10-31-02 Updates: 02:22, 11:56, 13:14, 13:35.   CBC, Yellowknife, N.W.T. - Support for the Kyoto Protocol won't jeopardize development of a Mackenzie Valley pipeline, says N.W.T. Environment Minister Jim Antoine.  … Antoine was in Halifax yesterday for the day-long meeting with provincial and territorial environmental ministers on Kyoto.  "They assured me that they don't see any negative impact on the pipeline," he says. "They argued the oil and gas companies in Alaska, pipeline supporters, wouldn't use Kyoto against Canada and the Northwest Territories to try to push their arguments forward."   … Alberta is leading opposition to the agreement, saying it will jeopardize the oil and gas industry.  *     CBC, CALGARY - The heated debate in Alberta over the Kyoto climate change accord is actually benefiting some businesses here, despite the Klein government's warning of disastrous economic effects if the accord is ratified.  *  Whitehorse Star-...The three leaders were asked what their parties would do with the Kyoto accord to reduce greenhouse gases, which Ottawa wants to see passed soon.     (Follow our Kyoto links and pipeline references....)   *    National Post, OTTAWA - Pierre Pettigrew, the Minister of International Trade, will pressure the United States to compromise on its new farm bill in a bid to end a bitter trans-Atlantic subsidy war during trade talks in Ecuador this week.  (Trade and Kyoto are related to gas pipeline issues.)       *     ADN-Kenai -- Two Cook Inlet Unocal oil platforms will shut down within the next six months as the company reduces its scale.  The company is taking a look at how to downsize in an effort to become more profitable, according to Unocal spokeswoman Roxanne Sinz. ... Bill Van Dyke, petroleum manager with the Alaska Division of Oil and Gas, said the oil company could either sell the platforms or shut down. He said shutting down could be costly. Dillon has eight active oil wells and four shut wells. Baker has 10 producing oil wells and one producing natural gas well with two inactive oil wells and two inactive gas wells.

10-30-02 Updates: 03:17, 11:56, 12:01, 12:57 ET.  CBC, OTTAWA - Prime Minister Jean Chrétien is refusing to meet with the premiers before the federal government moves to ratify the Kyoto accord.     *    Yesterday, U.S. Senator Frank Murkowski (NGP Photo-l) told the Anchorage Downtown Rotary Club a number of things of interest to our readers, but revealed no breaking news.  Rotarian Barbara Mee (NGP Photo, with Rotary President Harry Kieling), former Alaska office manager for U.S. Senator Ted Stevens introduced the speaker.  Murkowski thanked Mee for noting the 'team effort' Messrs. Murkowski, Stevens and Congressman Don Young have provided the state.  He reminded the audience that "We have a President who worked in Alaska and who recognizes our state's contribution to the economy of the U.S."  He said that President Bill Clinton had vetoed the opening of ANWR but that President George Bush, supports the responsible opening of ANWR.  "We have an Energy Secretary and Interior Secretary who recognize the importance of Arctic energy resources and multiple use of public lands," he said.  At one point, Murkowski looked across the border and admired Alberta for the 112,000 wells drilled last year as Alaska was drilling 41.  He said, "The last road we built in the state was 30 years ago.  I happen to believe the economic future of the state comes from resources and a solid plan for growing our state."  He said that, "There is no excuse for not building new roads in a state 1/5th the size of the U.S. in 30 years."  Murkowski is running for governor against Alaska's current Lieutenant Governor, Fran Ulmer, pictured in yesterday's news below.  (Photos of attendees: Alaska Public Radio and Television general manager Susan Satin, and Anchorage Mayor George Wuerch.)    *    Fairbanks Daily News-Miner, By DIANA CAMPBELL - The public will be given a chance to comment on ExxonMobil's plan to extract a kerosene-like liquid from a huge natural gas deposit at Point Thomson on the North Slope. The Environmental Protection Agency will hold a public hearing in Fairbanks next week on what could be a $1 billion, 30-year project. "We don't know for sure if we have an economical project," said Jack Williams Jr. (NGP Photo, '01), Alaska production manager for ExxonMobil Production Co., before the Oct. 22 board meeting of the Greater Fairbanks Chamber of Commerce. … Point Thomson contains an estimated 8 trillion cubic feet of natural gas and over 400 million barrels of condensate, a light hydrocarbon similar to kerosene. The deposit is on 43 leases on 116,724 acres 22 miles east of Badami, a BP-owned operating oil field. ExxonMobil is a principal owner of Point Thomson with BP, Chevron Texaco and ConocoPhillips, and is its operator.

10-29-02 Updates: 00:11, 00:35, 00:46, 01:04, 10:58, 11:43, 12:47, 13:55 ET.  "Agrium Kenai Nitrogen Operations is one of Alaska's few major manufacturing operations and contributes to Alaska's economy by adding value to Cook Inlet natural gas production.  Agrium Kenai Nitrogen Operations contracted with Resource Solutions and the McDowell Group, Alaska research and consulting firms, to quantify the economic impact of Agrium Kenai Nitrogen Operations on the Kenai Peninsula Borough and the Alaska economy in 2001."  Find the study's executive summary here, courtesy of Lisa Parker, Community Relations, Agrium U.S. (Photo: Parker center with Lt. Governor Fran Ulmer and Gas Pipeline Policy Council member Jack Roderick, 2001 Agrium tour.)    *        Northern News Services by Thorunn Howatt, Inuvik - WesternGeco, a huge seismic force in the Mackenzie Delta area, is closing all of its land seismic operations. The move means layoffs for the company's Inuvik employees. "I have people that do marine work, multi-client work, data-processing -- but our land crews are closing down," said WesternGeco's marketing manager, Richard Drake. He added that the other operations will remain open. WesternGeco is a joint venture between Schlumberger and Baker Hughes. Schlumberger has a Northern joint venture with the Inuvialuit in Inuvialuit Oilfield Services (IOFS). That means the WesternGeco part of the Inuvik office will cease operations but the office will support the Schlumberger-IOFS side. ... About 1,200 people will be laid off throughout North America with less than 10 in Inuvik.    *   Realtimenews, (Upstream) - Canada's provinces lined up on Monday to confront Ottawa over its plan for ratifying the 1997 Kyoto treaty on global warming.   *    Invitation: join Dave Harbour of Northern Gas Pipelines for the Arctic Gas Symposium in Houston.

NGP Reader Larry Kaniut introduces us to his Alaskana book collection: handbooks for camping pipeliners?  (Photo-r)

10-28 Updates: 00:24, 01:00, 01:32, 01:50, 02:10, 11:20, 11:35, 11:44, 12:10, 12:36, 14:05, 14:18 ET.  Comment on stories below: Passage of Alaska's Ballot Proposition #3 could work against passage of H.R. 4 gas pipeline incentives.  Canada's approval of Kyoto Protocol requirements could add uncertainty to northern gas pipeline planning.  These late arriving variables added to existing gas pipeline trade and competition issues give weight to our earlier suggestions for action at the highest level before chaos determines the outcome of northern gas pipelines.  -dh

• LNG DEMAND WORKS AGAINST ALASKA'S PROPOSITION #3.  On 10-24, Jane Lee of Bloomberg News Service reported from Jakarta that Indonesia will sell LNG at prices about 25% lower than Japan is presently paying ($3.60-3.80MMBtu).  China will buy the LNG at about $2.40/MMBtu (add $.30-.40MMBtu transportation), linked to a formula based on $20Bbl oil.  A proposed Alaska Gasline Authority is on the ballot for voter approval in November.  Ballot Proposition #3 would create a government agency responsible for building and operating a gas pipeline/LNG project, adding Alaska natural gas to a growing Pacific Rim glut of new supply chasing lackluster demand.  A private sector investor, gas seller or gas buyer has yet to exhibit confidence in the economics of such an Alaska North Slope pipeline/LNG project though a majority of hopeful voters-at-large seem prepared to authorize public support for the concept.  -dh  (Further reference to Ballot Proposition #3.  Scott Heyworth's latest arguments in favor of the proposition.  Our LNG reference page.  See today's AP story by Mary Pemberton; we first covered this story on 10-24.)

