11-29 Updates: 00:15, 02:51, 03:00, 03:19, 03:25, 10:16, 10:29, 16:40, 23:38  ET.  CBC, Calgary - More than 100 people are out of work after Conoco-Phillips Canada cut jobs at its head office. … Conoco spokesman Peter Hunt said the company is trying to make its operations more efficient.   "It doesn't really have any effect on the major projects," Hunt said of the job losses. "We're continuing to work on the development of Arctic gas, working in the producers group consortium, and our work there is going very well."    *      GAS PIPELINE INCENTIVES. Alexander’s Oil & Gas Connections-A proposed $ 40 bn natural gas pipeline connecting Alaska to the lower 48 states is strongly opposed by Gulf of Mexico producers because they say it gives companies operating in Alaska an unfair competitive advantage. Also, the $ 40 bn it will take to build the Alaska Highway Natural Gas Pipeline will not need to be repaid unless natural gas prices rise above $ 4.85 per 1,000 cf. Henry Hub natural gas prices closed up 7 cents at $ 4.30 mm cf, one of the highest levels all year.   (Note-this report is erroneously based on a 'placeholder' incentive formula not being considered in final negotiations, though NGP readers will find the article otherwise interesting, especially comments related to rising demand for Arctic gas.  -dh)     *     KYOTO.  CBC, Edmonton - The federal government knows Alberta will lose 10,000 jobs if the Kyoto Protocol is ratified, Alberta's Minister of Economic Development claims.  Mark Norris has written his federal counterpart, Allan Rock, asking to see a study he says contains the numbers.  Frasier Institute,   London, ON - Prime Minister Chretien’s plan to impose ratification of the Kyoto Protocol is unpopular with large manufacturers in Ontario. A poll of 100 companies, conducted by Nordex Research, reveals that 62 percent of respondents oppose ratification before the end of the year; 20 percent support it, and 18 percent do not offer an opinion.      *        RUSSIAN HELP/COMPETITION.  (Dow Jones) - Four of Russia's biggest oil companies are planning to build a $1.5 billion Arctic oil port that could eventually help ease U.S. reliance on Mideast oil by supplying as much as 10% of American crude imports, company officials told The Wall Street Journal.  *   LIFE IN THE NORTH.   CBC, YELLOWKNIFE - It's almost impossible to find an apartment in this city, and a recent report by the Canada Mortgage and Housing Corporation says it's only going to get worse.   *   CBC, WHITEHORSE, YUKON - Motorists were being warned to stay off the Alaska highway south of Watson Lake Tuesday night.  ALASKA: REGULATORY REFORM.  A regulation revision package improving the permitting process for development projects proposed in Alaska's coastal zone became final Wednesday with the filing of the regulations in the Lt. Governor's office.  The action completes action on the regulation revisions following a comprehensive three-year public and agency review process.  "We appreciate the three years of effort led by the Knowles Administration to complete this new regulatory package," said Judy Brady, Executive Director of the Alaska Oil and Gas Association.  Final approval of the regulations was given by the Alaska Coastal Policy Council on November 27, 2002. The regulations will go into effect on January 21, 2003.   *    In a message to supporters this week, U.S. Senator Ted Stevens gave his optimistic view of policy development: "I look forward to working with Governor Murkowski, Congressman Young, and Alaska's new Senator", he said. "I truly believe that we have an opportunity to get Alaska moving again – to leverage opportunities in oil, gas, fishing, mining, timber, transportation & logistics, high-tech, and numerous other industries."

New Purchasing Officer reference page link: Essex Environmental

11-28.  Happy Thanksgiving!  Enjoy an hour or two surfing links here today.  We're already working on Friday's report!

Father God: We thank you for the gifts of life and freedom.  We are grateful for forbearers who earned our freedom by their sacrifice.  We dedicate ourselves to preserving their legacy through our own diligence, courage and sacrifice, whenever such service may be summoned.  We pray that freedom spreads to every corner of the earth and that all who possess it shall cultivate and defend it.  We ask for your omniscient guidance and omnipresent protection on the path ahead.    Amen.  -dh

11-27 Updates: 00:44, 13:41, 02:22, 11:24, 14:36, 15:15, 15:50 ET.   Now complete: Arctic Gas Symposium reports, outline of gas pipeline incentive package, and large photo gallery.   *   More on TAPS renewal and Alaska fiscal report coming...several of the downloadable presentations have not yet come in. 

11-26 Updates: 00:15, 01:43, 02:00, 10:59, 11:33, 11:52, 12:20, 12:38, 12:56, 13:05, 13:48, 14:20, 19:22, 19:36, 20:22 ET.  ARCTIC GAS SYMPOSIUM.  Today, we are uploading our full report, with photos and presentation downloads, including an important 2003 outlook from Shirley Neff (NGP Photo), Chief Economist for the U.S. Senate Energy and Natural Resources Committee. Please find the material here, still being added after 19:36 ET.....  *    KYOTO.  CBC-Debate begins slowly.    *     PIPELINE APPROVALS.  Rhea DoBosh of the Joint Pipeline Office tells us of two important events today:  First: State of Alaska Lease Renewal for the Trans-Alaska Pipeline and Five North Slope Pipelines:  Governor Tony Knowles and Department of Natural Resources Commissioner Pat Pourchot will be signing the Trans-Alaska Pipeline System (TAPS) Right-of-Way Lease Renewal and the renewal for the Endicott, Kuparuk, Kuparuk Extension, Milne Point, and Oliktok North Slope pipelines. The ceremony will be held at the Anchorage Museum of History and Art today at 10:30 a.m.  (Ref. Wesley Loy's ADN story)  Second:  The Right-of-Way Lease for the Kenai Kachemak Pipeline is scheduled for signing today, also at the Anchorage Museum of History and Art, 1 p.m.  The public is welcome to both events.   ALASKA FISCAL CRISIS UPDATE.  Today, The Department of Revenue will release its Fall 2002 Revenue Forecast.  Revenue Commissioner Wilson Condon will announce the forecast in Anchorage at the Department of Revenue fifth floor conference room in the Atwood Building, 550 W. Seventh Ave. Tax Division Director Dan Dickinson and Chief Petroleum Economist Chuck Logsdon also will participate in the press conference from Anchorage.  Deputy Commissioner Larry Persily will participate in the press conference from the Governor’s Office third floor conference room in the Capitol in Juneau.

