Alaska lawmakers call for details on Denali pipeline plan
Originally published Wednesday, July 2, 2008 at 12:19 a.m.
Updated Wednesday, July 2, 2008 at 4:31 a.m.
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Stumble It!JUNEAU — Two state lawmakers are formally calling on North Slope producers ConocoPhillips and BP to provide more information about their natural gas pipeline project, dubbed Denali.
In a letter sent Monday, Sens. Hollis French and Bill Wielechowski, both Anchorage Democrats, asked Denali president Bud Fackrell to clarify how his company would finance the project, provide for in-state use of natural gas and respond to requests for pipeline expansion, among other things.
“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.”
Lawmakers are considering whether to grant an exclusive state license to Canadian pipeline builder TransCanada under the Alaska Gasline Inducement Act.
The producers have presented their project as an alternative outside the AGIA process, but few details are known about the project.
Both projects involve a large-scale pipeline from the North Slope into Canada.
French and Wielechowski asked specifically which, if any, of the AGIA “must-have” requirements Denali is willing to commit to.
They also asked for more information about the fiscal terms the producers would be seeking in connection with the pipeline project.
In recent weeks, some lawmakers have questioned the wisdom of offering up to $500 million in seed money to TransCanada if the producers are willing to build the line without the subsidy, while others have pointed to the value of the commitments TransCanada would have to make under AGIA, including those aimed at keeping shipping costs low and encouraging exploration on the North Slope.
“I want to find out, what are we getting?” Wielechowski said Tuesday regarding the Denali project.
In an e-mailed response to questions, Fackrell wrote that Denali officials were “more than happy” to talk about their project.
“I will be testifying before the Legislature next week, and will be prepared to address the topics raised in the senators’ letter,” he wrote.
Lawmakers are scheduled to return to Juneau on July 9 to continue their review of the TransCanada proposal. They have until Aug. 2 to vote on the plan.
Local lawmakers reached Tuesday mostly agreed with French and Wielechowski that more information was needed from Denali to make a meaningful comparison between the two proposals.
“I want a whole lot more information,” Rep. David Guttenberg, a Fairbanks Democrat, said.
But Rep. Jay Ramras, a Fairbanks Republican, said he had all the information he needed.
Ramras pointed to the fact that the two producers control much of the North Slope gas through leases and have already initiated permitting work with the Federal Energy Regulatory Commission, which regulates pipelines.
He added that he considered the must-have requirements redundant in light of federal regulations and didn’t think the AGIA license would mean much.
“The only license that matters is the one that’s delivered by the FERC,” he said.
Community Discussion
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Sniff, sniff, ... What's that smell? Waffles? Do I smell waffles? Hey, are you guys WAFFLING?
At this rate, the freakin' line will never be built because our elected officials can't make a decision and stand behind it.
We should be contstructing infrastructure NOW, we can't afford to wait and waste this summer season.
why can't we, the people of Fairbanks and surrounding communities pool our money together (our pfd's for example) and start building our own oil refinery? It may take ten years to do it, but at the rate the government and the oil companies are moving it could be completed before they come to an agreement on how to properly shaft us again. Cheaper fuel? Investments in our future, and our children's future's? A little more ALASKAN independence? Anybody with me on this?
All this attention on a pipeline. The focus needs to be on alternative energy resources. Just because you own the biggest cattle ranch, doesn't mean you have to eat meat. The State can make all the money it wants off of gas and oil, but develop renewable resources for energy.
The diversity of communities in Alaska does not make for a one size fits all solution. A person living at the end of the Aleutian Chain is as much as an Alaskan as someone in Fairbanks. How Fairbanks got the attitude "me first, no matter what the cost" is beyond me.
These questions are worth asking, we've already waited forever for this pipeline and the additional time it takes to flesh out this mystery of a Denali project is worthwhile. We need to know what our options are before committing to a project of this size.
AGIA did get the producers off the dime it's time for them to show their cards.
The special session should last one day!! If it does not, we should let it be known that we will be replacing our delegation. (I will be voting them out anyway) We must let our legislators know that if they are the hang-up in this process, we will oust them at the first opportunity. Jay Ramros should be blue-ticketed out of Fairbanks. I have always respected him for what he has done since those meager days at Jaybird's over on Old Steese, but I have lost ALL respect for him since he has gone to Juneau!!
Youkonjohn - I'm with you 110% on replacing the legislators, and Jaybird is at the very top of the list. I think this is nothing more than a free meal (and wine) ticket for them. Give em a chance and they would be talking about this even next year before deciding!
Woodman, I keep hearing about people saying "alternative energy resources", exactly what are you, or they, referring to that could be in place and running at 100% within a decade? Even are leading experts agree there is nothing available, or will be availabe within my lifetime to completely replace oil. The people of Alaska deserve better than just hearing about all this wishfull talk. It's time we start drilling asnd building the pipeline and let the environmentalist go to H**l.
