News-Miner Editorial
A sinking AGIA ship
Legislators need to speak up if they want a gas line lifeline
Published Saturday, May 17, 2008
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Stumble It!Alaska’s legislators will likely soon be called upon to undertake the arduous task of deciding whether to grant a Canadian company an exclusive license to build a natural gas pipeline to get North Slope gas to markets in the Lower 48. There’s no question the nation needs the gas and that the gas is among the best and cleanest energy sources for U.S consumers. That means the decision awaiting lawmakers is of monumental importance.
As we’ve said many times before, the state’s leaders need to get it right. The country is watching.
With that in mind, legislators need to weigh the potential consequences of awarding an exclusive license to pipeline builder TransCanada, whose project application is the only one moving ahead under the Alaska Gasline Inducement Act, the signature act of Gov. Sarah Palin’s administration to date.
The potential consequences of awarding the license to TransCanada, which is by all accounts a fine and reputable company, stem from a single question that any legislator considering voting “yes” on a license for TransCanada must be able to answer for the public:
“Since TransCanada doesn’t hold leases to any North Slope gas, where will it get the gas to put into the pipeline?”
This simple question sometimes gets forgotten in the gas line debate. Legislators should not be allowed to forget it, however, since they are the last line of defense in the AGIA process.
But consider a legislator’s predicament for a moment: It is an election year. The public is clamoring for a gas line. The public doesn’t trust the oil companies that hold the legitimate leases to the North Slope gas. And Palin, we are told, is adored by the public and has the poll numbers to back it up. And the governor forcefully and repeatedly indicates she wants a license granted under AGIA. She wants to show — must show — that the pipeline process she has laid out for Alaska will in fact produce a pipeline.
Now, back to that predicament enveloping legislators.
Put yourself in the place of your own representative or senator. How would you answer the simple question of where TransCanada will get the gas for a pipeline if you vote to give it the license?
“By golly, we’ll just sue the oil companies to take back the leases,” you might say.
Then you would be a fool. You would be willing to waste a decade or more on legal battles? That’s what it will take, and the gas will sit in the ground while the country finds other sources of energy.
Perhaps you would hold a different and wiser view, though. Maybe you would know that TransCanada has no way of getting gas without the cooperation of BP, ConocoPhillips and Exxon Mobil but would be afraid of voting “no” on the license because you would fear angering Gov. Palin, who is perched atop those high poll numbers. You would worry she will work to undermine your re-election effort, even as a fellow Republican.
You would want a way out.
But if you were a legislator, you would need to know this — no one is going to give you a way out unless you ask for one. Public support for an escape from the AGIA conundrum isn’t going to come until the public understands that AGIA is flawed in the basic concept that pressure can be brought on the oil companies to force them to ship the gas through someone else’s pipeline. The oil companies, through the principles of economics and the existence of valid gas leases, cannot be forced to supply the gas under terms they find unacceptable.
This is the situation confronting our legislators. Palin has boxed them in with the help of a public that seems to follow her unquestioningly.
Legislators who do want a way out need to become a loud chorus of warning if they expect the public to come to their political rescue.
Community Discussion
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Simple fact is, this states legislators have failed over and over again. Sometimes in astonishing fashion. Sarah Palin represents change, and rightfully so. IMHO, many alaskans agree with Palin's view. Some don't, but they do all agree that she is intellgent and is doing her best to help us all. The same can't be said for one of the most corrupt legislatures in the union. the FBI still isn't done cleaning house. Palin has a mandate from voters to shake things up. The legislatures failures in every department of operation have sickened the voters, and they have no pull with their constituents for this reason.
I disagree with everything about this editorial. In my opinion, AGIA is a smashing success. What would be happening right now, if exxon and BP didn't feel the threat of competition? NOTHING. Nothing at all. They'd be telling the legi-sheep that they need fiscal certainty before they do a damned thing.
Suddenly, someone else might get there first and exxon and BP come out and don't need any of the incentives that for a decade, they said HAD TO HAPPEN for them to think about it. We had to subsidize their risk, and they get all the profits. ARE YOU KIDDING ME?