11-25 Updates: 01:30, 01:50, 02:10, 12:26, 13:35, 13:45, 14:17, 15:30  ET.  ALASKA TRANSITION ACTIVITY.  ANCHORAGE-On Saturday, the Governor-elect Frank Murkowski transition team hosted a town hall style meeting to accept public comments on the new administration's policies.  The meeting opened at 11 a.m. at East High School, with introductory remarks to the some 200 citizens from former House Speaker Gail Phillips and former legislator Alice Hanley.  The two urged the public to provide policy comments both during the meeting and directly to the transition team via email: anchtransition@alaska.net (We would urge NGP readers in the US and Canada to respond with gas pipeline policy suggestions.  The specific question they are addressing is, "What steps should the state take to encourage building a gas line?"  Our readers may ask further questions by contacting the Natural Resources issue group Co-chairs, below.  -dh).  Your author attended the 'issues group' focused on Natural Resources and the Environment, co-chaired by Steve Borrell, Executive Director of the Alaska Miners Association (907, 563-9229) and Judy Brady, former Commissioner of Natural Resources and Executive Director of the Alaska Oil and Gas Association, (907, 272-1481).  Your author suggested that the administration carefully analyze the balance of risks and benefits as gas pipeline policy is implemented.  A state-owned LNG project envisioned by the recently passed Proposition 3 shifts risks from gas producers to Alaska citizens.  A less economic project provides fewer revenue benefits to citizens and more construction benefits to contractors and higher tax risks to all.  Federal support shifts risk from investors to taxpayers but provides benefits to national security and consumers.  As government seeks to manipulate gas pipeline incentives and value added benefits, industry investment in the state could be affected.  Mike Pilowski said, "We need to look at obstacles to investment before incentives."  He said the state, "should not look to oil and gas companies to solve Alaska's fiscal problems."  He suggested a state could ultimately achieve more revenue by causing more production than by raising taxes.  Gary Carlson spoke of the wisdom of sharing infrastructure, leading to greater efficiency.  John Doyle cautioned that, "Alaska's natural resources are subject to global forces; we have many competitors," he said, "that can provide resources cheaper than we can."  Malcolm Roberts said, "Alaska can be a model for the world of 'how to do it right'.  We can tap our resources in such a way that we show the world how it can be done properly," he said. (NGP Photos above: participants)     *       In a speech to the Resource Development Council for Alaska late last week, outgoing Alaska Governor Tony Knowles (NGP Photo-left) presented a positive image of his administration's gas pipeline promotions as reflected in a transition paper he prepared for incoming Governor Frank Murkowski (NGP Photo).  The transition paper highlights the Alaska Highway Natural Gas Policy Council.  "This group covered a lot of ground," Knowles said.  "The council also developed key principles relative to federal action that helped craft the legislation that was part of this year’s federal energy bill."  Knowles discussed his support of failed Congressional legislation and touched on a key concern of Alaska's gas producers: fiscal certainty.  "While we made significant progress towards key issues surrounding state incentives, there is still much work ahead," Knowles said. "The upcoming legislative session will likely be the staging ground for identifying how the state, through possible fiscal incentives, can help a gasline project move forward.  We made progress, through our work with industry, to identify key issues surrounding fiscal clarity for a gasline project.  In our transition paper, we have identified the key areas that will require future discussions and negotiations between the state and industry."  NGP readers may download the complete gas pipeline transition document here.    *   CONFERENCE: Steve Becker (Photo), vice-president of gas strategy for TransCanada PipeLines Ltd., Calgary, told Ziff Conferees that 2003 is likely to be a key year for decisions on arctic pipeline projects. (Note: while we reported on this conference earlier, today we added a link for Becker's downloadable presentation, courtesy of Ruth Glover.  -dh)

11-23/24 Weekend Updates.   ADN by Sarah Schell-The Agrium chemical plant in Nikiski will have enough gas for the next 30 days to operate up to capacity, Agrium Inc. announced.     *     National Post, by Claudia Cattaneo and Tony Seskus, CALGARY - Canadian Natural Resources Ltd. -- developer of an $8-billion oilsands plant -- said yesterday Ottawa's new Kyoto scheme still threatens investment in the region and warned uncertainty over the deal has already pushed $100-million of the company's cash out of the country.  Real Doucet, leader of the company's proposed Horizon project in northeast Alberta, said the Kyoto plan revealed Thursday did not bring the clarity required to make critical decisions.

11-22 Updates: 01:15, 01:44, 13:27, 13:36, 13:41, 14:03, 15:10 ET.

RDC's Alaska Resources 2003: "Evolving Industries and Issues", 23rd Annual Conference Agenda features a Who's Who of Alaska industry/government representatives @ Sheraton Anchorage Hotel.

CBC, PRAGUE - Prime Minister Jean Chrétien has refused to accept the resignation of his communications director, Françoise Ducros, who reportedly called U.S. President George W. Bush....  (Even more reason for the Chiefs-of-State to come together, as we have urged.)

ANCHORAGE, Alaska (Reuters) by Yereth Rosen - The Bush administration is considering loosening Clinton-era policies that limited oil development on some environmentally sensitive areas of a federal reserve on Alaska's North Slope, the U.S. Bureau of Land Management's top Alaska official said on Thursday.  (BLM Alaska Director Henri Bisson)

BALLOT PROPOSITION 3.   Valdez Star by Pat Lynn--In a strange turn of events, the Alaska Gasline Port Authority, which was formed to build a natural gas pipeline from the North Slope to Valdez, contributed $15,000 toward an effort to defeat that same measure at the polls Nov. 5.     *     MACKENZIE VALLEY PIPELINE.   Northern News Services by Terry Halifax, Yellowknife - … Hart Searle, spokesman for the Mackenzie Gas Project (MGP), said the comments from Natural Resource Minister Herb Dhaliwal were regarded by the group as just one of the many twists and turns involved in a major undertaking.  "We're optimistic that this funding issue will be addressed and resolved quickly and we'll continue to move forward," Searle said. "On big projects like this, it's never smooth sailing. There's always dips and bumps along the way and you have to work with them."   … The MGP held its open sessions over the summer to gauge producer requirements for a Mackenzie Valley pipeline. Searle said the results were pleasing to the group. … "The design of the proposed pipeline will handle an initial gas volume of 1.2 billion cubic feet per day," Searle said. "That would be expandable to 1.9 b.c.f per day, by adding compression facilities."   The initial design will be used as a project description for the regulatory application that the groups expects to file late in 2003. … "A final decision on pipeline capacity can only be made on the basis of firm shipping commitments," Searle said. "We don't have that yet. This was a non-binding expression of interest." … The MGP will file the application, hearings will be held and, assuming there is a favourable decision made in the hearings, the approval to start construction.  Searle estimates that will come around late 2004 or early 2005.    *      EIA'S 2003 ANNUAL ENERGY OUTLOOK.  As has been typical over the past few years, energy prices were extremely volatile during 2002. Spot natural gas prices, about $2 per thousand cubic feet in January, rose to between $3 and $4 per thousand cubic feet by the fall. Average wellhead prices, which are moderated by the inclusion of natural gas bought under contract, also increased over the year. Crude oil prices also rose in 2002, mainly because of reduced production by the Organization of Petroleum Exporting Counties (OPEC) and, to a lesser degree, fears about the potential impact of military action in Iraq. Crude oil prices began 2002 at roughly $16 per barrel and were between $25 and $30 per barrel by the fall. ... A major consideration for energy markets through 2025 will be the availability of adequate natural gas supplies at competitive prices to meet growth in demand. AEO2003 projects growing dependence on major new, large-volume natural gas supply projects for both domestic and imported supplies to meet future demand levels, including deepwater offshore wells, new and expanded liquefied natural gas (LNG) facilities, the Mackenzie Delta pipeline in Canada, and an Alaskan pipeline that would allow delivery of natural gas to the lower 48 States.   Net imports accounted for 55 percent of total U.S. oil demand in 2001, up from 37 percent in 1980 and 42 percent in 1990. That trend is expected to continue.  (Thanks to William Horvath for this link.  -dh)         *     KYOTO.  CBC-EDMONTON - Alberta Premier Ralph Klein (NGP Photo) says he'll do everything in his power to protect Albertans from the economic impact of the Kyoto Protocol.     *    National Post by Claudia Cattaneo and Tony Seskus, CALGARY - Gwyn Morgan, the chief executive of Canada's largest energy company, warned yesterday Ottawa faces a "divisive disaster" and "years and years" of court battles if it moves ahead with its current plan for the Kyoto Protocol.  Mr. Morgan, head of EnCana Corp. and one of the most powerful critics of the climate change accord, said the federal government must find a way to reduce greenhouse gas emissions without dividing the country.       *        CBC- Edmonton - The Alberta government says it owns its natural resources – including emissions that fall under the Kyoto Protocol.   In the legislation introduced Tuesday, the first day of the fall session, the province is given the ammunition it needs to challenge the federal government on Kyoto, says Premier Ralph Klein.     *     Whitehorse Star by Chuck Tobin-The Kyoto Protocol is already costing northerners, says a local businessman who has been involved in the Mackenzie Delta exploration boom of late.  Don Cox of Northern Metalic Sales said he’s been told by a couple of Shell employees in Inuvik that the Kyoto debate is behind the significant reduction in Shell expenditures for its Mackenzie Delta operation for this winter. ... Figures provided by the Northwest Territories estimate exploration expenditures in the delta last year were $312 million, but are expected to fall below $100 million this winter. ... Shell spokeswoman Jan Rowley said Tuesday that Shell is rolling back its Mackenzie Delta operations after two years of seismic exploration activity to simply study the data. ... Heather Taylor of Devon Canada also disagrees with the suggestion that the Kyoto debate is behind the slowdown in activity in the Mackenzie Delta.  In the oil and gas industry, said Taylor, there is typically a slowdown in exploration expenditures following the rush of seismic activity. Companies need time to analyze the results before undertaking much expensive drilling programs.  In the case of the Mackenzie Delta, she said, some companies are just now receiving the results of the seismic work.  “The oil and gas companies are going ahead with business as usual until the federal government give us something concrete to do with Kyoto.” ... Walter Robinson of the Ottawa-based Canadian Taxpayers Federation said he has no doubt Kyoto was a factor in the Mackenzie Delta slowdown.  The federation is hearing oil and gas producers are taking a wait-and-see attitude, Robinson said.  “Everybody is saying, ‘Let’s take a step back here and see how Kyoto takes shape over the next few weeks and months.’”  ... A report commissioned by the federation and authored by University of Guelph (Ont.) professor Ross McKitrick was released last week. It condemns the Kyoto Protocol as costly, and calls the need for such an accord questionable.    *     OTTAWA (Upstream) - Canada today softened plans for implementing the Kyoto climate-change accord in a bid to placate unhappy provinces and industry groups who fear that cutting greenhouse gases would cause serious economic damage.

