A Citizen’s Guide

Municipal leaders from around Alaska want to help the state decide how best to counter the impacts construction of a natural gas pipeline will have on their communities.

Local officials made offered their help through their roles in the Municipal Advisory Group, which was formed under state law in 2004 to advise the state as it considered applications submitted for natural gas projects.

The group met with state officials Thursday and Friday in Fairbanks.

The topic was the same one being discussed in a public hearing a few miles away: A contract, recently released by the state, that proposes terms for the state and three oil companies to jointly build a natural gas pipeline from the North Slope through Canada.

Among the terms is a proposal to spread $125 million between “impacted” communities if the state and oil companies build a pipeline. The group, which consists of mayors and other local leaders, voted Friday to ask the state’s Department of Revenue to extend its advisory role until a pipeline is built or operating. Read the rest of this entry »

Here’s something from the world of natural gas today, via the wire service:

“Natural gas prices were steady at US$5.970 per 1,000 cubic feet despite data released by the U.S. Energy Department showing domestic natural gas inventories swelling by 83 billion cubic feet in the past week to 2.16 trillion cubic feet, or 50 percent above the five-year average for this time of year.

“Natural gas futures are near a one-year low and some analysts say that if inventories continue to grow at this pace, the country could run out of natural-gas storage capacity before winter, a prospect which should exert downward pressure on prices.”

That info is offered here as nothing more than a curiosity. Most of the discussion about the Alaska natural gas pipeline centers on long-term natural gas forecasts, of course. But the prospect of not having any place to store gas this year is interesting. And it’s always good to keep an eye on events that might affect the price of natural gas.

Republican Gov. Frank Murkowski this morning declared his intention to seek re-election, saying he wanted to continue the work on advancing a North Slope natural gas pipeline.

“The gas line is certainly the No. 1 priority of my administration,” Murkowski told a crowd of about 50 at a downtown Fairbanks restaurant.

In an e-mail message distributed from the governor’s personal e-mail account, Murkowski says he returned to Alaska from Washington, D.C. “to get Alaska moving again.”

“I strongly believe by the wise use of our natural resources we could build and sustain a strong economy—one that would support quality education statewide, as well as funding for public safety, seniors and others who are most vulnerable and most important provide job opportunities and training for our greatest resource—our children.

“The gas line is the most important natural resource development project to Alaska’s economic future. While our administration has made tremendous progress on the gas line (to the point of having the producers agreeing to sign the contract), we still have to get the Legislature to ratify it. Read the rest of this entry »

To the editor:

Alaska’s legislators shouldn’t let Gov. Murkowski’s “gas deal” steal away the future from Alaska’s children.

Alaskans deserve a 50 percent wellhead tax from the oil producers.

Alaskans, just like every American, pays a “nozzle” tax at the gas pumps. So, what is the problem with the oil producers paying a wellhead tax when the oil comes out of the ground?

Alaskans should demand that their representatives and senators treat them fair and just. Anything less than fair and just treatment toward Alaskans is their shame and dishonor.

Gov. Murkowski’s “gas deal” is not fair and just toward Alaskans!

William J. Journey

Fairbanks

OIL FREEZE: One of the Murkowski administration’s oil and gas consultants, Pedro van Meurs, spoke to legislators last week about how the governor’s plan to lock in oil taxes for 30 years is necessary to wrap up a gas line deal.

The producers “consider it an absolute deal-breaker” if this provision is not in the gas line contract, van Meurs said.

The reason they want it, he said, is that once the immense investment to build a gas pipeline has been made, the project will be generating large profits. And seeing those profits, Alaska lawmakers will want a bigger percentage for the state, the companies believe. Read the rest of this entry »

Seven hundred million dollars is a lot of money, at least where we come from. It’s also the difference between what Alaskans would receive under the oil tax reform plan the Legislature’s international oil tax expert recommends and the lower tax rate passed by the state Senate on May 22.

Today we’re locked in debate about how to provide Alaskans with a fair share for the oil all Alaskans own in common and how to provide incentives for future development. Republicans and Democrats in the House will serve the state well by passing a stronger oil tax reform law than the Senate passed. Debate starts again after Memorial Day. Read the rest of this entry »