natural gas pipeline.  But, with reasonable expectations," he said, "jobs, revenue, and an instate gas spur line can be expected."

Event Photos:

Bill Walker

Brian Davies

Jim Posey

Arden Page

 TIME TO TAKE ALASKA OUT OF THE ICEBOX - Wall Street Journal

TODAY: Another Important Deadline; here is how to easily comment!  Your OCS comment by TODAY's deadline makes the legal record more supportive of reasonable OCS exploration for Alaska and the benefit of all Americans. A reasonable OCS program will help save Alaska's economy and protect America's economic recovery and national security.  Send us your comment and we will post it to make it Internet searchable!  Meanwhile, here are comments from Jason Brune (NGP Photo),Bob Hoffman, Kaye Laughlin and myself.  Others who submitted comments include Mary Ann Pease of Anchorage....  We have not yet seen comment from Alaska's U.S. Senators or Congressman or from any Alaska legislators.   -dh  (A modest reminder for why we stay motivated!)

Former Canadian Cabinet Minister Stockwell Day provides an insightful view of current northern energy debates and puts them in context of the Mackenzie Valley Pipeline Berger hearings over three decades ago.  His insight should also be appreciated by Alaskan and Washington energy decision makers.  -dh

(Related to the story below, note that the Alaska Gasline Development Corporation (AGDC)  will be making a presentation to the Alaska State Legislature's House and Senate "In-state Gas Caucus" on the "Alaska Stand Alone Pipeline Project Plan" at 10 a.m. this morning in Anchorage.  You can watch by video conference.  We commend Doug Smith for volunteering to write a detailed update on the Fairbanks Natural Gas' (FNG) challenge to supply interior Alaska consumers with natural gas.  He posits that FNG's plans and those of AGDC are not mutually exclusive.  We think you will appreciate Doug's review.  -dh)

Fairbanks Natural Gas Update

by

Doug Smith

Despite the controversy and uncertainty that multiple, competing ideas create, one company has broken ground on its plan to get an Alaska North Slope (ANS) gas supply to Interior Alaska. I believe Fairbanks Natural Gas and affiliate Polar LNG have put forth a viable plan that will be ready to begin gas deliveries within two years at a reasonable cost and with a volume that will provide benefit to significant numbers of Interior Alaska residents.

FNG sought to remedy its supply issues by seeking an Alaska North Slope (ANS) supply. The company secured a long term supply contract with ExxonMobil in 2008. The deal with ExxonMobil provides much larger gas volumes than Cook Inlet currently provids, and a stable pricing structure that is not subject to the escalation recently seen in the Cook Inlet market. The gas supply on the North Slope requires new facilities to condition and liquefy the gas for transport.

Since concluding the deal with ExxonMobil, FNG has sought financing for new ANS facilities, including an arrangement with the Alaska Gasline Port Authority (AGPA), in which APGA offered to purchase FNG,  and then use its bonding authority to obtain financing for construction of the new facilities. AGPA was stalled in pursuing the deal after the member municipalities (Fairbanks North Star Borough and City of Valdez) required AGPA to obtain voter approval of the project plan before proceeding. The vote is scheduled for October 2011. FNG and AGPA are not currently moving toward closing a deal.

Meanwhile, FNG has obtained financing through its parent companies and private investment, and created affiliate Polar LNG, LLC to own and operate the North Slope plant. Polar obtained state and federal permits for the project throughout the winter of 2011, and broke ground on the project in June this year. It is scheduled to be operational in fall 2013. The ANS facilities needed are:

·        

3.8 mile pipeline carrying feedstock gas from the Prudhoe Bay Unit to the Polar site in Deadhorse

·        

Gas treatment plant, with a capacity of 30 mmscfd

·        

Gas liquefaction plant, with output of 255,000 gallons LNG per day

·        

15 MW power plant

·        

Truck loading facility

·        

29 specialty LNG tanker trailers, to supplement FNG’s existing fleet of 14 tankers

The Fairbanks area electric utility, Golden Valley Electric Association (GVEA) is evaluating a proposal to sign on as an “anchor client” and take deliveries of around 3.4 bcfy to use in its recently constructed North Pole Expansion Plant. If GVEA elects to pursue the LNG supply, a large storage tank and vaporization facility would be constructed near GVEA’s plant.

