10/31: TODAY:  Governor's Alaska Highway Natural Gas Pipeline Policy Council, 10-31, Full Council Meeting, 9-4:30, Sheraton Anchorage Hotel.  (See full report on Policy Council and on 11-2001 pages)     *     Jann Atkinson, the National Energy Board's Applications Unit Environmental Specialist, provides this outstanding recent presentation of NEB organization, process and focus on northern projects at our 'Presentations' page.     *     Richard Peterson of ANGTL reports: "We have added several points about reducing US crude imports through a GTL program on our 'home' page and 'news' page".     *     Yellowknife, N.W.T., CBC - A vote of confidence in N.W.T. Premier Stephen Kakfwi's leadership will be held on TODAY. Members of the legislature have decided to vote on his leadership, but they're bickering over the procedure.     *     Whitehorse, Yukon, CBC - The head of the Kaska Nation is happy the Council of Yukon First Nations has approved a devolution deal.   ...  Tribal chief Hammond Dick says settling devolution frees up human resources for claims negotiations.  (Note: Consider implications for ANGTS; Kaska report under item b. here.  -dh)         *     Congressional Quarterly--DASCHLE UNDER INCREASING PRESSURE TO BRING UP ENERGY BILL:  Major veterans organizations have joined Senate Republicans in pressuring Majority Leader Tom Daschle (Left Photo), S.D., to bring a comprehensive energy bill to the floor. "Keeping in mind the horrific events of September 11 and mindful of the threats we are facing, we strongly believe that the development of America's domestic energy is a vital national security priority," members of the American Legion and Veterans of Foreign Wars said in a letter to Daschle. The pressure on Daschle also comes from organized labor and Secretary of Veterans Affairs Anthony J. Principi. Sen. Frank H. Murkowski (Right photo), R-Alaska, ranking member of the Energy and Natural Resources Committee, warned he will attach the energy bill to other legislation if Daschle does not act. "We'll have other opportunities with legislation that is moving," Murkowski said.       *     Alaska Terror Alert Response:  Responding to a national alert for heightened security against possible terrorist attack, Gov. Tony Knowles yesterday increased Alaska State Trooper presence along the Trans Alaska oil pipeline with the creation of a security checkpoint on the Dalton Highway just south of the Yukon River bridge. Seven members of the Alaska State Defense Force have been called to state active duty to work under the operational control of the Alaska State Troopers to help them accomplish this mission.  "Although we have not been informed of any specific threat to the pipeline, we know its importance to meeting the nation's energy needs makes it a potential target for terrorists," Knowles said.  "Accordingly, the Alaska State Troopers, with assistance from the State Defense Force, will establish a security checkpoint just south of the Yukon River beginning today. This checkpoint will not restrict access to the Dalton Highway for legitimate uses, just as we are tightening security at the nation's airports, we need to know who is accessing the pipeline corridor, where they are going, and why....  As part of this national alert, we know of no specific threat to Alaska or any other part of the country, but I urge Alaskans to be on guard," Knowles said. "Alaskans have a proud tradition of responding to challenges put before them and I am confident that  they will cooperate with these efforts to ensure the safety of their fellow Alaskans and the pipeline on which the nation depends."     *    Canadian Terror Alert Response: Iqaluit, Nunavut, CBC- The Canadian Forces in the north say they have stepped up security in the Arctic. The measures come as a result of the Sept. 11 terrorist attacks in the United States.     *     Yesterday's Alberta royalty information letter.  New sponsor: TOTE.

10/30: Enbridge, Inc. listed on the NYSE this morning (ENB) and CNBC featured President and CEO Patrick D.  Daniel (Photo) *        Anchorage Daily News, AP-"We have met with an assortment of companies who are interested in buying our gas to ship down the pipeline or use in-state," said Pat Pourchot, Department of Natural Resources commissioner. At least three gas marketing firms have asked state officials to consider selling the rights to state-owned gas reserves on the North Slope. (See our 10-25 and 10-29 stories.)     *      CBC, YELLOWKNIFE - Northwest Territories premier Stephen Kakfwi (Photo) fought off a rebellion in his legislature Monday and announced his decision to stay on the job.  "I want to serve," Kakfwi told a full assembly and a packed public gallery. "I want to finish my job."  Shortly after, MLAs voted 13-1 in favour of a motion expressing confidence in the government. Four abstained. ... Kakfwi will face another vote of confidence by secret ballot on Wednesday.      *     WHITEHORSE STAR, by CHUCK TOBIN -- Two groups of about 750 workers each would be going full-blast in the peak period if a natural gas pipeline snakes through the Yukon, says a pipeline construction supervisor.  Richard Fafara of Foothills Pipe Lines Ltd. said the proposed 864-kilometre route through the Yukon would be broken into six sections, over two summer seasons and two winter seasons.  In the first winter, he explained Wednesday in Whitehorse, one crew of 750 would be under way, laying between 2.5 and three kilometres of pipe per day, to complete the first section.  In the following summer season and the next winter season, both groups of 750 would be in the field working different locations, to complete sections two, three, four, and five, Fafara said.  Together, he pointed out, both groups would be achieving a combined daily pace of between five and six kilometres, signed, sealed and delivered.  In the second and final summer season, pipeline construction would be scaled back to one group for the completion of the sixth and final section.  ...  There were about 30 members of the public for Wednesday evening’s pitch in Whitehorse, and about 20 or so were on hand for the presentation in Haines Junction last night.  Foothills management remains confident a natural gas pipeline will be built along the company’s pre-approved Alaska Highway pipeline route. However, the major producers of Alaska’s North Slope natural gas have yet to make a decision.  They have said repeatedly they’ll make an announcement by the end of this year regarding whether a pipeline is feasible, though they’ve already hinted it may not be.  If it’s feasible, however, they’ve also committed to making a route selection by year’s end: either down the Alaska Highway or across the Beaufort Sea to the Mackenzie River and south from there.  Brian Love, the company’s local manager, said he doesn’t believe the announcement will come by year’s end, but he’s certain the producers will be waving the green flag sometime in the first or second quarter of 2002.  “It is not going to happen as soon as everybody would like it to, but there are factors out there that make for a favourable decision,” Love said.  As evidence of interest in the North’s energy reserves, Love noted the recent American buyouts of large and successful Canadian companies with assets in the North.  Among those buyouts of note was Duke Energy’s recent purchase of West Coast Energy, the second-largest pipeline company in Canada and a 50-per-cent owner of Foothills, he said.   As confident as he is that the producers will develop the reserves, Love is equally as confident they’ll choose the right-of-way secured by Foothills, as is Daniel Begley, the company’s Calgary-based director of northern affairs for the Alaska Highway pipeline project.  Begley was with Foothills in the 1970s, when the Alaska Highway route was first proposed ... “We really do believe we have the best route,” Begley told Wednesday’s audience. “We have examined the other routes. If the other routes were better, we would be going for it.”  ... Maximization, he quipped, is a buzz-word these days.  “We really mean it,” he said.  Foothills, it was pointed out, has begun a Yukon registry of territorial businesses that could assist the project in some way. ... To minimize the impact on local communities by southern workers moving north to capitalize on construction job opportunities, Foothills would insist any non-resident Yukoners it assigns to pipeline work be hired and deployed from the South, Begley explained.

