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      This is your public service 1-stop-shop for Alaskan and Canadian Arctic energy commentary, news, history, projects and people. We update it daily for you. It is the most timely and complete northern energy archive anywhere — used by media, academia, government and industry officials throughout the world. Northern Gas Pipelines may be the oldest Alaska blog; we invite readers to name others existing before 2001.  -dh


11-24-15 On Being Positive About Alaska's Investment Climate - Big Pipelines Alberta Carbon Policy "Winners"?

24 November 2015 9:19am

Here is our archive reference to the Resource Development Council's important, 36th ANNUAL


Seeking Alpha:  Enbridge and TransCanada seen as winners from Alberta's carbon policy


Governor Bill Walker's Response To Tesoro Alaska's Announcement

Comment: "On Being Positive"

This ADN piece (Left column) by Nathaniel Herz provides additional insight into the attitude and leadership style of Alaska's governor. 

Al Bolea, gas pipeline, LNG, BP, Governor, Alaska, Photo by Dave HarbourReaders will be interested, as well, in this compelling essay on gubernatorial leadership written by retired BP pipeline executive, Al Bolea (NGP Photo).

At times, we have lamented on how our work these days tends to fall on the negative side.  We are, therefore, delighted that Al has produced such a positive piece, the blueprint for an Alaskan governor desiring to successfully run the large and complex State of Alaska - and provide the necessary leadership that could lead to construction of an Ak-LNG project.

Meanwhile, we continue to look for positive signs that Alaska's investment climate is positively supported by both Alaska's elected leaders and the Washington D.C. players.

While we are forced to note that ours is an investment climate long ignored or abused, and that may seem to some to reflect negativity on our part, there are rays of hope and Bolea has offered one of them.

Tom Brennan, Anchorage Daily Planet, ARCO, Snowflake Rebellion, TAPS, ConocoPhillips, Mooses Tooth, Bears Tooth, Photo by Dave HarbourAnother occurred this weekend when a dear friend and former colleague, Tom Brennan (NGP Photo), described the enormous contribution being made by ConocoPhillips under the leadership of longtime Joe Marushack, ConocoPhillips, Alaska North Slope, LNG, gas pipeline, Photo by Dave HarbourAlaska energy executive Joe Marushack (NGP Photo).

...other rays of hope and light which we are quick to acknowledge.

While we celebrate "hope" in approaching Thanksgiving Day, we are also reminded of the sage advice given by a longtime friend, energy analyst and utility manager Joe Griffith, CEA, MEA, MOA, analyst, US Air Force, Alaska, Photo by Dave HarbourJoe Griffith (NGP Photo) who gently reminds fellow Alaskans that, "Hope is not a strategy", a precept to which we believe Al Bolea and Joe Marushack would also subscribe.

To our American readers: Happy Thanksgiving Wishes for Thursday!  

(And...remember the reason for the season!)


ADN by Nathaniel Herz. Larry Persily, Alaska gas pipeline, LNG, federal coordinator, Dave Harbour Photo ... Larry Persily (NGP Photo), the former federal gas pipeline coordinator who now serves as an oil and gas adviser to the Kenai Peninsula Borough mayor, said that a new executive with more technical expertise and experience seems to match Walker’s vision for an expanded role for Alaska in the pipeline project.

But the shakeup in the corporation’s board and management, he added, is creating turmoil for the project. So are other recent changes made by the Walker administration, including to the positions held by a pair of highly paid consultants who were heading Alaska’s efforts to negotiate the details of the project and sell the state’s gas.

“Markets (and) buyers don’t care for turmoil,” Persily said in a phone interview. “It needs to be settled; the market needs to be reassured that this isn’t going to happen on a frequent basis.”

One other source of uncertainty was a move by the state corporation’s board Saturday to postpone a vote on the pipeline project’s budget for next year.

A key meeting to approve that budget is scheduled with the oil companies for Dec. 4, and the board rescheduled its own vote to Dec. 3.

Walker said at his news conference that he is “very optimistic” that the board will approve the budget at its Dec. 3 meeting. But he said that he views the state’s authority over the budget as leverage to make sure the oil companies sign formal agreements making their gas available to the pipeline project if they decide not to continue as participants.