I'm still backing Palin, but first and foremost the in-state gas line. This is what will help Alaska most and bring energy prices down quickly. I'm not for exporting any gas before Alaskan's energy sources are taken care, but only then can any surplus can be exported.
Can't hardly wait to see how long our legislators will freeload off of us in the next special session. They will be talking while we are freezing!
I think TransCanada deserves the respect and consideration from the state to expect us to do what we said we'd do. They have done everything we have asked of them and even dotted the i's and crossed thier t's. If we give them a license from AGIA it will not do anything to prevent the Denali Phantom from being built, just discourages us from sinking more taxpayers dollars into Big Oil.
Wake up people, the Denali Plan is just one last attempt to get a cushy deal for the oil producers, just like our last governor's "deal" or the non-compliant proposal they sent for AGIA. They may not even build the thing, its entirely possible they will wait until the legislature drops TransCanada then tell us how economically tough its gonna be, and how they need help, and special deals...
And as for not having the gas promised to them, well correct me if I am wrong but the leases state they have to make an effort to get the gas to market when it is economically feasable. If they somehow refuse the billions of free profit just to spite TransCanada and Alaska... take the leases back and give them to a company willing to live up to thier agreement.
I'm sick of the sleezy dealing and how-can-we-rip-off-alaskans attitude. Big Oil doesn't treat oil as alaskan's property, if anything they are annoyed at having to pay us at all. TransCanada from everything I hear is a decent, ethical company looking to do an honest business deal, one that will benefit Alaskans and themselves both. Isn't that the kind of companies we want the state to do business with?
I agree with woodman the diversity of communities calls for other ideas. What about use of tidial power, many Alaskan communities are located on the ocean. What about coal? I keep on hearing about Healy and doesn't Alaska have the greatest coal fields in the US. Wind farms, didn't Anchorage get 25 million for one on Fire Island. Geothermal, think Chena Hot Springs. Solar, there are places in Alaska where it is not as dark in winter as Fairbanks. Nuclear, France has proven it isn't as bad as one thinks. I am pretty sure people who think outside the box can come up with other ideas.
Again these are not short term solutions. However do we want ourselves in the same situation ten years from now. What will happen when the 8 billion people in this world who do not have a regular source of energy, begin to demand one. Look what China and India have done to the world market, what about the rest of the world when it wants it's share.
If you want cheap energy now and still live in Alaska, the answer is simple. You will have to move to another community in Alaska where it is cheap. Fairbanks will not have cheap energy this winter, or for how many winters into the future.
Tough Questions....
[the town clown gets the honors]
THE STEALING OF ALASKA
I'd feel a lot more comfortable dealing with the "producers" in Alaska if they spun themselves off from the parent global conglomerate and became Alaskan companies with Alaskan values.
Can Alaska become another Iraq?
http://www.truthout.org/article/it-was-o...
""Oh, no, they told us, Iraq isn't a war about oil. That's cynical and simplistic, they said. It's about terror and al-Qaeda and toppling a dictator and spreading democracy and protecting ourselves from weapons of mass destruction. But one by one, these concocted rationales went up in smoke, fire and ashes. And now the bottom line turns out to be ... the bottom line. It is about oil.""
There's some terribly goofy people in America with very powerful connections...
...and some people think Alaska is worth trillions if they could figure out how to pull a big enough scam.
It's been proved that the military is as gullible as a flock of atomic-sheep.
If a """""terrorist""""" event happened in Fairbanks, or Edmonton what would happen to AGIA?
Would Ft.Wainwright take over the town while "Denali--The Alaska Pipeline" movie gets "produced" ???
There's some very subtle but strong connections between Ft.Wainwright and Ft.Prudhoe
Prudhoe was named after a city in Britain....
http://www.poemhunter.com/poem/the-balla...
......flash/[you don't hear the rumble that kills ya]
We should only give consideration to TC. That is what we said during the AGIA process and to now go and give consideration to ANY OTHER proposal would be in bad faith!!
I agree with Yukonjohn on the AGIA process and disagree with the assertions on the military, war on terrorism, and the article referenced in DistantThunder's post from truthout, which is very leftist in their handling of the truth.
After reading the letter to Mr Fackrell, I have one thought: Who do these two legislators think they are and did they read their own letter? They have the audacity to bring a non-existant proposal from a company that didn't like Alaska's terms into this special session and muddy the water. They wrote a letter representing the State that offers the same deal that the Governor and full legislature offered last year.
Denali wanted to go it alone. Denali can go it alone, but AGIA applies to the producers on the slope and if we build the line and they don't produce then they are violating their lease and we can replace them with producers that will deliver both oil and gas to market. We have a competitor waiting for the state to do the right thing and approve the license. Denali AKA BP Alaska and Conoco Phillips Alaska did not submit a proposal for AGIA fully knowing the terms affecting their leases and that the state will not help them build a line that doesn't meet our requirements. The first of which is submit a proposal before the deadline.