10/29: CBC-NWT Premier Stephen Kakfwi says a ruling by a legislative committee Wednesday has left him no choice but to think of leaving his position. Kakfwi said he would consult his supporters and give his decision TODAY.  NNS, by Richard Gleeson: ...Kakfwi's stance softened somewhat .... He said he may reassign staff.     *      REPORT:  The Governor's Alaska Highway Natural Gas Pipeline Policy Council, Access for In-State Gas Use Subcommittee, met in Anchorage on Friday.  Objective of the group was to prepare final conclusions and recommendations for consideration of the full Council at their Wednesday meeting this week.  The full council, in turn, will submit its final recommendations after nearly a year's work to the Governor by November 30.  We include a little of the committee interaction here to give a flavor of the areas covered.  Member Bill Corbus suggested the final draft include the beneficial impact of gas supply on stimulating mining and other projects in Interior Alaska.  Chairman Ken Thompson (Photo, left, 10-26-01) agreed, recalling testimony from an earlier Fairbanks meeting citing a number of proven mineral deposits along the route which could be commercial with the availability of reasonably priced energy.  On the subject of gas availability in the Cook Inlet area, Thompson said that the importance of North Slope gas should still be considered, "Don't be surprised to start seeing statements..." about new exploration adding 3-5 Tcf to local reserves.  He said that not just one, but three companies have recently said there should be enough Cook Inlet supplies to meet Southcentral Alaska's needs, though it would likely be a higher priced gas.  On the subject of state royalty gas, Thompson said the committee should make it clear that if royalty gas is sold, it should be sold to an energy trading company which, in turn, would nominate pipeline capacity and assume the market risks.  Referring to the news release quoted below, Member Jack Roderick (Photo-right) observed that this is already beginning to happen.  State Oil and Gas Division representative, Bonnie Robson (Photo-right) reviewed the process for sale of royalty gas with the committee.  "Preliminary findings have concluded that preserving the option of selling royalty gas in-kind is in the best interest of the state."  She also said that next month the state Royalty Board could consider this 'best interest' finding, simultaneously with issuance of an RFP, results of which could be received a month later.  Importantly, she said, this process could coincide with an open season that could come as early as the beginning of the year.  Member Brian Davies (Photo-left) explored with Robson's help the various scenarios which could develop: for example, the disposition of state royalty gas when new North Slope gas discoveries encountered a fully nominated, operating pipeline; and, similarly the importance of that new gas being able to gain pipeline access.  (Note: we include here the full recommendations of this and other committees, provided courtesy of Ken Freeman and Governor Tony Knowles' office this weekend.  Please be aware that these are recommendations only and may be modified, deleted or accepted by the full Council.)   *     October 26 Henry Hub Natural Gas: $3.06Mcf (Please see price references in 10/26 IAEE story.).     *       SALE OF STATE NORTH SLOPE ROYALTY GAS.  We reported this development on 10-25.  Here is the State's formal, 10-26 announcement of the "Competitive Sale of State's North Slope Royalty Gas" for your reference.   The Alaska Gas Producers Pipeline Team's External Affairs Manager, David F. MacDowell told Northern Gas Pipelines:  "It's good to see the state is dealing with this topic, as it will take some time to be fully addressed.  It is appropriate that the state take the steps necessary to plan for and understand its royalty gas options if an economic gas pipeline project can be developed."      *     WASHINGTON  -- Alaska Sen. Frank Murkowski Friday said momentum is growing for including a comprehensive energy bill in legislation that will be debated by the Senate before the close of this Congressional session.  He said the President yesterday during a meeting with him  at the White House expressed strong support for Senate passage of energy legislation this year. The President ... publicly urged Senate passage of energy legislation specifically opening the Arctic coastal plain to oil and gas development -- the President saying it is an important part of the nation's agenda to fight terrorism to expand our sources of domestic energy.     *        CBC, Whitehorse-The company that owns the rights to the Alaska Highway route, Foothills Pipelines, is selling the project to contractors and business people in a series of public meetings in the territory.  ... Mining's going down," said Len Andre, who owns Klondike Welding. "There doesn't seem to be much forestry happening any more. I guess what's left?"   It's a question he hopes will be answered by the pipeline and gas companies. But producers have to decide on a route first – and they've repeatedly said the project is too costly to do right now.  Foothills Pipe Lines' director of northern affairs, Dan Begley, was optimistic the gas producers will choose the Alaska route. "What we're saying is that if this project does go, we're anticipating it will go soon, and we are preparing the public for that," he said. ...  In the meantime, Foothills is compiling a list of businesses in the Yukon who could work on the project.

10/27-28 (weekend):  When questioned about gas pipeline costs and economics this week, economist David Reaume (Photo) told Northern Gas Pipelines, "The decision to spend $ 15 to $ 20 billion dollars on a gas pipeline from Prudhoe Bay depends first on whether or not a reasonable profit can be made on the line itself. Only the subset of alternatives that meet that test of feasibility should qualify for further consideration. The early history of Alaska’s Native Corporations shows just how badly things can turn out when the decision process is turned on its head."  (See our IAEE story and associated presentation on project economics, below. -dh)

10/26: Please acknowledge our newest public service sponsors, helping to bring this web page to you and thousands of other North American readers:  Sheraton Anchorage Hotel and Totem Ocean Trailer Express (TOTE)...more on sponsor page. 

TODAY: Governor's Alaska Highway Natural Gas Pipeline Policy Council, Atwood Building, Access for In-State Gas Use Subcommittee (Look for our report this weekend).       *       REPORT: Yesterday, the International Association of Energy Economics-Anchorage Chapter (IAEE) sponsored a luncheon presentation at BP's Anchorage office: an Alaska Gasline project update and outlook featuring Bill McMahon (Photo, 10-25-01) of the Alaska Gas Producers Pipeline Team, accompanied by Dave MacDowell.  If this were your daily newspaper, the headline would read: "US Senate to Consider Producer Expediting Legislation".  McMahon said that the language producers offered to the Senate Energy and Natural Resources Committee "has been included" in the mark-up version of the energy bill pending full Senate consideration (Obtain draft language in left margin under 'Quick Reference').  The significance of this development is that lack of expediting legislation in the wake of 9-11 was expected to substantially delay the long journey toward final approval and construction of a project.  McMahon provided an updated version of the PowerPoint presentation given to many audiences over the last few months.  But to this group of economists, he added detail.  Present feasibility work reveals both the northern and southern routes falling short of the pro forma 15% rate of return used in modeling.  MacDowell observed that the 15% is only a 'place-holder', as every company has a different standard for project investment and return on that investment.  McMahon said that the Northern route currently produced a 13% return while the southern route returned 11%.  He said the feasibility effort continued to seek ways in which project costs could be reduced, increasing project efficiency.  Eliminating Federal and state government uncertainty would contribute to risk and cost reduction.  Even so, he pointed out that while the price of gas this week had risen to $2.80/Mcf compared to last week's $1.80, that only emphasized the volatility of gas price projections.  "We don't fund projects based on price spikes, but on what you think prices will be long term."  He believes that long term, gas prices could achieve some predictability in the $3 range.  In addition to trying to contain external risks, the project itself has many inherent risks.  As an example, McMahon pointed out that, "There are no 52" pipelines operating at 2,500 psi that we know of."  He said "...if the Chicago price for gas fell to $1.80/Mcf and the transportation cost was $2.00, the 20 cents/Mcf loss over 20 years in a ship-or-pay contract could be painful."  Asked about Canadian positions, McMahon pointed out that both US and Canadian Federal and local governments would receive billions in revenue over life of the project, no matter which route were taken.  "Canadians have kept their powder dry on a Federal level; they say, 'let the market rule'," McMahon said, "while premiers of the Northwest Territories and Yukon have debated specific proposals."  MacDowell added that the Canadian Federal government looks to a northern gas pipeline to provide royalty revenue for government and other benefits to Aboriginal groups.  Northern Gas Pipelines readers may inspect the full text and photos in the presentation by clicking here and view other meeting photos here.    (While the author endeavors to produce accurate reports from meeting notes, he encourages all persons and offices named in this and other articles and readers-at-large to provide additions/corrections to ensure validity of the historical record.  -dh

10/25:  ANNOUNCEMENT....  At the 7 a.m. Alliance meeting this morning, Alaska's Natural Resources Commissioner Pat Pourchot said his department, "...has been approached by numerous companies to discuss potential use of the State's 12.5% royalty gas interest on the North Slope."  He said the state intends to pursue such royalty gas sales by putting gas up for bid, drafting contracts and submitting them for legislative approval.  He said the Legislature could see these arrangements in the 2002 session.  He said more details would be announced within the next few days.  