11-21 Updates: 10:00, 10:22, 10:37, 11:57, 12:24, 16:45 ET.  Readers may download this "Oil & Gas Industry Issues and Activities Report", courtesy of Bill Popp (NGP Photo above, 9-23-02), Oil and Gas Liaison, Kenai Peninsula Borough.  (Note: Alaska's most populated areas enjoy up to a 1/3 greater supply of gas reserves than average U.S. regional reserves.  Based on proven reserves, that is about a 10-year supply assuming full throughput goes to industrial users who consume over half of the production.  The report expresses concern about long-term supply but optimism for medium- and long-term exploration success.  The report's author also suggests how Alaska's state government could reform its regulatory process to encourage exploration: "Based on several contacts I have made with industry representatives, it is the perception of the oil and gas industry that the regulatory and permitting processes of the State of Alaska have become so cumbersome, capricious and confusing that it is deterring new development rather than guiding and controlling it as was originally intended.  Permitting processes have become too complex, contradictory and illogical from the industry’s perspective."   This report may serve as a useful addition to the 'Alaska case histories' of Canadian provincial and territorial oil and gas departments...and provide useful counsel to the incoming administration of Governor-elect Frank Murkowski.  -dh  Other reference: Kenai Peninsula Clarion.)      *   CBC, EDMONTON - Alberta's Heritage Savings Trust Fund has lost $1.3 billion since last March. Second quarter figures show the value of the provincial fund is $11.1 billion.   *   NNS by Paul Bickford-Fort Providence - A bridge over the Mackenzie River at Fort Providence is a step closer to reality. On Nov. 15, the territorial government (GNWT) and the Fort Providence Combined Council Alliance signed a memorandum of intent (MOI) to construct the Deh Cho Bridge.    *     CQ, Washington-The Senate passed a final adjournment resolution early (yesterday), while the House returns for a pro forma session Friday to give approval by unanimous consent to legislation (HR 5005) creating a new Department of Homeland Security. The House then will adopt the sine die adjournment resolution (S Con Res 160) before the 107th Congress will come to its official end.  (Yesterday, Senate Energy and Natural Resources Committee Communications Director Bill Wicker kindly provided us with this final listing of land bills passed this week.)     

NGP Friends:  We are returning home after participating in the Arctic Gas Symposium this week.  We will try to process updates soon and give readers a full Symposium report later this week.    -dh  Tuesday's agenda of the Arctic Gas Symposium included: Shirley Neff, Chief Economist, U.S. Senate Energy and Natural Resources Committee; Wayne Sartore (NGP Photo), Vice President, Northern Pipeline Development, Enbridge, Inc.; Doug Anguish, Project Manager, Northern Pipelines Project; Jack Eidson, Manager of Special Projects, Lockheed Martin Technical Services.  Monday, some media friends covered the event, including: Kim Benestante of Williams Energy News Live, Andrew Kelly of Energy Intelligence Group, and Jim Magill of Platts' Gas Daily.  Speakers included Senator John Torgerson-Alaska (NGP Photo below, left) Minister Roger Allen-GNWT (NGP Photo below, right); Larry Houle-Alaska Support Industry Alliance; Roger Soucy--Petroleum Services Association of Canada; Professor Ron Oligney-University of Houston; Michel Scott-Devon Canada; John Carruthers-BP Alaska-Canada Gas; Matt Janisch-BMO Nesbitt Burns; Roland George-Purvin & Gertz; Jim Harrington-Houston Energy Group; Forrest Hoglund-Arctic Resources Company. (MANY EVENT PHOTOS, REPORTS AND PRESENTATION DOWNLOADS COMING.)

11-20-02 Updates.  NGP Friends:  We are returning home after participating in the Arctic Gas Symposium this week.  We will try to process updates soon and give readers a full Symposium report later this week.    -dh  Tuesday's agenda of the Arctic Gas Symposium included: Shirley Neff, Chief Economist, U.S. Senate Energy and Natural Resources Committee; Wayne Sartore (NGP Photo), Vice President, Northern Pipeline Development, Enbridge, Inc.; Doug Anguish, Project Manager, Northern Pipelines Project; Jack Eidson, Manager of Special Projects, Lockheed Martin Technical Services.  Monday, some media friends covered the event, including: Kim Benestante of Williams Energy News Live, Andrew Kelly of Energy Intelligence Group, and Jim Magill of Platts' Gas Daily.  Speakers included Senator John Torgerson-Alaska (NGP Photo below, left) Minister Roger Allen-GNWT (NGP Photo below, right); Larry Houle-Alaska Support Industry Alliance; Roger Soucy--Petroleum Services Association of Canada; Professor Ron Oligney-University of Houston; Michel Scott-Devon Canada; John Carruthers-BP Alaska-Canada Gas; Matt Janisch-BMO Nesbitt Burns; Roland George-Purvin & Gertz; Jim Harrington-Houston Energy Group; Forrest Hoglund-Arctic Resources Company. (MANY EVENT PHOTOS, REPORTS AND PRESENTATION DOWNLOADS COMING.)