“By approving the work plan and budget today, there’s no incentive for us to receive those assurances,” he said. “We’ll see what we get. We’ll make that decision when we get to that point.”  (Full story here)


Seeking Alpha: Enbridge, TransCanada seen as winners from Alberta's carbon policy

Analysts are betting that renewable energy developers such as Enbridge (ENB+1.2%) and TransCanada (TRP +1.9%) will be among the best placed to make the shift to Alberta's new carbon policies, Bloomberg reports.

As the government boosts the province’s share of renewable electricity to 30% from 9% by 2030, "renewable power contracts are going to go to the bidder that needs the least amount of government support, developers with most financial flexibility and overall lowest cost of capital” such as ENB and TRP, says National Bank Financial's Patrick Kenny.

The two companies already are among Canada’s largest renewable power operators: ENB owns 2,065 MW of wind power across Canada, enough to power 650K homes, while TRP operates wind, hydro and nuclear plants as part of its 11.8K MW of power generation.



Comment: Honestly, we do keep looking for good news, but in this case must temper the Governor's enthusiasm with a state senator's suspicions.  Investment climates are not hurt when criminal acts are identified and prosecuted.  But when politicians make allegations, stimulating investigations based on a 'desire' for lower prices, honest investors can be hurt and the investment climate is not helped.  -dh     

Bill Wielechowski, Senator, Refinery Prices, investigation, Flint Hills, Tesoro, Photo by Dave HarbourToday (From September 9, 2015), Senator Bill Wielechowski (NGP Photo) sent a letter to Alaska Governor Bill Walker and Attorney General Craig Richards requesting an update of the Attorney General’s report on Alaska Petroleum Products Pricing Investigation to examine the reasons behind the high gas prices in Alaska as compared to the lower 48 states.

“One of the benefits of low oil prices should be a decrease in prices for gasoline and heating fuel. That’s the case around the country,” said Sen. Wielechowski. “With the closing of the Flint Hills refinery, we’ve been seeing a narrowing of the players in the refinery industry in Alaska allowing for less and less competition. Alaskans deserve to know if the near-monopoly in the refining business in Alaska is the cause for their pain at the pump.”

Currently, Alaska has the highest gas prices in the country. These high prices coupled with the high cost of living in Alaska is hampering economic development and taking money out of the pockets of hard-working Alaskans.

Governor Bill Walker's Response To Tesoro Alaska's Announcement


Governor Bill Walker, Tesoro, Refinery, Investigation, Pricing, Photo by Dave Harbour“I congratulate Tesoro on its announcement that the company will be acquiring a portion of Flint Hills Resources’ Alaska-based assets. Tesoro has had a long and successful history working in our state, and this acquisition will allow them to better serve their customers and communities across Alaska. This news further proves that business is alive and well in Alaska, and investors are optimistic about the opportunities that lie ahead in our state.” – Governor Bill Walker

 Here is our archive reference to the Resource Development Council for Alaska's 36th Annual

November 18-19, 2015
Dena'ina Civic & Convention Center

Conference Program (pdf)



Eye-Opener Breakfast in Exhibit Area – Sponsored by Wells Fargo

Opening Remarks 
Ralph Samuels, RDC President, Vice President, Government and Community Relations – Alaska, Holland America Group

State of Alaska Update: From Alaska LNG Project to State Fiscal Plan 
Governor Bill Walker (video forthcoming)

Alaska Economic Trends: 2016 Outlook 
Neal Fried, Economist, Alaska Department of Labor video

Alaska Industry 2015 Year in Review and 2016 Outlook 
Oil & Gas: Kara Moriarty, President and CEO, Alaska Oil and Gas Association video
Fisheries: Ricky Gease, Executive Director, Kenai Sportfishing Association pdf video
Forestry: John Sturgeon, President, Koncor Forest Products video
Mining: Karen Matthias, Managing Consultant, Council of Alaska Producers pdf video
Tourism: Scott Habberstad, Director of Sales and Community Marketing, Alaska Airlines pdf video

Gourmet Break – Sponsored by ConocoPhillips Alaska, Inc. ConocoPhillips Alaska: Positioning for the Future 
Joe Marushack, President, ConocoPhillips Alaska, Inc. pdf video

Global LNG Market Update and Framing the Opportunity for Alaska 
Damian Bilbao, Director, Business Development, Alaska LNG, BP Exploration (Alaska), Inc. pdf video