• CANADA PERSPECTIVES: U.S. ENERGY BILL STATUS.  CanadaDotCom by James Stevenson, CALGARY (CP) - The fate of a potential multi-billion dollar gas pipeline through Canada and accessing Alaskan reserves remains in doubt as chances for new, contentious U.S. energy legislation grow slighter. (See our recent H.R. 4 update.)

• DRAFT RECOMMENDATIONS OF JOINT COMMITTEE ON NATURAL GAS PIPELINES TO THE TWENTY-THIRD LEGISLATURE.  Courtesy of Committee Aide, Kurt Olson, we provide readers with the outgoing Legislature's DRAFT gas pipeline recommendations to the incoming class of lawmakers, discussed during the 8-19-02 meeting of the Committee in Anchorage.  The DRAFT recommendations include an emphasis upon "fiscal certainty", a condition major potential investors consider critical.  While lawmakers recommending fiscal certainty did not memorialize the concept in the 2002 legislative session, they suggest that, "If the (new) legislature makes changes to the fiscal system, it should try to achieve long-term stability and should consider methods to ensure that the fiscal system would not be changed during the life of the project or some minimum number of years."  Lawmakers in other northern jurisdictions might also consider the value of this concept for improving the attractiveness of resource projects in remote areas.  -dh  (Other joint committee reference.)

• KYOTO GREETS MONDAY READERS.  National Post by Alan Toulin-The oilpatch, in addition to facing higher costs in the search and development of oil and gas, is worried that the federal government will add to its cost structure by implementing the Kyoto Protocol on climate change.  In its plan to implement the Kyoto treaty, Ottawa says it will add 3¢ to the cost of a barrel of conventional oil and up to 12¢ for oil produced from the tar sands in Alberta and Saskatchewan.  *  National Post by Alan Toulin-HALIFAX - Three provinces opposed to the Kyoto Protocol are banding together to tell the federal government they are ready to go ahead with their own "made-in-Canada" plans.   *   CBC story-OTTAWA - Provinces opposed to the federal government's plan to ratify a global treaty on reducing greenhouse gases are expected to let off more steam Monday. (Reference: follow earlier Kyoto links back from here for editorials/pipeline implications.)

  • BACKGROUNDER: Kyoto: The federal government's plan

10-26/27 Weekend Updates: KYOTO CONCERN CONTINUES.  CBC-CALGARY - The federal government's draft plan on climate change has both individuals and industry asking questions about the incentives being offered to help the country meet its commitments under the Kyoto protocol. ...  Charlie Fisher, CEO of Calgary-based Nexen Energy, says Ottawa's strategy for cutting greenhouse gas emissions makes it difficult to invest in big oil and gas projects because details are too vague.  (Links to our editorials and gas pipeline related concerns.)  *  CanadaDotCom-Mark Papa said he expects the wholesale price of natural gas to range between $3.50 and $4.50 US per 1,000 cubic feet over the next three years. By comparison, the average price from 1996-2000 was $2.46, according to the Department of Energy.   *   WASHINGTON (Dow Jones by Campion Walsh) - President George W. Bush's administration and Congressional staffers aren't yet writing off U.S. energy legislation this year, but they say the bill is in limbo pending mid-term elections.    *     Anchorage Daily News-Our political leaders must act soon to close the gap before the state's savings run out. Otherwise, catastrophic budget cuts or tax increases will be necessary, triggering a recession that better preparation could avoid.  (Our fiscal reference page with links to gas pipeline implications.  Our editorials, especially 9-26.) 

10-25-02 Updates: 00:07, 01:00, 01:13, 12:33, 13:34 ET.  CBC News, yesterday, 7:30 a.m.-Ottawa has hired a point man to help the Mackenzie Valley pipeline route over some government hurdles. The federal government is supposed to be officially neutral on which northern gas pipeline route it’s supporting but so far it isn’t making the same kind of commitment to an Alaska Highway route. John Carruthers (NGP Photo) is the Alaska Highway pipeline manager for BP Canada, one of the oil companies with the biggest stake in the Alaska Highway route. He says Ottawa is acknowledging that the Mackenzie route has the lead in the pipeline race. (Carruthers) “The Mackenzie is proceeding at this point ahead of the Alaska gas pipeline and we think it’s timely what they’re doing for the Mackenzie Valley pipeline and we hope that when we’re in the same position they would establish somewhat of a similar stature for the Alaska Canada pipeline as well.” Ottawa hired Roland Priddle who chaired the National Energy Board from 1986 to 1997. Priddle isn’t willing to comment on his appointment to work on the Mackenzie Valley pipeline route.  (Note: transcript courtesy of NGP reader, Trevor Harding.  See our earlier story and Federal link.)    *    "The Federal Energy Regulatory Commission is holding a natural gas conference on today. Several major players in the gas industry will be on hand and one of the issues they hope to tackle is whether the U.S. is facing a natural gas supply crunch."  Log onto Williams Energy News live for Stephanie Stanton's report.   *    MORE KYOTO CONTROVERSY.  CBC backgrounder: Canada's Kyoto plan.   *   CBC- The federal government introduced its draft proposal for meeting Kyoto targets in the House of Commons Thursday.  Alberta's Environment Minister Lorne Taylor responded to the plan by saying: "It looks like a made-in-Ottawa policy that they are going to foist on all the provinces."   CBC-TORONTO - Alberta Premier Ralph Klein brought his case against the Kyoto Protocol on greenhouse gases to Bay Street on Wednesday, as Prime Minister Jean Chrétien took his case for ratification to the Liberal caucus.     *   KYOTO CONCERNS ARE PART OF THE BIG PIPELINE PICTURE.  *   CBC-GRAND COULEE, SASK. - American commerce officials are warning Canadian wheat producers they may have to pay huge tariffs to sell their crops in the U.S.    TARIFF CONCERNS ARE PART OF THE BIG PIPELINE PICTURE.   (We stand on our earlier editorial position. -dh)   *    ADN-Bidders ranging from a wildcatter to big oil paid $2.7 million Thursday for 106,200 acres on Alaska's North Slope in an areawide state oil and gas lease sale.   *   Northern News Services by Derek Neary, Fort Liard - Anadarko Canada Corporation is going hunting for natural gas in the Fort Liard and Nahanni Butte areas this winter.  Anadarko, expected to be the most active oil and gas company in the southern Deh Cho over the upcoming season, plans to drill eight to 13 wells.

