4-13/14 Weekend updates: Sat. 18:42, 19:53; Sun. 01:00  ET.  Alaska's Fiscal Crisis-See Anchorage Daily News seventh installment in a series of editorials.  Previous days.      *     WASHINGTON -- Alaska Sen. Frank Murkowski Friday confirmed that he and others will introduce an amendment next Tuesday that will call for safely exploring the Arctic coastal plain in Alaska for energy.     *        O&G Journal, HOUSTON -- US drilling activity increased this week by 9 rigs, with 747 rotary rigs reported drilling in the US and its waters, Baker Hughes Inc., Houston, said Friday. A year ago, the US rig count stood at 1,198.     *     On the Senate floor Friday, Senator Ted Stevens (Photo) used enlarged reprints of editorials published by The Washington Post and The New York Times to demonstrate the papers' inconsistencies in editorial position with regard to exploratory oil drilling in ANWR.      In 1987 and 1989 The Washington Post argued in favor of proceeding with exploration on the Arctic Coast and 1987 wrote, "...that part of the arctic coast is one of the bleakest, most remote places on this continent, and there is hardly any other place where drilling would have less impact on surrounding life...  That oil could help ease the country's transition to lower oil supplies... Congress would be right to go ahead and, with all the conditions and environmental precautions that apply to Prudhoe Bay, see what's under the refuge's tundra...."      In 2000 a Washington Post editorial stated, referring to President Bush, "He'll also have to make the case that in the long run, the oil to be gained is worth the potential damage to this unique, wild and biologically vital ecosystem."      With regard to The Washington Post's editorial change of position, Stevens said, "They made the case in 1987.  President Bush can make it now.  Where is the consistency of The Washington Post?  What has changed?  The management of the Post?  They haven't produced any new science on which to base their new claims."  The Senator also noted that drilling technology has improved since 1987, thereby reducing environmental impact.      In 1989 The New York Times wrote, "... The single most promising source of oil in America lies on the north coast of Alaska, a few hundred miles east of the big fields at Prudhoe Bay."  In 2001 they wrote, "The country needs a rational energy strategy... but the first step in that strategy should not be to start punching holes in the Arctic Refuge."      "What happened to The New York Times?  Yes, another change in management.  Maybe they hired one of the radical environmentalists, but that is not a national newspaper that deserves any credibility.  How can you believe them one year and have them turn around and tell us what they said before in 1987, 1988, and 1989 is wrong.  They didn't even recognize in their more recent editorials that they had taken those earlier positions.  The young people of today, reading The New York Times' editorial pages, won't know about their inconsistency unless some of us call them to task."      Stevens concluded his floor statement by saying, "I'm sad that the Senate Majority Leadership now tells us the we must have sixty votes.  I want to close by saying that Alaska's  Senators are going to try to persevere too.  We're going to stay here and the Senate is going to stay here until we do get sixty votes next week."  (Audio of Senator Stevens' floor statement is available by dialing 1-800-545-1267 and pressing 301or go online at
www.senate.gov/src/radio/stevens)

4-12 Updates: 03:20, 04:00, 04:33, 14:45, 16:24, 20:27 ET.  Alaska's Fiscal Crisis-See Anchorage Daily News sixth installment in a series of editorials.  Previous days.      *     CBC, Whitehorse, Yukon - It's beginning to look like there won't be a Yukon territorial election until the fall.  The Liberal government is in a minority position, but at least one opposition MLA says he may support the budget that is now before the house.  The government's operation and maintenance budget passed second reading easily Thursday after the three independent MLAs and Yukon Party leader Peter Jenkins voted for it.       *     Bill Wicker, Senate Energy Committee Communications Director tells us: "Yesterday's activity included action on eight amendments ... but not the biggest, most advertised amendment of all, ANWR.  An ANWR amendment remains AWOL.  Seeing no reason to continue to wait and further delay other important issues on the Senate's agenda, Leader Daschle has temporarily set aside the energy bill to take up Border Security.  The Senate will go back to energy after finishing Border Security.  At that time (probably next Tuesday), Senator Murkowski will be recognized to offer his Arctic Refuge amendment."     *Senator Murkowski's office told us that, under a unanimous consent agreement approved (yesterday) afternoon, Murkowski will introduce an ANWR amendment in Senate debate next Tuesday.  Murkowski said, "ANWR offers energy solutions found within our own borders, free from the chaos of the Mid-East....  close to 30% of our foreign oil imports are at risk due to...Venezuela and the Iraqi oil embargo."     *     Oil & Gas Journal by Maureen Lorenzetti-Election year politics could solidify support for ethanol, ANWR      *    Wednesday, on the Senate floor, Senator Ted Stevens (NGP Photo, 8-14-01) urged the Senate to hold an up-or-down vote to allow oil exploration in ANWR.  To break the threatened filibuster in opposition to an ANWR amendment would require 60 votes, as opposed to the 51 votes needed to pass the measure on an up-or-down vote.  He reminded the Senate that during debate of the Alaska pipeline amendment, there was no threat of a filibuster. "Despite the fact that then Majority Leader Senator Mansfield and  Chairman of the Committee, Senator Jackson, opposed our amendment for the immediate construction of the pipeline, there was no filibuster.  There was no threat of a  filibuster," Stevens said. "It is still a national defense issue.  In times of a national security crisis, there should not be a  filibuster against a proposal to make available to this nation additional oil and gas resources."