Shutting down transcanada's application now would return to the status quo, relieve oil conglomerates of pressure that the citizens of this state want applied to them. Pressure to perform is a new tactic, and apparently the only one that works. Begging, apparently fails.
Sarah Palin, keep on rocking.
Thomas must not be aware that the good Governor is not the knight in shining armor to ALL ALASKANS. I for one am not enamored with AGIA, the threat of personal retribution to the legislators that honestly stand up for what they believe to be the right thing to do, or line item vetoes that are solely meant to punish those that disagree with her.
At the end of the day, Conoco-Phillips and Exxon will probably build the line as they propose and ask TransCanada to join them in that effort. We will, then, have our pipeline built by industry, not government, and we all know that will be the best thing to do.
Those that are so enamored by Governor Palin's "fresh face" in Juneau, should to step back and look a little deeper for the "real Sarah". You just might be surprised and a little disappointed.
Leave it to the News Minus to trash anything a Republican tries to do.Legislaters should not be allowed to forget the oil companies blatent delays in not developing OUR gas over the years and here is their chance to show some cahones in getting it to market.And whats this "only legitimate leases crap"? Palin has already dealt with that issue by not renewing those leases because they breached their contract by sitting on them too long.
Conoco and exon , at the end of the day will probably not build the line as they proposed becaouse it's a flawed proposal.
God Bless Sarah, Alaska, and the USA
You state we would be "fools" if this ended up being litigated for 10 years.
If we get enough gas to supply this state for its own needs from other fields (a distinct probability) just what do you think oil and gas will be worth in 2018 if you were a reasonably informed betting person?
You absolutely make the case for an LNG line to Valdez while purposely excluding it from the conversation when you state Lower 48 markets will get gas from other sources if we don't go with a Canadian line, any Canadian line now.
With China and Japan offering to purchase all we can sell them at twice the Henry Hub price just what are you getting at and for whom do you presume to speak?
We also need to ask ourselves what the future value of these reserves is as they sit in the ground becoming more and more valuable as a world-wide commodity rather than burning them off in a frenzy, a one time spree that resembles a drunken sailor.
Big Oil is in an a tizzy to finally get going on a gas line just to boil out the Alberta Tar Sands, not for the hypothetical lower 48 markets which are alredy getting new supplies via much closer new Texas based LNG facilities to the existing Lower 48 network.
Our current Congressional delegation asserts an export license will not be granted for North Slope gas even as depleted Cook Inlet supplies continue to go to Japan as Southcentral begins to feel the squeeze.
This is but the inordinate influence exerted on our government (the President and Congress) by Big Oil in wanting to monopolize the distribution of petroleum products world-wide.
These are Alaska resources and they represent our future and thank God we have people like former Gov Walter Hickel and now Speaker John Harris stepping up to assert our sovereignty over our resources and to remind the public we are not just some resource colony to be tapped at the whims of others and to the detriment of our own people.
This is the big battle shaping up and anyone born in Alaska recognizes what is truly at stake here.
The last thing Alaska needs is another big boom with its attendant inflationary spiral as the rest of the U.S wallows in its self induced recession.
We need to develop our own resources with what we have at our disposal and this means taking measured steps on our own two feet as a sovereign state, not the plans being foisted on us by corporations who have no allegiance to any country but themselves.
The LNG line to Valdez with off-takes and a spur to Southcentral is a much better option and much more likely to happen if Alaskans pull together.
David Otness Cordova
Why can't people see through all this BS about a natural Gas Pipeline.
