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The Star, by John Spears. If Canada fails to develop its oilsands now — and fails to build the pipelines to move it to market — the opportunity could vanish for decades, two industry executives warned Wednesday. (Note: we continue to observe here that, from a gas marketing perspective, Alaska is in the same boat! -dh) “Asia will figure out other sources to get supply from if they can’t get it from Canada,” Cenovus chief executive Brian Ferguson told a meeting of the Canadian Club. Cenovus is a major oilsands producer, projecting productionof 116,000 to 128,000 barrels a day from its two projects in 2014. |
Meet Alaska, Part III
(Meet Alaska, Part I, Here)
More Reaction Here to Meet Alaska Part I — Governor Sean Parnell's Gas Pipeline Announcement.
Reaction to yesterday's OVERREACHING, EPA action that attacks due process and the rule of law
Senate Energy and Natural Resources Committee Communications Director Robert Dillon (NGP Photo), this morning, draws our attention with this link to growing support for Senator Lisa Murkowski's efforts to end the oil export ban and update American Energy policy. We couldn't agree more. For a video of her Senate floor speech yesterday on this subject, go here. For our earlier report on her Brookings Institution speech, go here. -dh
Today the House Natural Resources Committee voted to approve a motion to authorize Chairman Doc Hastings to issue subpoenas to Obama administrators on various issues, some of which affect energy and related natural resource issues. -dh
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Personal… …last Friday at the We discussed the value of defeating a referendum on the upcoming August primary ballot that asks citizens to vote 1) to repeal the tax reform just passed last spring, or 2) to not repeal it. If Alaska's new oil tax reform law is repealed a year after passage, Alaska's investment climate will be less inviting and more hostile to investors than ever. When Tom began spouting off one liners to convey the importance of tax reform, I asked him to email me his creations. Here they are for our NGP readers: The NEED TO DRILL TO PAY THE BILL NO DOUGH WITHOUT OIL FLOW I AM NOT FINE WITH DECLINE DON’T TAX BEYOND THE MAX INCREASE PRODUCTION NOT MORE REDUCTION |
Alliance's Meet Alaska Conference, CH2MHill's Tom Maloney (NGP Photo) and I were discussing the importance of Alaska's new production tax law. Charlotte News Observer, by John Frank.
Gov. Pat McCrory met President Barack Obama on the tarmac Wednesday in North Carolina with a message: don’t be a stranger. (NGP Note: As we have observed here, McCrory serves on the OCS Governors Coalition with Alaska Governor Sean Parnell.)
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“In the short time I had on the tarmac I took advantage of every minute,” McCrory said in an interview at N.C. State University, where he attended Obama’s speech. “I talked about wanting to build a relationship with the White House in dealing with complex issues from unemployment to Medicaid to food stamps and also offshore drilling.”
“He immediately, to his credit, introduced me to his energy secretary and I’m setting up a meeting in February with the energy secretary with other governors to explore and hopefully move forward offshore drilling, at least for natural gas off our coast,” McCrory continued. “So we are beginning that dialogue. We need to move forward with energy exploration in North Carolina and at least this first window of opportunity of dialogue and I look forward to building that dialogue.”
- Alaska Miners Association Reaction.
Alaska State Chamber Reaction.- Governor Sean Parnell said yesterday that, "This report is little more than a pretext for an EPA veto of the state’s permitting process, something the federal Clean Water Act prohibits. As my record demonstrates, I will not trade one resource for another, and every permitting application—when filed—deserves scientific and public scrutiny based on facts, not hypotheticals.”
- Mike Heatwole provided us today with a link to this statement from Pebble CEO, longtime Alaskan John Shively (NGP Photo). His statement below reacts to yesterday's EPA release:
“It is a disappointing day when an agency charged with upholding a science based regulatory process ignores its own rules and regulations, and does not take the time nor expend the effort needed to fully assess impacts in the vast Bristol Bay region. We had higher expectations for the EPA.
“It must be remembered that the report does not assess the effects of the Pebble Project as we have not finalized nor submitted a project for regulatory evaluation. The report is based upon a so-called ‘hypothetical mine’ of the EPA’s design. The hypothetical mines developed by EPA in their first two drafts did not employ the most advanced engineering and mining practices, as will most certainly be used at Pebble.
“And it does not consider the critical environmental safeguards and modern mitigation that state and federal permitting will require for Pebble. Even then, the EPA has grossly over-estimated the effects of its under-engineered project. PLP has spent many years and $600 million dollars on engineering and environmental studies to develop a plan for a 21st century mine. We understand the critical role salmon plays in this region of Alaska, both culturally and commercially. This is why we have dedicated significant time and resources to our environmental studies program and why we have taken time to design a responsible project for developing the mineral resource at Pebble.
“EPA did not take the time nor did it commit the financial resources to assess the potential impacts of development in an area the size of the state of Ohio. It is both a poorly conceived and poorly executed study, and it cannot serve as the scientific basis for any decisions concerning Pebble. We have noted throughout this process that the EPA has deviated from its own internal guidance for a report with ever changing objectives.