   *      WASHINGTON,  (Reuters) - The U.S. Interior Department on Thursday approved final rules to allow energy companies to share the costs and revenues from drilling for oil and natural gas on leased tracts in Alaska's National Petroleum Reserve. By permitting development on leases without regard to property boundaries, the department's so-called "unitization" policy would reduce the number of wells that would have to be drilled in the reserve and leave more of the pristine wilderness undisturbed.  The policy does not affect the nearby Arctic National Wildlife Refuge, which is closed to drilling, but the Senate will soon decide whether oil firms should have access to the area.      *     Commentary by David Keene (Photo), chairman of the American Conservative Union, The Hill-When one thinks of pork, the names of two famous — or infamous — senators comes to mind for “bringing home the bacon.” They are West Virginia’s Bobby Byrd (D) and Mississippi’s Trent Lott (R). It was Byrd, after all, who once tried to get the CIA to move its headquarters to West Virginia for him, and Lott who seems to believe that anything the federal government builds, buys or does ought to be built, bought or done somewhere in Mississippi.  It turns out, though, that these guys are pikers. The world-class operators in this game are from much, much further north — in Alaska.  Indeed, the all-Republican team of Rep. Don Young in the House and Frank Murkowski and Ted Stevens in the Senate from Alaska make everyone else look like amateurs. At least that’s the view of Citizens Against Government Waste, which is this week issuing its 12th annual Congressional Pig Book. ... That’s what happened recently on the Senate floor with the approval by 93 to 5 of an amendment to the energy bill. It mandates that if a natural gas pipeline is ever built to deliver Alaskan natural gas to markets in the rest of the country it will have to follow a circuitous route through Alaska. The amendment won the support of Democratic Senate Leader Tom Daschle (S.D.) and was viewed by many in his party and within the environmental community as a compensation prize for the Alaskans who aren’t going to be allowed to drill for or deliver Arctic National Wildlife Refuge (ANWR) oil.  The amendment was essentially sprung on the Senate and only a few senators even spoke against it, but a lot of them thought they smelled something objectionable.  It turns out that the amendment was designed to make certain that an alternative pipeline route through Canada would be taken off the table. That route, it seems, is far more economically viable than the Alaskan route, which would have to traverse some 900 miles of Alaska’s most rugged mountains. What’s more, a number of private investors have actually shown an interest in building the pipeline through Canada, but none have evinced the slightest interest in the all-Alaskan route.  ... So as it stands right now, the amendment adopted before the recess simply guarantees that no pipeline at all will be built. The answer to that, however, is simple. Murkowski is preparing to introduce another amendment that will grant a subsidy to gas producers in Alaska and to the pipeline company that will get his pipeline built — at a potential cost to the rest of us of as much as $30 billion. That’s pork with a capital “P.”  That money, in the form of tax credits to Alaskan oil producers (mainly Exxon-Mobil, British Petroleum and Phillips) and whatever entity they set up to actually build the Murkowski line will be paid out over 15 years.  The good senator and his allies argue that if gas prices overall go up enough between now and the time the pipeline opens, the needed subsidy could be reduced or even eliminated. The problem is that no independent analysts believe that is going to happen.  Instead, not satisfied from the simple royalties that would flow to Alaska if gas flows through just any old pipeline, our team of inveterate Alaska-firsters is after it all — the royalties and the jobs and the profits that go with building the pipeline along their chosen route.  If their colleagues don’t stand up and vote against this one, they will have guaranteed that a non-economic boondoggle of historically unique proportions will be built with federal subsidies when an alternative was available that would not have cost the American taxpayers a penny.  Moreover, by allowing subsidized natural gas into an incredibly volatile market, they will screw up that market. At the same time they’ll look the other way while major oil companies blast through 900 miles of one of the most rugged and scenic mountain ranges in the world.  This is way out of Lott’s class, but it’s just the sort of thing that could get them made honorary West Virginians.     *     (Note: She's not a gas pipeline but we think readers will agree that she's too beautiful to ignore.  -dh) BARTLESVILLE --- Polar Tankers, Inc. will unveil its third state-of-the-art Endeavour Class double-hulled tanker, the POLAR DISCOVERY (Photo), during a christening ceremony on Saturday, April 13, at 10 a.m. at the Northrop Grumman Ship Systems Avondale shipyard in New Orleans.  Phillips Petroleum Company [NYSE:P], parent of Polar Tankers, is building five Endeavour Class tankers.  The contract cost of the POLAR DISCOVERY is valued at $168 million.  The Endeavour Class tankers, also known as the Millennium Class, are the first crude-oil carriers being built for the Alaska trade in compliance with the federal Oil Pollution Act of 1990.  The first tanker, the POLAR ENDEAVOUR, arrived in Valdez, Alaska, on its maiden voyage in July 2001.  The new POLAR DISCOVERY tanker will join the Polar Tankers fleet in 2003.   This summer the POLAR RESOLUTION will enter the Alaska trade.  The POLAR ADVENTURE will be delivered in late 2004, followed by the fifth ship, the POLAR ENTERPRISE, in 2005. "Construction of the Endeavour Class tanker fleet demonstrates Phillips' leadership and commitment to having the world's safest transportation system for oil here in Alaska," said Alaska Gov. Tony Knowles.  "On the occasion of the christening of the POLAR DISCOVERY, the third ship of its class, I commend Phillips for its continuing dedication to environmental responsibility as we develop Alaska's vast energy resources."  