Where are these Markets for our natural gas. Where are the committed parties who want to sign a contract to buy our gas for a set price or even a calculated amount. Where is there anyone with the capabilities of distributing our gas to any market begging for us to build this pipeline. Where are the contracts and the promises WE NEED BEFORE ANOTHER DOLLOR IS SPENT ON BIG WIGS NEEDS OF PROMISING PROPAGANDA. People are such suckers for this NG boom that THEY are willing to bet they're Kids future on it And THey're all ready dreaming of the fortunes and prosperity to come as soon as that natural gas heads to market. Wake up you capitolistic suckers You've been conned again and your fortunes have allready been squanderd.And your so stupid its not even funny any more So I thought I'd try to shock you out of your transe. Ok Its been about ten years and many many millions of dollars ago this NG PIPELINE IDEA all began. Research money started coming in and certain people started making promises and promises lead to great wealth and many favors to some people and the campain speach of a lifetime for others. Now after all this time Why has they're been no real distributer of natural gas calling up wanting to talk prices and quanities and delivery dates. Well guess what you gambleing retards. THey Don't have a market for our gas. All that reserch showed our big shot leaders this and they decided to pull the wool over your eyes and see just how long the cash cow could go on bull doung and horse crap. I bet those crooks never thought it could go this far and never dreamp't people could be so susseptible to fruitless lies. Well ask yourself this Why would anyone build a bridge leading out into the ocean unless there was a destination and a dedicated reason of somekind allready thoroughly contracted and guarentied by someone at the other end. Those of you who can read are probably getting some sort of clue But are in such denial that it won't sink in until someone drops a anvil on your head so I'll not hurt your esteem any longer by the truth. But please read this one last thing long and slow,,, Do not build a pipeline until you get a big commitment of a big check signed in blood by someone at the other end. The only money we need to be spending now after nine years and millions of dollors is for someone to take out ads in all the papers in canada the states and mexico that read something like Natural gas for sale Please call 907-???-???? for more information and commitment requirements. Oh And to all you over seas enthusiests Just call the whitehouse or the pentigone and ask them about what kind of explosion a big bomb and a tanker load of natural gas would make if someone wanted to blow one up in a harbor outside of some sea board city with lots of people in it.Then ask them about liability and response ability on our part
If you really think their sinking head on down to Tok and find out who has set up office there. You can go to the old Shamrock Hardware building where their office will be set up & check into their situation,
I would think that the newsminus staff would at least wait to hear the recommendation from AGIA before coming out against it. In analyzing the best route for Alaska, AGIA is considering ALL possible alternatives. More resources have been poured into this process than ALL previous efforts to date. I have 100% faith that the recommendation from Tom Irwin and AGIA will be the BEST one for Alaska.
That being said I hope that AGIA finds that an All Alaska LNG line will make the most sense for Alaska. This would set the stage for a second round of proposals and enable the Port Authority to resubmit a complete plan without being sabotaged by the producers.
Suomi,
It's not about Big Oil being bad or good, merely that they are out to protect their own interests, not the people of the state of Alaska.
They are not incorporated to have feelings or concerns for others, their reason for being is to make money by the most efficient means possible.
If they left us totally broke after sucking the last non-renewable resource out of Alaska and showed sufficient profit for doing so it would be "Job well done" in corporate-speak.
This is not about "feelings" good or bad.
I care about Big Oil the same way they care about Little Me.
This is about the best long-term results for the people of Alaska, Inc.
It is OK for the News-Miner editorial board to have a difference of opinion- one that is nearly always in favor of the large multinationals who advertise with you.
But it is not OK for the News-Miner E board to lie to Alaskans about basic facts. What an incredible disservice you do to Alaskans.
The Multinationals have been refusing to honor their lease obligations- that have a duty to develop clause- for decades.
Imposing a gas reserves tax (which the E board opposed three years ago) is a quick, and simple, option for Alaska. Using the State's power as a sovereign is much more effective than going to court.
As I've reminded you before, the LNG option (the voter mandated- in four elections- All Alaska Gasline to Valdez) is a component the administration and Legislature are both studying). You continue to ignore that.
Speaking of things that are ignored.
Why did the News-Miner not share with its readers news of the major environmental disaster in Canadian tar sands two weeks ago? Is it because that is where ConocoPhillips wants to ship its gas?
