More gas line discussion from one of our favorite commenters, Polarbear

While Polarbear and I don't always agree, he always presents his arguments well and without rancor.

The gasline issue does not split neatly down partisan lines. Lifelong Progressives are finding themselves in agreement with die-hard Conservatives. Making this into its own post gives everyone an opportunity to provide their commentary.


TransCanada is a service company. TC provides natural gas transportation. Exxon/Mobil is a natural gas producer company. TC sells their services to Exxon/Mobil. Hal Kvisle is wooing Exxon/Mobil's business, exactly what he should be doing at this moment. Kvisle has adopted a service tone, publicly underscoring the private conversations occuring in the background. "We understand you and your needs. We are very good at what we do. We are the best in the world at it. You can rely on us. We want your business. Tell us what you would like to accomplish." That is a service conversation. What else would we want our pipeline business partner to tell Exxon/Mobil? Whether Alaska builds its own gas line, or TC builds it, this conversation still has to occur. It is a much more effective conversation with a gas transporter company between Alaska and Exxon/Mobil. And yes, we have to hold our nose, Celtic.

With regard to the 2018 date, that has always been the date in the Transcanada talks, from the start. Indeed, other pipeline projects are already in the TC queue and will emerge before the TC Alaska line. Perfectly normal. Ten years from today to Alaska gas emerging into the TC North American network is a realistic date. After all, it is the largest construction project ever undertaken in North America.

John Harris is the typical Reudrich Republican, predictably trying to make cheap political points at the expense of the bipartisan coalition of Democrats and Republicans that supported the TC proposal. There is a great deal of progressive Democratic political capital tied up in the TransCanada license. The AGIA model may be used again, to cause stubborn projects to move forward in a manner where Alaska gets to set out the required values for the project, first, accompanied by some capital to show we are serious. AGIA is a progressive approach, and we ought to support it.

Your faithful reader...

Exxon's in charge????? I feel dirty...

...and used...and duped...


...by our "buddy," Hal Kvisle.

VANCOUVER — TransCanada Corp. has won support from Alaska to build a $26-billion natural gas pipeline, but ground won't be broken until Exxon Mobil Corp. signs on, says TransCanada chief executive officer Hal Kvisle.

Calgary-based TransCanada, which secured Alaska's official backing Friday, is in competition with BP PLC and ConocoPhillips Co. to build a pipeline that would connect large untapped gas reserves on the north slope of the state to consumers in the continental United States.

But Exxon, the company that controls the most gas in Alaska, hasn't yet backed either of the competing proposals, though it has an active Alaska team monitoring the pipeline race.

"Nothing goes ahead until Exxon is happy with it," Mr. Kvisle said in an interview yesterday.

So, we'll be waiting until all of their other pipelines are done, until about 2015 and it will depend upon the say-so of Exxon, the company that's fighting in court NOT TO PAY INTEREST on the money they've owed Alaskan fisherfolk for over 15 years.

Didn't Wally Hickel warn us?

***UPDATE***

Alaska House Speaker John Harris (R-Valdez) springs into action and launched THIS LETTER asking for clarification.

In it, he also reminded Kvisle that they haven't agreed to the $500 million dollar "inducement".

***UPDATE 2***

Per Andrew Halcro's Blog:

Wasn't being independent of Exxon and other producers the exact reason why we went through this expensive and time consuming exercise called AGIA?

In addition, under AGIA, TransCanada has committed to holding an open season in 2010 to attract gas shipping commitments from the producers. The competing Denali project being managed by BP and ConocoPhillips, has also scheduled an open season for 2010 as well.

However, Kvisle stated that in his interview that it would be unlikely there will be two open seasons conducted.

From the Desk of Senator Johnny Ellis:

I am fortunate enough to live in Midtown Anchorage, District 24 which is served by Alaska Progressives Senator Johnny Ellis and Representative Berta Gardner. I am also lucky in that both of them send out informative newsletters, frequently discussing issues on which they are much better informed.

Here's Senator Ellis's newsletter regarding the huge step taken by the Senate to endorse TransCanada as the constructor of our gas pipeline.

Note: I'm one of the folks who wanted--still wants--an All-Alaskan pipeline. I will continue to hope that this vote does not close the door on that possibility.