10-24-02 Updates: 00:50, 11:37, 12:00, 12:16 ET.  (ANCHORAGE) – Frank Murkowski (NGP Photo, 9-23-02) told a ConocoPhillips Alaska employee group  yesterday that, “Our approach to reinvigorating Alaska’s oil and gas industry is three-fold .  First, we want to increase exploration.  Alaska only drilled 142 wells last year, while western Canada drilled 18,000.  Second, we want to encourage development of heavy oils in known deposits on the North Slope, and of satellite fields.  Third, we need to get our natural gas moving.  We have a goal to have the gas to market by 2010.”   Murkowski also said he has set a goal of increasing throughput in the trans-Alaska Pipeline by 3 percent per year starting in 2005.   ADN story: Speaking Wednesday to employees of Conoco Phillips, the 22-year U.S senator replied with an emphatic "no" when asked if he would raise oil company taxes.     *       Peninsula Clarion By Mary Pemberton, Associated Press Writer, ANCHORAGE -- ... Ballot Measure 3 would set the wheels in motion for a state-owned natural gas pipeline.  But critics say the ballot measure will confuse voters Nov. 5 and create financial difficulties for the state in the years afterward.  The ''All-Alaskan Gasline Initiative'' would establish the office of Alaska Natural Gas Development Authority under the state Department of Revenue. That newly-created agency would be responsible for building the pipeline.  ''The oil producers have been reluctant for the last 25 years to commercialize the gas. This is our opportunity to do it,'' said Scott Heyworth (NGP Photo-left, 10-02) of Anchorage, the initiative's chief sponsor. ... The goal would be to have the pipeline in full production by 2007. Heyworth estimates the project would initially employ about 13,000 Alaskans. ... Larry Houle (NGP Photo-right, 2-02) general manager for The Alliance, a trade group of oil and gas companies, said the initiative is deceptive. He said voters will likely approve it thinking the project is the much-discussed natural gas pipeline.  ''It is an LNG (liquid natural gas) line to Valdez and there is no market for that gas,'' he said. ... If the initiative passes, the newly-created authority in its first year would have to develop a more detailed estimate on the cost of construction, revenues to the state and municipal governments as well as a market plan to deliver the gas to consumers outside of Alaska.  Even if approved, the initiative could suffer from financing problems before it is built, said Larry Persily (NGP Photo-left, 10-02), state deputy commissioner of Revenue....  (More on Alaska's Proposition #3.)   *     The Canadian federal government has appointed Roland Priddle (Photo-right), former NEB Chairman, to represent it in negotiations concerning the proposed Mackenzie Valley Pipeline.  According to a Natural Resources Canada release, Robert Nault, Indian Affairs and Northern Development Minister and Herb Dhaliwal, Minister of Natural Resources, made the announcement yesterday.  See the complete government release here.   See yesterday's related story.    *    National Post-The latest plans to revive lighter-than-air flight revolve around creating ships to haul cargo to isolated areas of the Canadian north and Siberia without road and rail service. Small communities and industry survive on ice roads in the winter and a brief window for barge and ship traffic in the summer. A burgeoning airship trade could limit the need for road-building, vastly reduce the price of goods and spur economic activity in the north.     *     Last energy bill reference & earlier links.     

10-23-02 Updates: 00:45, 01:10, 02:04, 02:28, 10:47, 11:51, 12:13, 16:03 ET.  OTTAWA SUPPORT FOR APG. Northern News Services by Thorunn Howatt (Photo), Yellowknife - NWT aboriginal groups will have to negotiate with the federal government for cash to back their share of a proposed natural gas pipeline.  Today, the Department of Indian and Northern Affairs (DIAND) is expected to announce the name of a negotiator who will work a money deal between the government and Aboriginal Pipeline Group (APG) for a Mackenzie Valley pipeline. The federal negotiator, from Vancouver, B.C., will go up against APG representative Peter Lougheed.  The APG has asked the feds for million of dollars in loan guarantees. It wants to own one-third of a proposed Mackenzie Valley pipeline but has no money and said it can't get cash through traditional banking methods. DIAND has already backed the APG with nearly $1 million so far.  The federal government stands to make millions of dollars in natural gas royalties if the pipeline is built.   The APG insists no pipeline will be built until it can afford to be an owner.   The APG is made up of regional representatives from all the NWT aboriginal regions.  (Earlier reference.)   *     KYOTO & GAS PIPELINES.  Northern News Services by Nathan VanderKlippe, Yellowknife - Premier Stephen Kakfwi continues to support the ratification of the Kyoto protocol despite warnings from oil companies that clamping down on greenhouse gases could destroy Northern hopes for a natural gas pipeline.  One of the most important demands for natural gas from the Beaufort Delta will come from the oil sands industry in northern Alberta, said Steve Laut, executive vice-president of operations for Canadian Natural Resources (See our FirstEnergy reference). His company is spending billions of dollars building infrastructure to access the oil reserves, but he warns that Kyoto could stop all of that.   ... To extract one barrel of tar sands oil requires about 400 cubic feet of natural gas, he said. Canadian Natural Resources alone hopes to recover 6.2 billion barrels of oil, which would require some 2.5 trillion cubic feet of natural gas -- gas which would likely flow from the Delta.  "I don't think many people understand the impact of Kyoto -- what it means to not just tar sands players, but gas players as well," said Laut. ... Yellowknife chamber of commerce president Dave McPherson has also warned that the protocol could chill investors' willingness to pump money into a northern pipeline.   CBC, EDMONTON - Premier Ralph Klein is heading to Ontario Tuesday to try to get Ontario to join Alberta's fight against the Kyoto climate change accord.   National Post-Mr. Klein is to deliver the message in a luncheon speech to the Empire Club of Canada at Toronto's upscale Royal York Hotel.  "The point the Premier will make is that it's not just the energy sector that should be concerned about Kyoto, and that any impact Kyoto has on the energy sector is not limited to Alberta," said the official, who is familiar with the speech.     (Other, recent Kyoto references.)     *     CBC-Territorial government politicians have insisted the $750,000 they are spending annually lobbying for the pipeline has made the Yukon a 'player' in the oil and gas pipeline industry.  (Earlier reference.)     *     Last energy bill reference & earlier links.      Invitation: join Dave Harbour of Northern Gas Pipelines for the Arctic Gas Symposium in Houston.

10-22-02 Updates: 00:10, 00:22, 01:00, 02:30, 11:59, 12:25, 12:44, 13:45, 13:55, 14:12, 17:41  ET.   ENERGY BILL UPDATE-While our readers are generally knowledgeable of energy bill status, every new perspective helps--especially from the experts.  Stephanie Stanton's noon ET webcast today featured Peter Cook, Washington Bureau Chief of Williams Energy News Live, interviewing API President & CEO Red Cavaney (Photo) on the energy bill.  Cook referred to the "ongoing saga of the energy bill," asking Cavaney if it could still be passed in the upcoming lame duck session following November elections.  Cavaney said, "...as long as Congress is still in session there is a chance that the energy bill could still make it."  He said it was disappointing that Congress left without passing a bill, "...and the country has a basic need for more production, ...basic infrastructure."  He said not passing the bill this year, including its renewable fuels provisions and the tax title, will adversely affect consumers next year.   Tax provisions (which include Alaska gas pipeline, etc. incentives.  -dh) provide opportunity for increased domestic production and they could provide more favorable depreciation that could increase efficiency beneficial to consumers, he said.  Cook speculated on loss of the ANWR provision.  Senator Murkowski commented it is out, Cavaney agreed, but added that the country needs and consumers will benefit from increased domestic production, with minimal impact on the environment.  He said the lame duck session is typically unpredictable, anything goes and important provisions are still possible to achieve.  The energy bill "still has pulse," he said.  -dh    *    Late yesterday, Bill Wicker, Communications Director, Senate Energy Committee, provided us with this report:  "With Congress in its pre-election lull, both the House and the Senate will meet in abbreviated, non-legislative "pro forma" sessions only. On Tuesday, Nov. 12, both bodies will resume legislative business including work on an energy bill.  Pro forma sessions allow conference committees to keep working. But since no Members are around, and since everything left to be resolved in this conference will have to be decided by the Members, the work rate and intensity probably will be low.  Committee offices will stay open throughout this time, though observing recess hours.     *     CBC-Peter Linder, a senior market strategist for Delta One Energy Fund, says the price of natural gas could be 50 per cent higher than last winter.   (See other comments.) *    CBC-"Oil and gas companies get a lot of capital to drill and explore for more oil from the stock market," says Calgary oil company owner and energy sector analyst, Dave Jaeger.  "And right now there is no stock market," he adds.