Fairbanks is the largest city in the United States without a pipeline source natural gas supply. The plan to deliver large quantities of gas by truck is a frequent topic of debate. It is often asked why bother with the LNG trucking plan, when a pipeline is a better, seemingly more permanent solution. The answer is timing. The LNG trucking plan will bring a new source of energy to the Fairbanks area within two years. Even the AGDC plan, with significant pressure from the legislature pushing it, cannot get a pipeline source to Fairbanks before 2019.

The liquefaction plant uses conventional technology composed primarily of “off-the-shelf” components. There is no technology development and little customization required. The process used for liquefaction is nitrogen recycle process, where nitrogen is used as a refrigerant, cooling the methane to its liquefaction point of -260 degrees F. The nitrogen recycle process is very similar to hundreds of air separation plants in service around the US that provide liquid oxygen, nitrogen, argon and other cryogenic fluids. The project is designed in truck-sized modules that will be constructed off-site and set and interconnected at Deadhorse.  This provides for the rapid development timeline.

A report prepared by Steve Haagenson and Jim Dodson

(Haagenson, 2011)

for the Fairbanks Economic Development Corporation concluded that the net present value of the savings realized from a LNG-truck delivered supply available in two years is more than twice the value of  a pipeline based supply available in 7 years. The report also found that the cost of LNG deliveries to a city gate and pipeline deliveries the same gates are nearly identical, at $11.75/mcf and $11.74/mcf respectively. The AGDC project plan provided additional verification of this, estimating the Fairbanks city gate price of its gas would be $10.45 in 2011 dollars. If this is inflated at a conservative 2% rate to 2019, the price is $12.50.

There is also concern about lost investment in LNG facilities if a pipeline source becomes available during the economic life of the LNG project. There are options for the LNG facilities that preclude lost investment. First, the LNG could continue to be produced at the North Slope, and the product delivered to communities both on and off the road system that are not served by natural gas. The same tankers that haul LNG to Fairbanks now could be redirected to other locales. Villages not on the road system could receive LNG deliveries in ISO containers by barge. The planned LNG facilities are constructed in modules, and could be dismantled and sold to other stranded gas development areas. The build-out of distribution piping and installation of gas appliances is the same regardless of the gas transmission method. This means that Interior Alaska consumers will not be saddled with duplicate infrastructure costs if a pipeline gas supply becomes available.

There is also some concern about the safety of hauling LNG over the highway.  Hauling of LNG in highway tankers has taken place since the 1970’s and has a record of safe operation. A LNG consulting firm, CH.IV has compiled a list of LNG tanker accidents that have occurred since 1971, and the results and magnitude of the accident

(CHIV, 2009)

. Very few of the incidents reported resulted in fire or product leakage. One incident resulted in a fire and explosion, but it occurred in a trailer that was not of the specialty design used by FNG. It occurred in a single walled pressure vessel with external foam insulation. It was not the double wall vacuum-jacketed type that will be used by FNG, and that are widely used in the US.

The tankers are designed with multiple safety systems. They carry double walled tanks and redundant overpressure relief devices. If LNG is spilled, it readily evaporates, leaving no residue. The auto-ignition temperature of LNG vapors is about twice that of diesel fuel. LNG vapors readily ignite, and quickly burn back to the LNG pool they originated from. Although rapid burning might sound like a serious risk, this tendency toward rapid burning is actually beneficial in the control of the vapors. It reduces the likelihood of explosive concentrations of gas occurring. LNG vapors have a narrow explosive band. The vapors are only explosive when mixed 5% to 15% with air in a confined area. So a highway tanker roller that results in an LNG spill is very unlikely to cause an explosion, even though a fire may result. The tanker design includes a rupture disk as a failsafe device to prevent overpressure that could result in explosive conditions.  FNG has been hauling LNG over the Parks Highway since 1998, and has had two tanker accidents in that period. Neither resulted in fire or explosion, and the LNG in the damaged tankers was transferred to other tankers, and any spilled LNG evaporated without incident.