Networking Break

Keynote Luncheon: Sponsored by Northrim Bank
It’s Still North to the Future: Moving Ahead in the Arctic

Wayne Westlake, President and CEO, NANA Regional Corporation pdf video
Rex Rock Sr., Chairman and President, Arctic Slope Regional Corporation video

Alaska Can’t Quit Now: Why the Arctic Still Matters 
Randall Luthi, President, National Ocean Industries Association video

Marine Freight Transportation: Safety and Environmental Stewardship 
Lynn Muench, Senior Vice President for Regional Advocacy Pacific Region, American Waterways Operators pdf

What Alaskans Need to Know About Federal Overreach 
William Kovacs, Senior Vice President, Environment, Technology & Regulatory Affairs, U.S. Chamber of Commerce pdf video

Gourmet Break – Sponsored by Colville, Inc. 

Pebble vs. EPA: Finally Some Real Progress 
Tom Collier, CEO, Pebble Partnership video

Point Thomson: Dawn of a New Era 
Gina Dickerson, Point Thomson Project Manager, ExxonMobil pdf video


Eye-Opener Breakfast in Exhibit Area – Sponsored by BP

Real Solutions to Alaska’s Budget Crunch 
Moderator: Ralph Samuels, RDC President, Vice President, Government and Community Relations – Alaska, Holland America Group 
Cheryl Frasca, Former Director State of Alaska Office of Management and Budget, 2002-2006 pdf video
Mike Navarre, Mayor, Kenai Peninsula Borough pdf video

Give the State Some Credit: How Oil Tax Credits Are Changing Alaska’s Investment Game 
Moderator: Kara Moriarty, RDC Executive Committee, President and CEO, Alaska Oil and Gas Association Benjamin Johnson, President, BlueCrest Energy, Inc. pdf video
Casey Sullivan, Director, State Public Affairs, Caelus Energy Alaska, LLC pdf video 

Hilcorp: Boosting Efficiency and Production in Alaska 
Greg Lalicker, President, Hilcorp pdf video

Gourmet Break – Sponsored by Stoel Rives LLP 

10:30 Communities and Mining: Why it Works 
Moderator: Lorna Shaw, RDC Vice President, External Affairs Manager, Sumitomo Metal Mining Pogo LLC 
Eric Hill, General Manager, Kinross – Fort Knox Mine pdf video
Jan Trigg, Manager, Community Relations and Government Affairs, Coeur Alaska – Kensington Gold Minepdf video
Wayne Hall, Manager, Community and Public Relations, Teck pdf video
Rosie Barr, Vice President, Lands, NANA Regional Corporation pdf video

11:30 Networking Break 

Noon Keynote Luncheon: Sponsored by Holland America Line Navigating Alaska’s Inside Passage and Policy 
Moderator: Ralph Samuels, RDC President, Vice President, Government and Community Relations – Alaska, Holland America Group 
Linda Springmann, Vice President, Deployment and Tour Marketing, Holland America Line pdf video

1:30 p.m. Progress Report on the Alaska LNG Project 
Moderator: Jeanine St. John, RDC Executive Committee, Vice President, Lynden 
Steve Butt, Senior Project Manager, Alaska LNG Project pdf video
Dan Fauske, President, Alaska Gasline Development Corporation pdf video
Mike Navarre, Mayor, Kenai Peninsula Borough video forthcoming

3:00 Grand Raffle Drawing Send-off Champagne Toast – Sponsored by CLIA Alaska


11-24-15 Gas Pipelines and Alaska's History: From Our NGP Video Reference Library

24 November 2015 5:23am

Northern Gas Pipelines: Video References

Someday, we will align Alaska gas pipeline historical events with political, social and other major mileposts in the state's history.  

Included in our sources will be a video produced by the State of Alaska under Governor Wally Hickel's direction (i.e. Broken Promises); and, an important documentary created by legendary, Alaska talk show host and commentator, Dan Fagan (i.e. Alaska Under Seige).  

We must add our own documentary, Pioneering, featuring a number of Alaskan influence leaders from many sectors of our society.

Today, we add our most recent, political documentary reference, Unpredictable Finishes (i.e. shown in box), by a dedicated Alaskan and good friend, Dorene Lorenz.