10-21-02 Updates: 00:01, 00:51, 01:41, 12:09, 13:19 ET.  ENERGY BILL STATUS, 10-18.  Oil & Gas Journal by Maureen Lorenzetti, WASHINGTON -- An ethanol mandate, oil and gas production incentives, pipeline safety, and other important industry issues may have to be revisited next year as the fate of sweeping energy reform legislation grows increasingly uncertain.  (See Murkowski ANWR comment in weekend update, below.)       CBC-Yellowknife, N.W.T. - The effort to negotiate a new energy bill for the United States has slowed down in recent days.  *     LATEST PROP. 3 STATUS.   *   TAX POLICY: Anchorage Daily News by David Reaume (Photo)- ...two proposals for taxing above-normal profits on existing oil fields have recently surfaced, one by Green Party gubernatorial candidate Diane Benson and the other by Ray Metcalfe, chairman of the Republican Moderate Party. ... Neutrality is a widely accepted goal of optimal tax design that is probably never attained but which should be approximated as nearly as possible. ... Neither of the two proposals now on the table for a windfall profits tax shows an awareness of this requirement.  (See our tax commentary.)   KYOTO: National Post by Graeme Hamilton-Quebec's environment minister said yesterday that Ottawa's plan to implement the Kyoto Protocol would give energy-rich Alberta a "free ride" and penalize provinces like his own that have large manufacturing sectors.  CBC-CALGARY - The Klein government's made-in-Alberta Kyoto strategy is getting mixed reviews from politicians, the oil industry, and environmentalists.   CBC- Gordon Christie says the Kyoto Accord is forcing more Albertans to think seriously about separation.  "The economy of Alberta is quite capable of surviving on its own," he says. "Ottawa provides nothing but debt, difficulty, bad judgment and bad policies. The Kyoto Accord is the latest example and it's the most serious one. I think Albertans realize they don't need to put up with it anymore."  CBC-Yellowknife, N.W.T. - N.W.T. MLA Stephen Nitah says the Northwest Territories is being stampeded into supporting the Kyoto Protocol without knowing the cost and urged the legislature to have a full debate on the greenhouse gas accord.  Nitah, the MLA for Tu Nedhe, says "blind faith" in the greenhouse-gas reducing agreement should not prevent the legislature from debating issues such as the cost of Kyoto in an area like the Northwest Territories, which is heavily dependent on fossil fuels.     (Earlier Kyoto/pipeline reference; our editorial position stands.)

10-19/20-02 Weekend Updates: Anchorage Daily News-Sen. Frank Murkowski has made it official.  Drilling for oil in the Arctic National Wildlife Refuge will not be included in a national energy bill, even if Congress can agree on a bill when lawmakers reconvene sometime after the Nov. 5 election, the senator said Friday during a news conference at his Anchorage office.   ...  Murkowski said construction of a North Slope natural gas pipeline remains in the energy bill but there are a few sticking points, including price supports for Alaska natural gas.    *     Anchorage Daily News, Kenai -- A Marathon Oil executive says oil and gas companies could use better incentives to continue work in Alaska.

10-18-02 Updates: 02:10, 03:00, 03:15, 03:37, 11:16, 12:51, 13:12, 13:20, 13:53, 14:16, 15:53, 19:38, 21:32 ET.

Please see our expanded report/photos of IAEE's Prop #3 forum here; also, our editorials on this subject: Anchorage Chronicle and Canada's Far North Oil & Gas Review.

See our report: Yesterday's Alliance meeting addressed by ConocoPhillips Alaska's President...significant gas pipeline related comments. 

Additions to our Purchasing Officer Reference Page: Central Water and Equipment Services and Hybrid Energy Advisors, Inc. and MediaLogic

ENERGY BILL STATUS:  Don Duncan, ConocoPhillips' Vice President for Federal Affairs (NGP Photo, 1-25-02), kindly gives us this update today.  "There is no doubt, we are disappointed that Congress is leaving town without the passage of the energy bill and the provisions related to the Alaska Gas Pipeline. But we are told that conferees will, again, try to advance the bill in lame duck session in Mid November. As long as there is a pending energy bill conference, the pipeline provision is alive. We will be working with the State, the delegation, consumer groups and other industry sectors to do everything we can to advance this language if an energy bill moves forward.....it is our top priority     *      Bill Wicker, Communications Director, Senate Energy Committee, kindly provided us with this update late yesterday: "We've seen from news reports that both the House and the Senate have passed Continuing Resolutions to carry us through Nov. 22. Many House Members have already transited area airports, while Senators are starting to visualize "wheels up" of their own. No word yet on when a post-election session will be held.  What does this mean for our conference? It means we keep talking.  Conversations will continue on possible compromises to break impasses. Electricity/RPS continues to complicate the equation. The other big issues, we think, can be quickly settled once an electricity/RPS agreement is reached.  Senator Bingaman is certainly pushing for a positive outcome from the conference. And Majority Leader Daschle yesterday signaled a willingness and a desire to see work continue on an energy bill. He told reporters: "Q: Senator Daschle, what's your strategy for passing energy legislation?  "DASCHLE: My strategy on energy legislation is to do what we have been doing: continue to negotiate, to work, to see if we can resolve as many differences as possible, to reach a consensus on as many items as we can. That's all we can do. And I think we've come a long way, but there's still a long way to go. "Q: So does it look like energy legislation will be taken up in a lame duck? Is it -- 'DASCHLE: Well, there's -- I can't put a time frame on it. All I will say is that it's our hope that we can continue to press forward, with an expectation that at some point we can get an energy bill.'"   *   Stephanie Stanton of Williams Energy News Live observes: "Congress appears to be headed home for the midterm elections without completing work on the energy bill.".  (Our opinion: Wicker & Woodruff & Earlier Murkowski comments.  Earlier Katz comment.)    *     Whitehorse Star by Chuck Tobin-Energy Minister Scott Kent (NGP Photo, 11-29-01) … said the annual $750,000 the Yukon government has budgeted for its pipeline unit to promote the Yukon’s interests has elevated the territory’s status….  “The biggest difference I noticed is we are a player now – industry phones us,” Kent said. If three-quarters of a million dollars in annual investment leads to $2.5 billion US in expenditures in the territory to build an Alaska Highway gas pipeline, it’s worth it, Kent added.  “That $750,000, I would suggest, is some of the best money this government has ever spent,” said (Dave) Austin.  The city councillor has been contracted by the Yukon government to work in its pipeline unit. …The Yukon, said Austin, has done with $750,000 what it’s taken other jurisdictions millions of dollars to do….  (Judy) Gingell, the former commissioner and ex-chair of the Council of Yukon First Nations, said the need to establish sound working relationships with first nations needs to be continued in the area of oil and gas development.  It is of the utmost importance, said Gingell, that the Yukon speak with one voice, that it keep pace with developments in the oil and gas industry….  “If it comes, then we are prepared for it, and it is very important we have a strong voice in Calgary, Ottawa and Washington.”  As it will be the Liberal policy to continue its lobby in favour of the Alaska Highway pipeline route, so will it be its policy to continue its lobby against the over-the-top route across the Beaufort Sea from Alaska’s Prudhoe Bay to the Mackenzie Delta, says the oil and gas platform paper…. Meanwhile, Kent said his intelligence reports from Washington suggest the U.S. energy bill has a 50-50 chance of passing before the U.S. mid-term elections on Nov. 5.  The bill is being watched closely by both sides on the Alaska Highway pipeline debate. That’s because it may or may not contain what some call government subsidies for a pipeline while others refer to the provision as incentives that won’t cost taxpayers a dime.  Kent said if the bill isn’t passed before Nov. 5, it’s expected some form of energy bill will pass not too long afterward.    