The project plan calls for Polar LNG to own the specialty LNG tankers, but to contract the hauling to firms experienced in traveling the Dalton Highway. At periods of peak demand, there will be an additional 35 trucks on the Dalton daily. The Alaska DOT has stated that this additional load is within the capacity of the highway.

Another topic of frequent discussion about the LNG project is FNG’s status as a regulated utility. FNG currently serves Fairbanks under a certificate from the Regulatory Commission of Alaska. FNG has announced no plans to seek to rescind that status once the ANS supply becomes available.  FNG’s primary business is selling natural gas – not manufacturing LNG. It  manufactures LNG as a means to obtain gas to sell. If any of the Alaska natural gas development plans since Gubik in the 1950’s had been realized, Fairbanks Natural Gas would be distributing that piped gas in the Interior, and not LNG. FNG is poised to leap onto any economically viable gas supply that allows it to expand distribution.

FNG customers are not typically on “take-or-pay” contracts. They can switch to other fuel sources at any time they desire. FNG has several commercial customers on “interruptible” service, due to the supply constraints, where in periods of high demand these customers can be shut-off from gas and must switch to alternate fuels. These interruptible customers maintain dual-fuel equipment. Residential customers are not on interruptible service. Fairbanks area mechanical contractors report that conversion of residential oil fired boilers to natural gas typically runs $1500 to $2000.

The option for Fairbanks to take no action and continue to wait for a gas pipeline is the worst of all alternatives. Waiting only lets costs escalate, drives residents and business investment to less costly locales, and accelerates the downward economic spiral that Interior Alaska finds itself in. FNG and its affiliates are clearly serving the public interest by investing in Alaska to provide an alternative to fuel oil heating. The LNG plan not only provides a lower cost fuel, but cleaner burning fuels that will help Fairbanks address its air quality non-attainment problems.  This project will serve Interior Alaska well in the short term, and can be part of a long term solution for a larger portion of the state.

Doug Smith, PMP is the Alaska Regional Manager for Haskell Corporation and has managed energy projects across Alaska. Since 2010 he has been consulting with Fairbanks Natural Gas and Polar LNG on the development of its project.

Jason Brune of Anchorage commented to BOEMRE:

 The CBC report suggests Korea may purchase Shell's Mackenzie Delta assets!

Ziff Energy's Bill Gwozd responded to our editorial material yesterday:  Ziff Energy still has Alaska and Mackenzie Delta flowing in our models – both are required.  The key point you may wish to share with your readers is these projects have a 25 year life starting 2020/25 and ending 2050 ish.  So the questions the readers may wish to ask the politicians is what gas supply will be flowing in North America at 2035 (midterm of Alaska) and say at 2050?  Conventional gas is undergoing a structured retreat so can unconventional gas support the market growth and the fall off via conventional gas in 2050? 

SaskEnergy is spending $6.5 million to inspect and replace gas lines in the province--CBC.

Commentary:  Yesterday, NARUC President Tony Clark (NGP Photo-R) opened the last general session of the conference by raising the daunting subject of the cost of replacing aging utility infracture.  He pointed out that defered capital expenditures spaned all of the regulated entities from pipelines to water, gas and electric utilities.  NARUC's judgment is that in the next few years $1 to $3 trillion could be requiredto satisfy aging infrastructure challenges.  

Interstate Natural Gas Association of America (INGAA) Chairman Allan Bradley (NGP Photo-L) said that the, "...rapidly growing shale industry...," is causing a fundamental change in the country's pipeline grid and predicted that over the next decade over $8 billion will be spent on new facilities.  This investment could result in 1400 miles of new transmission main lines and laterals enabling an expanded national throughput of 43 billion cubic feet/day.

American Water Company President and CEO Jeff Sterba....

(Story scheduled for completion this coming weekend.)