Alliance board member, Pita Benz introduced North Slope Borough Mayor George N. Ahmaogak, Sr. (Photo, 10-25-01) addressed Alliance members on the subject: "Are We Partners Or Not"?  (Obtain his complete presentation, here.)  In earlier statements, Borough officials have spoken in support of the Governor's highway routing preference but met resistance to certain legislative positions.  (See Molly Pederson's earlier testimony here.)  Ahmaogak spoke from the heart, but forcefully.  Setting the stage, he said that while the rest of Alaska enjoyed a certain economic diversification, the North Slope Borough (NSB) and villages depended on an oil industry tax base.  He then inventoried extensive support the NSB, Arctic Slope Regional Corporation (ASRC) and village governments have given to ANWR and gas pipeline efforts.  "We are constantly told we are an important part of the team," he said.  He encouraged members to ask Teamster Jerry Hood and Senator Frank Murkowski if North Slope citizens were not the most effective voice in Congress, countering Gwich'in claims.  Then he asked, "Why are you sending such mixed messages our way?"  He said that while North Slope citizens have been working in partnership with the state and industry, there has been a changing attitude in the Legislature during the past 2-3 years, primarily from Anchorage and Fairbanks leaders who have, "identified us as a target, as an enemy."  He then referred to SB 186 as a "legislative paint ball attack".   The bill is "An Act relating to municipal taxes on oil and gas production and pipeline property; establishing a limit on the general obligation debt that may be authorized and issued by home rule and general law municipalities; and providing for an effective date."   He candidly asked the audience "...if we lose our ability to bond, where is the incentive to support the energy development of Alaska?"   He then pointed out that in 2000 the NSB spend $139 million in Anchorage and $13 million in Fairbanks, much of it in the districts represented by SB 186 sponsors.  He concluded by reminding the Alliance that "We are all in this together.  We are partners."  While North Slope citizens have held up their end of the partnership, he suggested that to maintain unity Anchorage and Fairbanks leaders would have to weigh in on this issue.  He urged interested parties to coordinate with his special assistant, Dennis Roper. (See other meeting photos, here.)  -dh        *          Join a noon brown-bag speaking luncheon at BP's Anchorage office TODAY, for an Alaska Gasline project update and outlook featuring Bill McMahon of the Alaska Gas Producers Pipeline Team.  The event is sponsored by the International Association of Energy Economics-Anchorage Chapter (IAEE).  (Northern Gas Pipelines plans to provide a report here late Today or Friday.)      *      NEW YORK,  (Reuters) - Natural gas prices might have fallen 75 percent for the year, but energy firms are not ready to ditch their new-found enthusiasm for liquefied natural gas (LNG) imports into the United States just yet.       *     Alaska Department of Natural Resources, Call for New Information: 2002 Areawide North Slope Foothills Oil and Gas Lease Sale.     *     Rigzone.com: Gateway To The Oil & Gas Industry is added to the growing list of WebPages linking to Northern Gas Pipelines.  See the list here.

10/24: During last night's Alliance annual meeting at the Sheraton Anchorage Hotel, Governor Tony Knowles and National Energy Policy Development Group (NEPDG) Executive Director, Andrew Lundquist, shared similar views.  Several hundred contractors, legislators and government officials from around Alaska were pleased with the messages (Please see photo file).   Knowles praised Congressman Don Young for House passage of the Energy Package, with its ANWR provision, acknowledging the important contributions of organized labor, other Congressional offices, Lundquist and Vice President Dick Cheney.  "We need to take that same sense of unity to the gas pipeline issue," he said.  Lundquist, an Alaskan, has worked for years in Washington.  Serving with Senator Ted Stevens' staff, he went on to become Senator Frank Murkowski's Chief of Staff, a member of the Bush transition team and then, head of NEPDG.  He said that working on the President's National Energy Policy during the first months of the new Administration was, "...the first time all cabinet members dealing with energy issues worked together on a national energy policy."  While it has been "difficult" since September 11 to refocus on the President's energy agenda, the Administration's "call for a national energy policy has not changed.  Future energy demand," he said, "will vastly out step supply if no action is taken.  America cannot meet tomorrow's demands with yesterday's technology."  He outlined goals of the policy, including a supply diversification, environmental protection and stronger energy sufficiency.  He said the plan contained 105 recommendations, "85 of which can be implemented by agency action and executive order."  The other 20 measures were up to Congress.  He said the Senate leadership had stopped the energy package vote in committee since Senator Murkowski had a majority of bipartisan support.  "We still hold out hope he Senate will act this year," he said, "but time is short."  He added that Alaskans have never been closer to achieving ANWR approval.  He attributed much of the progress to "...Arctic Power, which has kept the flame burning for years."  He complimented the same team earlier identified by Knowles, drawing special attention to Teamster leader Jerry Hood.  "It is shocking to think we import about 600,000 barrels a day of oil from Iraq," he said.  (See Paula Easley's ANWR commentary, also arriving last night).  After his speech he was asked which route the gas pipeline should take.   The audience chuckled thinking Lundquist to be in a difficult situation.  But taking the challenge in stride, he said the Administration hadn't taken a position on which route the gas pipeline should follow, "...but the Administration will look to guidance from the Delegation and the good Governor."  To another question, he answered that Gas-to-Liquid technology held much promise for the state.     Alliance General Manager, Larry Houle, recounted the proud history of the Alliance, beginning with its founding in 1979.  In that year, a more informal organizing group of members testified and lobbied successfully in support of the Joint Federal/State Beaufort Sea Lease Sale.  "The Alliance is committed to the safe, environmentally sound development of Alaska," he said.  Outgoing President, Bill Stamps of Peak Oilfield Service Company and incoming President, Bob Stinson of Conam Construction Company, closed the meeting with the Alliance's recipe for prosperity.  Stamps encouraged the membership to be vigilant in maintaining a stable tax policy, avoiding attempts at new reserves taxes, maintaining a predictable regulatory regime and a sound fiscal policy.  Stinson emphasized the importance of fiscal responsibility (for a state spending more than it takes in), of obtaining ANWR, gas pipeline and exploration successes.  (While the author endeavors to produce accurate reports from meeting notes, he encourages all persons and offices named in this and other articles and readers-at-large to provide additions/corrections to ensure validity of the historical record.  -dh   ...Draft Revision: 10-23-01)

10/23: GAS MEETINGS ABOUND!    Join a noon brown-bag speaking luncheon at BP's Anchorage office Thursday, 10-25 for an Alaska Gasline project update and outlook featuring Bill McMahon of the Alaska Gas Producers Pipeline Team.  The event is sponsored by the International Association of Energy Economics-Anchorage Chapter (IAEE).  (Northern Gas Pipelines plans to provide a report here late Thursday or Friday.)     *         Governor's Alaska Highway Natural Gas Policy Council meetings (For teleconference access, send a message here): 1. 10-26, Access for In-State Gas Use & Future Opportunities Subcommittee, Atwood Building, Anchorage, 8:30 a.m. to 4 p.m., Ken Thompson-Chairman; and 2. 10-31, Full Council meeting, Sheraton Anchorage Hotel, 9 a.m.-5 p.m., Jim Sampson and Frank Brown-CoChairmen.