Kevin Meyers (NGP Photo), executive vice president of Alaska production and operations for Phillips Petroleum Company and president of Phillips Alaska, said: "These five Endeavour Class tankers demonstrate Phillips' commitment to protect the environment while providing reliable energy for America.  Alaska is one of Phillips' legacy assets, and we plan to maintain daily production there at 375,000 to 400,000 barrels-of-oil-equivalent for the foreseeable future."  Dr. Philip A. Dur, Northrop Grumman corporate vice president and president, Northrop Grumman Ship Systems, said:  "The christening of this third Polar Tankers double-hulled tanker underscores our commitment to compete in the commercial shipbuilding market.  We are proud to be partners with Polar Tankers in building these revolutionary, environmentally friendly tankers."  NGSS Avondale Operations currently has four 140,000-deadweight ton (DWT) crude oil carriers under construction for Polar Tankers.  The Endeavour Class tankers are being built to meet and/or exceed existing and proposed environmental regulations and are setting new standards for innovation and environmental protection.  They were designed specifically for the transport of crude oil from Valdez, Alaska, to the West Coast of the United States, through some of the most severe trade routes in the world.  The ships also will deliver cargo to Hawaii.  The tankers are built with double hulls, which exceed regulatory requirements, as well as two independent engine rooms, twin propellers and twin rudders.  The Endeavour Class vessels will isolate cargo, fuel and lubricating oils from the ship's side by ballast tanks or void spaces.  The vessels also will meet pending regulations for air emissions from engines, and are painted with tin-free anti-fouling paint in deference to proposed regulations.  The POLAR DISCOVERY and her four sister vessels are 272.69 M long by 46.2 M wide by 26.3 M deep (894.7' x 151.6' x 86.29').  The vessels are powered by twin 11,060 KW (15,000 BHP) slow speed diesel engines.  The ships have a 2206 KW (3000 HP) bow thruster.  The speed is 16.6 knots loaded and 16.9 knots in ballast.  The carriers will hold just over 1 million barrels of cargo at maximum capacity.  The five ships will be equipped with the latest electronics to ensure safe and efficient operation.  The new ship's sponsor, Mrs. Dore' Meyers, will christen the ship POLAR DISCOVERY with the traditional champagne bottle at the ceremony.  Mrs. Meyers is the wife of Kevin Meyers.  Northrop Grumman Ship Systems' Avondale Operations is a subsidiary of Northrop Grumman Corporation (NYSE:NOC) and part of the corporation's Ship Systems (NGSS) sector.  In addition to the Avondale Operations in New Orleans, La., Northrop Grumman Ship Systems, headquartered in Pascagoula, Miss., includes the Ingalls Operations and the Ship Systems' Full Service Center.  NGSS, which currently employs more than 17,000 shipbuilding professionals, primarily in Louisiana and Mississippi, is one of the nation's leading full service systems companies for the design, engineering, construction, and life cycle support of major surface ships for the U.S. Navy, U.S. Coast Guard and international navies, and for commercial vessels of all types.  NGSS has a firm business backlog exceeding $5.6 billion, in a variety of naval and commercial shipbuilding programs.  Phillips Alaska, Inc., a wholly owned subsidiary of Phillips Petroleum Company, is the largest producer of Alaska North Slope crude.  Its shipping unit, Polar Tankers, Inc., operates a fleet consisting of five vessels ranging in size from 50,000 to 190,000 DWT. The entire fleet is employed in the Alaska crude trade.

4-11 Updates: 01:50, 02:42, 03:26, 11:47, 15:52 ET.  TODAY:     Whitehorse Star by Jason Small-The first big test for this new minority government is coming soon.  Likely (today), the Yukon legislative assembly will vote on the second reading of the 2002-03 budget.  If the Liberals lose that vote and the budget is defeated, the government would collapse and Premier Pat Duncan (NGP Photo, 2-8-02) would be forced to call an election.  (We'll provide more news as it breaks.  -dh)       *       WASHINGTON, PRNewswire/ -- As the U.S. Senate returns this week to continue debate on the Energy Bill (S.517), attention will be focused on the ramifications of their controversial decision to ban a Northern route for a pipeline that would deliver natural gas from Alaska's North Slope to markets in the lower-48 states.  "History has shown that when politicians try to force an uneconomic decision, the project is usually never built," said Forrest Hoglund (NGP Photo, 10-01) President and CEO of Arctic Resources Company (ARC).      *       Bill Wicker, Senate Energy Committee Communications Director writes us: After 16 legislative days, we've regained momentum on the energy bill.  ANWR watchers may want to tune in today.     *     Williams Energy News Live writes us: "In Washington, we'll continue to watch energy legislation on the Senate floor. The question of whether to allow drilling in Alaska still hangs over the whole energy debate, and the issue is inching closer to the floor. Action on the bill could be interrupted at some point by election reform legislation.     *     Commentary..................Last night, CNBC's America Now show explored ANWR issues.  The Arctic Slope Regional Corporation's Tara Sweeney (NGP Photo), spoke articulately from the heart and referenced science as she followed the arguments.  When an environmental lobbyist asserted how open Alaska's coastline is to oil and gas exploration, Sweeney said, "When you say 95% of the coastline is open to oil and gas development that is faulty science."  When the lobbyist tried to leverage anti-ANWR sentiment by referring to National Petroleum Reserve lease sales, Sweeney said, "The National Petroleum Reserve is much more environmentally sensitive than ANWR's coastal plain."  As to ANWR's coastal plain, she discussed modern technological advancements--including directional drilling--and said, "We are looking at opening only 2,000 acres of 1.5 million acres."  