Bill Walker will not hesitate, but Parnell just sits and waits for . . . ?

With the oil and gas conversation in Alaska politics focusing on the upcoming referendum on HB21, the Governor’s recently passed reduction in oil taxes, there has been little news on the natural gas pipeline front since the Producers promised further "studies". The last news from the producers was that they had made a preliminary decision with respect to the port of export. They chose Nikkiski, but were again studying the situation further, meaning no decisions to actually build a pipeline until a time uncertain into the future.

The Producers’ had to know of the impending legislation in Congress that would give a right of way through Denlai National Park. S.157 and H.R. 586 were introduced in June, 2013. This legislation allowed a natural gas pipeline to be built along the 7 miles of existing highway right of way that runs through Denali National Park lands. A take-off to the park facilities through an existing utility corridor would extend from the park entrance to the park facilities to allow the Park Service access to the gas. The Secretary of Interior would be required to issue a permit for the line crossing federal park lands if it meets environmental reviews and meets ANILCA requirements. Per Eric Elam of Young’s office, the legislation passed the House and Senate and was signed into law on September 18, 2013. The bill also provided funding for the Kantishna Micro-Hydro Project, a 50kw hydro-power project to provide power to the Kantishna Roadhouse owned by Doyon RNC.

With the signing of the legislation into law, a major hurdle in the construction of any natural gas pipeline down the Parks corridor using either the Alaska Railroad right of way or the highway right of way has been eliminated. This does not mean that litigation will not ensue on the part of the anti-development forces aligned against any development of Alaska’s resources. These forces have had two major victories to date.

The Pebble Mine project is all but history with Anglo Mining pulling out. Usibelli Coal has not been able to move forward on the Jonesville Coal Mine in the Matanuska Valley for the same reason. Therefore, the likelihood that the greenies will let any natural gas pipeline construction move through Denali, even using the highway right of way, without litigation to extract blood money is unlikely. Alaska’s history is rife with opposition to major resource development by Outside groups who have no other vested interest other than using the courts and Alaska as a revenue source.

The only pipeline corridor that is free of any litigation is the TAPS corridor, which is the choice of Bill Walker in both his 2010 and current gubernatorial campaigns.

Legislatively, the way is now clear for a pipeline down the Parks or a pipeline down the Richardson highways. The choice is which way, and most importantly when?

Japan is facing a shortfall in LNG due to interruptions from some LNG suppliers, such as Nigeria. Japan will be facing higher gas prices over the winter, because of the necessity of purchasing LNG spot cargoes rather than receiving LNG as part of a long term contract supply. The situation is rife for potential for Alaska’s North Slope gas. December deliveries to Japan is $17/MMbtus. Last year, the average was $13.25/MMbtus. Qattar will not be able to supply additional LNG to Japan over the winter, with supplies contracted to other buyers. Qatter supplied gas to Japan helping to keep the price down to $13.25/MMbtus.

The Wood-MacKenzie Report demonstrated a delivery to Japan of Alaska LNG North Slope gas of approximately $8.50/MMbtus. Using a 10% inflation per annum figure since the report’s release in 2010, gives an estimated delivered cost of approximately $11.31/MMbtus today, without respect to market considerations, and depending upon whether or not one believes the government’s inflation figures or what is experienced in the rising prices of other commodities. 

October Japan LNG market prices are $15.15/MMbtu. By December, the Japan LNG market prices are already contracted at $17.20/MMbtu. China is competing with Japan for LNG, causing increasing prices for existing supplies.

The specter of Alaska LNG competing with LNG from Kitimat is very real with Shell’s planned LNG terminal. Shell let a $4 billion contract to TransCanada to build a 2 bcf-2.5 bcf natural gas pipeline to 700 kilometers from B.C. shale fields Kitimat. (Yes, the TransCanada partnered with Exxon . . . ) Shell has partnered with Korea Gas, Mitsubishi and PetroChina to build its Kitimat LNG terminal.

Meanwhile, Governor Parnell waits, the oil companies study, and Alaska faces an increasingly uncertain fiscal future.

Either Governor Sean Parnell does not want to remain governor, or he is getting some bad advice with respect to his failure to move aggressively into the Japanese market.

His competition for the governor’s job will not be so hesitant. Bill Walker has been a relentless advocate of moving Alaska’s North Slope to market as LNG before the LNG market in Asia is diminished by other suppliers. Japan has been a primary focal point in his marketing of Alaska LNG. Walker and the Alaska Gas Port Authority have been tireless in their promotion of Alaska’s natural gas to Asian markets. Remember, the all-Alaska natural gas pipeline being promoted by AGPA and Bill Walker was the basis for Sarah Palin’s campaign for governor. If Governor Sean Parnell will not make a decision, Bill Walker and his Lt. Gov. candidate Chris Fleener will.

For more information:

LNG Insight: Utility buyers change buying strategy for winter
http://www.platts.com/videos/2013/october/lng-buyers?video_uuid=ngt147ob

http://www.platts.com/podcasts-detail/spotlight/2013/october/lng-prices

http://business.financialpost.com/2013/08/15/shells-kitimat-lng-project-gets-boost-from-asian-partners/?__lsa=128e-8da1

Congressman Young’s press release

http://donyoung.house.gov/news/documentsingle.aspx?DocumentID=348902

Trying to cheat ATG vets

UPDATE: The U.S. Senate passed a new military appropriations bill including a provision that will allow ATG service to be counted towards the 20 year total federal military service pension requirements. Of the 600 former ATG soldiers still alive, only 26 were eligible. The 26 had enough regular military and reserve time for their ATG time to count towards the 20 years.