10-17-02 Updates:  01:46, 02:42, 11:15, 11:39, 15:15, 17:58 ET.  Our reports on Tuesday's Proposition 3 forum will be uploaded by 15:00 ET today.  We appreciate the patience of readers and hope you agree the wait was worthwhile.  -dh    *    KYOTO.    Calgary Herald-Dear Rest of Canada, This is your sister Alberta calling. We have to talk, now, about the Kyoto protocol.    *    The Report by Mike Byfield-Prime Minister Jean Chrétien's determination to ratify the Kyoto treaty and heavily reduce carbon dioxide emissions within a decade places Alberta's petroleum-dependent economy at great risk.    *    ENERGY BILL.    Williams Energy News by Stephanie Stanton-It's beginning to look like this may not be the last week Congress will be in session. This means energy bill talks could continue, but it doesn't move Senate Democrats and House Republicans any closer to a deal.  BETWEEN THE LINES-Reading between the lines, we sense decisive, strategic movement from Schlumberger Limited is coming!  In yesterday's 3rd quarter report, North American revenue fell by 27% as revenue rose elsewhere: up 5% Latin America, 7% Middle East, 22% Europe & N. Africa.

10-16-02 Updates: 00:17, 00:29, 11:17, 13:05, 13:29, 15:07 ET.  Yesterday in Anchorage, the International Association for Energy Economists presented an outstanding forum on Ballot Proposition #3, the “All-Alaska Gasline Initiative”.  Roger Marks, Department of Revenue economist (NGP Photo-right), introduced the program, moderated by Rose Ragsdale (NGP Photo-left), Anchorage Chronicle.  Speakers included Scott Heyworth (NGP Photo-left, middle), proposition sponsor; Rep. Jim Whitaker (NGP Photo-right, middle), Fairbanks; Larry Persily (NGP Photo-left, below), Alaska Department of Revenue; and, George Findling (NGP Photo-right, below), ConocoPhillips.  (See earlier Prop. #3 reports, Alliance and Chamber).  Don't miss our complete report, photos and downloads TOMORROW, followed by editorial comment.   (Ref. ADN story by Wesley Loy)      *       CBC-Whitehorse, Yukon - ...  Devon Energy Vice President Michel Scott says Devon has cancelled plans for drilling and seismic work in the Yukon for this winter.       *           ENERGY BILL COMMENTS.  Throughout this entire process we have felt close to Washington events due to the communication efforts of many Beltway friends.  Two of the most consistently helpful of these have been Bill Wicker, Communications Director, Senate Energy Committee (Democrat side); and David Woodruff, Director of Communications, Senate Energy and Natural Resources Committee (Republican side).  We would like to salute their colleagues in the Energy Department and White House and pay special tribute to Conference Chairman, Congressman Billy Tauzin and Senate Energy Committee Chairman Jeff Bingaman.  All have struggled valiantly to produce energy legislation important to the United States.  No one predicted six months ago that Iraq, terrorism, Homeland Security, and a rogue Beltway sniper would consume attention sufficient to displace the energy bill in the minds of many constituents.  Never admitting defeat, Congressional and Administration leaders and a cadre of dedicated staff worked tirelessly to complete the Energy Bill Conference, even if public attention waned.  In a few days we will see if extraordinary effort produced a bill of value to the country or if unanticipated events and destiny conspired to bequeath energy legislation to a new Congressional generation.  Even in these final moments, staff continues to work and communicate.  Below is Wicker's message, arriving last evening.  -dh  "In the midst of difficulty lies opportunity. We'll see if that's true with energy bills.  There were a couple staff-level meetings over the long holiday weekend, but progress was minimal. We're hung up on some pretty thorny issues. Whether we get unstuck, or stay stuck, remains to be seen.  Most of the conversations this weekend were about the tax title (Note: which includes gas pipeline incentives), but there's still significant ground to cover.  Electricity/RPS is unresolved and remains the paramount sticking point. There have been several discussions at the Member level on various ways to settle the issues in dispute, but those basic issues (merger authority, RPS, SMD, participant funding, etc.) remain in play. If resolution on those is reached, all the remaining pieces -- climate, ethanol, ANWR, taxes -- could be decided quickly.  A variety of the Tier II issues also are still in play, and could be wrapped up quickly, if and when the big pieces come together.  Later this week, probably on Thursday, Democratic conferees will meet to review any agreements or to decide where they want to go with the conference.  -BW"     *     ANCHORAGE, Alaska (Reuters) by Yereth Rosen - Hopes remain alive that Congress will approve financial incentives for construction of a huge Alaska natural gas pipeline, even though progress on national energy legislation has stalled, U.S. Senator Frank Murkowski said Monday. ... Murkowski and other state leaders want federal tax incentives that would essentially provide a price floor to gas producers. Alaska's major oil producers - BP, Conoco-Phillips and Exxon Mobil - say such a provision is needed to make the $20 billion, 2,100-mile gas pipeline feasible. But the idea has been criticized by the Bush administration, Canadian officials and Lower 48 energy leaders, who believe such a tax break would be an unfair subsidy. If there is no federal approval of Alaska gas incentives, Murkowski said he will push for the project as Alaska's next governor. ... He argues that Alaska needs more natural resource development - including the commercialization of the North Slope's known reserves of about 35 trillion cubic feet of gas - to fill annual budget gaps expected to grow to $1 billion. ... Alaska abolished its personal income tax in 1980, soon after North Slope crude began flowing through the trans-Alaska oil pipeline. There is no statewide sales tax. The Alaska Permanent Fund, a state-owned $21.5 billion savings account, pays annual dividends to nearly every man, woman and child living here. This year's dividend, paid earlier in the month, was $1,540.76. ... Murkowski's Democratic opponent, Lt. Gov. Fran Ulmer, called the senator's plan to rely on high oil prices and development of the gas pipeline and other major projects "a house of cards." ... Ulmer argues that the state will need some general tax, such as an income tax or a sales tax, if the Constitutional Budget Reserve falls below $1 billion. "I agree that we ought to hope for the best. But I think that we ought to plan for the worst," she said.   Like Murkowski, Ulmer supports the proposed gas pipeline tax incentives. It is still possible that Congress could approve such provisions this year, she said. But any failure to pass national energy legislation that includes such incentives, she said, could become a campaign issue.  "For quite a long time, it looked like it was going to happen," she said. "Why it didn't happen, I don't know. It is certainly a question that needs to be asked."   Despite early predictions of an easy Murkowski win, recent polls show a virtually tied race.     *            PIPELINES AND FIRST NATIONS.  Obviously, First Nations issues affect any Arctic gas pipeline project in Canada.  Accordingly, we have provided readers with references as developments occur.  Manon Garrett, Communications Coordinator, Indian Claims Commission, kindly advises us that the Commission (ICC) has recently published the latest edition of its newsletter entitled Landmark.  Our readers may find Landmark, volume 8, number 2, Summer 2002 here.        *      ON ALASKA'S FISCAL CRISIS.  Anchorage Daily News by Ben Spiess- Republican candidate for governor Sen. Frank Murkowski unveiled his fiscal plan Monday.  ...  Murkowski's main opponent in the race, Democrat Fran Ulmer, said she favors a fiscal fix of more taxes if the state's budget reserves fall below $1 billion.  *     Invitation: join Dave Harbour of Northern Gas Pipelines for the Arctic Gas Symposium in Houston.