August 1st, 2008

SENATE MOVES GAS LINE FORWARD

Friends and Neighbors,

This afternoon the Alaska Senate voted 14-5 to grant a license to TransCanada to pursue a natural gas pipeline in line with the state’s requirements. I was a “yes” vote on this bill, and I believe this is the beginning, not the end, of a race to a gas line. Alaska is closer than ever to realizing this long-held dream. This process has given us two pipeline projects racing toward the finish line.

Over the nearly two months that the Legislature discussed this issue I kept an open mind about TC Alaska’s proposal, as well as those from the Alaska Gasline Port Authority and the Denali group (British Petroleum and ConocoPhillips). After countless hours taking testimony from oil industry consultants and executives, Administration officials, and Alaska residents, I believe the Legislature has chosen the best course to deliver a gas line.

Some of the most convincing testimony we heard came from Dan Dickinson, who was an oil and gas consultant for Governor Murkowski, and who now consults with the Legislative Budget and Audit Committee. Mr. Dickinson and nearly every other expert we consulted said TC Alaska’s proposal can only move a pipeline forward, and will not crowd out competing proposals, like Denali .

Under the state’s terms, TC Alaska will receive $500 million to take it through an “open season” and to apply for a federal (FERC) license. The terms that come along with this money include some of the “must haves” in my book: Alaska hire, a pipeline with an expandable capacity, enforceable benchmarks, distance-sensitive rates, reasonable transportation rates, the possibility of an LNG Y-line from Delta to Valdez , and take off points for spur lines around the state. It has always been my priority to build a gas line on Alaska ’s terms, and today we took a major step in that direction.

It’s important to keep in mind what today’s vote did not do. It did not crowd out alternate proposals like the Port Authority and Denali . It did not inhibit a bullet line to deliver in-state gas to Southcentral. And it was not a “giveaway” of $500 million. This money buys the Alaska must haves listed above and will be recouped in the form of lower transportation (tariff) rates.

Over the last year I have voted on two of the most important issues during my time in public service. Last fall we reworked the state’s oil tax regime to give the state a more equitable share of our oil resources. And today the state moved closer than ever to a natural gas pipeline. We’re trying to spur new exploration for gas, or a “Gas Rush,” and I believe we are moving closer to making that a reality.

Next up: we’ll be working all weekend on energy relief.

Interview with TransCanada on Keystone, Mackenzie and Alaska gas lines--their timeline isn't ours!!!!

Here is a LINK that EVERYONE should see regarding TransCanada's timeline. According to Hal Kvisle, Alaska will be the LAST PIPELINE COMPLETED--"THE LATER PART OF THE NEXT DECADE!"

Watch the interview...and send a link to your Senator.

Candidate Erick Cordero (pictured below on the right) who is running for Lyda Green's seat, has been talking about this all week:

Through email on Sunday, Cordero asked all members of the legislature to give full consideration to an All Alaskan Natural Gas Pipeline. Cordero mentioned some concerns regarding the TransCanada proposal, specifically related to a development timeline. TransCanada has stated that construction of the Mackenzie line project would take priority over the Alaskan gas pipeline.

In his letter to Alaskan legislators, Cordero stated: “…There are elements in the TransCanada proposal that cause real concern. First of all, TransCanada has stated that construction of the Mackenzie Line in Canada would be their first priority.”

During a recent interview by the Canadian Business News Network on July 16, President/CEO of TransCanada, Hal Kvisle, said that two other projects, the Keystone Pipeline and the Mackenzie Valley Pipeline, would be built before any work can start with the Alaskan project. “The Alaska Project is a long way off,” Kvisle said, “We would expect to build the $5 billion dollar phase 1 of Keystone over the next couple of years, then move into this Keystone expansion that we announced today, then our plan would see us constructing the Mackenzie Valley Pipeline and only in the later part of the next decade would the Alaska pipeline be constructed” he added.

Erick Cordero, Senate candidate for District G in Mat Su, has joined with Governor Walter Hickel and the Backbone III project because his first priority is bringing Alaskan gas to market in the next ten years.

Eric has an office opening today as highlighted on Progressive Alaska. I'm heading out there this evening and I hope that folks from Anchorage AND the Valley do the same.