Denali pipeline brings jobs — and apprehension — to Tok
Published Friday, June 20, 2008
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TOK — An event in Tok Thursday celebrated far more than the opening of a field office for Denali-The Alaska Gas Pipeline.
Denali President Bud Fackrell said it’s also the beginning of field work that will be critical in bringing the proposed gas pipeline project to open season within three years.
A successful open season, in which producers see the project as favorable and commit gas to the line, opens the door for financing and approval from the Federal Energy Regulatory Commission.
“We want that to be very successful, and in order to do that we’ve got a lot of work between now and then,” Fackrell said. “We can’t build or commit to build a pipeline without approval by FERC. We’re going to do it a step at a time; we’re going to do it the right way, so we have the right things at the end of the project.”
Grill cooks from Fast Eddy’s, which catered the event, busily flipped burgers as Tok residents, random tourists and professionals working on Denali lined up for lunch. Many weren’t sure how they felt about Denali’s recent activities, although they were quick to say they appreciated the free barbecue and the chance to learn more about the project.
Janet Tolliver questioned how the pipeline would affect the small town of about 1,400 people. She’s worried about a big boom followed by a big crash that could drive people off and about whether the work will draw “riff-raff.”
“We’re just seeing what pans out,” she said. “These are things you don’t think about until it actually happens.”
Others pointed out that summer tourist road traffic has dropped off this year, and that the blocks of motel rooms and restaurant and gas bills charged to Denali are probably helping the town’s economy.
Local folks couldn’t pick out a whole lot of their neighbors in the crowd, and estimated that more than two-thirds of those attending were Denali staffers or tourists — many of whom left sporting new Denali-logo ballcaps and grinning at Polaroids snapped by Doyon security volunteers at a life-size slice of 48-inch pipeline.
Resident Jeff Gavazza said a lot of the talk he’s hearing indicates people are “real leery” of what’s happening. He would rather a pipeline project go through the state, as TransCanada is doing with its pipeline plans, so that the people of Alaska are afforded accountability for their resources.
His friend, Scott MacManus, said he credits Gov. Sarah Palin for Denali’s strong start this summer. Companies have talked for years about building a line, the friends said, yet have claimed they need state help. When that help was offered in the form of the Alaska Gasline Inducement Act and $500 million, but required transparency, the producers weren’t interested, he charged. TransCanada was, and that has spurred competition.
Whatever the reason, Denali is starting strong, with crews considering soils, water, wetlands, wildlife habitat and archaeological resources along the proposed route.
The field work going on now will fill data gaps along the 200-mile corridor between Delta and the Canadian border. That information will in turn help Denali cement a route for the line, which is generally expected to parallel the Alaska Highway from Delta through Canada.
The studies take time, Fackrell acknowledged, but are a critical first step. He was confident that Denali has the resources to build a pipeline within 10 years. Due to the enormity of the project — 1,700 miles of pipe and a $30 billion investment — he said it’s unlikely the timeline could be shortened.
Some have questioned whether Denali will be able to acquire the necessary rights-of-way to route a pipeline through private land in Alaska and through federal and Native lands in Canada. Officials with TransCanada, a separate pipeline proposal being considered under AGIA, said at legislative hearings in Fairbanks that they already have rights-of-way through Canada.
Fackrell said Denali’s two owners, BP and ConocoPhillips, have large operations in Canada and will create a subsidiary under Denali to manage work in that country. He said Denali has the resources to acquire the rights-of-way.
“We’re not starting from scratch,” Fackrell said. “We understand Canada. Rights of way are going to be an issue everywhere — that’s what the pipeline business is about. Our commitment is that we’re going to spend $600 million over the next three years to get us to the place where this pipeline is moving along.”
People commenting at the legislative hearings in Fairbanks last week wanted to see the two pipeline proposals come together, upping the odds of success. Fackrell said that won’t be his decision to make.
“The owners are going to have to decide if they want to have other people come into the project or not,” he said. “The owners have said if there are other parties who bring value, they will consider adding them to the project.”
His job, Fackrell said, is moving the pipeline itself along.