10-15-02 Updates: 03:16, 03:29, 11:08, 12:05 ET.  Calgary Herald by Rick Mofina-The government could inch closer to a new trade war with the United States if Washington passes an energy bill that includes subsidies for a proposed Alaska pipeline through Western Canada.  ... The energy bill, with parts being redrafted over the weekend, is to include price and loan guarantees to construct the Alaskan line.  Ottawa is steadfast against U.S. subsidies for the Alaska route, says Natural Resources Minister Herb Dhaliwal. ... "Our position is that we be route neutral and let the private sector determine through economic basis what is the route," Dhaliwal says.  The proposed megaproject -- estimated to cost $20 billion US -- would carry natural gas from the massive reserve at Prudhoe Bay through the Yukon, British Columbia, Alberta and Saskatchewan to the lower 48 states.  It would stand not only as the largest single energy project in U.S. history, but as a pillar of the American strategy to enhance national energy security.  "This is actually the most critical time for this issue," says Piers McDonald, former Yukon premier, who is pressing for support of the Alaska Highway pipeline and is angered by Canada's hostility towards it.  Canadian Alliance Leader Stephen Harper says he'd like to see U.S. lawmakers pass a bill without subsidies. ... In opposing subsidies for the Alaska line, Ottawa is showing blatant support for the Mackenzie option, says Rick O'Brien, chief of the Kwanlin Dun First Nation of the Yukon. The 1,200-member band, located near Whitehorse, needs the economic benefits of the Alaska line, he says.  "We made it known to them that we would not support subsidies and, in the end, it doesn't matter what laws they pass," says Dhaliwal, pointing to the fact that two-thirds of the Alaska pipeline will go through Canada and be subject to Canadian approval.  "So, I'm sure we'll have something to say about it."  (Note:  Time is short for the Energy Bill and Congress will soon leave for home.  Since the big picture involves trade and other issues,  we continue to counsel for communication at the highest level.  -dh)    *     REMINDERS: Invitation: Today in Anchorage, the International Association for Energy Economics will present a major forum on Ballot Proposition #3, the “All-Alaska Gasline Initiative”.  Speakers will include Scott Heyworth, proposition sponsor; Rep. Jim Whitaker, Fairbanks; Larry Persily, Alaska Department of Revenue; and, George Findling, ConocoPhillips; moderated by Rose Ragsdale, Anchorage Chronicle.  (See earlier Prop. #3 reports, Alliance and Chamber.  Also: HOUSTON, Oct 14, 2002, BUSINESS WIRE -- ConocoPhillips and Bechtel Corp. have agreed to renew their collaboration of pursuing worldwide liquefied natural gas (LNG) projects. ... The ConocoPhillips' Optimized Cascade LNG Process was first used in 1969 in the company's gas liquefaction plant on the Kenai Peninsula in Alaska. Designed and built by Bechtel, the facility was the first to ship LNG to Japan and the first to use gas turbines to drive its compressors. It has demonstrated more than 32 years of uninterrupted supply to Japanese customers.)    

U.S.:  Happy Columbus Day!                          

Canada: Happy Thanksgiving Day!

10-14-02 Updates: 00:46, 11:03, 11:11, 11:33, 13:13, 17:39 ET.  Northern News Services by Terry Halifax-Yellowknife - As Canada gets set to ratify the Kyoto Protocol, recent reports have surfaced saying that Kyoto would be a hazard to the completion of a Mackenzie Valley pipeline.  Last week at a Calgary conference, Alberta Energy Ministry Murray Smith (NGP Photo, 6-4-02) called Kyoto an "economic rock" and other reports have said that compression stations along a Mackenzie Valley natural gas pipeline may be in violation of the accord.  Roland George (NGP Photo, 11-30-01), the senior official responsible for North American natural gas practices, with Purvin & Gertz, Inc. -- an international energy industry consulting firm -- said ...  because greenhouse gas emissions are counted on a countrywide basis, any one project or plant would not necessarily be in violation.     *      National Post by Tony Seskus and Robert Fife, OTTAWA - The federal government conceded yesterday that implementing the Kyoto Protocol on climate change could cost the Canadian economy as many as a quarter of a million jobs, and $21-billion in output, by the end of the decade.  (Ref. gas pipeline implications.)    *    See below for this week's ENERGY BILL STATUS.   *  ALASKA'S FISCAL CRISIS.  ADN-Here is the 16th question-and-answer in our "Candidates' Entrance Exam" on Alaska's fiscal picture. Q: How much would the state's mining industry have to grow to make mining revenues large enough to fill the fiscal gap? A: Mining revenues would have to increase 17,200 percent. Mining produces roughly $5 million a year in state revenue. It would take a 172-fold increase in those mining revenues to fill the projected $860 million fiscal gap in this year's budget.  (Reference.)           *     Our 117,777th reader, Bart Baker (of Houston), won a Band ANWR CD (demo clip, courtesy of Gary Webster, NGP Photo) and an original Alaska Seaweed Bookmark (Courtesy of author's spouse).  Congratulations, Bart!     *     REMINDERS: Invitation: Tomorrow, the International Association for Energy Economics will present a major forum on Ballot Proposition #3, the “All-Alaska Gasline Initiative”.  Speakers will include Scott Heyworth, proposition sponsor; Rep. Jim Whitaker, Fairbanks; Larry Persily, Alaska Department of Revenue; and, George Findling, ConocoPhillips; moderated by Rose Ragsdale, Anchorage Chronicle.  (See earlier Prop. #3 reports, Alliance and Chamber.  Also: HOUSTON, Oct 14, 2002, BUSINESS WIRE -- ConocoPhillips and Bechtel Corp. have agreed to renew their collaboration of pursuing worldwide liquefied natural gas (LNG) projects. ... The ConocoPhillips' Optimized Cascade LNG Process was first used in 1969 in the company's gas liquefaction plant on the Kenai Peninsula in Alaska. Designed and built by Bechtel, the facility was the first to ship LNG to Japan and the first to use gas turbines to drive its compressors. It has demonstrated more than 32 years of uninterrupted supply to Japanese customers.)     *     Invitation: join Dave Harbour of Northern Gas Pipelines for the Arctic Gas Symposium in Houston.

10-12/13-02 Weekend updates. ENERGY BILL STATUS.  Friday night, Senate Energy Committee Communications Director, Bill Wicker kindly gave us this weekend comment as a supplement to his Friday report: "I think it's safe to report that all the "energy" in this conference is presently focused on electricity/RPS. Once some result is reached on electricity, I believe all the remaining pieces (climate, taxes, ethanol, ANWR, etc.) will quickly drop into place.  Talks continue next week ...."