Houston-Today, Kim Benestante (NGP Photo) of  Williams Energy News Live will present a report from our Arctic Gas Symposium.  She interviewed several participants and will run an interview of Alaska Senator John Torgerson today.  Sign in and check here!    *     Alaska Governor Update: On 2 December, Governor Elect Frank Murkowski will be sworn into office and by 7 December he will appoint his successor in the U.S. Senate.     *    CBC, EDMONTON - Premier Ralph Klein's government will unveil its plan to deal with climate change when the fall session of the legislature begins Tuesday.  "It will clearly put a framework in place for the things we are entitled to do, and ought to do," said Dave Hancock, the government house leader.   *     CBC, YELLOWKNIFE, N.W.T. - A bridge across the Mackenzie River at Fort Providence is one step closer to becoming a reality.  The committee in Fort Providence pushing the project is about to sign a memorandum of understanding with the territorial government.  The document outlines the conditions for both sides to get the necessary work permits so construction can start.  Michael Mcleod, a member of the Deh Cho bridge committee, says the community gave the bridge committee the go-ahead to sign the document this week.     *    Our 130,000th reader appreciation prize is being sent to Jennifer Bidlake Schroeder in Calgary!

11-19-02 Updates, Houston.  CBC-WHITEHORSE, YUKON - The Yukon Party caucus has decided their leader should use the title "Premier", rather than "government leader".  The party says all other provincial and territorial leaders are called "Premier". Since Dennis Fentie will be meeting with them on various issues, they feel he should have the same title.   *   Northern News Services by Paul Bickford, Hay River  - A three-day introduction to pipelines was held last week in Hay River for potential workers from various Deh Cho communities.  The safety and orientation program was presented by EOS Pipeline and Facilities Inc., a Calgary company which has worked in the Cameron Hills and hopes to do so again this winter.  Forty participants came from Fort Simpson, Fort Providence, Jean Marie River, Nahanni Butte, Trout Lake, Wrigley, Kakisa, West Point and Hay River.  EOS president Dean Peterson explains his company wants to maximize the number of local workers, but adds it is difficult for a new worker to enter a workplace. ... Peterson says the participants -- who ranged in age from 18 to 60, and included two women -- are looking to get into the industry. ... One of the participants was Jason Villeneuve, 30, from Fort Simpson. ... There is opportunity in the industry, he says. "I'd like it as a trade or a career."  Another participant was Patrick Chicot, 34, of Kakisa.  "It's good to get into different stuff because your chances for work are better," Chicot says....

11-18-02 Updates:  Houston.  We just received a message sent Friday by Bob McLeod Deputy Minister, Resources, Wildlife and Economic Development.  In the message, McLeod quotes his Minister, Jim Antoine (NGP Photo) responding to the U.S. Congress' not passing an energy bill this month.  "The draft bill was deeply flawed by the provision of a floor price subsidy for Alaskan North Slope gas," Antoine said. The message went on to point out that the Government of the Northwest Territories, does not oppose the use of more traditional incentives such as accelerated depreciation allowances, loan guarantees and profit sensitive royalty regimes.  "We will continue our opposition to a price subsidy if Congress chooses to revisit this subject in the New Year," Antoine said.   (Note:  we continue to rest with our earlier editorial judgment in this area. -dh)     *     WASHINGTON (Dow Jones) - The U.S. strategic petroleum reserve has reached 592 million barrels, the highest level in its 25-year history, the Department of Energy said Friday.  Energy Secretary Spencer Abraham said President George W. Bush's administration remains committed to filling the crude oil reserve to its capacity of 700 million barrels, citing the current high priority for U.S. energy security.    *      NEW YORK (Dow Jones)-BP PLC and other oil producers in the Alaska North Slope are resisting attempts by Alaska to tighten rules that may help prevent well explosions like that one that happened last August. … A final decision is expected in a few weeks, according to Jim Regg, a petroleum engineer for the Alaska Oil & Gas Conservation Commission who also is the spokesman for the agency. … BP spokesman Daren Beaudo said "new rules won't be helpful because monitoring and control of annular well pressure is a dynamic situation that can't be addressed by a one-size-fits-all rule. There are different operational variables to consider." … The Alaska Oil and Gas Association said it was also opposed to the proposed new rule.  "We do not believe that new regulations for annular communications would be beneficial," said the group in a statement.