11-23-15 Can A "Business As Usual" Attitude Overcome Alaska's Financial Crisis?

23 November 2015 4:37am

EIA: U.S. proved oil and natural gas reserves rise in 2014

Comment: Premier Notley, like President Obama is taking actions that can be touted at the upcoming Paris Climate Change Conference where the top UN climate change official has said the true goal of environmental activism is to "destroy capitalism".  -dh

See today's Alaska Headlamp

Today, in the United States Supreme Court, nine Alaska organizations filed an Amicus Brief ....

Calgary Herald by Stephen Ewart. 

Alberta Premier Rachel Notley effectively put the first limits on unchecked growth in the oilsands — through a 100 mega-tonne annual cap on greenhouse gases....


Can A "Business As Usual Attitude" Overcome Alaska's Financial Crisis?

 Can Alaska be known as a place where, "a deal is a deal" and as a state not known to be, "its own worst enemy"?

Commentary by

Dave Harbour


At a time of Alaska state fiscal crisis, maintaining high state and local government employment is counterintuitive if not obvious.  

Additionally, the Governor has brought in a new Medicaid entitlement program whose costs may ultimately be supported by Alaskan businesses and perhaps individuals -- and which will be sure to attract even more "ne'er-do-well" beneficiaries to the state at unknown additional costs.

Additionally, the governor is working with the Obama administration to bring dubiously vetted Syrian immigrants to the state, five year resettlement expenses of which are estimated to cost taxpayers almost $65K each.  For Alaska, because of its remoteness and high costs, that number is probably understated.

"You Can't Make This Stuff Up"

Then, last month, the Governor called the Legislature into special session.  

To deal with an enormous annual operating budget deficit?  No.

To work toward a sustainable annual budget by cutting low priority programs and trimming others?  No.

To pass "fiscal certainty" legislation, providing Constitutional protection to the Ak-LNG project sponsors?  No.


He called legislators into session to have them consider a new tax on those wishing to invest in one of the world's largest ever LNG export projects, then withdrew that proposal.  

And, he had them consider increasing the state's equity stake in a risky pipeline/LNG project whose feasibility is unproven, whose customers are uncommitted and whose cost to the state, conservatively, would ultimately exceed $15 billion.

And, he provided legislators with no packet of information clarifying the purpose of their special session.

And, he neglected to inform them that he had dictated to the 'independent' Alaska Gasline Development Corporation board his desire to form subsidiary corporations.

And, he refused to permit certain state officials to sign acceptable Ak-LNG confidentiality agreements -- a defiant act that could well stop progress on the entire project.

And, this was on top of his earlier 'request' of the patient producer-sponsors that the Ak-LNG project study the option of building a 48" vs. the planned 42" pipeline, an initiative that likely cost the project 6 months of delay and an overall price increase.


Here are the most recent monthly employment statistics posted by the Alaska Department of Labor (AKDOL).

Today we will explore some relationships between responsible / irresponsible state budgeting vs. energy and other investments.

We note in these AKDOL statistics, the familiar, annual Alaska trend of increased school employment as summer ends and decreased commercial fishing, processing, construction and tourism employment as winter begins.

We are not economists, but have absorbed AKDOL stats for many years.

Anyone who has, knows that Alaska is a very seasonal place of employment for "labor intensive industries" like tourism, commercial fishing, construction, etc.

Therefore, to see post-summer season declines in these categories is no great shock though we know that a continuing, gloomy world economy could affect demand for their products and services as well and affect Alaska's economic health in a coming season.  

Oil and gas industries are "capital intensive" and typically have fewer albeit more highly compensated employees filling positions that are not very 'seasonal' at all.

We never forget that those few employees create great wealth for the state and national economies, as well as for their employers.

In fact, these employees' labors pay for most of the infrastructure used by the "labor intensive industries" ... also, the education and local government sectors. 

As world wide commodity demand decreases, Alaska can be hit hard where it hurts.  Fewer, highly paid non seasonal oil and gas jobs affect the year-around economy.  

In a low demand, commodities environment, the investors make less but they also pay less tax and royalty revenue to the state, due to slowing production and lower prices per unit.  

In a state choosing to become 90% dependent on oil and gas taxes and royalties, small changes in the price per barrel of oil can lead to large government deficits (i.e. as now), or unexpected, windfall surpluses.