10/22:  U.S. SENATOR FRANK MURKOWSKI TODAY ANNOUNCED HE WILL BE A CANDIDATE FOR GOVERNOR OF ALASKA.     *      CBC, Edmonton, AB - An American Senator was in Edmonton on the weekend pushing a bill that would ban the so-called "over-the-top" route for the Alaska Pipeline.  John Torgerson is a state senator for Alaska....  Torgerson says that takes the gas away from Anchorage, Alaska and eliminates other value-added and export options.  He says he expects Canada's Mackenzie Delta project to be built before Alaska's.  He says that's mainly because Alberta's current distribution system could handle the expected volume from the McKenzie pipeline.   Torgerson says the U.S. Senate may make a decision on the Alaska pipeline and other related energy issues in early spring.       *      ANCHORAGE DAILY NEWS by David Reaume-According to the BP-Exxon-Phillips team studying the proposals for transportation and marketing of Prudhoe Bay natural gas, neither the northern route through the Beaufort Sea nor the southern route via Fairbanks are economically feasible at this time. That finding raises an interesting question. What does it mean for a project to be economically feasible? The first possible meaning (Boldface added) is that given a forecast of natural gas prices, estimates of construction costs and associated judgmental probabilities, the expected rate of return is negative. ...  The second possibility is that given the same forecast of prices and costs, the expected rate of return is positive but not as large as the expected rate of return on alternative projects that compete for the same limited investable funds. ...  The third possible meaning is that (again, given the same forecast of prices and costs) the expected rate of return on the project is positive, larger than on all (or at least most) alternative projects but still not large enough to offset the very high political and economic risk and uncertainty associated with it....     ...given the marginal economics that accompany either project, continued insistence by the public on the Alaska Highway route is decidedly counter-productive.       *      CBC, Yellowknife, N.W.T. - The Premier of the Northwest Territories says some of the Deh Cho's terms for supporting a pipeline are unreasonable. The Deh Cho First Nations have chosen not to sign onto an agreement for part ownership in the proposed Mackenzie Valley Pipeline....  Premier Stephen Kakfwi says the Deh Cho could negotiate for royalties and benefits, but he says the region will not get a role equal to the federal government in the environmental review process.   Kakfwi also takes issue with the Deh Cho condition that trappers on the route support the pipeline.  "Nobody is going to ever agree that a handful of trappers along the right of way will have the ultimate say...."  25 years ago aboriginal people across the Northwest Territories opposed a Mackenzie Valley pipeline. Justice Thomas Berger recommended a moratorium on construction of a pipeline until land claims were settled.  Three out of four first nations along the pipeline route have now settled claims.  The Deh Cho has just entered the second phase of its negotiations. It's expected to take seven years to come to a final agreement.     *     Northern News Services, by Derek Neary, Wrigley (Oct 22/01) - Percy Hardisty is once again chief of the Pehdzeh Ki First Nation.  "My interest is to ensure that economic developments are properly handed," said Hardisty, who last served as chief in 1985.  He said some community members, during a special workshop at Willowlake River in late September, decided that the community's position on oil and gas development should be discussed at a special meeting. They also generated some other recommendations.   "At the chief and council level, we're going to be working with these recommendations ... we're going to use it as a guideline," Hardisty explained. "It means there will be (more) community workshops with outside consultants." 

10/20-21 (Weekend):  For Canadian Integrated Studies of the Mackenzie Delta, Click Here!     *     CBC, Yellowknife, N.W.T. - Federal buildings across the north are beginning to increase security since the September 11 attacks on the United States. In Yellowknife, employees and visitors entering the Bellanca Building were met by a security guard at the door on Monday morning.  The building houses the Department of Indian and Northern Affairs.  Employees in the building now have to show their identification cards to security each time they enter. Visitors are being asked to state their purpose in the building, sign in and then sign out when leaving.  

10/19: See FirstEnergy's outstanding analysis of the Mackenzie Valley Pipeline status, maps, gas ownership of participants, aboriginal interests and responsibilities and potential use of much of the production to support bitumen production (Please download the 10-19-01 analysis here; also you may refer to our 6-01 draft of the project MOU, left column under 'Quick Reference', and this Imperial Oil Limited summary, and this Gulf Canada, Ltd. report).        *     Northern News Services, by Derek Neary, Fort Simpson (Oct 19/01) - Chief Rita Cli said Friday that band members in Fort Simpson want her to sign the Aboriginal Pipeline Group's memorandum of understanding.  Close to 270 members of the Liidlii Kue First Nation signed in favour of the MOU in a poll taken last week. That's a significant majority, as there are fewer than 400 names on the LKFN's voters list, according to Cli. ...  "You have to look at the global picture," Cli said. "We missed the boat once (with the Norman Wells pipeline), do we want to miss it a second time? One-third ownership is better than nothing ... to me it's an investment for the future generation."  Band member Dennis Nelner, who conducted the poll along with Keyna Norwegian, Ron Hardisty and Betty Hardisty, agreed that waiting too long is risky.  "History has an ugly way of repeating itself," he said referring to the Norman Wells pipeline. "What people want is employment, training, the opportunities, and benefits ... people want those things and you can't get that without development.  "It's not me talking. It's not Chris Reid or the grand chief talking, it's the community .... If (the LKFN) wants a mandate for signing the MOU, there's your biggest mandate right there."  ...  Fort Liard endorsed the Aboriginal Pipeline Group's memorandum of understanding (MOU) two weeks ago. Now Fort Simpson is about to do the same. However, Deh Cho First Nations Grand Chief Michael Nadli said he is confident Deh Cho communities won't sign the pipeline agreement one by one.  ... He said he has not wavered from the resolution passed at the Wrigley special assembly last month. That resolution states that the Deh Cho will negotiate the terms of a pipeline directly with the federal government. On the other hand, if a majority of 10 Deh Cho communities do sign the MOU, then, Nadli said, he would be forced to reconsider his position. However, support for a Mackenzie Valley pipeline isn't limited to the APG's proposal, he said. "There's a lot of companies coming up the ranks," he said. "So there's going to be many choices ... it would be very premature (to sign the MOU)."      *     TAPS renewal process: The final scoping meeting was held in Barrow Friday, October 12.  A public report summarizing the results of scoping will be available for the public in mid-November.  DATES: The BLM will accept written comments on the EIS scope postmarked by October 19, 2001; and electronic, faxed, and voice comments received by October 19, 2001. Written comments may also be hand-delivered to the Joint Pipeline Office in Anchorage, Alaska, by 4 p.m. on October 19, 2001.  Comments may also be provided by E-Mail: tapseis@anl.gov.      

