Lies and coal mine, a solution

I have listened to commercials on a local radio station decrying the proposed Usibelli coal development project.  I have read the arguments.  I have yet to read or to hear one substantive argument or legitimate, relevant fact in opposition to the mine that makes any sense or has any bearing whatsoever on whether or not Usibelli will operate within the boundaries of the law.  All I have read to date and heard on the radio ads in opposition to the coal mine are the most egregious misrepresentations and outright lies.
Where is there any evidence of potential damage to a watershed, or the specter of an air quality violation?  Where is there evidence of any damage to property values or to the ability to get a loan on property?  First National Bank of Alaska and the Matanuska Valley Federal Credit Union have both denied the allegations of those opposing the mine.  Yet, the lie is maintained on in the radio ads.

This campaign against Usibelli has been undertaken with the typical liberal penchant for making the most outrageous claims without any basis in substance or fact.  The only issues that they can bring up are areas that are the responsibility of our federal and State agencies.  They imply with their gross misrepresentations that these agencies are incompetent.  They imply by their advertising that the EPA, DEC, DNR, and the Army Corps of Engineers have been suborned to the coal company's "evil" purposes.  That these agencies and the professionals that staff them will not evaluate Usibelli's plans under the scrutiny of State and federal law.
I have a solution.

Let these whining liberals who have decided that this Valley does not need this development pay into the MSB's and the State's coffers the tax revenues that would otherwise be generated by this project.  Let them also put up a fund to compensate local business for the loss of the revenues generated from the lost wages were this project not to come to fruition.  Let them put their money where their mouths are, because all that they have done so far is to whine and cry, and to express their liberal anti-development tirade at the expense of those who need, want, and otherwise would support the development of a resource that has a long history of development in this Valley.
Given the unlikelihood of those opposing doing their civic duty and compensating for the loss of the mine, I propose the following alternative.

Why did the Alaska Rail Road (ARR) stop maintaining the track to Sutton after the coal mine shut down?  Bad policy, and a Palmer City Council that did not want coal trains moving through Palmer.  The ARR, rather than float the bonds to repair and refurbish the rail system, and to circumvent Palmer, if necessary, has required any company that needs their services to move coal or minerals from that area to pay for the track.  Must be nice to have a monopoly.  However, that is not what the ARR is all about.  It is a quasi-public corporation that is supposed to benefit the State, which is the only shareholder. 

Governor Parnell's DNR, the Valley legislative delegation, and the ARR should get together and figure out the benefits of the coal mine to the Valley and the State.   Instead of squandering $214M on a 500mmcf/da natural gas pipeline from the North Slope to Nikkiski that will never be economically viable and will cost millions in subsidies yearly and raise our natural gas prices in south central, using the money to repair and upgrade the rail to Sutton would be of greater benefit to Alaska and the Valley in the long term. 

Jobs would be created for the refurbishment of the rail line.  The ARR could rehire those it just laid off, because of the shut down of the Fairbanks Flint Hills Refinery.  Jobs for Valley residents would be created by the mine development, and there would be no trucks on our highways.  Rail would haul the coal from Sutton to Seward or Pt. MacKenzie.

Once again, coal would fire the economy of the Valley and provide year round high paying jobs.  The ARR would be supporting resource development as it is supposed to do, rather than acting as a financial impediment to further development of energy and mineral resources.

Parnell's gotta go . . .

Governor Parnell’s new budget sticker price is a shocker. $10.5B. That’s billion with an explosive “B”. The size of this figure should give rise to fear and trepidation into the hearts of every conservative Alaskan out there, and the rest, also. Out of $10.5B, less than point 5 percent builds anything. The rest goes to State government to maintain the social State that Alaska has become while drunk on oil revenues.

When has there been any desire to build anything since Bill Eagan’s second term in the early 1970s? All State government does now is grow, and make excuses for why we cannot do anything anymore.