Elected officials, therefore, need to be particularly concerned about and protective of the health of this oil and gas category--the very source of state wealth. 

Alaska is in a challenging position now with oil prices hovering at below 50% the price levels of 18 months ago.  

Thus, we would have expected responsible state and local government leaders to have begun cutting significant numbers of employees as well as shaving program costs to a sustainable level nine months or a year ago.  Some have said, "You can't cut yourself out of this predicament!"  What we've seen, however, is an increase in government employment from the beginning of the fiscal year to the present time--whose relationship to seasonal employment is not clear.  A minimal effort would be to -- at least -- not add any new programs or employees.

For the most part, this AKDOL report, viewed in isolation, seems to reflect a 'business as usual' attitude on the part of state and local budget policy makers.  They* are confronting a huge budget deficit by spending the last dollars in the State's available savings accounts--and counting for the long term on current, short-term low interest rates to fund debt.  (*We say, "they" because so much of certain local municipal operating and capital projects are funded from the unsustainable state operating and capital budgets.)

Perhaps a budgetary discipline escaping our untrained eyes has already been put into motion and will become more visible in future AKDOL reports.  However, the annual state operating budget shortfall ($3.5 billion, v. 750k population) is so serious and public news releases of government cuts and fiscal discipline are so muted that we fear the worst.

We fear that insufficient steps are being taken to create a balanced, sustainable state budget and at the same time retire a nearly $10 billion unfunded liability of the state employee pension program.  

We fear that this scenario -- if not immediately and decisively corrected -- creates a toxic, anti-investment climate in Alaska that could repel investment of all kinds for decades at a time when government needs to build an investment climate based on logical and not political economic principles.

As to a major Alaska north slope gas monetization project, such as Ak-LNG, one logically concludes: The producer proponents of the Ak-LNG project have demonstrated extraordinary patience, diligence and dedication in dealing with government while trying to evolve the project into feasibility.  We also observe that while the Ak-LNG project, if proven feasible, could someday begin transforming gas reserves into wealth, it could not do so before 2025.  This economic injection would come too little and too late to be of much help in facing the current financial crisis.

As we evaluate State of Alaska actions related to the Ak-LNG project, we believe most of that activity would fall into categories like 'not helpful' and 'self serving' and 'time wasting'.

The best, good faith effort Alaska could now contribute to the Ak-LNG project, would be to get its own financial affairs in order -- and not at industry's expense.

It could also begin cooperating with Ak-LNG sponsors in meaningful ways:

  • conforming to private confidentiality agreement terms
  • eliminating threats of increased taxation 
  • not being the cause of project delays 
  • providing a Constitutionally protected cloak of fiscal certainty to gas and oil producers that invest in the Ak-LNG project.

In short, why wouldn't Alaska want to become a reliable investment climate that transforms its 'Business As Usual Attitude' into a focus on 'Can Do!'

Why wouldn't citizens of the "Last Frontier" want to live in a place where "a deal is a deal" and where their government is not known for being, "its own worst enemy"?


November 23, 2015

U.S. proved oil and natural gas reserves rise in 2014

  • Natural gas proved reserves rose 10% in 2014, setting a new U. S. record of 388.8 trillion cubic feet
  • Oil proved reserves rose 9% in 2014, exceeding a U.S. total of 39 billion barrels for the first time since 1972
  • Sustained lower prices for crude oil and natural gas in 2015 have curtailed oil and natural gas drilling and have reduced operating economics; this is anticipated to reduce end-of-year 2015 oil and natural gas reserves

U.S. crude oil proved reserves increased in 2014 for the sixth year in a row with a net addition of 3.4 billion barrels of proved oil reserves (a 9% increase), according to U.S. Crude Oil and Natural Gas Proved Reserves, 2014, released today by the U.S. Energy Information Administration (EIA). U.S. natural gas proved reserves increased 10% in 2014, raising the U.S. total to a record 388.8 trillion cubic feet (Tcf).

  Crude oil and lease condensate
billion barrels
Natural gas
trillion cubic feet
2013 U.S. proved reserves 36.5 354.0
Net additions to U.S. proved reserves +3.4 +34.8
2014 U.S. proved reserves 39.9 388.8
Percentage change 9% 10%

At the state level, Texas had the largest increase in proved reserves, 2,054 million barrels (60% of the nation's total net increase) in 2014. Most of these new oil reserves were added in the Texas portion of the Permian Basin and the Eagle Ford Shale play. North Dakota had the second-largest increase—a net gain of 362 million barrels—most of which were added in the Bakken tight oil play of the Williston Basin.