When moderators discussed importing more oil to satisfy potential Middle East export reductions--and the environmental lobbyist concurred--she said, " If you're truly an environmentalist why would you want to produce oil in areas with unsafe environmental practices."  If you want to debate Alaskans like Sweeney on ANWR issues, you'd better do your homework, Mr. Lobbyist.  -dh     *     Yesterday, US Senator Frank Murkowski said on the Senate floor: "I have come to the Senate floor to talk about the blatant inconsistency found within our foreign and energy policies," Murkowski said.  "Now, events in the Middle East and Venezuela are threatening our economic recovery, and underscoring our need for a comprehensive national energy security plan that includes increased domestic production.      "What does inaction mean to the United States?" Murkowski asked.  "Each day we're going to start hearing more bad news, higher prices at the gas station, higher prices to fill your heating oil tank.  We're going to see it represented in the economy, on the stock market, and God knows what we can expect from the Mideast crisis that's now underway."     *     WASHINGTON, April 10 (Reuters) - Democratic Sen. Joe Lieberman of Connecticut promised on Wednesday to filibuster any move to amend a pending energy bill to allow drilling in pristine Arctic National Wildlife Refuge.     *     Oil & Gas Journal by Maureen Lorenzetti-White House officials and pro-industry lawmakers hope ongoing events in the Middle East and Venezuela will help build interest in a US energy policy agenda that encourages domestic drilling, including leasing a portion of the Arctic National Wildlife Refuge.     *     Congressional Quarterly-Advocates of drilling in Alaska's Arctic National Wildlife Refuge are aiming today to attract Democratic votes by offering to include a steel-bailout package in the energy bill (S 517). Republicans say an alliance with steel-state Democrats could help them secure the 60 votes needed to overcome the expected filibuster over ANWR drilling. Frank H. Murkowski, R-Alaska, said he will offer his amendment to open up ANWR to oil exploration either this afternoon or tomorrow. The amendment may include language allowing some of the proceeds from leasing ANWR to bail out steel companies that are obligated to pay pensions and health benefits to laid-off workers and retirees, said Rick Santorum, R-Pa. Majority Leader Tom Daschle, S.D., said the plan "just shows how desperate they are," adding that members are not likely to be enticed.     *        Alaska's Fiscal Crisis-See Anchorage Daily News fifth installment in a series of outstanding editorials.  Previous days.  Scroll down for our related Monday and Weekend editorials.   *        

4-10 Updates: 00:10, 01:14, 03:36, 12:21 ET.       Washington Post Editorial-The House has already jammed $33 billion of tax breaks into its version of the energy bill; the Senate's bill is for the moment less extravagant, but floor amendments may add to its price tag. In one likely provision, Sen. Daschle is expected to make common cause with Sen. Frank Murkowski (R-Alaska) to turn a pipeline proposal into a protectionist boondoggle. Rather than allowing experts to determine where to route a pipeline from the gas fields in Alaska's Prudhoe Bay, the senators want to spend billions of taxpayers' money to tip the choice in favor of the version that would run mainly through Alaska rather than Canada.      *      Alaska's Fiscal Crisis-See Anchorage Daily News fourth installment in a series of outstanding editorials (available after 8 a.m. ET).  Previous days.  Scroll down for our related Monday and Weekend editorials.   *         Williams Energy News Live-Debate over drilling in the Arctic heats up in Washington on Wednesday. Supporters of energy development in the Arctic National Wildlife Refuge believe the crisis in the Middle East and the Iraqi oil embargo will help their chances in the U.S. Senate. Critics disagree and will hold a rally on Capitol grounds Thursday to reaffirm their opposition.     *     WASHINGTON, April 9 (AFP via energy24.com) - A top US lawmaker, infuriated by Iraq's temporary oil export stoppage, on Tuesday vowed to introduce legislation banning US oil companies from purchasing any Iraqi oil.  "I have the amendment handy," Republican Senator Frank Murkowski told reporters, adding he had already discussed the issue with the White House.      *     WASHINGTON, April 9 (Dow Jones) - Speaking on the Senate floor Monday, Senators Ted Stevens, R-Alaska, and Don Nickels, R-Okla., said opponents of the proposal to allow limited drilling on the 1.5-million-acre Arctic National Wildlife Refuge coastal plain may be compromising national security if they engage in a filibuster, a delaying tactic that can only be stopped with a 60-vote majority.       *     Reuters by Yereth Rosen, ANCHORAGE, - Beneath the tundra on a once-overlooked stretch of federal land in Arctic Alaska lies potential oil riches.  Significant pools of untapped oil have already been discovered by drilling teams and oil companies are poised for more exploration. The petroleum potential is so great that the federal government is planning new oil and gas leasing.  (See our earlier report.)    *     Based on preliminary information, Phillips said yesterday it expects to post a slight net operating loss for the first quarter.    The downstream business environment was the weakest in years:
     -  Considerably lower marketing margins were realized, as prices for petroleum products did not keep up as crude oil prices began to recover.
     -  Refining crude oil capacity utilization was impacted by margin-induced production cutbacks and two major scheduled turnarounds during the quarter.
     -  Refining margins for the quarter were well below average margins
for the past 10 years.
   Upstream, the company's average crude oil sales price for the first quarter is expected to be about the same as the previous quarter, but down significantly from the first quarter a year ago.  In some areas, such as Alaska, the crude oil price recovery toward the end of the quarter will not be realized until the second quarter due to the effects of contractual pricing lags.  First-quarter production is expected to be in line with the company's 2002 daily target of 830,000 barrels-of-oil-equivalent (BOE).