11-15-02 Updates: 02:18, 10:59, 11:08, 12:13, 18:27, 19:30 ET.  COOK INLET SHORTAGES ADD PRESSURE FOR ANS GAS LINE TO PROVIDE IN-STATE SUPPLY. -dh  Anchorage Daily News by Jon Little-A clash of industrial titans is rumbling across the northern Kenai Peninsula, and it has the potential to send shudders through the region's economy.   Agrium, which runs a big Nikiski chemical plant, and Unocal, a dominant oil and gas producer, are in a tug of war over natural gas as Cook Inlet's reserves are stretched thin this winter.   The battle is casting a shadow over the stability of Agrium's plant, an economic mainstay that has produced fertilizer, high-paying jobs and millions of dollars in property taxes for nearly 35 years. … This plant alone accounts for 9 percent of the wage and salary income on the entire Peninsula, according to a newly released study conducted for the company by the McDowell Group, a consulting firm.  It has about 300 employees, who earn on average nearly $84,000 a year. … Unocal used to run the fertilizer plant, supplying its own gas. But it sold the facility to Agrium in September 2000. Part of the sale involved a contract in which Unocal promised to deliver gas at a comparatively low price from three specific gas reserves. Unocal was to supply 155 million cubic feet a day… Unocal is providing only 95 million to 125 million cubic feet per day between November and April.   "Unocal believes we're obligated to provide gas to them based on the reserves of the dedicated fields, and Agrium believes we're obligated to deliver full plant requirements," said Roxanne Sinz, Unocal's spokeswoman. "That's kind of what it boils down to in a nutshell."   … "Obviously, Agrium and Unocal are very important employers for the borough and important contributors to our property tax base, and we're hopeful they can work out their issue," said Bill Popp (NGP Photo above, 9-23-02), oil and gas liaison for the Kenai Peninsula Borough.   …  Stock analysts also are paying attention. A Toronto-based securities firm, First Associates Investments Inc., recently told investors the dispute is getting nastier and, if unresolved, could reduce Agrium's earnings by 15 cents a share.  … "The issue is really one of how much gas can be produced in a given day, because there's no gas storage," said Pat Burden, president of Northern Economics, an Anchorage resource consulting firm that studied the Inlet's gas supply. … Most of the natural gas produced in Cook Inlet comes from sites found incidentally by crews looking for oil, said Will Nebesky, a commercial analyst at the Alaska Division of Oil and Gas.   A flurry of new exploration in the past two years has produced mixed results, but Nebesky said he hopes to hear encouraging news about exploration scheduled to begin this winter.   Even then, it would take a year and a half to three years for a new gas field to come on line, Agrium officials said.      *       ALASKA LNG PROPOSAL.  Entitled, "What’s next for Ballot Measure 3?", Anchorage Chronicle Business Editor Rose Ragsdale (NGP Photo) has produced this in-depth article outlining the possible courses of action flowing from voter approval of a state owned Authority to build and operate a gas pipeline.  "The day after the Nov. 5 election, Scott Heyworth (NGP Photo) sat down with members of Gov.-elect Frank Murkowski’s transition team," the article begins.  “It’s wasn’t anything formal, more like scribbling on cocktail napkins,” recalled Heyworth, the chief proponent of the All-Alaska Gas Line Initiative.  “My task now is to convey to the governor-elect’s transition team the important things. I wanted them to know that we are eager to work with the Murkowski administration and that we have ideas for how to proceed.”  NGP readers may download the complete article here.  Here is Scott Heyworth's Op-Ed piece also appearing in the Chronicle.  Heyworth was the chief sponsor of Ballot Measure 3.   NGP readers may review our earlier reports here, including downloads of the proposition and the law its passage approves.  Here is our LNG page.    *       MACKENZIE VALLEY PIPELINE.  National Post by Tony Seskus and Claudia Cattaneo (NGP Photo), CALGARY - The size of the Mackenzie Valley pipeline, potentially the biggest development in the Canadian Arctic, could almost double to accommodate increased interest from explorers, its leading advocate said yesterday.  … Hart Searle said Imperial, which is leading a group of oil and gas producers backing the $4-billion project, will design the proposed pipeline to handle initial gas volume of 1.2 billion cubic feet a day, expandable to 1.9 billion cubic feet a day by adding compression facilities. … "A firm decision on pipeline capacity can only be made based on firm shipping commitments, and that's a process that is yet to come," Mr. Searle said. "But based on what we know so far, from this process to date, our design basis for the pipeline will be 1.2 bcf expandable to 1.9 bcf."  … News that Imperial is looking at expanding the line comes after a rival proposal for a pipeline to ship gas from Alaska appears to have lost momentum because of political controversy in Washington over subsidy proposals.  Mr. Searle said the expansion had nothing to do with the Mackenzie Valley project potentially carrying additional gas from Alaska.  "That's not part of our project," he said. "If that manifests itself from the U.S. interests or the Alaska side, we've always said it would probably make sense to have some discussion about that and see if there's some economy of scale and other features that would be attractive to both parties."  Michel Scott, vice-president frontiers at Devon Canada Corp., the leading explorer in the Mackenzie Delta region, welcomed the development.  "If the producers are looking at some larger pipeline options, I'd say directionally that's good because clearly we would like to see a pipe up there that is capable to move to market not only volumes of gas that have been found earlier, but reserves that are to be found in the future," he said. "The reserve base out there is probably 60 plus trillion cubic feet, versus six that have been found onshore."  … The Aboriginal Pipeline Group is seeking a $70-million loan guarantee to help it pay for its share of the pipeline's preliminary design work and secure early native participation in the venture. But Natural Resources Minister Herb Dhaliwal said on Monday that Ottawa was unwilling to backstop the loan.  The APG is currently in talks with federal negotiator Roland Priddle on the issue.  Yesterday, it emerged one reason why Ottawa may not want to step in is because high commercial interest in the project makes it unnecessary. There is speculation that TransCanada PipeLines Ltd. is floating a proposal that offers to help meet APG's initial financial obligations in exchange for a stake in the pipeline.  TCPL spokesman Glenn Herchak said the company has been speaking with several aboriginal groups, but described such discussions as "preliminary."     *          KYOTO.  National Post-A group of senior scientists and engineers yesterday released what it called nine Kyoto myths and urged Ottawa not to ratify the protocol because the science behind it is unproven. *  CBC-EDMONTON - Canadian Alliance Leader Steven Harper is applauding Premier Ralph Klein's decision to take his fight against Kyoto to New York City.

Our readers may obtain new Arctic gas pipeline CDs, courtesy of Enbridge.  "Northern Pipeline Story" gives background on pipeline projects, technology, construction, opportunities for jobs and small businesses, required community and aboriginal support and future economic benefits.  "Northern Advantage", from Enbridge's 'route neutral' perspective, analyzes the three principal northern gas pipeline routes: Mackenzie Valley Pipeline, Northern Route and Southern Route.  "We are confident that any of the pipelines currently being proposed can be successfully built and operated," the Enbridge presentation observes.  A third of this educational CD triumvirate is, "Economics of Development".  (Contact is Kim Osborne: 780-420-8571)

Why Gas Pipeline Legislation Died in 2002; How to Revive it In 2003

We have alerted decision makers about distractions to passage of H.R. 4.  We have suggested Kyoto and tariff issues were part of the gas pipeline big picture.  As the U.S. energy bill floundered his week, the Canadian federal government seemed to be saying, "We support the Mackenzie Valley Pipeline intellectually, but in light of our H.R. 4 position it would be unseemly/inconsistent for us to provide tangible support."  Today we reaffirm earlier suggestions that only the President and Prime Minister are positioned to communicate across jurisdictional lines and restore order.  -dh  (For NGP reader reference, here is the text that Chairman Tauzin recommended to the Conference on 11-12. It consisted of the legislative language formally adopted by the conference on pipeline safety and Price-Anderson reauthorization.  Here is the section-by-section explanation.  Here is an unused draft, formal Joint Explanatory Statement of the Conference Committee.)