Worse, why has the State government grown with the Palin/Parnell Administration? As it turns out, Sarah was no conservative. She sold us a load of bilge on that promise, and Parnell has yet to pump out the bilge water that is the growth in State government since Palin/Parnell came to power. The current increase of 8.6% over Palin’s last budget shows that Parnell is no fiscal conservative.

An example of the expansion of State government is Palin/Parnell’s Climate Change Sub-Cabinet. A State executive cabinet that is managed by a federal EPA employee. This management is contrary to the Palin/Parnell stance and rhetoric in Sean’s State of the State address about maintaining and protecting the State’s sovereignty. This cabinet is no longer needed with the admission of climate change being manufactured science to a political end. This sub-cabinet is also an expansion of government whose function was already covered by DEC, DNR, DMVA on the emergency response side, and other State agencies. Worse, it is administered by Climate Change Strategies, an NGO that promotes the false science of man-made global warming.

Another duplication of effort and money, to the tune of $7 million this year, was the creation of the Pipeline Czar position under Palin and continued by Parnell. We created ANGDA in 2002 by an overwhelming majority to do exactly what Noah and now Bob Swenson were appointed to do. Why is this bureaucracy and expense necessary? What does it do that ANGDA could not do, especially in the face of former Sen. Gene Therriault’s appointment as the governor’s oil and gas advisor. Seems to me that between Therriault and ANGDA, the situation regarding gas pipelines was covered.

DMVA continues an interesting structure that is contrary to our republican tradition in government. The military always has a civilian head. In Alaska, under former Gov. Frank Murkowski, an experiment was tried. The Commissioner DMVA and the position of the Adjutant General were combined. The purpose was to put the two top jobs, military and civilian under one hat. While good in theory, it put the military in control of DMVA, or more particularly, the National Guard Bureau (NGB). The reorganization also resulted in the two top positions being out of State at the same time. With then MG Craig Campbell’s numerous trips to Mongolia, Iraq, and Afghanistan as TAG, DMVA’s remaining leadership was incapable of making any decisions while the Commissioner/TAG was out of town. The Commissioner DMVA should be a civilian, and the TAG should be military, as two separate positions. NGB fuels DMVA. The combination of TAG and Commissioner under one hat gives the feds too much influence. Parnell, as a long time legislator, should have had the moxy to correct this situation. The military should always have civilian leadership. Even the Russians know better.

Under Parnell, we have bigger not better government. We have more money spent with less to show for it. We are in a recession, not a period of growth. There is no pipeline or other major construction on the Parnell plate with an anticipated start date planned. It is time to wipe the slate clean of Palin/Parnell and elect a new governor.

Check out the Div. of Elections website to see who is running. Then, go the candidates’ websites and read up on them.

We cannot afford another round of Palin/Parnell.

Palin’s appointment is going to haunt Parnell

Last year, Sarah Palin appointed a pipeline czar. Harry Noah, who was Executive Director of Mental Health Trust Lands, was appointed by Sarah to the newly created position of natural gas pipeline czar. The position was charged with overseeing the development of natural gas pipelines and moving Alaska’s gas to market. Harry is a miner without oil and gas experience, but is someone who has ties to Dep. Commissioner Marty Rutherford, Dept. of Natural Resources (DNR).

Rutherford was a former lobbyist for TransCanada. She has worked for the State in one capacity or another from the Knowles Administration through the Palin Administration, and now is one of Parnell’s upper echelon DNR staff. This individual, like Noah, has no oil and gas experience, but has been continually put in positions to influence oil and gas decisions.

The problem for Parnell is, that Noah’s post duplicates the voter created Alaska Natural Gas Development Authority’s (ANGDA) portfolio. ANGDA was created with the approval of Proposition 3 by 62% of Alaskans voting in the 2002 election.

What was ANGDA’s mandate?