4-9 Updates: 00:35, 01:26, 02:02, 02:13, 12:26, 13:00, 14:30 ET.     Alaska's Fiscal Crisis-See Anchorage Daily News third installment in a series of outstanding editorials.  Previous days.  Scroll down for our related Monday and Weekend editorials.    *       TONIGHT IN ANCHORAGE, 7 P.M.-Dr. Charles Groat, Director, U.S. Geological Survey Invites you to the official opening of the USGS Alaska Science Center.    *     FOR OUR WASHINGTON READERS-Energy Security press conference today, Senate Swamp, 11:30 a.m. ET, Senators Santorum, Hutchison, Laudrieu, Stevens, Craig join leaders from the Union of Orthodox Jewish Organizations, Jewish Institute of National Security Affairs, American Jewish Congress, B'nai Brith, Zionist Organization of America, Agudath Israel, Conference of Major Jewish  Organizations.  (Congressional Quarterly report of conference: Oil-state lawmakers and several Jewish organizations urged the Senate today to pass a comprehensive energy bill (S 517) that would permit drilling in Alaska's Arctic National Wildlife Refuge (ANWR). They said the oil exploration would bolster the national security of the United States and Israel. "We cannot stand as strong as we need to because of our dependence on foreign oil," Mary L. Landrieu, D-La., said. "If we don't have the guts in the Senate to vote for more domestic production then shame on us." Frank H. Murkowski (NGP Photo, 2-20-02), R-Alaska, said he would offer the ANWR amendment this week. Murkowski also is preparing to offer an amendment that would block imports of Iraqi oil until President  Saddam Hussein permits United Nations weapons inspectors into Iraq. The Senate is expected to vote this afternoon on an amendment that would restore the authority of the Commodity Futures Trading Commission over energy trading.     *     Williams Energy News Live-Debate in the U.S. Senate over comprehensive energy legislation resumes this week. Much has happened on the energy front since lawmakers left for spring recess, including a rise in energy prices due in part to the crisis in the Middle East.     *     Last night, Senator Frank Murkowski said that the USGS' updated ANWR study, "shows the development of ANWR can coexist alongside the wildlife that live there.  With...Saddam Hussein's oil embargo, we need to focus our efforts here at home to better safeguard our energy supplies."  (Our original report.)     *     Bill Wicker, Senate Energy Committee Communications Director writes: "We think the energy bill is good for about one more week.  We've been on this bill for the better part of three weeks, and it's time to start winding up the remaining issues and moving to final passage.  If we are unable to come to closure on the remaining key issues of the bill (ANWR, Feinstein amendment, tax package, etc..), the pressure will be to move to other important issues on the Senate's agenda.  But we've got a good feeling that this bill is going to pass ... and that it's going to make a positive difference to our nation's energy future."    * *     Environmental News Network-WASHINGTON, D.C. — The issue of whether to allow oil and gas exploration in the Arctic National Wildlife Refuge (ANWR) is expected to be taken up by the U.S. Senate as members return from their spring recess, and the Competitive Enterprise Institute is expressing its support to open the refuge as an important element of our national energy policy.     *     CBC, Yellowknife, N.W.T. - The Acho Dene Koe First Nation say it will seek its own land-claim agreement with Ottawa.  Currently the Fort Liard band is negotiating along with the rest of the Deh Cho First Nations, but Acho Dene Koe Chief Judy Kotchea says that process doesn't cover much of her traditional lands. ... Grand Chief of the the Deh Cho First Nations, Michael Nadli (NGP Photo, 2-8-02), isn't surprised at the move.  "The circumstances that it finds itself in in terms of oil and gas and industrial activity on their land, I would think it doesn't leave them much room but to try to expedite their process," he says.  Nadli doesn't expect losing Fort Liard would make much of a difference in his self-government and land management talks.       *     Northern News Services by Jorge Barrera, Yellowknife  - Despite a million dollars for an oil rig in the Beaufort Delta, the federal government is offering no guarantees it will provide money to an aboriginal corporation looking to build a Mackenzie Valley pipeline.       *     Whitehorse Star by Jason Small-Even though there are now more opposition MLAs than government members in the legislature, neither the Liberals nor the new independents want to spark a territorial election.     *     Financial Post by Paul Haavardsrud-EnCana Corp. began life as a publicly-traded entity yesterday, and immediately took over fourth spot on the list of Canada's largest companies, as analysts issued bullish calls on its prospects.  The new energy giant, formed by the combination of PanCanadian Energy Corp. and Alberta Energy Co., had an end-of-day value that made it worth 3.17% of the Toronto Stock Exchange 300 composite index. ...  EnCana's gas production is estimated at 2.7 billion cubic feet per day, meaning only ExxonMobil, BP, ChevronTexaco and Royal Dutch Shell produce more.  Encana's stock (ECA/TSE) opened at $48.75 and climbed as high as $49.64 before closing at $47.75. ... Scotia Capitals' David Stenason started coverage of the firm with a "strong buy" rating and 12-month target of $57, while Merrill Lynch's John Herrlin initiated his coverage at "near-term strong buy" and a target of $60.  (EnCana's AEC interests are active Alaska North Slope gas explorationists and recent participants in Alaska North Slope royalty gas sales. -dh)      *         Oil & Gas Journal, HOUSTON -- A bolstered federal budget for oil and natural gas research and development projects for the US Department of Energy's Office of Fossil Energy would be a "wise investment," in US energy security, said Arkansas Gov. Mike Huckabee. Huckabee, who is the new chairman of the Interstate Oil & Gas Compact Commission (IOGCC), made the statements in testimony presented to the US House Subcommittee on Interior and Related Agencies Appropriations. Currently, cuts in federal spending in R&D for the oil and gas industry have "created a critical situation," Huckabee said.  Alaska's Governor Tony Knowles is outgoing IOGCC Chairman.  See our 2001 IOGCC report.       *     GOOD NEWS FOR ALASKA FROM DENVER--Forest Oil Corporation (Forest) (NYSE:FST) announced today the results of its Redoubt #4 delineation well in its 100 percent-owned Redoubt Shoal field.  As a result of this well, in combination with successful drilling in other regions, Forest has replaced in the first quarter of 2002 more than its currently forecasted production for the entire year. The well, which was drilled to 20,203 feet measured depth, is the deepest deviated well ever drilled in the Cook Inlet of Alaska. The Redoubt #4 well results are as follows:

   --   The well encountered the Hemlock formation at 18,872 feet and
        logged approximately 229 feet of net oil pay. Forest is
        currently completing the well.