10-11-02 Updates: 01:45, 02:37, 11:03, 11:26, 11:51, 12:45, 20:20, 22:46 ET.  MOST IMPORTANT, CURRENT, IN-STATE, ALASKA GAS PIPELINE POLICY ISSUE-Yesterday's Alliance breakfast in Anchorage featured a review of Ballot Measure 3 (BM3), the Alaska Natural Gas Authority.  Alliance President Jack Laasch (NGP Photo) introduced General Manager Larry Houle to describe BM3 and Roger Marks, Alaska Department of Revenue discussed policy implications and implementation of a law which passage of BM3 would create.  PLEASE SEE OUR COMPLETE REPORT AND EVENT PHOTOS HERE.     *     ENERGY BILL STATUS (For majority of pertinent reports, scroll down last 3-5 days).  Senate Energy Committee Communications Director, Bill Wicker tells us, "What we know".  By message last night, Wicker said, "The 107th Congress has started its wind-up. Not much time is left to finish the conference report and vote out a bill. Members (mainly Tauzin & Bingaman) are working through mighty difficult issues. Sometimes staff is in the room, sometimes not; whether inside or out, everyone is taking this seriously, toiling hard. Most of the discussions now are about electricity and the RPS. The options before us: A) a comprehensive bill, B) a scaled back bill, and C) no bill. (We're battling for the comprehensive bill.) ...few staffers -- at least on my side -- are keen to talk to the media at this delicate time.  What we don't know: If agreements can be reached, and when? Will we get to a bill at all, and will it be a Big Bill or a little bill? What will stay and what may drop out? The exact deadline for when discussions must end to allow time for a vote, on both sides of the Capitol? What the conference report will look like (it's not yet written)? And what is the exact day the Senate and House will adjourn/suspend for the elections, and conditions that leadership may put on that recess?"   We stand on our September 4 and 25 analyses, always hoping for our 9-24 outcome.  (House leaders are staying in session longer, giving hope to passage of at least a reduced energy bill.  -dh)         KYOTO UPDATE: Calgary Herald-Lobbyists representing hundreds of small energy producers across Western Canada are firing off a letter to the federal government saying Kyoto fears are forcing banks to hold back lending.  "There's no doubt financing has dried up because there's just so much uncertainty. Things are getting tougher all the time -- banks just want to wait and see," said George Fink, chairman of the environmental committee for the Small Explorers and Producers Association of Canada, which represents 420 companies.  (Pipeline impact)  ,,,  CBC- Ottawa rejects Alberta's request for Kyoto delay   *      ALASKA FISCAL CRISIS: ADN, 10-11-02-Here is the 15th question-and-answer in our "Candidates' Entrance Exam" on Alaska's fiscal picture. Q: What percentage of state K-12 education funding would disappear if those dollars were used instead to fill the fiscal gap?  A: One hundred percent. Stripping every penny of K-12 education would not be enough to fill the fiscal gap. Lawmakers projected a gap of $860 million in this year's budget. K-12 foundation funding, pupil transportation, quality schools initiatives, debt service (the state's share of local school debt), Mount Edgecumbe and state correspondence totaled just short of $800 million in general fund money in the budget for fiscal year 2002, which ended June 30.  (Further reference.)     *    Whitehorse Star-A project team from Nichols Applied Management, directed by managing principal Peter Nichols, will provide the minister and the territorial business community with a site analysis of the Yukon business and economic environment.     REMINDERS: Invitation: On Tuesday October 15, the International Association for Energy Economics will present a major forum on Ballot Proposition #3, the “All-Alaska Gasline Initiative”.  Speakers will include Scott Heyworth, proposition sponsor; Rep. Jim Whitaker, Fairbanks; Larry Persily, Alaska Department of Revenue; and, George Findling, ConocoPhillips; moderated by Rose Ragsdale, Anchorage Chronicle.     *     Invitation: join Dave Harbour of Northern Gas Pipelines for the Arctic Gas Symposium in Houston.

10-10-02 Updates: 00:01, 12:36, 13:01 ET.  Today's Alliance breakfast in Anchorage featured Ballot Measure 3, the Alaska Natural Gas Authority, Roger Marks {NGP Photo}, Alaska Department of Revenue.  We shall report.  See our reference.     *     Today's ADN opinion page-Here is the 14th question and answer in our "Candidates' Entrance Exam" on Alaska's fiscal picture. Q: Roughly what percentage of the state government work force would have to be laid off to fill this year's projected fiscal gap solely through personnel cuts?  A: If you take all state employees, including independent agencies and the university, the total payroll -- salaries and all benefits, including health insurance and retirement -- runs about $1.2 billion. When lawmakers passed this year's budget, they planned to balance it by taking $860 million from savings. To achieve $860 million in personnel cuts, you would have to lay off 72 percent of all state employees.  (Ref: our fiscal crisis page.)      *     ENERGY BILL STATUS (For majority of pertinent reports, scroll down last 3-5 days).  After a day of Iraq debate in both houses of Congress, Senate Energy Committee Communications Director, Bill Wicker, gave us this informal update last night: "Today, there were scattered meetings throughout the Capitol as Members and staff made a good-faith effort to see what is possible to resolve on the issues that still divide the energy conference. Said Jeff Bingaman, 'We'd still like to get a comprehensive energy bill. We're still in a position of trying. Members aren't ready to quit yet.'  The conference has some moving parts and loose ends that have to be addressed. We're continuing to look for ways to accommodate people and still end up with an acceptable bill that Congress can pass before it adjourns/suspends for the November elections. (Sorry, I don't know what day that will be.) Time is short ... but no one has quit trying."     *    REMINDERS: Invitation: On Tuesday October 15, the International Association for Energy Economics will present a major forum on Ballot Proposition #3, the “All-Alaska Gasline Initiative”.  Speakers will include Scott Heyworth, proposition sponsor; Rep. Jim Whitaker, Fairbanks; Larry Persily, Alaska Department of Revenue; and, George Findling, ConocoPhillips; moderated by Rose Ragsdale, Anchorage Chronicle.     *     Invitation: join Dave Harbour of Northern Gas Pipelines for the Arctic Gas Symposium in Houston.  /// (EBArchive, 10-3)

10-9-02 Updates: 00:50, 01:00, 10:49, 11:00, 11:14, 11:35, 12:15, 13:56, 17:59 ET.  ENERGY BILL STATUS.  Please check yesterday's report below for a mostly current review.  We will be adding updates for readers hour by hour as they occur, if they occur.  Optimism may be bowing to time constraints and attention to Iraq, but still springs eternal.  We suggest that our September 4 and 25 analyses remain relevant..  -dh     *   IN CANADA.  As reported yesterday, below, The Kwanlin Dun First Nation Government yesterday joined in support for the Alaska Highway pipeline project which will pass through approximately 150 kilometers of its traditional territory (See map).   According to a news release, which readers may review here, "the First Nation is distressed at the hostility expressed by Canada to the pipeline incentives contained in the U.S. Energy Policy Act. This is a position it feels is inconsistent with domestic Canadian policy given the subsidies the Canadian government has put in place to support frontier oil and gas development."   Chief Rick O’Brien said, “On the one hand Federal Ministers attack the U.S. proposals for risk sharing contained in the proposed Energy Policy Act while conveniently ignoring the fact that Canada has often and continues to give incentives to major energy projects in Canada.”  Readers may review press conference remarks O'Brien made, saying, "Our First Nation is the largest in the Yukon and our Traditional Territory includes the Yukon’s capital city of Whitehorse and a large portion of the proposed Alaska Highway pipeline route."  Trevor Harding, Managing Partner of Zero Gravity Inc., kindly provided us with relevant news references.  ... Kwanlin Dun leaders will be in Ottawa this week for meetings with Minister Robert Nault and other officials, countering an opposing effort in Washington.  (See today's AP Story).        *        CBC-RICHMOND, B.C. - Ottawa has unveiled a $246-million aid package to help people hurt by in the softwood lumber dispute with the U.S. (Ref.)

This week's Energy Bill Conference information is coming....  See Bill Wicker's unique insight.  See today's Washington report from John Katz (12:10 ET).  See Canadian/Alaskan views: Harvie Andre, Hart Searle, Jerry Taylor, Bob King.  See Nellie Cournoyea's APG appeal to the Prime Minister.