To develop and market Alaska’s natural gas resources both in-state and for export, including the building of a natural gas pipeline to Valdez.
Then Gov. Frank Murkowski, who had campaigned on his own pipe dream, did not support ANGDA. Gov. Murkowski tried to give ANGDA the cold shoulder. He initially refused to fund ANGDA. Murkowski was finally forced to give the voter created authority an office and a meager budget to begin the job of getting Alaska’s gas to market. Murkowski then proceeded to continue to ignore ANGDA for the rest of his tenure as governor.
ANGDA remained in the shadow of the Murkowski pipeline to nowhere dream for the rest of the Murkowski Administration.

Sarah Palin, running against Murkowski in 2006, supported both an all-Alaska pipeline route down TAPS to Valdez and ANGDA as the vehicle to get our gas to market and to build the pipeline. During the gubernatorial campaign, Sarah criticized Murkowski’s pipe dream. ANGDA was mentioned prominently in many of her speeches on natural gas issues.

The looming Cook Inlet natural gas shortage was also a topic spoken of by our former Governor as an example of ignoring the obvious.

Once in office, Sarah Palin did a Frank Murkowski with her AGIA plan, which became the third such plan to build a large capacity (>4bcf/day) pipeline through Canada. This plan, like those of her predecessors, served to increase Canadian job opportunity, both in Alaska and Canada.

Earlier this year, Sarah appointed Harry Noah as her pipeline czar. Shortly thereafter, ANGDA’s funding was cut by the Palin Administration.

Since, the ongoing row between ANGDA and Noah has become more obstructionist on Noah’s part.

In creating the pipeline czar position, Gov. Sarah Palin did exactly what she campaigned against: duplication of mission, and an unnecessary growth of government.

As reported in the Copper Center Record in April of 2009, ANGDA has evolved into a highly respected professional organization with innovative ideas to get Alaska’s gas to market and to make use of the abundant propane that is part of our natural gas deposits for home and business heating in the Bush.

The core of ANGDA’s strategy has been to engage the private sector’s participation in its plans. The propane initiative has a commitment for propane production from the North Slope producers. Private companies will transport, distribute and sell the propane. ANGDA is conducting seminars so that electric utilities will be able to bid intelligently on natural gas supplies during the upcoming open season.

ANGDA has completed both the rights of way and economic studies for the Glenn-Richardson highway route for a 24 inch natural gas line to Palmer’s Enstar Hub. This route will take off from either the AGIA pipe at Big Delta or from an all-Alaska pipe to Valdez at Glennallen.
The economics of gas delivery are tied to volume. Taking off of either proposed big pipeline projects gives south central Alaska gas customers the best pricing for delivery. The cost of our gas will be included in the transport of the larger volume, thereby reducing the cost of any gas delivered to south central.

Pipeline Czar Harry Noah wants a 24 inch pipeline from the North Slope down the Parks Highway to Anchorage. The low volume of approximately 500 million cubic feet per day in comparison to the rates for transporting 2.5 bcf per day through an all-Alaska pipeline to Valdez will result in south central gas customers paying double or more on their gas rates to provide Fairbanks with essentially, the cheapest gas in the State. This is because Fairbanks gas would have the least cost for transport. Those of us in south central and on the Kenai would pay more because of the distance transported.

ANGDA’s position is that if the Open Seasons in 2010 for the Alaska-Canada pipe projects (AGIA and Denali) are a bust, then an in-State "bullet line" from the North Slope through Fairbanks down into south central Alaska should be considered. Until then, it makes the most economic sense to bring a spur line down the Richardson and Glenn highways off of any of the proposed large diameter pipeline projects to the gas hub at Palmer.

Presently, projects under consideration are Conoco-Phillips Denali project and AGIA (TransCanada and Exxon).

TransCanada and Exxon have recently expressed interest in an all-Alaska pipeline to Valdez and LNG terminal option, given the Canadian LNG terminal project at Kittimat, B.C. (This is what the Alaska voters created ANGDA to do in 2002.)