   --   The well, which was designed to determine the down dip limit
        of the field, extended the lowest known oil by approximately
        50 feet without encountering the oil water interface. Forest
        estimates the recoverable oil in Redoubt Shoal will be at
        least 100 million barrels (85 million barrels, net).
   --   The well also encountered 589 feet of net natural gas pay in
        multiple shallow sands. This discovery will be further
        delineated during the oil development drilling program.

4-8 Updates: 02:24, 03:36, 04:01, 10:48, 13:00 ET. Yesterday's Anchorage Daily News Editorial Page offered "Seven Principles" of a fiscal plan.  Alaska's $1 billion fiscal gap threatens to swamp our current prosperity in red ink and economic disarray. Nothing the Alaska Legislature could do -- or not do -- matters more than building sound fiscal foundations. As legislators struggle to craft a workable plan to put state finances onto a sustainable basis, seven key ideas should guide their work....    *  Today's second installment in the editorial series presents "An Overview of a Fiscal Plan".  The best way is to keep our balance, to take something from each of several sources while ratcheting up changes gradually.  (Comment:  We and 600,000 others all have different pet plans for solving Alaska's fiscal crisis.  In these pages, we've often spoken of the need for good-will and compromise as the way to gas pipeline success and many advocates continue to resist any way but theirs.  If inflexibility continues to dominate the budget discussions the result could also be delay, but with more serious outcomes.  Dogged determination and sacrificing everything for a goal may be proper armor for a wilderness pioneer; but it could be the undoing of those pioneering social and economic policy in the modern world.  We applaud the ADN for taking a position and while we may disagree with some of its tenants the truth is we would sign onto virtually any successful formula the Legislature and Governor could create for a New Century Economic Policy.   Without a plan leading the state somewhere Alaska will wander anywhere, unguided, into the future.  In that scenario, all investors, businesses, students, non-profits, municipal governments and public employees face perilous futures.  In reality, the fiscal crisis issue overshadows all other challenges of state and could quickly become the single greatest concern of those interested in any future Alaska projects, including Northern Gas Pipelines.  See our related weekend material.    -dh)     *     WASHINGTON, April 7, (The Atlanta Journal-Constitution) - Politics, as much as policy, will drive this week's Senate debate over the most controversial issue involving America's energy future. It is whether to allow exploration of oil and gas in Alaska's federally protected Arctic National Wildlife Refuge.      *     Financial Post by Alan Toulin and Paul Vieira, OTTAWA - A deal which would allow oil and gas companies to tap into British Columbia's offshore riches could be only weeks away, ending a long-standing moratorium on exploration off the province's Pacific coastline.

4-5-02 Updates: 00:16, 01:31, 02:01, 10:35, 11:07, 11:49, 12:27, 14:25, 15:20, 17:30, 20:56 ET-Alaska Commissioners of Economic Development, Deborah Sedwick (NGP Photo), and Natural Resources, Pat Pourchot (NGP Photo), addressed Resource Development Council for Alaska members yesterday on gas pipeline and other economic development issues.  Sedwick described the State's recent trade mission to London, Berlin and Frankfort.  Pourchot summarized state gas pipeline related activity, current status of Congressional action and made an announcement regarding the State's ANS royalty gas sale.  See detailed story with photos on our RDC page here.   *   GAS PIPELINE TRENCHING TESTS-One of the last efforts of the Alaska Gas Producers Pipeline Team successfully ended recently following four successful tests: two on Alaska's North Slope and one in Interior Alaska near Fairbanks.  The monster machines created 19,500 foot trenches, producing about 45,000 square yards (2.3 acres) of material per site.  Explosives fractured the permafrost at some of the locations in which more than a dozen trenching methods were used in four different types of soils.  (We thank David MacDowell of BP {NGP Photo-left, 4-4-02}  for this information. -dh)     *     Claudia Cattaneo, Financial Post, CALGARY - Surging commodity prices mean EnCana Corp. -- the new energy giant expected to be born (yesterday) from a merger of Alberta Energy Co. and PanCanadian Energy Corp. -- will likely beat the financial targets it set for itself, says Gwyn Morgan, leader-designate of the new entity.  (Also, CBC-At a meeting Thursday in Calgary, shareholders voted more than 90% in favour of creating the new corporation, to be called EnCana.)      *         Northern News Services by Jorge Barrera, Yellowknife  - The territorial government can't keep looking to the Department of Indian and Northern Affairs for money, said the department's minister. "The department is mainly for aboriginal groups," said Robert Nault during a press conference Wednesday.    *     CBC, Yellowknife, N.W.T. - The Inuvialuit Regional Corporation is buying an oil rig worth more than $22 million with some help from Ottawa.     *     CBC, Whitehorse, Yukon - The federal government is spending more than a million dollars to find out how fast the permafrost is melting in the Yukon.     *     Anchorage Daily News by Tony Hopfinger-Alyeska Pipeline Service Co. said Wednesday it is laying off 300 staff and contract workers statewide and will reshuffle some Valdez employees to its Anchorage and Fairbanks offices.      *   Realtime News by Miguel Navrot, ALBUQUERQUE - Energy Secretary Spencer Abraham, in Albuquerque on Wednesday, urged the nation to scale back its dependence on Middle Eastern oil and called for more domestic drilling, including in the Arctic National Wildlife Refuge.  "At the end of the day, if we want to have more control over our destiny, we need to produce more oil here at home," Abraham said during a news conference at the Sheraton Old Town.  Abraham visited New Mexico days before the Senate is expected to resume debate on the Energy Policy Act of 2002. Sponsored by Sen. Jeff Bingaman, the plan calls for increasing oil and gas production, providing billions of dollars in industry tax credits and boosting reliance on renewable energy sources.  Bingaman's measure doesn't include drilling in the Arctic wildlife refuge in Alaska, which has become a focal point for both sides of the oil debate. A House version of the White House-backed energy plan, approved in August on a 240-189 vote, includes drilling in the 95,000-acre refuge. ... Abraham said mining the Arctic National Wildlife Refuge for oil can be done in "an environmentally sensitive way" by exploring a small part of the land. Doing so would offset 50 years of U.S. dependence on oil from Iraq, he said. ... Rep. Heather Wilson, R-N.M., accompanied Abraham on his visit to Albuquerque. She commended Abraham's work in drafting a long-term energy plan in addition to the Energy Department's response against terrorism.    *     ADN by Paula Dobbyn-Bill Cheek (NGP Photo, 4-01) Natchiq's president and chief executive for the past four years, has resigned and is moving to the Houston, Texas, area with his wife. Replacing Cheek is Mike Stophlet, the company's chief operating officer and executive vice president since 1999.     *     Fairbanks Daily News-Miner, by Sean Cockerham, JUNEAU--BP plans to suspend commercial tour access through the Prudhoe Bay oil field to the Arctic Ocean this summer, citing security concerns in the aftermath of the Sept. 11 terrorist attacks.  *     Financial Times, By David Buchan-The Russian government on Wednesday confirmed its intention to sell 19.68 per cent of Slavneft and 5.9 per cent of Lukoil this year, in a partial privatization that would provide foreign and domestic investors with a modest chance to cash in on the current boom in Russian oil output.