To that end, Denali has hired about 60 people at its Anchorage office and another 40 are engaged in field work, he said. The total could reach 150 by summer’s end, although work would slow down then — and the Tok field office would close for the winter.
“We’re ready, we’re moving. We’re going to bring energy to Alaska and to the Lower 48,” Fackrell told the crowd gathered at a ribbon-cutting ceremony.
Denali is owned by BP and ConocoPhillips. The line would carry 4.5 billion cubic feet of gas a day from the North Slope to markets in Alaska, Canada and the Lower 48. With an estimate price tag of more than $30 billion, the line would be the largest private-sector construction project in America.
Community Discussion
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Pure propaganda.
Wasn't Big Oil bribing Alaska's politicians and subverting our form of government until the FBI stepped in?
And weren't these the same multinational corporations that insisted that to build a gasline Alaska would have to give away its oil at PPT prices for a few generations?
My, oh my. What a difference two years makes.
eat_or_heat,
You know what? That's exactly what I was thinking. It looks like all we're really going to get is a bunch of B. S. for BIG awl one more time. Just like always, and just like now Exxon wants to do something about Point Thompson suddenly after sitting on it for years and years doing nothing.
What a whole bunch of us would like to see is the Feds wrap up their little investigation of good ol' "uncle" teddy, his little boy, as well as another good ol' boy named don something or other who's spent a little over a Million Dollars of money that has been donated to him for his election campaign. Well, it's being used for a "campaign" alright, one to try and keep him out of prison where he belongs.
Regarding Janet Tolliver's statement of work drawing 'riff-raff'.What a joke. Tok has drawn unwanted 'riff-raff' regardless of the cause. Be it pipeline work, firefighting efforts, or anything that has come into the area for the betterment of community. Tok needs to grow in order to support itself and give back to those who have committed to raising their families there. For the last 40 years surveys of land, routes for railroads, and pipelines have been going on in that area. With the area native corportations who hold the majority of land in the proposed area of building this gasline, you can bet your bottom dollar that they will definately have a big say in this whether it is TransCanada or Denali who builds it. Tok's local government will have to work hand in hand with them and not against them. The native corporations in the area are working with Denali, as they see it the best way to go in building the gasline.
At least they aren't using 500 million of the State money to do it. Or like other groups wanting the government to take all the money out of the permanent fund to build a pipeline. Let them spend their money any way the want to.
Remember if the Legislators ever raid the permanent fund, they will close it and make sure that the people of Alaska never see a fund like it again. It wasn't to many years back that they wanted that fund for building government. Just look at some of their attitudes when it comes to giving a portion of the surplus profits. Remember what they did for funding road repair in Fairbanks compared to Anchorage. The PFD has been the one thing that has given Alaskan's a payback on your resources. Give this fund to the legislators and you never see a payback on any resource in Alaska, icluding gas.
Fackrell's statement that they have the 'resources to acquire right of ways'; those resources are the native corporations who hold the land in the area for right of ways and easements.
Might check out TransCanada's website and look at the maps of their existing 36,500 mile North American pipeline system. This isn't their first pipeline rodeo, although dealing Alaskan politicians might present unique challenges. TC is in the business of moving gas, unlike Denali's owners who would prefer to keep the gas in the ground.
-Brian
eat_or_heat you are right this is pure propaganda, what bothers me is it works on the legislature.
This is just too funny!!!!!!!
.....gotta watch this!!
http://www.youtube.com/watch?v=Ye3ecDYxO...
...definitely puts one Tok over the gasline with a railway station into perspective.
www.fairbanksgas.com
First Gasline to Fairbanks Wins!!!
......flash/rumble
Seems like they left Fairbanks with nothing. Tok and Anchorage get something in their economy from all of this now. Do you think they are sending Fairbanks a message, if this line goes what makes anyone think they will bother placing anything in Fairbanks.
What everyone seems to be missing is the fact that there is now a competing interest in getting OUR resources to market. Without heavy scrutiny from Alaskans, this consortium, with it's so called "resources," could bulldoze its way right through to a favorable FERC permit and then dictate to US as to how much THEY would pay the State for shipping OUR resources through THEIR pipeline! Alaska, we better keep our eyes open on this one!!
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