Blog: Capital Focus
Want to know more about the Denali gas line plan? So do some Anchorage lawmakers.
Sens. Hollis French and Bill Wielechowski, both Anchorage Democrats, penned a letter to Denali president Bud Fackrell today asking for some more info on the BP-ConocoPhillips pipeline effort.
Specifically, the two senators want to know which of the AGIA "must-haves", if any, Denali is willing to commit to.
Also, What's this talk about reworking the fiscal terms?
"It is time for all parties interested in constructing a natural gas pipeline to be forthcoming and tell Alaskans what they are willing to do and on what terms," the senators wrote. "To not be upfront about those terms risks misleading Alaskans about the costs and benefits of each of the proposals under consideration. . . . In short, it is time for you to put your cards on the table."
The senators asked for a speedy response -- by July 7 -- and included their e-mails to save time.
The Legislature is considering whether or not to grant an exclusive state license to another pipeline builder, TransCanada. The Denali project has often come up as a viable alternative, but little is known about that plan.
I wouldn't hold my breath waiting for "transparency" from BP or Conoco or the rest of these folks.
The important questions:
1) how will they deal with access for explorers? will they just "leave it to the feds" like Halcro and Ramras think we should do or will they commit to something tangible?
2) how will they establish transportation rates for explorers? will they just "leave it to the feds" like Halcro and Ramras?
3) what will the tariff terms be? the debt-to-equity ratio used for establishing the transportation rate? AGIA requires 70/30. If that slips to even the tiniest bit, the state will have paid way more than the $500M in AGIA.
This is the year we celebrate 50 years of statehood. That means it's been 5 decades since we decided not to rely upon the federal government to look out for the welfare of Alaskans.
Memories fade over time. We must be mindful of where we are and how we got here. We decided over 50 years ago NOT to "leave it to the feds". It was the right decision then and it's the right decision now.
JohnQpublic: Right on!!! Might ask one more question:
Which Legislator is going to introduce THE NORTH SLOPE GAS INVENTORY TAX? Might think of it as a punitive tax on undelivered natural resources. How about treble the going rate for an incentive, too. Nothing like a Sovereign State use of the tools at hand to encourage the development per the Constitution.
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