10-18: Financial Times-El Paso, the third-largest natural gas producer in the US, announced on Thursday a deal worth more than $1bn that will allow it to transport liquefied natural gas (LNG) from the Snoehvit natural gas field in the Barents Sea to the US market....     *     MACKENZIE VALLEY PIPELINE PROGRESS....  CBC, Yellowknife, N.W.T. - People in the Deh Cho are being told it's not too late to join a proposal making the N.W.T.'s aboriginal people one-third partners in an northern pipeline. That was the message to the Deh Cho from the aboriginal pipeline group and the Mackenzie Delta gas producers on Monday....  The pipeline-ownership deal has been endorsed by leaders who represent about 75 per cent of the territories' aboriginal population, according to K.C. Williams. Williams is the head of Imperial Oil Resources, the largest of the four gas producers with reserves in the Mackenzie Delta.  "We are committed to working with all people of the north whether or not they've committed to the business partnership outlined in the M.O.U.," he says.   Nellie Cournoyea, the head of the Aboriginal Pipeline Group, says she has explained the benefits to the region, and the rest is up to the Deh Cho.  "I have confidence that once they've worked out the relationship they can live with they'll be there and we'll be waiting for them," she says.   Deh Cho leaders have tried to put off the pipeline issue. In the summer they decided self-government and land control talks had to be settled first.  However, the issue keeps coming back, as Fort Liard signed the agreement, and Fort Simpson has announced it plans to.     *     Northern News Services, by Jorge Barrera, Yellowknife - Celebrations were dampened Tuesday as three people died in a plane crash while flying to Fort Liard from a pipeline agreement signing ceremony in Yellowknife.   Despite the tragedy, the message that Inuvialuit, Dene and Metis must embrace the pipeline if they want to prosper still rings strong after the elaborate ceremony Monday.  The ceremony cemented a relationship they hope will spawn a pipeline through the Mackenzie Valley.  "We can no longer make a living off the land," said Fred Carmichael, president of the Gwich'in Tribal Council, in a short speech during the ceremony held in the small Ndilo community gymnasium. "We have to ensure there is a future for our children," said Carmichael.  With Ndilo drummers opening the ceremony and elementary school children from Done Necha-Lia Gha Enitl'e Ko sitting in the front row, the Aboriginal Pipeline Group (APG) and four of North America's largest oil and gas companies signed an agreement to work together on the pipeline.   A good chunk of the territory's cabinet showed up for the ceremony, along with Premier Stephen Kakfwi from Ottawa via telephone.   The Mackenzie Valley pipeline would run gas from the Beaufort Delta, down the Mackenzie Valley to Alberta and southern markets.  Despite the pomp and circumstance, K.C. Williams, senior vice-president for Imperial Oil and spokesperson for the producer's group, played down the importance of the agreement.  "It is very important that this not be seen as a decision to build a pipeline," said Williams. "This agreement only outlines there are things we're willing to work together (on)."   But that wasn't the message repeatedly delivered during the ceremony from the various players and dignitaries.   "We believe a pipeline needs to be up and running as soon as possible," said Nellie Cournoyea, chair of the APG.   "(This) signals our capacity to work in the economy of the 21st century. Today our involvement is one step closer to ensuring the future of our children," said Carmichael.   "This is a historical occasion," said Joe Handley, finance minister for the territory. "This is the largest single project partly owned by aboriginals."  "The NWT has an incredible future and we are certain to make life better for ourselves," said Kakfwi.  Through the glowing words the Deh Cho region's continuing hold-out was not forgotten.  ... The Deh Cho's support base is slowly eroding with the recent defection of Fort Liard and a wavering Fort Simpson.   Both the APG and the oil and gas producers said they would leave room for the Deh Cho but wouldn't stop for them. ... Chris Reid, chief negotiator for the Deh Cho First Nations, said the recent agreement does not change anything for them. Reid said the leadership wants the pipeline to be included in their process and alternative partnerships are being explored. Arctic Resources Company is one option, said Reid.   The APG will now work with Imperial Oil, Conoco Canada Ltd., Shell Canada Ltd., and Exxon Mobile Canada to legalize the agreement.   Williams said the next step will cost around $200 million.  The APG will hold a one-third stake in the $3-billion project, Imperial and the three other producers the rest.  The APG is looking to Ottawa for help in funding their $1 billion share.  Recent reports quoted Department Indian Affairs and Northern Development Minister Robert Nault as saying money would not come from his department.     *     Northern News Services, by Jorge Barrera, Yellowknife (Oct 17/01) - The recent agreement signed Monday between an aboriginal pipeline group and four of the biggest oil and gas players on the continent triggered dissent from a corporation in the Sahtu.  On the day of the signing, Norman Wells-based Ernie McDonald Land Corporation fired off a blistering fax saying they did not support the agreement.  "(The corporation) does not support the agreement being signed," said the release.  The Aboriginal Pipeline Group signed an agreement to work with Exxon, Imperial Oil, Conoco and Shell in developing a pipeline.  "I don't think there's been much offered, it's just one-third ownership and they have to come up with a billion dollars and that has to paid back," said Larry Tourangeau, president of the corporation. ... "We want to raise the flag to say not everyone in the Sahtu is on board," said Tourangeau.  Tourangeau is peddling an alternative to the APG. He's promoting a 100 per cent aboriginal ownership deal with Arctic Resources Company (ARC).   Owned by Calgarian Harvie Andre and Texan Forrest Hoglund, they were the first at the 1990s Northern pipeline table with a proposal to take Canadian arctic gas to southern markets.   They propose to fund a pipeline through a method that would be completely debt financed.  The McDonald corporation pulled their name from the APG June 26.   The Fort Good Hope Metis Land Corporation has signed on to ARC.

10-17: REPORT:  The Access for In-State Gas Committee of the Alaska Highway Natural Gas Pipeline Policy Council met yesterday in Anchorage.   Committee Chairman Ken Thompson (Photo) opened the meeting saying that the "...objective is to review key goals of the committee and draft recommendations.  Our challenge on this committee," he said, "is to look at issues from an Alaskan viewpoint."  Speaking about the 'in-state' focus of the committee, he said it would be foolish "...for  any state or country to not use its own resources."  Member Carl Marrs reminded the committee of the importance of focusing on the development of a gas pipeline.  Chairman Thompson cautioned that a northern route would only benefit the North Slope.  The committee reviewed 16 pages of recommendations and conclusions proposed by the Chairman, made changes and agreed to meet again on 10-26 to finalize a package for review of the full council.   *     CBC, Yellowknife, N.W.T. - The Aboriginal Pipeline Group is now a partner in the proposed Mackenzie Valley pipeline. The Group signed a memorandum of understanding with Imperial Oil and the other gas producers in N'dilo Monday, giving the group a one-third interest in a pipeline when it's built.  The producers haven't decided to build, but they're going ahead with the next step in the project - getting an application ready for the regulatory process.  It's a step that's going to cost up to $200 million dollars over the next three to four years. Under the agreement, the Group is committed to finding up to $65 million to guide the project through the required engineering, legal and environmental work.  "We feel the government of Canada can give us some support in that area," says the Group's chair, Nellie Cournoyea (Photo).  "How it comes I don't know, maybe in the form of guarantees."  However, the Minister of Indian and Affairs says Ottawa has no plans to provide aboriginal people with loan guarantees so they can own part of the pipeline.  Cournoyea can't look to the producers either. The industry has said the pipeline group must come up with the money for the project on its own.   Cournoyea says she's confident she'll have the huge construction dollars in hand by the time a decision is made to build, three or four years from now.  (See 6-01 version, Mackenzie Valley Pipeline MOU Draft)       *       Kenai, Ak.--The legislature's Joint Committee on Gas Pipelines will meet November 7 & 8 at the Kenai Visitors and Cultural Center.     *     Financial Post, EDMONTON - A second group has emerged to try to build a northern gas pipeline with 100% aboriginal ownership.   North American Aboriginal Pipeline Corp., based in Fort Simpson, N.W.T., will try to assemble financing for a pipeline from Alaska's Prudhoe Bay to the Mackenzie Delta, then down the Mackenzie River into Alberta.     *     Financial Post, by Alan Toulin, OTTAWA - Ralph Goodale, Natural Resource Minister, yesterday criticized Alaska's governor for tying the building of the Alaska Gas Highway pipeline to the national security needs of the United States.  Alaska also wants financial and tax breaks to spur building the gas pipeline, but Mr. Goodale said the administration of President George Bush agrees with Canada that the pipeline project needs to stand on its own as a viable project.