REMINDER: Northern Gas Pipelines is scheduled to join you for two very timely Arctic gas related conferences in April:  Arctic Gas Opportunities in the North comes to Houston with a cast of central players at a time when many producer, pipeline and Congressional directions will be more obvious.  Aboriginal Oil and Gas Ventures meeting in Edmonton provides insight to emerging Aboriginal leadership and to corporations hoping to work with them and others already venturing with them.  Discounts available for Northern Gas Pipelines readers...or... Mention that you saw these conferences on the Northern Gas Pipelines web page and you will receive a 10% discount off the registration price of: Aboriginal Oil & Gas Ventures    April 25/26, 2002   and/or   Arctic Gas Pipelines     April 29/30, 2002.  To take advantage of this special offer call Peter Strickland at 1-866-456-2020 ext. 261

4-4-02 Updates: 00:13, 00:25, 13:46 ET -Oil & Gas Journal-HOUSTON -- US natural gas production is on the decline, and the decline is accelerating rapidly, according to preliminary results of a Raymond James & Associates Inc. first quarter survey of 30 of the largest US natural gas producers.     *      New York Post by Ben Lieberman-April 2, 2002 -- WHAT kind of ugliness lurks in the energy bill now before Congress? Just take a look at your toilet.     *     NNS by Thorunn Howatt, Yellowknife  - The Northwest Territories has the highest employment rate in the country. That's good news, but it also means it's harder to lure the right person for the job. Now there's help recruiting workers to the right pair of workboots.   "I thought really we should have our own little niche job bank that serves just the North," said Workboot's John Simpson. His company launched a new job-finding service last weekend. It's a Web site with Northern job postings and training opportunities. Simpson was frustrated after searching job-hunt Web sites like Monster.com and Workopolis that only pertained to southerners.    *    Williams Energy News Live-The Middle East conflict and its impact on energy prices add new fuel to the debate in Washington over energy policy. On Wednesday, White House Spokesman Ari Fleischer urged Congress to pass the President's energy plan, suggesting it would help reduce U.S. dependence on foreign oil - Democrats in the Senate are trying to pass their energy plan.

4-3-02 Updates: 01:44, 11:27, 11:40 ET -  CBC-Whitehorse, Yukon - Four Yukon First Nations are a step closer to land claims settlements after signing memorandums of understanding that will give them control over 4,000 square kilometres of land.     *     Williams Energy News-Natural gas hit $3.70 early Tuesday afternoon - the gain is being attributed to strong cash markets and strength in the oil complex. Gas prices haven't hit this level since June 2001. Crude breaks $28 for the first time in six and a half months.    *     Rhea DoBosh (Photo), of the State Pipeline Coordinator's Office, provided public noticing of the Kenai-Kachemak Pipeline Project this week.   Kenai-Kachemak Pipeline, LLC proposes to construct a common carrier natural gas pipeline to transport natural gas.  The proposed pipeline will extend from the most northern point of Kenai, at an existing ENSTAR facility located near Kalifonsky Beach Road, to the most southern point at the community of Anchor Point.  The proposed pipeline ranges from 12 to 16-inches in diameter and will handle a future potential flow rate of up to 330 million standard cubic feet per day of natural gas at 1440 pounds per square inch.  The proposed pipeline is approximately 62 miles in length with approximately 57 miles of the pipeline located on State lands.  The public may obtain copies of the project application at cost or view the application at the JPO, Records Area, 411 West 4th Ave., Anchorage, AK 99501.   Also...Right-of-way lease renewal applications have been received for five North Slope pipelines:  Oliktok, Kuparuk, Kuparuk Extension, Endicott, and Milne.  The projects have been public noticed through April 26, 2002.  Copies of the application are available for viewing at the above office.     *     COMMENT ON SOFTWOOD TARIFF AND GAS PIPELINES.  On our recent concern that steady hands in Canada guide the state ship's helm  through unpleasant political storms, we are hearing more and more positive voices.  Yesterday, Minister Herb Dhaliwal stressed cooperation (See story below).  Then a Northern Gas Pipelines reader wrote, "chances are slim to none that any such thing would ever happen (referring to energy supply retaliation)."  He told us that Ken Drushka of the weekly paper Business in Vancouver  (www.biv.com), wrote this week that B.C. has two softwood industries: "A coastal industry, whose costs are among the highest in the world, would be in dire straights regardless of the U.S. countervail and an Interior industry where few layoffs of short duration have resulted."  We are relieved, but find the softwood tariff incident to be another good reason for America and Canada to never take one another for granted.  Harsh political actions, no matter how well intended, can produce unexpected and adverse results that affect the strong bonds of friendship, cooperation and commerce.  It is said that lumber for Canada is a $10 billion business, whereas the annual gas business brings about $28 billion to Canada from exports alone. Arctic gas pipelines can mean even more to both neighbors should economics enable them and should cooperation bless them!    -dh  (Earlier comment.)    *    NEW ISSUE ARISING?  National Post by Peter Morton, WASHINGTON - The U.S. Trade Representative yesterday placed Canada near the top of its annual list of countries with which it has major trade disputes, a move which came as the United States threatened to launch yet another round of trade action, this time against Canadian wheat.  (Comment:  With a terrorism war to fight and gas pipelines to build, Northern Gas Pipelines questions the timing and appropriateness of these trade actions.  -dh)     *     Realime News-ALBANY, N.Y., April 2 (AP) - U.S. Interior Secretary Gale Norton told upstate Teamsters Tuesday to push their U.S. senators to support more oil drilling in Alaska, saying it would create jobs and help stave off another energy crisis.