ANGDA has already completed much of the work in evaluating the Parks route. ANGDA’s work with that of the U.S DOE in 2005, private oil industry in the mid- 1990's, and the 1988 Federal Environmental Impact Study completed by the former Yukon Pacific Company (YPC) all concluded that while the Parks Highway route and the Richardson/Glenn are about equal in cost of construction, the Parks route has permitting and engineering hurdles yet to be addressed.

The Parks Highway route would require rights of way through State and federal parks and wildlife refuges, including major salmon tributaries. This route would be a lawsuit magnet by the environmental anti-development groups. Further, the route presents major engineering challenges along the route near Cantwell, Denali, and at Hurricane Gulch that have yet to be addressed.

The only route that will get natural gas to south central in a timely manner is the ANGDA route down the Richardson/Glenn Highway corridors. This route has none of the Federal or State environmental or engineering impediments. This route uses the existing TAPS oil corridor to Glennallen. The last 150 miles from Glennallen to Palmer is the only segment not in the TAPS right of way. In 2005, ANGDA acquired the State of Alaska Conditional Right of Way for last 150 miles to Palmer from Glennallen . Therefore, the route proposed by ANGDA has none of the impediments of the Parks Highway route. Both routes use the TAPS corridor right of way north of Fairbanks.

The ANGDA preferred route will provide the cheapest gas to Alaskans.

Pipeline Czar Harry Noah now intends to duplicate the work on the Parks Route with additional studies at additional State expense. Baker Engineering is contracted to repeat much of what has already been accomplished by ANGDA, the feds and YPC.

Playing against all of this is the looming shortfall in Cook Inlet natural gas supplies. The specter of rolling brown outs and blackouts during peak winter months are being publically discussed for the first time. The lack of sufficient supplies of Cook Inlet natural gas to fuel both homes and Chugach’s gas turbines at Beluga Point was openly and harshly discussed at a recent Regulatory Commission of Alaska (RCA) meeting reported by the Petroleum News. The power utilities were criticized for not having any contingency plans for such an eventuality.

Yet, the reality is, this is a looming situation known for years. It is the result of the politics of oil in Alaska, and a lack of concern by Alaska’s Legislature and governors, including Sarah Palin.

As previously reported, Marthon Oil complained to the Anchorage Chamber of Commerce earlier this year about declining gas supplies and the intransigence of the Regulatory Commission of Alaska (RCA) in issuing new drilling permits for exploration, making it difficult for the oil company to plan and allocate drilling resources. Just 7 new wells were drilled in Cook Inlet last year.

Over 10,000 new wells were drilled in Alberta alone last year. That volume of new wells is considered a bad year for oil and gas in Alberta. Down from 13,000 the year before and 18,000 the year before that.

ANGDA was created by the voters in 2002 to do what Harry Noah was charged with under the Palin Administration. Gov. Sean Parnell is continuing that mistake.
Sarah Palin’s Harry Noah may be the albatross impeding the Parnell Administration’s attempt to get Alaska back on the oil and gas development map.

The voters knew what they wanted in creating ANGDA. We wanted an all-Alaska natural gas pipeline. However, three governors and the Legislatures of those years all failed us.

The Canadians are moving swiftly to tie up Asian gas markets for their LNG facility under construction at Kittimat, B.C.

Funny, the Canadians can export natural gas to Asia cheaply, but Alaska cannot.

Why?

Both Sarah Palin and Frank Murkowski attempted to thwart the will of the people by impeding ANGDA’s mission.

The specter of rolling brownouts and blackouts in the middle of winter in Alaska’s most populated region is real.

Parnell needs to eliminate the position of pipeline czar, and let ANGDA do its job. If he continues to allow Noah to create conflicts with ANGDA and to further delay the opportunity to put Alaska’s North Slope gas to best use, Parnell may very well have to answer to the people in 2010.