The Obama Administration is now showing the liberal contempt for those who served.
In WWII, Alaska was the only U.S. territory occupied by a foreign power.

In the early days of the war, a group of volunteers were organized into the Alaska Territorial Guard (ATG) to patrol, protect and serve Alaska. The ATG comprised 6,600 men from 1942 to 1947, the year it was disbanded. The ATG patch is still worn today by the Alaska State Defense Force.

Alaska at the time was a territory, not a State. A distinction seemingly not understood by the Obama Administration.

Under COL Muktuk Marston, these men patrolled Alaska's coasts, broke trails, and did construction work for the U.S. war effort, and served to protect Alaska.

The pension issue arrises over the recognition by the federal goverment that the time served in the ATG counts as military time towards one's 20 year service requirement to collect a pension. For the remaining 26 men, now 25, as one died while this was being prepared, this recognition was bittersweet victory after so many years of not being recognized.

The DOD agreed that these men would receive military pensions starting this year, with the State of Alaska picking up the initial few months until the federal payments began. The Palin Administration went to bat for these veterans and achieved recognition by DOD for their service. Unfortunately, Pres. Obama's Administration reversed its decision and renegged on the earlier decision.

Like the Statehood Compact, ANILCA, and so many other examples of the federal government going back on its word or simply ignoring its promises to Alaskans, once again, Alaskans get the short end of the stick.

Those on active duty with the United States military need to pay heed to what happened to Alaska's ATG veterans.

IZEMBEK OUTRAGE!!!!!

There are few things that will torque me as much as the BS about "pristine wilderness". There is nothing "pristine" about Alaska's wilderness. It has been walked over, hunted upon, mined and developed at one time or another for over 10,000 years. Yet, a few, who have appointed themselves as the unofficial protectors of this great land--read exploiters who shamelessly use Alaska to raise funds to promote their insanity--blocked for many years something that should have been a no brainer.

Alaska, unlike the lower 48, is a state without surface transportation infrastructure, excepting a limited road and rail infrastructure within south central Alaska. There are few roads linking Alaska's western, southern and northern villages.

Many of Alaska's outlying villages comprise the United State's third world. No sewer, water, or roads. The village of Hoonah in southeastern Alaska managed to get its first generator for electric power (50KW unit) back in the late 1970s.

One of the most egregious and outrageous situations for many years has been the plight of the villagers of Kings Cove on the Alaska Penninsula. King Cove suffers from such lousy weather that the USCG will not fly their aircraft into King Cove. The nearest IFR airport is at Cold Bay, some 20 miles away.

Gee, that's not far. . . .

Except, that 20 miles is through the Izembek National Wildlife Refuge, a refuge that did not exist at the time of Alaska's becoming a State in the Union of States.

There is an ATV trail that links the two communities that is illegal to use, because of the INWR.

This no trespass of Uncle Sam's wildlife refuge meant that any villager in King Cove who has a medical emergency was in very dire straits.

For many years, Senator Ted Stevens tried to get a road built. In 1996, the feds invested in a $30 MILLION dollar clinic in Kings Cove to avoid upgrading the existing trail across the edge of the INWR. In 1998, to give the villagers better access, Congress authorized an appropriation for a hovercraft.

The bottom line is that 10s of millions of dollars have been spent to avoid bringing up an existing trail to a pioneer gravel road standard, such as is common throughout the Midwest. This money has been spent to circumvent the logical, rational, and necessary solution, which, all along, was the road.

What was the cost to the State of Alaska for the Senate of the United States accepting the road?

61,000 acres.

The sovereign State of Alaska had to bribe the Congress of the United States with land.

Why?

The Congress of the United States is so sensitive to the environmental lobby, that Congress seeks the satisfaction of those greedy, self-centered, arrogant twits over the needs of someone fighting for their life whose salvation is a few miles away through the INWR.

What is the impact of the road in terms of the number of acres actually impacted in the INWR? About 200 acres.

The necessity of this land swap was an egregious affront to the sovereignty of the State of Alaska.

Why is there no outcry from our Legislature, our Governor, or our Congressional delegation?

Cowardice, and the fact that most of these folks have grown up with placating the feds and their elitist environmental lobby.

Alaska's Statehood Compact was a compromise with Congress made with the recognition by Congress in the late 50's that the federal government did not have enough money in the treasury to provide Alaska with roads, airports, and harbours to the standards enjoyed by the rest of the states in the union. In lieu of the government spending money that it did not have, the Congress, in its infinite wisdom, gave the State of Alaska 90% of any non-renewable resource development in the state on both State and Federal lands. Since 1959, the federal government has continually reneged on this promise.

One of the implied promises was that the federal government would not impose stricter land classifications, nor classify additional lands more restrictively as to use. Then came ANILCA under Carter.

The Alaska National Interest Lands Conservation Act was one of the most egregious acts against the intent in the Statehood Compact.

The land swap shows that Alaska is a State in name only. That Alaska must buy its citizens' needs from the environmental lobby.

Welcome to the colonies!