Governor Defends Alaska Resource Interests - More Tax Talk Today Will Likely Not Support Gas Pipeline Investor Certainty - Sierra Club's Mackenzie Pipeline Map

As a member of the NGA’s Natural Resources Committee, Governor Sean Parnell (State Photo) participated in a hearing with U.S. Energy Secretary Steven Chu and the Federal Energy Regulatory Board Chairman Jon Wellinghoff (NGP Photo). Governor Parnell led the effort to amend an Endangered Species Act resolution to put more emphasis on local decision-making and economic development in land use planning decisions.  “I will continue fighting to ensure that jobs and economic recovery take a front seat in any discussions,” said Governor Parnell.

Here is the Sierra Club's Mackenzie Pipeline map (Right).

Note today's KTOO Schedule:  (Comment: We observe that most but not all of Alaska's leaders seem too obsessed with reelection and the 'shortness of the Legislative session' to do anything meaningful in 2010 that supports investor interest in an Alaska North Slope gas pipeline.  By taking little (tax credits/tax relief restricted to future investment) or no action this year, our leaders will--in effect--delay pipeline construction by another year, at best.  Here's why.  Even if open season results are promising but contingent on the Alaska government providing fiscal certainty, investor activity will be delayed until the Legislature acts a year from now, if then.  By then, competing gas projects in North America and throughout the world will have gained momentum and companies that bid for capacity this year may not maintain interest--even conditionally--through next year.  Leaders should bite the bullet this year and pass legislation which provides fiscal certainty for investors, a state fiscal plan and deals with the onerous tax and investment climate they have created.  Is it likely they will do so?  No.  Is it therefore likely that gas pipeline investor activity will be discouraged.  Sadly, yes.  -dh)

Petroleum News Alaska by Wesley Loy.  A judge has ordered a temporary halt to the Point Thomson case pending the state’s appeal of a recent unfavorable ruling to the Alaska Supreme Court.  (Comment: How does this controversy support investor interest in committing to construction of a gas pipeline?  -dh)  *   Journal of Commerce by Tim Bradner.  Rep. Mark Nueman, co-chair of the Resources Committee, asked Tony Palmer (NGP Photo) about uncertainties of approvals of the Alaska Oil and Gas Conservation Commission of gas production volumes for Point Thomson. Those are not established yet because the state conservation commission must assess losses of liquid condensate recovery at Point Thomson, as reservoir pressures decline with gas production.  A reduction in volume or delay in taking Point Thomson gas because of condensate loss could affect the project, Palmer said.     *     Alaska Dispatch by Brad Keithly.  "Plan B, If The Big Line Fails."    (Comment:  Connect the dots.  -dh)

Solve Climate.  Today's decisions by oil giants BP and ConocoPhillips to pull out of the U.S. Climate Action Partnership along with equipment maker Caterpillar wiped some big names off the roster of the influential industry-environment partnership.  (Comment: We congratulate BP, Caterpillar and ConocoPhillips for having the courage to withdraw from a coalition whose unintended consequence would be the further erosion of America's economy, way of life and national defense.  -dh)