10-16:  (Editorial Note:  In the complex world of Northern Gas Pipelines, rumors add both complexity and confusion.  We do our best here to clarify and maintain an accurate public record.  Every time we have asked a project proponent for clarification, we have received an immediate, clear response.  Last night, a well-intended reader Emailed us a rumor that, "...the Oil Companies cancelled all studies, engineering, etc. for the Overland routes...."  One might expect such conjecture when, in wake of Senate Energy and Natural Resources Committee hearings on 10/2, the leadership made no move toward providing expediting or incentive legislation for pipeline proponents.  However this morning, Alaska Gas Producers Pipeline Team spokesman, Curtis Thayer responds that the joint study is on track for year-end completion.  Another Team representative, Michael Hurley was attending an Alaska Highway Natural Gas Pipeline Policy Council meeting this morning and added, "We will continue feasibility work on the two routes with an unchanged goal: finishing our analysis by year-end."  -dh)     *       TODAY:  Mackenzie Delta Oil and Gas Development Strategies, Calgary: Invited presenters: Shawn Denstedt, Partner Bennett Jones; Bob Dawson, P.Geol. Exploration Analyst, Canadian Discovery Ltd.; Patrick Schmidt, Vice-President Business Development, Inuvialuit Development Corporation, (Inuvik, NWT); Barry Hochstein, Manager Training Division, Inuvialuit Environmental & Geotechnical Inc. (Calgary/Inuvik, NWT); Russell Newmark, Vice-President and Chief Operating Officer, E. Grueben’s Transport Ltd. (Tuktoyaktuk, NWT); The Honourable Stephen Kakfwi, Premier of the Northwest Territories; Cindy Kenny-Gilday, Member NRTEE and Co-Chair Aboriginal Communities and Non-Renewable Resource Development Task Force (Yellowknife, NWT); Joe O’Neill, Member NRTEE and Co-Chair Aboriginal Communities and Non-Renewable Resource Development Task Force (Ottawa); Daryl Johannesen, Manager - Oil and Gas, Golder Associates Ltd; Petr Komers, Ph.D., P.Biol., Manager Biophysical Services, Inuvialuit Environmental & Geotechnical Inc. (Calgary/Inuvik, NWT); Billy Archie, Traditional Knowledge Advisor, Billy Archie Contracting & Consulting (Aklavik, NWT); Cynthia Pyc, P.Biol., Environmental Specialist Mackenzie Delta Project Team, BP Canada Energy Company; Delona Butcher, Community Relations, Mackenzie Delta Project Team, Chevron Canada Resources; Gordon Wray, Chairman Northwest Territories Water Board (Yellowknife, NWT); Annette McRobert, Manager of Land Administration, Department of Indian Affairs and Northern Development (Yellowknife, NWT); Bonnie Gray, Professional Leader, Environment Professional Leadership Team, National Energy Board; Kristine Mason, Aquatic Biologist, Golder Associates Ltd.; Senator John Torgerson, Chair of the Resources Committee, Alaska State Senate (Soldotna/Juneau, AK); Robert Hunt, Senior Vice President, Akita Drilling Ltd.; Aboriginal Pipeline Group Representative; K. Joseph Spears, Partner, Spears and Company (Vancouver); Stewart Scalf, CA, CBV, Senior Vice President, KPMG Corporate Finance Inc.; Rhys Renouf, Vice President, KPMG Corporate Finance Inc.; George Hegmann, M.E.Des., P.Eng., Impact Assessment Specialist, AXYS Environmental Consulting Ltd.; Brad Gilmour, Partner, Bennett Jones     *       PLATTS-... Senate Majority Leader Tom Daschle Monday said Republicans would have to overcome a likely filibuster to open Alaska's Arctic National Wildlife Refuge to oil and gas drilling. An aide to Senator Frank Murkowski (Republicans-Alaska) said Monday that Republicans would like a consent agreement for a straight up or down vote on an ANWR amendment to an energy bill.  On Friday, Daschle told reporters that he is willing to give Republicans a vote on "the whole question of drilling" in ANWR...he also noted that last week, when he failed to get the necessary 60 votes to halt a filibuster on an amendment to airport security legislation, "we pulled the amendment."      *      Bloomberg Business News, NEW YORK -- The American Gas Association said Monday it will stop publishing a weekly report on natural gas inventories at year's end because of increased costs, depriving traders of a gauge of demand they have depended upon since 1993.      *            Northern News Services, by Richard Gleeson, Yellowknife - ... At a press conferences in Ottawa, Yellowknife and Whitehorse Thursday, representatives of six environmental groups outlined what they say needs to be done before a pipeline is built, including: concluding regional land use plans; identifying of a system of ecologically and culturally sensitive areas to be protected from development; increasing land, oil, water and gas fees and royalties and the north's share of them; using fees and royalties to explore alternative and renewable energy sources; making approval of projects aimed at exporting Northern oil and gas to the U.S. conditional on protection of the Arctic Wildlife refuge and the U.S. re-joining international negotiations on reducing greenhouse gas emissions; establishing a rigorous environmental assessment regime that looks at the development a pipeline would spawn and includes sufficient funding for participation of non-government agencies....Environmentalists attending the Yellowknife press conference emphasized they are not opposed to oil and gas development....   *     Northern News Services, by Derek Neary, Fort Simpson - Michael Nadli is confident Deh Cho communities won't sign the pipeline agreement one-by-one.  Fort Liard endorsed the Aboriginal Pipeline Group's memorandum of understanding (MOU) two weeks ago. Now Fort Simpson is on the verge of adding its support. However, the grand chief of the Deh Cho First Nations said the APG's momentum will likely stop there, with the possible exception of the Hay River Reserve.  "There's still some leaders out there who have strong principles, so that's the encouraging thing at this point," Nadli said Friday.  He noted that he has not wavered from the resolution passed at the Wrigley special assembly last month. That resolution states that the Deh Cho will negotiate the terms of a pipeline directly with the federal government.  On the other hand, if a majority of 10 Deh Cho communities do sign the MOU, then, Nadli acknowledged, he would be forced to re-think his position. ... APG secretary Wilf Blonde said the APG has ... supplied information to Deh Cho communities regarding the MOU, he said.  "It's our job to explain what the MOU is all about," he said. ...  Blonde argued that the DCFN's mandate is to negotiate a land claims agreement and whether a pipeline is included within the parameters that land claim agreement is questionable "We'd really like to have the backing of the Deh Cho First Nations, but it's up to the individual chiefs whether they feel this is part of DCFN's mandate or not," he said. "We have six other regions who would like to have a pipeline. I feel the (Deh Cho) communities are going to recognize that they want to." 

10-15: 11-1, Resource Development Council for Alaska, "Trans-Alaska Pipeline Re-Certification", David Wight, President, Alyeska Pipeline Service Company (Photo)    *     Northern News Services, by Derek Neary, Fort Simpson - A Deh Cho Economic Corporation could be a reality as soon as next week. After three days of discussions, the concept was endorsed by delegates at an economic development workshop in Fort Simpson last week.  The recommendation will go before Deh Cho First Nations leaders at an assembly in Fort Providence beginning Tuesday.  As proposed, the economic corporation, which would have representation from each community in the region, will negotiate potential business deals and identify partnerships and investments for the consideration of Deh Cho aboriginal leaders....     *     The State Ownership/Tax Policy Committee of the Governor's Alaska Highway Natural Gas Pipeline Policy Council ended its October 3 meeting with draft recommendations.  Please see our report here.  That report is extended with the following draft policy points the committee is considering for recommendation to the full Council.  (Photo: Ken Freeman-left, Governor Tony Knowles' aide supporting the Council and Ownership/Tax Committee Chairman, Bill Corbus.)  Please note the draft nature of these 'recommendations' and 'conclusions':

The Committee believes the pipeline is economically feasible for certain investors and should be undertaken with private financing. We recommend against direct state investment unless there is clear evidence of economic benefits to Alaska that cannot be achieved through other regulatory or political mechanisms.

Recommendation: The Committee encourages exploration of creative financial structures to facilitate all or part of a gas pipeline and/or in-state gas infrastructure, provided such entities finance their activities through private markets.

Recommendation: The Committee recognizes that state tax policy is one of several tools that could play a role in influencing pipeline development, but reserves a decision. It is premature to decide how to use this tool until there is more definition of a project and the nature of its ownership.

Conclusions: * When the Committee began its work early in 2001, there appeared to be certain problems that could be resolved by partial state ownership in a gas pipeline, and that it could be an important advantage for Alaska. However, through the process of gathering information and holding meetings, the Committee has determined that most if not all of these could be resolved through other means, other tools the state has at its disposal.  For example, access to and from a pipeline can be facilitated through the state Regulatory Commission of Alaska working with the Federal Energy
Regulatory Commission, and through stipulations in a state right-of-way lease across state lands. * The Committee believes a natural gas pipeline from Alaska would be  good investment, but there are other, equally good investment opportunities for public funds that entail less risk. The state has a policy of diversifying investment of its assets (the Permanent Fund is an example) to reduce risk.  * From information gathered during hearings, the Committee has concluded that, absent majority or total ownership of a natural gas pipeline, an ownership interest gives the state no right to capacity in the pipeline.  Capacity in a contract carrier pipeline is obtained through the nomination process during an "open season."  * The Committee is not persuaded that partial ownership of the pipeline raises any conflict of interests for the state (i.e. a state "ownership" interest vs. a state responsibility to regulate the pipeline) that cannot be resolved.  * Absent a compelling public interest for partial state ownership,
ownership of the pipeline is best left to private industry, and to firms which are experienced in oil and gas and the pipeline business.  * The Committee suggests that Alaskan-owned businesses, such as Alaska Native corporations, have the opportunity to invest in a natural gas pipeline project.  * Regarding alternative financing mechanisms, the Committee has been told by the producers' group that an investment in a gas pipeline might not meet the rate-of-return criteria for the producing companies. If so, alternative financing mechanisms, such as through a public authority, might facilitate others, such as pipeline transmission companies, becoming involved. A public authority may have advantages in terms of exemption from federal income tax, or jurisdiction by the Federal Energy Regulatory Commission. 
* Regarding tax policy, the producers are seeking simplification and clarity in natural gas tax and royalty administration.  * The Gas Policy Council itself has endorsed the Governor's proposals for
federal tax incentives, such as accelerated depreciation, an investment tax credit and a gas price volatility protection mechanism, a tax credit that becomes effective if prices fall below a certain point. The Committee reaffirms this endorsement.  * The Committee feels that if a viable proposal for a pipeline is put forward and the producers do not respond in a reasonable period of time, the state should use tools that it has available to facilitate the project moving forward.  * House Bill 383, enacted by the Legislature to facilitate construction of a liquefied natural gas project (and since lapsed) contained a mechanism for a "contract" between the state and a sponsor of a gas pipeline project
that would encourage stability in taxes on a gas project. While there are legal limits to the Legislature's ability to guarantee future tax policy, such a contract would carry an important moral commitment, and would be worthy of consideration for an Alaska Highway gas pipeline.