4-2-02 Updates: 00:33, 01:05, 11:22, 11:42, 12:05-Yesterday's gas price increased by 24 cents to $3.531    *     ADN, Tony Hopfinger and Ben Spiess report Alaska crude at 6 month high.    *     O & G Journal, Houston-US drilling activity increased last week after 9 weeks of consecutive declines, said officials at Baker Hughes Inc.     *     (Softwood tariff and pipeline issues reference)     National Post, by Alan Toulin and Ian Jack- ... Minister of Natural Resources, Herb Dhaliwal (Photo): "All I've said is that co-operation is important between both our countries and co-operation is a two-way street," he said. "It's not about retaliation, it's about sending a clear message that co-operation helps both our countries and when we work together it will be helpful."  In Vancouver yesterday, the powerful Industrial Wood and Allied Workers of Canada said the federal government should link energy exports to a deal on softwood.  "We don't believe, when we're sitting next to a bad neighbour, we should continue to be the good neighbour we have been for so long," said Dave Haggard, IWA Canada president.  Meanwhile, a Toronto-Dominion Bank report issued yesterday suggested while the duty is a "severe blow" to the lumber industry, the effect on the overall economy will be felt mostly in British Columbia.  "The weakness in the lumber industry will be a blow to the Canadian economy, but the overall impact should be modest," Craig Alexander, a senior economist at the bank, wrote in a commentary. The lumber industry represented only 1.3% of Canadian economic output in 2001, and at most 1.5% of the work force, he said.       *         Northern News Services, Yellowknife - ... Industry executives were quick to react to a report in the Globe and Mail report last Tuesday that Natural Resources Minister Herb Dhaliwal was considering taking action in the energy sector in retaliation for a 29 per cent duty slapped on exports of softwood lumber.  Petroleum industry representatives asked Dhaliwal to clarify his comments that afternoon, said Pierre Alvarez, president of the Canadian Association of Petroleum Producers.  "He has reassured us there will be no linkage (between lumber and the energy sector)," Alvarez said. "We fundamentally reject any notion of linking the two commodities."   ... A free trade expert at Carleton University in Ottawa said there are very few industries that are willing to step into a trade war to help another.  "Governments have on occasion been dumb enough to do that," said Michael Hart, a professor of trade policy. But Hart added that has not happened since Pierre Trudeau was prime minister.   Alvarez said the petroleum industry, with no trade barriers, serves as a model for trade between the two nations. ... In the Globe and Mail story, Dhaliwal was said to suggest that Canada may not co-operate in the development of a pipeline that would ship Alaska gas to U.S. markets through Canada.  ... Territorial cabinet ministers said it may be a mistake to draw the energy industry into the softwood lumber dispute. Finance Minister Joe Handley said Canada should think very carefully before getting into any trade dispute with its neighbour to the south.  "If we're just a little mouse, we don't want to get into a spitting match with the elephant next door," Handley said. "Hitting them on the energy side could end up hurting us, particularly the NWT, more than them."   Resources Minister Jim Antoine said he appreciates the tough stance Dhaliwal is taking on free trade, considering the possibility that the Deh Cho may one day export lumber to the U.S. "We'd like to have a better idea of what he has in mind," said the Nahendeh MLA of the link between softwood lumber and energy.   *     Juneau Empire (AP)-ANCHORAGE - State regulators say two of Alaska's big oil companies are keeping their environmental promises at their North Slope oil fields.

4-1-02 Updates: 00.10, 11:27, 12:21 ET-Globe & Mail (Search 3-30 stories), Calgary by Lily Nguyn (NGP Photo, 2-02) -- A looming change in disclosure rules governing petroleum producers is throwing a spotlight on how oil and gas reserves are reported -- and forcing a number of companies to downgrade their estimations of reserves.    *   NNS by Terry Halifax-The Beaufort Delta Leaders Conference, held March 19 to 21, gave leaders a chance to brainstorm ideas and identify future needs to see a smooth transition towards self-government.    *     The U.S. Senate is in adjournment until 3:00 p.m. on Monday, April 8.  When they return, Senators are  expected to resume consideration of the energy bill.  There will be no votes until Tuesday, April 9.