Pennsylvania added 10.4 trillion cubic feet (Tcf) of natural gas proved reserves (the largest net increase for any state in 2014) driven by continued development of the Marcellus Shale play. Texas added 8 Tcf of natural gas proved reserves, mostly from the Eagle Ford Shale play and natural gas associated with the state’s gain in oil reserves in the Permian Basin. Natural gas from shale formations was 51% of the U.S. total of natural gas proved reserves in 2014.

U.S. production of both oil and natural gas increased in 2014. Production of crude oil and lease condensate increased about 17% (rising from 7.4 to 8.7 million barrels per day), while U.S. production of natural gas increased 6% (rising from approximately 73 to 77 billion cubic feet per day).

Proved reserves are those volumes of oil and natural gas that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions.

U.S. Crude Oil and Natural Gas Proved Reserves, 2014 is available at: http://www.eia.gov/naturalgas/crudeoilreserves.

The product described in this press release was prepared by the U.S. Energy Information Administration (EIA), the statistical and analytical agency within the U.S. Department of Energy. By law, EIA's data, analysis, and forecasts are independent of approval by any other officer or employee of the United States Government. The views in the product and press release therefore should not be construed as representing those of the Department of Energy or other federal agencies.

EIA Program Contact: Steven G. Grape, 202-586-1868steven.grape@eia.gov

EIA Press Contact: Jonathan Cogan, 202-586-8719jonathan.cogan@eia.gov


U.S. Energy Information Administration
Contact Us | Washington, DC | www.eia.gov

1-22-15 "The Climate Warming Religion"

22 November 2015 12:46pm

Anchorage Daily Planet Editorial.  Acolytes of the new climate-warming religion so embraced by President Barack Obama and other believers must be in a tizzy today.

A team of prominent scientists gathered at a Texas Public Policy Foundation climate summit in Austin, Texas, pooh-poohed all that as “nonsense,” Marc Morano of ClimateDepot.com reports. They say fears of man-made global warming are “irrational” and “based on nonsense”; that the claims have “nothing to do with science.”

They warned “we are being led down a false path” by the upcoming UN climate summit in Paris, the website reported. You can read the entire story here.

Climate Scientist Dr. Richard Lindzen, an emeritus Alfred P. Sloan Professor of Meteorology at the Department of Earth, Atmospheric and Planetary Sciences at MIT, even derided what he termed climate “catastrophism.”


11-21-15 AGDC President Resigns

21 November 2015 6:38pm

AGDC Accepts President’s Resignation; Approves TransCanada Acquisition

State of Alaska Full 25% Equity Partner in Alaska LNG Export Project

Dan Fauske, AGDC, North Slope Borough, AHFC, Photo by Dave HarbourNovember 21, 2015 Anchorage, AK – At a special meeting held today, the Alaska Gasline Development Corporation (AGDC) board of director’s accepted the conveyance of TransCanada’s interests in the Alaska LNG export project and authorized a payment of $64.6 million to TransCanada for those interests. The board also accepted the resignation of AGDC President Dan Fauske (NGP Photo) who tendered his resignation prior to the start of this morning’s meeting.

More On AGDC Turmoil:

AGDC already holds the State of Alaska’s equity interest in the Alaska LNG project’s liquefaction facility planned for Nikiski on the Kenai Peninsula. With today’s action, the corporation will assume TransCanada’s interest in the project’s 800-mile pipeline and North Slope gas treatment plant giving the state a 25% interest in the entire integrated LNG project. Today’s approval was expected following the board’s November 12th decision to postpone the payment to TransCanada until after the Department of Natural Resources had executed a Purchase and Sale Agreement. The state’s transaction is now expected to close onNovember 24th.

In a written letter to the board, Mr. Fauske said “I am proud of my time as President of the Corporation. During that time we were able to put together a corporation that not only met, but exceeded, all expectations. As an Alaskan for many years, I strongly desire that a natural gas pipeline project will come to pass. In that pursuit, I wish the Governor and this Board of Directors success.”   