Why does the News-Miner not remind its readers of the many, many, times the multinational corporations lied to Alaskans about developing North Slope gas?
Why does the News-Miner not cover the anti-trust issues that would likely preclude the Multinationals from ever owning a gas pipeline?
Why does the News-Miner not run editorials that describe, and condemn, the way the multinationals have cheated Alaskans for decades by imposing excessive tariffs on TAPS? Why would you want the same industry that has cheated Alaskans on the oil pipeline to also own an Alaska gas pipeline? (Besides the advertising dollars).
Why would you want the industry that has subverted our system of government by bribing numerous elected and unelected officials to have a gas line? Shouldn't there be consequences for such criminal behavior?
Why should the industry that has fouled 1,100 miles of PWS with crude oil- and not paid damages to Alaskans harmed- be given any credibility whatsoever?
What about the flawed maintenance practices of BP in allowing much of its North Slope infrastructure to decay to such a dangerous condition? Why would you want to entrust another pipeline to the same incompetent multinational?
Is it really about the advertising dollars? Is money really all it takes to ensure the News-Miner E board is a hired lap dog for the multinationals? Where is your self respect?
what the hell is the big deal? Build the the pipeline and the gas will come! With this energy crisis happening right now and only getting worse do you think America will sit by and watch the oil companys NOT put natural gas in a line that is not theirs. You guys need to quit quibbeling along party lines and start thinking of what is collectively best for Alaska. Becouse of AGIA the oil companies are building a pipeline themselves, WITHOUT a tax incentive. What does that tell you?
AGIA = "Angels Giving Infrastructure to Alaska"
Sarah's Team-Alaska should be recognized as an inspiration to the rest of goofy politicians in the Lowdown-48.
Many congrats to Wally Hickel and his group of Real-Alaskans for their efforts to keep Alaska a thriving global participant in the territory's proper top-link heritage between continents.
Late last night I spent an hour on Goog-Earth and charted a gasline route from Nuiqsut to the railroad at Fairbanks. The distance was calculated at 2,500,000 feet.
A 3"diameter 260psi LPG/NGL-gasline will cost just $3-per-foot FOB-Anchorage if purchased from an extruded plastic gasline manufacturing company in Shanghai.
http://www.jwell-pipe.com/en/product/ind...
That's $7.5-million for the rtp-gasline-pipe delivered in big 2000'-long coils.
$3.5mil for helicopter delivery to the drop-offs on-route.
$27.5mil to install river crossings,
electro-fuse/weld the pipe sections together,
add fiberoptic telecom/wifi-wireless controls and monitor links.
This gasline will ship $1mil/day of NGL's to fill railcar-tankers.
Total cost of startup of this project would be roughly $50mil.
The project will pay for itself in just one winter.
Similar zippy-gaslines can be installed all over Alaska very quickly and with very little negative impact to the countryside.
Gas for subsistence will be available nearly everywhere.
with recent developments in marine-engineering and gas-process-design LNG/clathrates can be shipped direct from the Beaufort Sea & NorthSlope very effectively and cheaply.
Total amount of gas available to tidewater with this plan would quickly exceed the capacity of the proposed goofy big-steal-pipeline from the NorthPole to Texas.
Shipping Methane-Hydrate in standard old-design refrigerated ships is very safe and cheap [there's a surplus of these ships taking up space at the docks]... softserve BakedAlaska's can also be served in big bladderbags on barges, they can be safely kept in deepwater offshore where the pressure keeps them stable for long term storage.
Does anyone have a problem with this plan?
Would anyone like to contribute to this plan?
Throughout history Humans seem to have a bad habit of making mountains out of molehills.
......flash/rumble
If this were not such a serious issue, it would be comical to watch the views of the E board of the DNM. How far "out of tune with regular Alaskans" can they be??? It almost never ceases to amaze me. Copper River Red said it well, hey, there are other places on the North Slope we could almost surely get natural gas from and then how fast does one think the multinationals would come clammoring to get gas from THEIR leases in that pipe?? Fairbanksgas, you seem to have the viewpoint that I want my legislators listening to. DNM, as crazy as you might think this is, you should listen to KFAR once in a while and hear what long time Alaskans are saying about these issues. But on second thought, they do not feed the coffers with money like Big Oil does, I am sure. Alaska's gas for Alaskans first!! And, Go Sarah Palin, you have our support!!