Sorry, too late now, we are serious and oh, wait a minute... we still own the GAS and no one is welding pipe even though Denali was "set to start construction in the spring". Enough chasing our tail, Legislators formally censure these two representatives for wasting your time. Vote yes for the proposal on the table that met the terms and conditions of AGIA from Trans Canada.
Representative Ramras,
AGIA restores the State's control of the Natural Gas on those leases and opens the field for more producers to actually produce some gas. The producers you refer to have not produced any gas except what they use and that is why the citizens are mad.
We want the GAS marketed not sat on. We are not trying to punish Denali, we are trying to get our resources to the market. They continue to undermine the process and produce nothing. The logic you are following by supporting Denali, leads right back to square one. No competition to produce gas on the north slope means no rush to produce it, means no income for the state, means no gasline, means no gas sold!
If we accept Denali's mythical proposal, they still haven't publicly said what it will cost the state or if they can meet the State's "must have" requirements. It could be billions, with no in-state take offs, but you've seen enough and are 100% convinced we should throw in with them rather than the company that has met the State's "must have" requirements at a known cost. Take your time it's not as if we voted to get a gasline built quickly and from the looks of it, you don't have much legislative time left to take.
onapa.. thanks for not totally freaking out.
My russian grandfather used to tell me an old saying from the farm in the old country..
"Seekers of truth are like peelers of onions, each layer you peel it brings more tears to your eyes"
My Athabaskan grandfather taught me to always try to uphold the eternal truths that short lived civilizations who write their history in books are too shortsighted to see.
Americans have habitual selective amnesia.
I know the streets of old-Fairbanks real well, 1974 I left part of my face in an alley off Cushman with the help of 7 "political officers" who took refuge on Wainwright, even though they also rented several houses in town, one was my uncles rental.
Why did they rough me up ??...
[they were trying to kill me without bullets]
I didn't approve of them importing large amounts of cocaine into town... amongst many other issues I had with the TAPS invasion.
Who were these people??
..we'll just call them "organized crime" and leave it at that for now.
In the fall of 1974 the Fairbanks police was caught totally flatfooted and unprepared.
I was told "don't ask too many questions, don't go there, forget it"
I was left to my own wits to keep the potential damage to a minimum.
I made this previous statement today to remind everybody that the truth is as bright as the noonday sun, it's difficult to look at directly, but does no good to deny that it's not exactly where it really is.
I don't play nice-nice pattycakes with pirates or conglomerates..
we respect eachother for knowing the truth about each other.
They know I'm reliable and call me "friend"...detente
I'm accustomed to living in the rough part of town.
..it's kinda like having to put up with having the Hells Angels for neighbors year after year.
I've lived long enough among centenarians who were adults in the 1800's to learn there is no left-right spectrum to politics.
Encouraging people to listen to strong american voices like Bill Moyers is hardly a "leftist" act.
I'm sure if you check with somebody like AK-Sen.Mike Gravel in private he will agree that although I'm sometimes harsh, I'm not too far off the deep end.
The State of Alaska has been played for a sucker for 50years.
Now is time for Alaska to show there is a spiritual responsibility associated with it's massive resources.
This is why I often make a big stink about folks who want to see another "pipeline boom".. the toll of human suffering gets lost in the boomtown shuffle.
Alaska needs competent architecture, not a bunch of big-mouth speculators screaming "billions and trillions" at the top of their lungs.
Using itty-bitty gaslines quietly the first $10mil invested will be moving NS-gas to the most important market, the neighbors in the Brooks who are freezing tired of getting hosed.
After the first $30mil invested Fairbanks will begin to notice a useful amount of propane getting trucked to town.
After the first $100mil an actual LPG-gasline will be at the edge of town [won't that be nice !!]
Who's the moron who thinks Alaska needs to place the one and only custody meter at Prudhoe and thinks all of the gas needs to be routed through there?
Alaska has more of a fire hazard from too much methane, than a getting gas to market problem.
$500million is cheap fire insurance...
...at least you can use it as an excuse that you "tried" to do the right thing before the gasfield got hit by lightning and blew up with a force of multiple Krakatoa's.
The lawyers in the revenue department don't have to hold up moving gas to market while trying to get it right the first time if the gas starts to move slowly through little gaslines.
Little gaslines is much more organic and natural..
less stressful too, actually fun!
Juneau is too hung up on the "worship the golden calf" thingy, this makes the state too predictable to the conglomerates.
Alaska will always have a revenue stream from export pipelines, when the methane-hydrates finally play out after 100years then coal-gas will still provide plenty of easy-money for blundering incompetent Juneau.
[don't take my criticism personal, I think every state in america is retarded]
I think AGIA had mostly good intentions, but was too loaded with lawyers and not enough pipeliners.
I'm wondering if everybody is waiting for me to show up with a shipload of plastic pipe and start building this project..
you'll be waiting a long time.
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