“Unfortunately the real loss is for stakeholders, especially those in Southwest Alaska who are seeking ways to fully understand modern mining and the range of issues posed by possible development of Pebble. We had certainly hoped that EPA would depoliticize this process and come back to its legitimate and important role of evaluating this project based on the best available science, an evaluation which should take place in the very comprehensive permitting process established by federal law. Clearly this report should not be used as the basis for any type of agency decision regarding Pebble.”
From: Alaska State Chamber of Commerce
Today the Environmental Protection Agency (EPA) released its final Bristol Bay Assessment continuing its disregard for its own long standing regulatory process.
While this decision clearly affects the Pebble Project and its efforts to research and design a 21st century mine, businesses throughout Alaska and the United States should take note.
Businesses rely on consistent application of state and federal laws. The EPA's action today continues to signal to the business community that it is willing to halt projects they don't like before a business even has an opportunity to submit permit applications.
The Alaska Chamber supports responsible natural resource development and encourages the Alaska State Legislature and the Parnell administration to uphold Alaska's strong regulatory and permitting laws and policies that will facilitate additional exploration, site development, employment, infrastructure, research and natural resource production in Alaska.
January 15, 2014
FOR IMMEDIATE RELEASE
Contact: Deantha Crockett
Phone: 907-563-9229
Email: deantha@alaskaminers.org
Alaska Miners Association responds to the EPA’s final Bristol Bay Assessment
Anchorage, AK – Today, the EPA released its final Bristol Bay assessment, titled "An Assessment of Potential Mining Impacts on Salmon Ecosystems of Bristol Bay, Alaska." While we will still need to review the full report, the Press Release issued by EPA Region 10 indicates that the agency continued to use hypothetical mining scenarios drawn from an aged economic report and NOT from a submitted or completed mine plan. They omitted current state and federal regulations that would be applied to any such project, and ignored modern mining practices. In addition, today's release of the report is further indication that EPA rushed this process, setting a dangerous tone for any development project in the United States.
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"As a miner, a lifelong Alaskan, and an American, I am disappointed. First and foremost, natural resource development projects should always be evaluated by science and facts. Nothing more, nothing less,” said AMA Executive Director, Deantha Crockett (NGP Photo). “In its assessment, the EPA has done an injustice to all development projects by supposing scenarios of poorly designed mines, omitting real-life standards that mining projects must follow, and exaggerating the impacts resulting from what is an impossible scenario. EPA has also done an injustice to Alaskans who deserve to know the scientific realities of Pebble, realities that will come through a mine plan submitted in the formal NEPA process. It is in this process that we should determine our support for the project based on whether or not it can be done right. This highly flawed report does not give us the information we need to make such an important decision."
Read the full assessment here: http://www.epa.gov/ncea/pdfs/bristolbay/bristol_bay_assessment_final_2014_ES.pdf
Reaction to Governor Parnell's Gas Pipeline Announcement:
- From: Office of the Federal Coordinator, Alaska Gas Pipeline
- From: U.S. Senator Lisa Murkowski: “I applaud the progress Gov. Sean Parnell’s office has made in advancing a natural gas development project,” Murkowski said. “I look forward to all parties working as quickly as possible on the engineering design of the project and to speed development of the financial framework for a project to proceed to construction.”
- From: Alaska State Chamber of Commerce
Like Governor Sean Parnell and many other Alaskans, the Alaska Chamber welcomes the news that a commercial agreement for an Alaska gasline has been signed.
"This agreement marks a major step in bringing Alaska's gas to market, but much work lies ahead. We look forward to supporting policies that will support project development and a strong economic future for Alaska," said Rachael Petro, Alaska Chamber President/CEO.
The agreement, also known as a Heads of Agreement (HOA), was signed by the commissioners of Natural Resources and Revenue, ExxonMobil, BP, ConocoPhillips, TransCanada, and the Alaska Gasline Development Corporation (AGDC). The HOA will be subject to public review by the Legislature this session.
"This commercial agreement, with its transparent set of terms, is Alaska's roadmap to developing our vast gas reserves," Governor Sean Parnell said. "This is truly a historic achievement. Not only have all the necessary parties aligned around a single project, but we're moving forward with a project that's on Alaska's terms and in Alaskans' interests. I extend my thanks to all of the parties for the hard work that went into this agreement, and look forward to working with legislators on laying the framework to best manage our gas resources."
You can read the Governor's press release in its entirety here and review the agreement here
Part III
by
Dave Harbour
In Part I, we gave a preliminary reaction to Governor Sean Parnell's dramatic announcement that the major Alaska North Slope gas pipeline/LNG project parties had reached 'alignment of interests'.
In Part II, we began to provide brief descriptions of presentations. After writing Part II, we learned more about the gas pipeline/LNG project documents Parnell described on the first day. On Monday, we'll explore the two documents.
Meanwhile, today we continue with the presentation briefings and add a few more participant photos here:
(Uploading this coming weekend….)
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