10-8-02 Updates: 01:15, 01:42, 02:08, 02:38, 03:27, 10:37, 12:14, 12:43, 14:33, 15:45, 20:04 ET.  H. R. 4 Energy Bill Conference.  Last week we reported activities of those opposed to gas pipeline incentives.  In today's report (below), the Whitehorse Star reports on a First Nations lobbying effort in support of those incentives.  Yesterday, we received a report sent to us by Rep. Joe Green (NGP Photo, 10-23-02) Vice Chairman of the Alaska Legislature's Joint Committee on Natural Gas Pipelines.  Green just returned from a Washington trip during which he and Committee Chairman John Torgerson were lobbying in support of ANWR and gas pipeline provisions.  Click here for Green's report, kindly provided by Beth Butcher in his office.   Torgerson remains on Capital Hill this week, continuing the effort.     *      Whitehorse Star, by STEPHANIE WADDELL - An Alaska Highway pipeline might not be the answer to all the territory’s economic woes, but it could help give it a small boost.   “There’s really nothing happening,” Kwanlin Dun Chief Rick O’Brien told reporters at a press conference outside Whitehorse International Airport this morning.  The chief, along with Darwin O’Brien, the Kwanlin Dun’s councillor in economic development, and Mike Smith, negotiator for Kwanlin Dun land claims, flew to Calgary this morning to begin a week-long campaign in support of an Alaska Highway pipeline. ... “On the one hand federal ministers attack the US proposals for risk sharing contained in the proposed Energy Policy Act, while conveniently ignoring the fact that Canada has often and continues to give incentives to major energy projects in Canada,” he said.  Meetings throughout the week range from those with BP Canada Energy Co. on Tuesday to Department of Indian Affairs and Northern Development Minister Robert Nault.  Rick O’Brien was quick to point out that the Kwanlin Dun First Nation has been promoting and preparing for the Alaska Highway route for some time.  ... An Alaska Highway pipeline would provide jobs, economic opportunities and numerous other benefits to the Yukon and the country. It could promote energy supply stability, open new domestic gas reserves and the provision of billions of dollars to government in revenue, Rick O’Brien said.  ... “The time has come for the Canadian government to stand up for economic development in the Yukon and northern B.C. instead of trying to strangle what few opportunities exist,” Rick O’Brien said....     *     For unique insight on this week's Energy Bill conference work, Bill Wicker, Communications Director, Senate Energy Committee, tells us: "Clearly, we are heading into the final stretches of the energy conference.  Whether or not we reach the finish line depends largely on how some major issues shake out and how much time really is left in this 107th Congress.  The answer should make itself known over the next 4-5 days as things play out. To a great extent, the groundwork has been laid for a successful conclusion of this conference; now we'll wait to see if the dominos fall into place.  A lot is left to do, and not a lot of time to do it. No one working on this conference has been deluded into believing differently. The three most recent conference meetings, in which very little was accomplished beyond a few offers and a lot of huffing and puffing, can lead conference watchers to conclude that they're observing a death watch of sorts on the energy bill.  But the "public face" of the conference does not necessarily match up with what really is going on.   The backdrop to these recent meetings is the continuing struggle to craft an acceptable  energy bill. The kinds of negotiations occurring right now, out of view, are precisely what happens at this stage of any big conference (e.g., Defense Bill, Farm Bill, Approps bills, etc.). It's all part of the process. The lack of transparency maddens many, who criticize the process. But such criticism betrays a lack of understanding in how conferences work -- for better or worse, that's the system we've got.     *     AP-Next year's Alaska Permanent Fund Dividends may be zero.       *          Alaska's long time Washington representative, John Katz (Director of State/Federal Relations in the Governor's Office) kindly provides us with this update: "The energy conference ended last week on an inconclusive note.  ANWR and the gas pipeline were not mentioned in the concluding session.  In addition, no other major issues, such as climate change, ethanol, and electric energy restructuring, were resolved.  -  The conference was originally scheduled to meet today.  However, little progress was apparently made by members and staff in private sessions which occurred over the weekend and yesterday.  So, today's public meeting may be postponed.   -  In any event, much of the original momentum seems to have dissipated, at least for the moment.  The conference committee may be running out of time, although it is likely that the Congress will remain in session next week and may come back for a lame duck session after the election.  Obviously, this would give the conferees more time, and perhaps the mid-East situation and higher winter energy costs will contribute to a sense of urgency.  -  Unfortunately, it seems unlikely that ANWR will be included in any final bill, since proposals to scale down the House approach or to link ANWR with other energy issues have proved unavailing so far.  We have made significant progress with the gas pipeline title generally, as the conferees have included most of the Senate language supported by the Knowles-Ulmer administration and the Alaska Congressional delegation.  However, the jury is still out on fiscal incentives for the pipeline.  At least three incentive packages are currently under discussion, including the original Senate language and BP's four part alternative.  -  As of this writing, private discussions are continuing among various combinations of Democrats and Republicans to decide the future of energy legislation, in general, and fiscal incentives for the pipeline, in particular.  My guess is that the current situation will become clear in the next day or so."      *    Financial Post by Tony Seskus, CALGARY - A major proponent of an offshore Alaska pipeline is carrying the fight to the wire with an intense Washington lobbying effort to derail proposed incentives for a rival Alaska Highway project. ... Harvie Andre, chairman of ArctiGas, believes if the incentives for the Alaska Highway route fail to make it into an energy bill or the bill dies altogether, its proposed route becomes the favourite and its project could win the day. ... Jerry Taylor, an energy policy expert at the CATO Institute in Washington, believes the U.S. energy bill has only a 30% chance of getting approval now.  ... "I heard [the odds] were more along the lines of 50-50, but the trend was not positive, that's for sure," said Bob King, a spokesman for Tony Knowles, Alaska's Governor. ... "We are not affiliated with ARC, we are not working with ARC and we do not support the ARC proposal," said Hart Searle, a spokesman for Imperial Oil and the Mackenzie Delta Producers Group.  ... "We know ARC is promoting the 'over-the-top' solution, but the Alaska producers are also studying a similar route. We are not closed to that at all, but our current project is proceeding on a standalone basis."       *      Mackenzie Valley Pipeline requires Federal support.  See recent letter from Aboriginal Pipeline Group Chair, Nellie Cournoyea, to the Prime Minister: NNS story.  Calgary Herald.      *      REMINDERS: TODAY: Energy Secretary Spencer Abraham will host a ceremony in Washington to honor employees, especially some 2,000 who have been with the department since its inception in 1977.  Joining the current Secretary, will be former department heads, including James Schlesinger (1977-79), James Edwards (1981-82), James Watkins (1989-93) and Hazel O'Leary (1993-97).     *    "Music for Energy Bill Conferees? (Demo Clip for NGP Readers)".  It had to happen.  A patriotic group of Alaskans with no outside funding has organized a rock and roll band called "ANWR"....       *      Invitation: On Tuesday October 15, the International Association for Energy Economics will present a major forum on Ballot Proposition #3, the “All-Alaska Gasline Initiative”.  Speakers will include Scott Heyworth, proposition sponsor; Rep. Jim Whitaker, Fairbanks; Larry Persily, Alaska Department of Revenue; and, George Findling, ConocoPhillips; moderated by Rose Ragsdale, Anchorage Chronicle.     *     Invitation: join Dave Harbour of Northern Gas Pipelines for the Arctic Gas Symposium in Houston.  /// (EBArchive, 10-3)

10-7-02 Updates: 02:06, 10:58, 11:06, 12:29, 14:26, 17:28, 19:22 ET.  New presentation added, Far North Oil & Gas Conference: Greg Komaromi, Director, Oil and Gas Business Development, Government of Yukon.   *    Whitehorse Star-Premier Pat Duncan calls election.    *    (Note:  one of the reasons Alaskans are so determined to have the HR4 Conference committee recommend ANWR and gas pipeline provisions in the pending energy bill is to support failing state revenues {story below}.  While North American dependence (U.S., actually) on M