“Dan Fauske has done an incredible job founding, building and maturing this organization” said acting board Chairman Dave Cruz. “Under Dan’s leadership, Alaska has made more progress on a natural gas pipeline than ever before. I want to personally thank him for his dedication to this incredibly important project and for his years of service to the State of Alaska. He will be missed.”


With the administration's mishandling of the Alaska LNG project (i.e. Project delay due to resizing study demand; amateur handling of confidentiality policy; inept AGDC/state organizational management and personnel disruptions: 12345, and as exposed during 11-15 Legislative Hearings, etc.) we are surprised that the three national credit rating agencies have not dealt more rapidly and more harshly with Alaska's credit rating already.  -dh

Mr. Fauske’s resignation is effective January 1, 2016. The board directed its governance committee to engage an executive recruitment firm to initiate a worldwide search for a new corporate president. The board indicated that they will appoint an interim president to facilitate an orderly transition of leadership between Mr. Fauske and his successor. Until then, Mr. Cruz will perform those responsibilities.

In other action today, the board postponed a decision regarding the Alaska LNG project’s Work Program and Budget for 2016 until December 3rd. The project’s Management Committee is scheduled to meet on December 4th at which time a unanimous vote of all venture partners will be required to continue preliminary front-end engineering and design. A public notice of the December 3rd meeting will be forthcoming.


11-21-15 More AGDC Shake-ups!

21 November 2015 8:39am


Contact: Katie Marquette, Press Secretary – (907) 269-7447
Aileen Cole, Deputy Press Secretary – (907) 269-7458

Governor Walker Appoints Former Fairbanks North Star Borough Mayor to AGDC Board

November 20, 2015 ANCHORAGE – Governor Bill Walker announced his new appointments to the Alaska Gasline Development Corporation Board of Directors today. Luke Hopkins of Fairbanks will join the seven-member board, which oversees the agency’s efforts to build a natural gas pipeline and liquefaction plant in Alaska. Mr. Hopkins is the former mayor of the Fairbanks North Star Borough. He will fill the seat vacated by former AGDC Board Chairman John Burns.

“I am pleased to welcome Luke Hopkins to the AGDC Board of Directors. As the mayor of the Fairbanks Borough, Luke was instrumental in creating a new municipal gas utility for the Borough, and directing major funds to develop lower cost natural gas supply for Fairbanks residents,” said Governor Walker. “I also want to thank John Burns for his service to the AGDC board and the state. John is a talented attorney and I hope to utilize his skills in a different capacity of this project going forward.”

A resident of Fairbanks for nearly 50 years, Mr. Hopkins has an extensive background in local government and project development. He served on the Fairbanks North Star Borough Planning Commission for seven years, and was a Borough Assembly member for more than five years. In October 2015, Mr. Hopkins completed two terms as the Borough mayor, where he was actively involved in keeping military troops at Eielson Air Force Base and bringing major economic growth to the Fairbanks region. Mr. Hopkins has been involved in a wide variety of local and statewide boards and commissions, including the State of Alaska Municipal Advisory Gas Project Review Board, the Association of Defense Communities, the Alaska Municipal League, and the Alaska Gasline Port Authority.

Governor Walker also appointed Department of Transportation and Public Facilities Commissioner Marc Luiken to the AGDC Board today. Commissioner Luiken will fill the seat vacated by Department of Commerce Community and Economic Development Commissioner Chris Hladick. As the head of DOTPF, Commissioner Luiken oversees the planning, design, construction, and maintenance of Alaska’s transportation system, public buildings, and facilities.

“As the state transitions to play a larger role in the Alaska LNG project, it is absolutely critical that we have strong leadership in place to guide our endeavors. I also plan to work on direct communication between the Governor’s office and the legislature, and I will continue to look for opportunities to include them in discussions about the project,” Governor Walker said. “I look forward to working with the AGDC Board and the legislature in the coming months and years as we work to bring Alaska’s natural gas to the world market.”

AGDC is governed by a seven-member board of directors, which includes five public members and two commissioners. Mr. Hopkins and Commissioner Luiken will join AGDC board members Dave Cruz of Palmer, Rick Halford of Dillingham, Joey Merrick of Anchorage, Hugh Short of Girdwood, and Department of Labor and Workforce Development Commissioner Heidi Drygas.

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