11-14 Updates:  01:00, 01:22, 02:09, 02:23, 02:38, 10:59, 11:09, 12:47 ET.  U.S. ENERGY BILL DEFERRED TO 2003  (Readers are urged to review links in the comment above.  -dh).  Yesterday afternoon, Senate Energy Committee Chief Economist Shirley Neff thoughtfully wrote us: "I imagine you have heard by now that the energy bill is totally dead for this Congress. No streamlining certificate or incentives for the pipeline.  Next year the process will have to start over. It's very disappointing, but the clock ran out. ... There's always the chance that in something called a "budget reconciliation bill" early next year the pipeline could be revived.  It's difficult to do anything quickly, though."  ***  Then, our faithful friend, Bill Wicker (Senate Energy Committee Communications Director) sent us this update: "Senate Democratic and Republican conferees, after a joint meeting today, declared that efforts to pass an energy bill this year are ended. With the House expected to adjourn tomorrow, the odds were long, the time was short. Too short. Today's bipartisan meeting brought together Dem and GOP conferees to talk through how the Senate might respond to a proposal the House sent over yesterday -- maybe with a counteroffer that was broader in scope and more substantive than the two-topic House offer. The idea was to let Senators talk this through and find their way to a consensus. In that sense, today's meeting was successful: Senators quickly reached agreement that there is not enough time left to complete, and pass, an energy conference report.  "We missed an opportunity to do something good for the country," said Energy Committee Chairman Jeff Bingaman. "The political will to act did not match the rhetoric of the past two years on the need to address looming problems such as electricity reform, natural gas supply and our increasing thirst for foreign oil for transportation. I think the task of coming up with a comprehensive approach to energy policy, absent a major crisis, will only grow more difficult in the next Congress."   ***  Then, giving equal time to the Republican side, we offer this input from another respected friend, Senate Energy Committee Director of Communications Dave Woodruff: "Senator Frank H. Murkowski (Photo, blue shirt, with Woodruff) released the following statement....  'Time ran out, but the need for an energy bill has not.  We need a comprehensive, national energy plan to help reduce our dangerous dependence on foreign oil.  I remain convinced that in the very near future, Congress will not only produce an energy package but that it will allow for the safe exploration of ANWR.'  Murkowski also complimented energy bill conference chairman, Congressman Billy Tauzin.  'He delivered an impressive energy package in the House and had resolved the vast majority of issues before the Conference.  At every turn,' Murkowski said, 'he and his staff excelled.  They have earned my highest respect and praise.'"   *  OTHER REFERENCES:  ADN by Liz Ruskin-Washington -- The national energy bill that has been two years in the making will die when Congress adjourns and with it will go the efforts to date of many Alaskans to open the Arctic National Wildlife Refuge and spur construction of a natural gas pipeline from the North Slope.   *  EENEWS-Senate conferees effectively killed any chance for revival of an energy bill in the 107th Congress when they voted this afternoon to not counter a pared-back proposal from the House. That plan, put together by Energy and Commerce Chairman Billy Tauzin (R-La.), would have for now dumped most of the major issues being debated and focused on Price-Anderson nuclear industry insurance reauthorization and pipeline safety.    *     MACKENZIE VALLEY PIPELINE.  CBC-Yellowknife, N.W.T. - The people negotiating funding for aboriginal participation in a Mackenzie Valley pipeline say they're confident they can cut a deal with Ottawa, despite comments this week by Natural Resources Minister Herb Dhaliwal. On Monday, Dhaliwal said Ottawa wasn't in the business of providing loan guarantees for pipelines.  (See earlier reports.)  His comments came just as federal and aboriginal negotiators were meeting to work out a loan deal to allow aboriginal people to buy a stake in a pipeline. They have to put up $70 million to fund the environmental application process.  The Aboriginal Pipeline Group and industry say they're still confident the federal government's newly-appointed negotiator can work out a compromise. Fred Carmichael  (NGP Photo), the new head of the Group, spent the weekend meeting with federal negotiator Roland Priddle in Inuvik.  "There are ongoing and productive negotiations with Roland Priddle to see how we can achieve aboriginal ownership," he said. … Pius Rolheiser of Imperial Oil says discussions between Priddle and Carmichael seem to be going well.  "We continue to have confidence in the process and we're optimistic that the funding issue will be addressed and resolved," he says. … If the federal government doesn't come through, another possible source of funding is the pipeline companies.   Enbridge's vice president of northern pipeline development, Wayne Sartore (NGP Photo-left),  says the company is waiting to see if it is needed. "What it would take for us is for the A.P.G. and the other proponents is to express the need to us and we certainly haven't heard that yet," he says.   *     Edmonton Journal by Ed Struzik-The federal government is temporarily withdrawing a huge parcel of land in the Northwest Territories from oil, gas and mining development as a concession to an aboriginal group that has threatened to block the multibillion-dollar Mackenzie Valley natural gas pipeline…. "A day like this is rare and I am highly grateful," said Michael Nadli, (NGP Photo) Grand Chief of the Deh Cho First Nations in the southern Mackenzie Valley.  "Edehzhie is the highest point in the Deh Cho, and the area deserves special recognition. The withdrawal is timely seeing that resource development predominates in the North at this time. We always need to have balance, especially keeping in mind the land and our cultural values associated with Edehzhie."… "Protection of these lands has long been identified as a priority by the Dogrib Treaty 11 Council, and we're hoping that this will result in permanent protection of the area," said Joe Rabesca, Grand Chief of the Dogrib people, who also use the area.  … The Deh Cho had threatened to block the $3.3-billion Mackenzie Valley pipeline to force the federal government to expedite their land claim in the area and to negotiate a resource revenue sharing agreement with Ottawa.  This withdrawal does not address all their concerns, but is seen as the first big step in getting them onside with other northern First Nations who support pipeline development.  … "This is a very emotional time for me," said Rita Cli (Photo), chief of the Liidlii Kue First Nation in the Fort Simpson area.  "The elders have been working to protect Edehzhie since 1992 and now we're leaving a piece of land for our kids."   *   Reuters by Jeffery Jones, CALGARY, Alberta - Canada's vast oil sands will produce a second straight dramatic jump in Canadian crude output in 2003, cementing Canada's position as a top source of secure supplies for the United States, analysts said on Tuesday.   Overall Canadian oil output could jump 8 to 10 percent as four major oil sands projects, led by Shell Canada Ltd.'s C$5.7 billion ($3.6 billion) Athabasca mining and synthetic crude development, ramp up early next year.  That would eclipse this year's hefty 6.7 percent increase to 2.33 million barrels per day (bpd), as estimated by the National Energy Board, the country's main regulator.  "We're looking for an increase of just under 200,000 barrels a day, and virtually all of that is heavy and synthetic crude," said analyst Martin King of FirstEnergy Capital Corp.  (Note:  According to an earlier study by FirstEnergy, bitumen development will require all of the Mackenzie Delta Pipeline throughput.  -dh)   *   National Post-It's not as if there's a big inventory of known gas fields ready to be tapped soon. It could take until 2008 before a pipeline is built from the Mackenzie Delta.    *  KYOTO.  CBC-Carbon dioxide is a greenhouse gas that Canada will have to find a way to deal with under the Kyoto protocol.  *  Lethbridge-The more we hear about the Kyoto accord, the less we support it.     *  TARIFF POLICY.  CBC-CALGARY - Residents of a small town in southern Alberta are blaming the softwood lumber dispute with the U.S. for an economic crisis.  (Note: we are also sorry for U.S. policy and urge remedial action.  -dh)  The owner of Johnson Brothers Sawmills, Dieter Sauerwein, says he had to close his business. He says the dispute forced him to add a 27 per cent tax to all products he shipped south of the border.  His decision to close put 42 employees out of work. Mayor Millie Loeffler says the closure of the sawmill, the area's major employer, has devastated the village of 250. 