10-13/14 (Weekend): (KASILOF) - As part of the Legislature's continuing effort to build international support for a pipeline to bring Alaska's North Slope gas to markets, the chairman of the Joint Committee on Natural Gas Pipelines plans to travel to Canada next week to meet with government and business leaders on the issue.   "We are engaged in a long-term effort to overcome any obstacles to getting Alaska's gas resources to market," Sen. John Torgerson said today.  "As that effort continues, it is important to maintain and expand our working relationship with the Canadians who are our neighbors and potential partners in that effort."     *     CONGRESSIONAL QUARTERLY: DASCHLE OFFERS GOP DEAL ON ENERGY BILL CONSIDERATION: Senate Majority Leader Tom Daschle, S.D., today offered Republicans a deal on taking up an energy policy bill after work on appropriations and Sept. 11 response legislation is completed. He said he would allow an amendment to open Alaska's Arctic National Wildlife Refuge to drilling, provided Republicans agreed to pull the proposal if they do not get 60 votes to limit debate on it. Daschle did that for Republicans yesterday when the Senate voted 56-44, four votes short of the necessary number, against invoking cloture on a Democratic amendment to aid displaced airline workers. As a sweetener, Daschle suggested adding a provision to the energy bill that would expedite construction of a natural gas pipeline from Alaska, a key objective of Alaska's powerful all-GOP congressional delegation. But Republicans, lacking the 60 votes to overcome an ANWR filibuster, reacted coolly to the proposal. They said they needed more time to review it before they made any final determinations.     *     WASHINGTON -- Alaska Sen. Frank Murkowski, ranking member of the Senate Energy and Natural Resources Committee, released the following statement after comments made by Sen. Tom Daschle regarding a debate on energy.      "I see some progress in Senator Daschle's comments.  At least he is willing to take up this issue on the floor.  But why is the Democrat leadership so afraid to give ANWR a straight up or down vote?  Why do we we need 60 votes to pass this?  Senator Daschle is just using the rules to subvert the will of the majority of the Senate.      "The Senate is working only three days a week.  When Senator Daschle talks about dealing with energy when we get done with essential business, we could be dealing with this next week, if he wanted.      "ANWR is far from the most sensitive part of Alaska, as Senator Daschle claims.  It is not pristine -- there is a village there with an airport, with homes and businesses.  Advanced technology will ensure exploration won't disturb the environment.  The development footprint will only be 2,000 acres out of 19 million acres in the entire ANWR -- the size of South Carolina.  It won't take 10 years to get the oil flowing -- we built the Pentagon in 18 months in an emergency.  We can accomplish great engineering feats when our world is challenged.      "The Carnahan amendment that Senator Daschle referred to had nothing to do with the airline security bill.  An energy bill that contains the most important new source of oil, ANWR, is certainly something that should not be filibustered or treated in the same fashion as the Carnahan amendment, which was a health care amendment on the air security bill.      "An Alaskan natural gas pipeline isn't going to do anything to help reduce our dangerous dependence on foreign oil.  The owners of the Alaska gas have indicated it's not economic at this time.  There isn't even an application submitted to build this line.  Is Senator Daschle suggesting the federal government spend the $20 billion to build the pipeline?  Ultimately, these very separate issues must stand alone.  Senator Daschle needs to understand the difference between oil and gas.      "The President said yesterday that our energy security is a part of our national security.  He called on Congress to give him a comprehensive energy bill.  The House has done its job.  Senator Daschle should give us a date certain so that the Senate can do theirs.  If he wants to put a 60-vote requirement on an issue as important to national security as energy, each Senator is going to have to recognize his obligations to our national security as opposed to environmental extremists." said Murkowski.         *     The State of Alaska will not tolerate any threats to Alaska's energy facilities and will prosecute any such cases to the full extent of the law, Gov. Tony Knowles said yesterday. Knowles' comment came as a Fairbanks grand jury indicted Daniel Carson Lewis on three felony charges in connection with the October 4 shooting of the Trans-Alaska Pipeline that shut down the pipeline for 64 hours and spilled more than 285,600 gallons of oil.  "Anyone who threatens Alaska's pipelines and our energy resources will be aggressively prosecuted," Knowles said. "We will use every means to find and punish those who jeopardize the safety and well-being of Alaskans, our environment, and the oil facilities on which our jobs and economy depend.  We will protect our oil resources for the nation as well, and we will not let down our guard."  A Fairbanks grand jury yesterday handed down an indictment against Lewis on three felony charges that carry maximum penalties of 20 years in prison and fines of $150,000. The felony charges are for criminal mischief in the first degree; operating a motor vehicle while intoxicated, a felony due to prior convictions; and assault in the third degree. Lewis could also be made to pay restitution to the oil companies and to the state.  Additional state charges not needing grand jury approval will be made against Lewis for oil pollution, and weapons misconduct of the fourth degree, according to Assistant Attorney General Kevin Burke.  Convictions for both charges could add extra jail time of two years and an extra $10,000 in fines.   A joint criminal investigation of the incident is being conducted by the Alaska State Troopers, the  Alaska Department of Environmental Conservation Environmental Crimes Unit, and the Federal Bureau of Investigation. Additional federal charges maybe brought against Lewis.