Another idea that is VERY DESERVING of an indepth look!! I think Tom Irwin and his staff could check this out in short order. We have the money to do this and it would happen quickly!! This is an idea that I am sure that Big Oil would fight to their dying breath to have NOT HAPPEN. They do not care about US, they have an obligation to their shareholders, not Alaskans!! Thanks Distant Thunder, Fairbanksgas, 50-50....Alaskans that want other Alaskans taken care of, not some multinational corp.
WOW, Distant Thunder, I hope The Palin Admins read your letter,
READ Distant Thunders piece up above if you missed it
ALASKA GAS FOR ALASKANS FIRST!!! Thirty five years ago there was all kinds of promises made that, if ALASKA would push for the OIL pipeline we would have lots of cheap energy. Truth is: ALASKA now has the distinction of leading the nation in the price of gasoline and heating oil.
ConocoPhillips / BP "DENAILI" plan to export North Slope gas isn't for the benefit of ALL ALASKANS, it is for the export of our GAS for their corporation profit. EXXON has no intention of developing the gas reserves that would compete with their projects in other places.
The AGIA and TransCanada's proposal still focuses on the "export" of ALASKAN gas, and meeting the energy needs of ALASKANS as a secondary item of concern.
The revenue generated for OUR OIL has been unfairly distributed. It has built "pork barrel projects" for special interest, while denying Constitutional obligations for the education, health, welfare, and the development of OUR STATE.
The annual PFD has helped individual Alaskans and Alaska businesses, BUT the bulk of the investment dollars has gone for the development of infrastructure and corporate profits outside of Alaska. This lack of investment of ALASKA Permanent Fund's dollars into Alaska has been part of the problem that Alaska has many, many legitimate PUBLIC needs that are going unmet.
ALASKA is approaching our 50th Anniversary of Statehood, and we still don't have a comprehensive energy policy in place that serves all the citizens of ALASKA. If there had of been a comprehensive energy plan, we would have already developed some ALTERNATIVE ENERGY project and the necessary infrastructure been built too, so that ALASKANS wouldn't be faced with outrageous energy costs and the unacceptable and unnecessary hardship for basic survival that ALASKANS are now seeing.
Suomi- You should look up "Stockholm Syndrome" in the dictionary. You may fit the bill.
The biggest corruption investigation by the FBI is the one currently being conducted of Alaska's public officials.
You should be outraged.
Here is a different idea. Lets bring back an old bumper sticker from the early 70's. "LET THE BASTARDS FREEZE IN THE DARK". Cheap LNG for Alaskans will never happen because the price is set by the WORLD MARKET just like oil is. State of Alaska should build a dam on the Susitna and get cheap electricity to Alaska for home and industrial use. We could start producing some value added products such as aluminum or other electricity intensive product for export. Make use of our Pacific Rim location to manufacture energy intensive products with cheap clean hydro. Electricity produced locally, unlike oil or gas will never be controlled by the world market because it can't be put on a ship, or sent down a pipeline. It pretty much needs to be used as it is produced locally and thus should never be more then the 10 cents a kwh.
AGIA was a success in that it brought BP and Conoco-Phillips to announce their joint efforts to build a line. We should take this success and build on it. That doesn't mean granting an exclusive license to a pipeline builder that surely will have a failed open season. Let's spend the .75 billion, that proceeding with AGIA will cost the state, to reduce energy costs for Alaskans, and begin talking to the oil companies about gasline fiscal terms . This project is large, expensive, and competing with Pruhdoe Bay-size world gas fields. Our leaders need to quit playing politics with our future, or face the wrath of the voters.
When I hear people talk about MONEY and the WORLD MARKET....
it makes my old frostbite injuries itch.