11-13 Updates: 00:01, 08:34, 09:00, 13:45 ET.      CBC, Whitehorse, Yukon - Yukon's new Government Leader says he'll work with Alaska's new Governor to bring the sound of train whistles back to the territory.  Dennis Fentie (Photo-l) and Alaska's Governor Elect Frank Murkowski (NGP Photo, 9-23-02-r) both want to see crews laying track across the Yukon from B.C. to Alaska…. Yukon Government Leader Elect Dennis Fentie believes Murkowski is onside with his Yukon Party plan to help put Yukoners back to work.  "Mr. Murkowski has been an ally in a number of areas with the Yukon whether it be with the Alaska Highway Pipeline or the potential of a railroad linking Alaska with existing railheads down in British Columbia," he says.  Fentie says he's planning to work closely with Murkowski.  "We have worked with some degree with him and intend to follow up with him on some of these hugely important projects in the very near future," he says.  Murkowski was elected as governor of Alaska on Tuesday but won't officially start his new job until December. Fentie will be sworn in as Yukon Government Leader next Saturday.  (Note: Murkowski proposes an Alaska Highway route 'transportation corridor' encompassing highway, railroad, pipeline{s} and communications facilities.  -dh)     *    Northern News Services by Nathan VanderKlippe, Juneau, Alaska - A Republican-controlled American government may actually be a good thing for pipeline efforts in the Northwest Territories.  The Republican Party swept to majorities in both the United States Senate and House of Representatives in mid-term elections held Nov. 5. Republicans have strongly supported energy extraction in Alaska and have been bullish on opening up the Arctic National Wildlife Refuge (ANWR) to natural gas development.  ...Minister Jim Antoine (NGP Photo) called the results of the election "scary," as the Republicans campaigned on a war platform. But the NWT's bid for a pipeline should be "OK" as it is a stand-alone initiative based on market viability studies, he said.  ... "They (Republicans) want the market to determine the construction. The Bush administration does not support subsidizing any pipeline. We know that for sure."   ... Countering that impulse, however, is an American instinct of self-protection. Bush wants to guarantee an American supply of oil, an initiative which is becoming increasingly important as the threat of war with Iraq continues to loom.  But, said Brian Kennedy, a Washington-based consultant for the GNWT, with Republicans holding on to a small majority in both chambers, the Democrats will be much less likely to budge on important issues, like opening up ANWR.  But ANWR will surely be on the table, he said, as both Bush and Frank Murkowski, the newly-elected Republican governor of Alaska, are staunch supporters of opening up the caribou breeding grounds to oil and natural gas development. ... Alaska voters also supported a proposition to create a state-owned corporation which would purchase and transport natural gas from the Alaskan North Slope to Prince William Sound for export. (See earlier Prop 3 stories, reference and our LNG page.)   *    ADN by Sarana Schell-"As we studied the costs, operations and exploration opportunities, it became clear that to have a viable business in the Cook Inlet, we had to make significant changes now or face even more serious challenges in the future," Unocal Alaska vice president Chuck Pierce (NGP Photo) said in a prepared statement. In 2000 the company sold its ammonia and urea plant in Nikiski to Agrium.  (Comment: North American governments might wish to observe in the story below, that competitors elsewhere are courting limited oil and gas investment dollars.  In North America we continually read of industry's regulatory, social, community, political requirements.  It is refreshing to read of a government that, while not minimizing requirements, "has launched an aggressive marketing campaign to promote the country's petroleum prospects...."  -dh)  (Asia Intelligence Wire) - Unocal Corp. yesterday said its subsidiary Unocal Sulu Ltd. had signed a deal with a local oil exploration group led by Alcorn (Production) Philippines Inc. to study the feasibility of developing a prospect in Northwest Palawan. Energy Secretary Vincent Perez Jr. hailed the agreement, which he said would bolster the country's thrust on energy security as well as improve its image to investors.  "We are very pleased that another American firm has tied up with our local companies to engage in oil and gas exploration," Perez said.  This sends a strong message to the international community that the country remains a promising oil exploration investment site, he added.  "Given the uncertainties in the global oil market, we see the need to further develop and exploit our own resources," the official said.   He noted that the Department of Energy has launched an aggressive marketing campaign to promote the country's petroleum prospects to exploration firms worldwide. (Underline added).

11-12 Updates: 00:06; 11:07, 11:46, 11:53, 12:00, 12:30, 19:28 ET. Conflicting stories of the past 5 days reinforce the need for intervention of the Prime Minister and President

  Globe & Mail, By SANDRA CORDON, OTTAWA (Also, Canada.Com) -- Ottawa has no plans to open up its financial taps and let assistance flow to a proposed northern pipeline project, Natural Resources Minister Herb Dhaliwal said yesterday.  His comment appeared to dash the hopes of an aboriginal group seeking a federal loan guarantee believed to be crucial to getting the massive $4-billion Mackenzie Valley natural gas pipeline project moving ahead. The project in the Northwest Territories will have to find a way to advance without money from Ottawa, Mr. Dhaliwal said from India, where he is leading a trade mission.  "The government, we do not provide loans or loan guarantees for the construction of pipelines," Mr. Dhaliwal said from New Delhi.  Federal negotiator Roland Priddle, former head of the National Energy Board, and Fred Carmichael (NGP Photo), chairman of the Aboriginal Pipeline Group, were scheduled to meet yesterday to discuss prospects for a loan guarantee aimed at helping bring aboriginals into the project. … While Mr. Dhaliwal's position seems to undermine the work of the federal negotiator, it shouldn't come as a big surprise. Canada has bitterly complained about massive subsidies proposed in Washington to boost a rival American pipeline project in Alaska, including $10-billion (U.S.) in loan guarantees and guaranteed gas prices.  Canada's position has been that such subsidies would distort continental gas markets and potentially strand Canadian arctic gas in the ground.  Mr. Dhaliwal made several trips to Washington last summer to protest against incentives for the Alaskan project.  (See our report.)  … The consortium has been hoping to file a preliminary proposal with Canadian regulators before the end of the year, with gas flowing south along the Mackenzie Valley as early as 2005. But it has been waiting for the Aboriginal Pipeline Group to come up with its one-third share of the cost.     *     CBC-Inuvik, N.W.T. - Fred Carmichael has taken over as chair of the Aboriginal Pipeline Group. He succeeds Nellie Cournoyea who has held this position since the group was formed three years ago. As new chair of the group, Carmichael says his goal will be to get the necessary money in place to build a pipeline.  The group needs $70 million to pay it's one-third share of the costs related to the regulatory phase of the pipeline.  That money will have to come through Roland Priddle, the federal government's newly appointed loan-negotiator for the pipeline. … The APG's main partner in the pipeline project is the MacKenzie Valley Producers Group.  Hart Searle, the spokesperson for that group, says they are pleased with the change.  "We are in good shape with Fred as chair of the APG. I think we'll move forward with our plans with the APG," says Searle.   (See our earlier story and download the official release.)     *  Financial Post by Tony Seskus, CALGARY - The largest pipeline project in Canadian history has reached a critical stage as key federal and aboriginal officials try to move forward on a loan-guarantee agreement seen as crucial to the progress of the $4-billion venture.  Federal negotiator Roland Priddle, the former head of the National Energy Board, and Fred Carmichael, new chairman of the Aboriginal Pipeline Group, are today set to discuss a $70-million loan guarantee that would ensure early native participation in the 1,350-kilometre Mackenzie Valley natural gas pipeline project…. "The producers group has said they will not build a line without aboriginal support," said Wilf Blonde, an APG negotiator who hopes a deal can be reached by next month.  The loan guarantee has leapt to the forefront since a controversial U.S. energy bill failed to pass before Congressional elections last week. The bill contained subsidies for a rival Alaska Highway pipeline that Canadian interests feared would be a competitive stumbling block to the Mackenzie Valley project…. APG became a key player in the Mackenzie Valley pipeline last year when native leaders in the Northwest Territories founded the group and signed a breakthrough agreement with the consortium of petroleum producers for a one-third stake in what would be the continent's first Arctic gas pipeline.  The companies -- Imperial Oil Ltd., Shell Canada Ltd., ConocoPhillips and ExxonMobil Canada -- are proposing to build a pipeline that would run south from the Beaufort Sea, along the Mackenzie River valley and into Alberta….Mr. Priddle is charged with helping the federal government move ahead on negotiations with APG.  Industry, territorial and aboriginal interests have welcomed the appointment as a signal Ottawa is taking the matter seriously…. APG needs $70-million to pay for its share of the venture's preliminary design work. The group sent its business plan to Robert Nault, the federal Minister of Northern and Indian Affairs, earlier this year.  Last month, frustrations over federal delays on the loan guarantee came to a head when former APG chairwoman, now executive board member, Nellie Cournoyea sent a letter to Jean Chrétien, asking for his intervention…. Mr. Chrétien responded in a letter dated Oct. 22 that his government "supports an application for a Mackenzie Valley pipeline to regulatory and environmental assessment authorities as soon as possible."  A day later, Mr. Priddle was appointed. Imperial Oil has held off on a voluntary submission of the project's preliminary information package to regulators -- keeping with the spirit of the memorandum of understanding with APG…. "We're optimistic that this funding issue will be addressed and resolved quickly and that we will continue to move forward with the project," said Imperial Oil spokesman Hart Searle…. Peter Guther, an entrepreneur in the northern community of Norman Wells, is optimistic a line will be built, but insists he won't be burned like the last generation.  "I have not spent nickel-one in anticipation of a line because I remember the last go-round when people spent a lot of money and ended up falling on their face," he said….      *    CBC-Whitehorse, Yukon - Alaskans have voted overwhelmingly in favour of an initiative that could be the end of any hopes for an Alaska Highway Pipeline.  On Tuesday, more than 60 per cent of Alaskans voted in favour of Proposition 3 - a ballot initiative calling for Alaskans to keep natural gas industry jobs and profits in the state.  The plan calls for a pipeline from Prudhoe Bay to Valdez and shipping liquefied natural gas out of the state by tanker.  Scott Heyworth (NGP Photo, 5-24-01), the principal sponsor of the initiative, says it's all about keeping Alaska's resources for Alaskan citizens.  "I don't want to bring pain to Canada but my allegiance has to belong to Alaska and I just really do in my heart believe this is the best project for Alaska," Heyworth says. "Now why do we have to subsidize big oil to build a pipeline through your country on the backs of American taxpayers, which means me. I just don't agree with that."   Heyworth says this vote doesn't necessarily mean the end of any hopes for an Alaska highway pipeline.  He says it simply commits Alaskans to try and maximize the benefits of the gas deposits for themselves. He says if the economics look good for Alaskans a smaller Alaska highway pipeline could still be possible sometime in the future.  (See yesterday’s editorial and other links.)   *    Reuters By Yereth Rosen, KENAI NATIONAL WILDLIFE REFUGE, Ala. - The Swanson River loops through dense spruce stands and flows past campgrounds and serene hiking trails. … And nestled in the trees of the Kenai National Wildlife Refuge are rigs pulling crude oil and natural gas from the earth.   President George W. Bush's plan for oil drilling in another Alaska refuge - the Arctic National Wildlife Refuge (ANWR) - is so controversial that it has stalled action on national energy legislation.  But here in the lake-dotted lowlands of Alaska's Kenai Peninsula, outside the political spotlight, oil wells have been in business since the 1950s.  To those who want to drill in the Arctic refuge, the Kenai experience shows that oil development can co-exist with nature.  Just ask Doc Helton, facility foreman for the Unocal-operated Swanson River oil field. He and his wife are the sole residents of oil employee housing in the refuge, where they share the terrain with all sorts of wild creatures.  "I love it. We've got coyotes in the yard and lynx," he said. "The northern lights out here are just fabulous in the winter."  (ANWR Reference Page)      *   Northern News Services by Derek Neary, Fort Providence - Chris Reid said he will no longer be chief negotiator for the Deh Cho First Nations as of June.…   *        REMINDER: join Dave Harbour of Northern Gas Pipelines for the Arctic Gas Symposium in Houston, next Monday.  In addition to distinguished speakers noted in the brochure, we shall benefit from two executives addressing "Investment Climate Improvements" needed in Alaska and Canada: Larry Houle, General Manager, Alaska Support Industry Alliance (NGP Photo-r) and Roger Soucy, President & CEO, Petroleum Services Association of Canada, (NGP Photo-l, 6-02, with Alliance leaders Bob Stinson-c and Dave Haugen-r)

