MMS Deadline Tomorrow - Is A Combined Denali-TransCanada In the Cards?

CTV News.  A BP-ConocoPhillips venture planning to build a huge natural gas pipeline from Alaska to the Lower 48 is in early talks to join a competing project headed by TransCanada Corp. and Exxon Mobil Corp. , according to a source familiar with the projects.  The BP-ConocoPhillips project, known as Denali, would likely be shelved as the two companies team with the TransCanada project, said the source, who is not authorized to discuss the status of the projects and requested anonymity. With a price tag up to $40-billion (U.S.), it’s long been thought that only one of the projects would be built.  Dave MacDowell (NGP Photo), a spokesman for Denali, said he wasn’t aware of such discussions but noted that BP and Conoco-Phillips have said they are open to “considering involvement of any entity that adds value and takes on risk.”  (Also see: GOP Alaska, 

 

Mark BegichADN.  Sen. Mark Begich (NGP Photo) is defending a BP oil project off Alaska's coast as a state-of-the-art model that should not be halted because of the Gulf of Mexico oil spill.  The Alaska Democrat responded Monday to a request by Sen. Frank Lautenberg, a New Jersey Democrat who asked federal officials to halt the project pending an investigation of the Gulf spill, a new review of the Alaska project and implementation of revised drilling rules and regulations.

Oil and Gas Journal.  Three leading US Senate Democrats reiterated their opposition to sharing federal offshore energy development revenue with coastal states. Calling the idea a giveaway, Jeff Bingaman (NM), Byron L. Dorgan (ND), and John D. Rockefeller IV (W.Va.) said it would increase the budget deficit, reduce federal revenue, and send money belonging to the entire country

Minnesota Progressive Project by Aaron Klemz.  The rhythm of this five-year leasing process is important to understand what's happening now, and why it is happening now. Interior is currently in the middle of a five-year period of lease sales that began in mid-2007 and ends in mid-2012. It's also in the planning process for the next five-year period that will begin in 2012. Before the 2012-2017 lease period can proceed, new areas that would be included have to go through the environmental review process (initial "scoping" and then the development of draft Environmental Impact Statement (EIS) and the approval of a Final EIS.) So there are two separate issues: leases in the current five-year cycle that were put into limbo by a court case, and planning for the next five-year cycle.  To access some of the specific reasons why environmental groups are upset about this decision, you have to get beyond a simple "environmental groups think oil drilling is always bad" frame and understand that Interior reinstated leases that appeared to have been thwarted by a 2008 court case. Interior was under an April 2009 order from the DC Circuit Court of Appeals in Center for Biological Diversity v. Department of Interior that vacated the existing OCS leasing program and ordered the Secretary to review the DOI's OCS leasing policy. 

MMS Deadline Tomorrow!

 

The MMS is seeking comment now, until TOMORROW (June 30), on its OCS leasing plan for the period 2012-17.  Its decision could shut down this true economic stimulus for years to come.  It could cause the economic downfall of Alaska by constricting Trans Alaska Pipeline replacement oil throughput and lowering the potential for gas pipeline throughput.  A restrictive lease sale program could harm most other states in varying, significant degrees.  In large part, this decision process depends on your weighing in.  To have your opinion counted, please go to this page for an easy way to participate
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Here is Governor Parnell's Letter Requesting Cooperating Agency Status. 
Here is Senator Mark Begich's Earlier Comment.
Tomorrow we will post letters from a number of commenters, including several dedicated, non-profit associations and elected officials.  If you send in a comment, copy us and we'll post it.