Letter to the Editor
Maximum benefit
Published Wednesday, May 14, 2008
May 8, 2007
To the editor:
From the Alaska Constitution, Article 8, Paragraph 2: “The legislature shall provide for the utilization, development and conservation of all natural resources belonging to the state, including land and water, for the maximum benefit of its people.”
I would like to ask our Interior representatives and Borough Assembly to pursue legal means in declaring the current royalty oil sale unconstitutional. The best interest findings for the royalty oil sale anticipated future oil prices to range from a low of $16.60 to a high of $22.56 per barrel. Today, our Alaska crude was sold for $123.69, more than $100 more than the state anticipated. At current prices, the state is receiving more than $2.5 billion dollars per year from refineries within the Fairbanks borough.
All the heating oil and petroleum used to generate electricity adds up to only 5 percent of the total petroleum consumption statewide. The record cost of this 5 percent that we use to heat our homes is causing an energy crisis throughout Alaska. Our Alaska Constitution needs to be enforced and the people of this borough and state need to receive maximum benefit from our resources, not in state income but in affordable energy.
Justin Powell
Fairbanks
Community Discussion
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Justin, Thanks for the great work you do. You are spot on in your letter.
Fairbanks should not be subsidizing the rest of the state- especially Anchorage and Juneau- with the money the State is taking from the exorbitant prices we are being charged to heat our homes.
This insanity has gone on long enough.
But tell me- why are you doing more to address this problem then most of the people who have been elected to represent us?
Ah HA! Got ya! Dont you know that the "state" is the people? Thus the people of Alaska are doing fine!
Democracy turned on its head. They found the loophole long ago, "Government of the people, by the people and for the people" translates into a government that can do whatever it wants.
As of yesterday the cost of #2 heating oil is at $4.20 a gallon and I got word that the refinery has raised the price 8 cents since then. You can see prices for yourself at www.fairbanksgas.com.
Now is the time to call your legislature and voice your frustration. The Fairbanks legislative information number is 452-4448 or you can send a message online at http://www.legis.state.ak.us/poms/
Thanks Fairbanksgas for your continued work. I agree wholeheartedly with all your efforts and we need to get busy with our legislators. Again, thanks.
thanks fairbanksgas for your comments and Im headed over to the store to buy me a woodstove........
I can't wait to fire up my 2-stroke chainsaw and get to work reducing my energy bill. I've called the legislature and they all say the same thing, "yeah, I hear you, but what can I do about it." Our legislature is worthless. Save your time, start cutting wood and maybe all that pollution from the chainsaws will help with the global warming and we'll use even less fuel.
My latest little hike to the oil company after running out last night was interrupted by the eclectic electric company's disconnect notice for tomorrow.
Since it didn't make much sense to add $4.96 per gallon diesel to a furnace requiring a volt jolt I figured I'd better be checking it out.
The fuel surcharge for the month of March came in at $271.00 on top of a bill that normally is $90.00 per month but got kicked up by the excessive use a single person requires in a 500sf house using one fluorescent bulb at a time + internet and TV.
Just waiting for the axe to fall.
Everyone had better be dialed in for the Governor's address concerning these issues come tomorrow, May 15.
I forgot to add the $30.00 delivery charge for those 50 gallons....
Oh heck, it's only money,.... just like the 2 lb block of generic mild cheddar cheese for $14.00.
ALASKA GAS AND OIL FOR ALASKAN'S FIRST. As far as I'm concerned, they can turn off the valves in Valdez and embargo all of Alaska's oil and gas so that NOT ONE MORE DROP OF ALASKA'S OIL IS EXPORTED, until this Administration and Legislature understands and responses to the need of ALASKANS' energy needs, at affordable prices, NOW!!!
Thanks for all your efforts Justin. I do hope that the legislature is paying attention. Five dollar a gallon fuel oil does not seem far off.
pmcgraw, you are a mathematics savant.
We ARE paying $4.96 per gallon in Cordova just downstream from Valdez.
It makes me sick to see these prices! I hate to see these hard working, tax paying men and women loose everything they have worked their whole life for, and then see these companies make record profits.
There has to be a better way to get this Administration to listen. We all know the people are telling them, we can't take anymore.
Sorry Red I was speaking for Fairbanks. I do realize outlying areas are already there or worse. I had to google savant =) How do you figure Cordova downstream of Valdez? Maybe downstream from Chitna!
Yeah, its 5.25 a gallon in Galena, and that is a steal!! When the first barge docks with the "new" fuel, it will most likely go to 7. We are considering filling up drums of that cheap gas at 5.25!! I think the idea of shutting down the pipeling and not exporting another gallon until we have some relief a pretty good idea.
I proposed this very idea to the legislature two years ago. Cap the price of royalty oil at $40 per barrel for all oil refined and used in the State of Alaska. It was not only rejected but I was treated like a terrorist for even suggesting it. Alaskan residents are paying the "highest" tax in the nation to our own state for oil that belongs to all of us. It is criminal for what our politicians are doing to the residents and economy of Alaska. Alaskans should band together and file a class action suit against the state. Thank you for a great piece.
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