10-12:  WHITEHORSE STAR-A talk in Whitehorse by Thomas Berger, postponed from last month after the Sept. 11 terrorist attacks on the U.S., has been rescheduled for Oct. 17.  The Maddison Chair in Northern Justice and Yukon College made the announcement today. Berger will discuss a northern pipeline.  Berger is a prominent lawyer, and former Justice of the Supreme Court of B.C. He has been involved in several landmark decisions in Canada, and conducted several inquires, including the Mackenzie Valley Pipeline inquiry of the mid/late 1970s. As a result of that inquiry, a moratorium was imposed on development until land claims were settled.     *      ANCHORAGE DAILY NEWS, by Tony Hopfinger-After 19 years of trying to build an 800-mile pipeline to move liquefied natural gas from the North Slope to Valdez, Yukon Pacific Corp. is downsizing its staff and cutting its charismatic chief executive.  Jeff Lowenfels (Photo right, left-right: Frank Peake, Vice President & General Manager, CSX Lines-Alaska, CSX Chairman/President/CEO John Snow, Former Governor Walter J. Hickel, and Jeff Lowenfels), Yukon Pacific Corporation President said he will leave his post today and become a part-time consultant for the Anchorage company as Yukon Pacific's work force shrinks from about a dozen positions to just a couple. ... Yukon Pacific, owned by Virginia-based transportation giant CSX Corp., has done nearly everything it can to make the multibillion-dollar project happen, he said. It secured most of the permits needed to build the pipeline, and it has received preliminary orders from some Asian gas buyers. ... Now the little company that got its start in 1982 under former Govs. Wally Hickel and Bill Egan faces a fuzzy future. It plans to relocate its downtown offices to Midtown and keep on only a few part-time engineers. Other employees are being retained as consultants.  ... "If the company is for sale, somebody could buy the permits and put the project together," said Scott Heyworth (Photo, 7-30-01), an advocate for the LNG project.  But some analysts said the idea is too risky, even if a gas company were in charge. Low gas prices and limited markets in Asia don't support the huge upfront costs -- estimated at $8 billion to $10 billion -- that would come with an 800-mile pipeline and chilling plant to convert the gas to liquid.  "It has become incredibly obvious that there are lots of places that could get lots of gas to market at lower prices," said Roger Marks, a state petroleum economist. ... As for what's next, friends have suggested Lowenfels run for public office. He said he's keeping all options open.     *       CBC, commenting on the TAPS shooting-A man who police say was drunk is charged with felony assault and criminal mischief. Now crews have to focus on cleaning up a little more than a hectare of ground contaminated by the spill.   (Note: Please see our earlier editorial.)    *      WASHINGTON -- Alaska Sen. Frank Murkowski today expressed optimism that the Senate will pass a strong energy bill allowing for exploration in ANWR after President Bush urged the Senate to act on such legislation.      President Bush, following an afternoon Cabinet meeting yesterday, said energy legislation is vital to homeland security and he urged the Senate's leadership "to get an energy bill moving."      "We discussed our legislative priorities before the Congress goes home. One of those, of course, is an economic stimulus package that must include tax relief that has got a positive effect on the economy in the short run.      But there are two other aspects to a good, strong economic stimulus package, one of which is trade promotion authority. And the other is an energy bill. Now, there was a good energy bill passed out of the House of Representatives. And the reason it passed is because members of both parties understand an energy bill is not only good for jobs, it's important for our national security to have a good energy policy.      And I urge the Senate to listen to the will of the senators and move a bill -- move a bill that will help Americans find work and also make it easier for all of us...  to protect the security of the country. The less dependent we are on foreign sources of crude oil, the more secure we are at home.      We've spent a lot of time talking about homeland security. An integral piece of homeland security is energy independence. And I ask the Senate to respond to the call to get an energy bill moving," said President Bush.      "The President's comments will have a very strong impact in the U.S. Senate in light of the events of Sept. 11. I'm optimistic that we are gaining strong ground in this battle," said Murkowski.     *       WASHINGTON -- Late yesterday, Alaska Sen. Frank Murkowski urged Governor Tony Knowles to work with Democrats in the Senate to convince them the nation needs comprehensive energy legislation now.       "I certainly welcome the Governor's expressions of concern over the Democratic Senate Leadership's action suspending Energy Committee work on an energy bill," Murkowski said (Note: see our story and notes yesterday, below).  "The Committee Chairman suspended the Committee process because I had the votes from both Republicans and Democrats in the Committee to open ANWR.  And the reason I had those votes is because of the superb work that Alaska labor leaders, especially Jerry Hood and Mano Frey, and Alaska Native leaders have done to personally convince Members of Congress of the vital importance of opening ANWR.     One of the effects of Majority Leader Tom Daschle's decision to suspend the rules and bypass the committee process is to make what is a matter of national security a partisan issue.  In these circumstances, especially since the legislature is not in session, it would be very helpful if Governor Knowles would join Alaska labor and Native leaders here in Washington to personally press our case for opening ANWR with his party leadership," Murkowski suggested.     "I certainly welcome this or any effort by the Governor to become more fully involved in this effort which is so important to Alaska and the nation.  I hope the Governor can help convince his party's leadership in the Senate to put aside partisanship and bring this issue to the Senate floor this year," Murkowski said.                                          

10-11:  In this WHITEHORSE STAR article by Jason Small, Yukon's Premier and elected leaders begin to question timing of gas pipeline.

MORE SPOTLIGHTS ON WASHINGTON THIS WEEK:  JUNEAU-  Late yesterday Governor Tony Knowles (Photo-right, 9-10, Anchorage) said America's energy and job needs can't be ignored and expressed concern over the decision by the chairman of the Senate Energy Committee to suspend mark up of national energy legislation. The action bypasses the normal committee process where a vote was pending on responsible development of oil within the coastal plain of the Arctic National Wildlife Refuge (ANWR) and national interest legislation to tap Alaska's vast resources of natural gas.  "The time to address America's needs for energy, resources, and economic development is now and I urge the chairman and majority leader to reconsider this decision and allow a vote on this critical matter," Knowles said.  "I have and will continue to strongly support responsible development of ANWR's coastal plain and the development of the Alaska Highway natural gas pipeline project as ways to meet our nation's energy needs, create jobs, and strengthen our economy.  "Suspending the rules and bypassing the committee process denies full and fair debate on these essential needs for our nation and Alaska," Knowles said.  "I will continue to work with our delegation and other congressional leaders to push for final action on these important energy issues.  Just as Congressman Don Young was able to muster bipartisan support for energy legislation in the House, I hope Sen. Frank Murkowski is successful in using his influence as ranking member to address legislation that opens ANWR and mandates a southern route for the natural gas pipeline."  (Note: While Murkowski's influence is somewhat affected by reorganization of the Senate, one does not want to underestimate the importance of the Governor's influence with Senate democrat leaders.  -dh)

(Note:  The Producers have said that Federal enabling legislation to facilitate regulatory efficiency is a "must have" for a project to move forward.  Producer representative, David F. MacDowell told Northern Gas Pipelines late yesterday that, "We are very interested in continuing our discussions toward this end, and are certainly willing to be part of any process to get there.  Modern day enabling legislation that creates regulatory efficiency and that is available to all parties will help reduce project risk, and will provide the best possible opportunity for success.  A successful project is one that actually gets built.  And a project that gets built would be good for Alaska, Canada, American consumers, and the North Slope gas producers!"   ...   The Senate's leadership suspended Energy Committee action to 'avoid quarrelsome, divisive votes in committee {i.e. Jeff Bingaman}'.  But the gas pipeline dialogue during the recent hearing {see testimony in left column and our 10-2-01 story} did not reveal strong desires to move that legislation expeditiously.  -dh)
 

WASHINGTON -- Alaska Sen. Frank Murkowski yesterday called on Senate Majority Leader Tom Daschle (Photo) to reconsider his decision to suspend committee action on energy legislation.  Murkowski told reporters on Capitol Hill today he is disappointed and troubled by the Majority Leader's action.      ...   "Chairman Bingaman has announced that Sen. Daschle and a select group of Senate Democrats will write an energy bill and bring it directly to the Senate floor.  This is an affront to the committee process.  There will be no mark-up in the Energy Committee and there will be no open, public debate on a national energy policy," Murkowski said.  "How can there be balance in the bill without any input from rank-and-file Democrats, let alone from the Minority?      "Our nation's strength lies in our ability to openly debate issues.  ... "The House, recognizing that energy security is integral to national security, has done its job by passing comprehensive energy legislation," Murkowski said.  "I urge the Democratic Leader to reconsider this decision and give us a time certain for a floor debate.  The people's business should be conducted in an open, honest, and forthright manner."   (See this morning's Anchorage Daily News story by Liz Ruskin.)

 According to Senator Jeff Bingaman, "It has became increasingly clear to the Majority Leader and to me that much of what we are doing in our committee is starting to encroach on the jurisdictions of many other  committees.  Additionally, with the few weeks remaining in this session, it is now obvious to all how difficult it is going to be for these various committees to finish their work on energy-related provisions.  "Finally, and perhaps most importantly," Bingaman said, "the Senate's leadership sincerely wants to avoid quarrelsome, divisive votes in committee.  At a time when Americans all over  the world are pulling together with a sense of oneness and purpose, Congress has an obligation  at the moment to avoid those contentious issues that divide, rather than unite, us."  Bingaman's office says he will "...continue to consult and build consensus with members of his committee, with other committee chairs and with other Senators as he finalizes a proposal to present to the Majority Leader."