1971,late winter cold snap,
on my snowshoes,
I wasn't really lost,
often a compass is a cruel joke in that area,
I knew I was 7days hike from Chena Hotsprings,
and 5days hike from Circle.
I had dug through several feet of solid ice on the edge of a river to get 6.5 ounces of gold from the roots of a cluster of 3 big spruce on a gravel-bar that had been struck by lightning the previous summer...
It got pretty chilly,
and I was getting very close to losing my fingers to frostbite.
I looked at my jar of gold nuggets and pickers, and I looked at my can of fuel for my pocketwarmer...
...well, I still have my fingers and that can of Ronsonol 40years later.
Planet Earth weighs 16quadrillion tons, and there is a big percentage of the population that is so thoroughly brainwashed that they would MONETIZE the whole planet, just so that they could get their hands on 16quadrillion tons of MONEY.
Everyday in the Arctic more Natural Gas is being lost to atmosphere than will ever be captured by Big Oil and shipped to market.
If I figured out a way to capture a big percentage of that orphan gas and cheaply ship it to the Yukon River do you think the one-dimensional parasite voters who own a portfolio loaded with Big-Oil Stocks would be happy for me??
...I'd have to pry the loaded-pistol out of their greasy fingers to keep them from shooting me.
Here's a reckoning at the card table for all you one-dimensional parasites...
Well, read 'em and weep...
Your precious Big-Oil stock is full of deaf lawyers gasping for more Viagra&Cocaine.
http://peswiki.com/energy/Directory:Wast...
There's more hydrocarbon energy in the giant garbage dump called AMERICA than there is on the North Slope, and your manipulative attempts to manage your market is as big a failure as your clumsy approach to smuggle all of the hydrocarbons out of Alaska.
Flash Rumble,
There is the larger picture so many need to hear and begin to address, our entire economy is being manipulated and has been brought to this crisis and yes,
emergency, just to satisfy our sense of immediate gratification.
We have been trained well to believe we can go on and on like this.
Ah'm Americun and it's mah gawd given right!
We are up against the wall as a modern civilization and all most people(Lower 48 and many in Alaska) can do is worry about how much it will cost to fill up their SUV's or other gas guzzler so they can go to the store to buy that bottle of perfume or drive 5 miles to pick up little Bobby from soccer practice in stop and go traffic and not ever having to actually plan because there will always be gasoline or diesel that is affordable.
Every teenager granted the rite of passage by getting their first car as early as possible so they too can have access to the whims of the open road.
Well, the writing is more than on the wall, the party is over for squandering gas and diesel.The sooner the state of Alaska mandates or at least incentivizes coal to gas to liquids and nat gas burning vehicles the longer we can hold on to the independence of owning a personal vehicle.
We need to do so immediately since we are hell-bent on shipping every last drop of oil out of here.
That elusive "wealth" that we now must burn from the state treasury in order to subsidize our existence must be used to actively pursue alternative fuels before we find ourselves having to plug too many holes in our financial dikes.
The legislature must propose and implement solutions immediately, along with the governor they are entrusted with timely and effective solutions to our well-being when threatened.
This is no longer a game of partisans and egotists, we are on the verge of calamities much worse than we have faced since the Great Depression and as a society have become much less adept at surviving "doing without."
Folks, this the last call to get it together, the house of cards is collapsing and Washington,D.C. fiddles while the country burns.......
The fallacy of the inviolability of the global economy was illustrated perfectly the other day when Lame Duck Bush went begging to the sultans of the House of Saud for the second time this year and was rebuffed once again.
The same House of Saud that gave us the majority of the 9/11 terrorists.
Nations will always make policy based on what they perceive is best for their own interests.
The U.S.seems to have lost sight of this while trying to make the world safe for multi-national corporations so many of our "leaders" seem to believe take precedence.
Alaska needs to stand and take the lead for our best interests because no one else is watching out for us, they are merely watching out for our resources and strategic value....
Folks, we are driving off a cliff.
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