11-11 Updates: 00:11, 00:23, 00:40, 11:08, 12:57 ET (...as we observe Remembrance Day in Canada with our poppy photo and Veterans Day in the United States).

 Voice of the Times.  An all-Alaska, state-owned gas pipeline may sound good, but it would almost certainly be a financial nightmare.  (See earlier opinions.)    *     Anchorage Daily News by Mary Pemberton-The trans-Alaska oil pipeline was designed to withstand an 8.5 magnitude earthquake, but could it?  When a team of structural and geo-technical engineers came up with the pipeline design in the early 1970s, they didn't expect it to be tested in their lifetimes. They were wrong. Sunday's 7.9 magnitude earthquake -- the worst ever recorded on the Denali fault in Alaska's Interior -- struck in a sparsely populated area 90 miles south of Fairbanks, the state's second largest city. ... The pipeline withstood the powerful quake just as designed -- damaged but not ruptured, said Doug Nyman, a consulting engineer in Houston. From 1973 to 1977 he was the pipeline's seismic design coordinator for Alyeska Pipeline Service Co., which operates the pipeline.  "I think what it tells you, we had a super group of people 30 years ago ... that did an absolutely wonderful job of designing it," said Alyeska CEO and president David Wight (NGP Photo above, right).  (Note: an alert NGP reader sent us the photos below, right; stock summer photo, left.  -dh)   *   Northern News Services by Terry Halifax, Yellowknife - Oil and gas executives from across the country met in Inuvik last week to discuss issues associated with the construction of a proposed Mackenzie Valley pipeline. The Canadian Association of Petroleum Producers held a two-day meeting with interested parties last week at the Eskimo Inn to communicate shared concerns over streamlining regulation, scheduling, safety and environmental and social issues.  Ian Scott (NGP photo, 6-02), general manager, federal and regulatory, Northern Canada and pipeline operations with CAPP, said producers have been working to standardize safety throughout the industry. … "CAPP has put a lot of emphasis on safety practices in the last couple of years."  He said they've been working with contractors, regulators and the Inuvialuit on industry safety standards through a project called Safety Health and Respect to Environment (SHARE). … Archie Kennedy, one of CAPP's board of governors and also vice president of Operations for ConocoPhillips Canada said there was concern from contractors about the ups and downs in the industry. … "We are fully engaged it the Kyoto debate, but it was not on our agenda here," Scott said. "This is one of the few meetings we've had lately where Kyoto hasn't been raised.  It's in the back of everyone's mind....Our problem with Kyoto is that we don't really understand the consequences of it yet," he said. "For making investment decisions, it just raises uncertainty and investors, whether it's the company or our shareholders it's just another uncertainty."    *      Northern News Services by Chris Puglia, Yellowknife - There are not enough people living in the North to fulfill a growing and dynamic job market.  That was the message from David Stewart, territorial statistician for the NWT Bureau of Statistics, who attended a career exposition at Sir John Franklin high school Wednesday.  "What we're looking at in 30,000 job opportunities over the next 10 years," said Stewart.  "The labour demand is going to outstrip our population supply." … Meike Cameron, Sir John principal, said the school always does well academically and is routinely oriented on university and college options.  … "Sixty-five per cent of the jobs require post-secondary education. Education is the key even in a very hot job market," he said.  Grade 11 student Kristi Tremblett agreed with the need for a well-rounded education.

11-9/10 Weekend Updates.  CBC, EDMONTON - Alberta Premier Ralph Klein is going to the United States to see if he can get help in fighting the Kyoto Protocol.  Klein is headed to New York soon to campaign against Ottawa's plan to ratify the treaty. He says he hopes the Americans will in turn lobby the Canadian government not to ratify the climate change accord.  "They are our largest exporting partner, and 25 per cent of all our oil goes to the United States. I think it's very important that they know that," Klein says.  Klein says he wants to point out to the Americans the supply of gas and oil Alberta provides could be reduced by Kyoto.  (Our many Kyoto links and gas pipeline references.)

ALERT: