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Northern Gas Pipelines, (Alaska Gas Pipeline, Denali - The Alaska Gas Pipeline, Mackenzie Valley Gas Pipeline, Alaska Highway Gas Pipeline, Northern Route Gas Pipeline, Arctic Gas, LNG, GTL) is your public service, objective, unbiased 1-stop-shop for Arctic gas pipeline projects and people, informal and rich with new information, updated 30 times weekly and best Northern Oil & Gas Industry Links on the Internet.  Find AAGPC, AAGSC, ANGTL, ANNGTC,  ANGDA, ANS, APG, APWG, ANGTA, ANGTS, AGPPT, ANWR, ARC, CARC, CAGPL, CAGSL, FPC, FERC, GTL, IAEE, LNG, NEB, NPA, TAGS, TAPS, NARUC, IOGCC, CONSUMER ENERGY ALLIANCE, AOGA,AOGCC, RCA and more...

2009 LINKS: FERC Reports to Congress, 1, 2, 3, 4, 5, 6, 7....; USGS Arctic Gas Estimates; MMS hearings: RDC, Our NGP, AJOC, DH, ADN, KTUU; Enstar Bullet Line: Map and News Links; ANGDA; Alaska Energy Forum; Prosperity Alaska

2008 LINKS: Shell Alaska OCS Study; Mackenzie Gas Project EIS; Join the Alaska Gas Pipeline Blog Discussion; Governor Sarah Palin's AGIA Links; 2007 ACES tax bill links; Department of Revenue 2007 ACES tax documents;  2007 ACES tax Presentations; 2007 ACES tax news; Alaska Gas Pipeline Training and Jobs; Gas Pipeline and Economic Development; Andrew Halcro; Bjørn Lomborg; FERC's Natural Gas Website Links

WASHINGTON: Alaska Natural Gas Pipeline Act; History of H.R. 4; DOE Energy Bill Position, 6-02; Daschle-Bingaman Energy Bill (Alaska, Sec. 1236 & tax credit, Sec. 2503 & H.R. 4 Conferees), Tax Credit; See amendments, "Energy Policy Act of 2002";  "Alaska Natural Gas Pipeline Act of 2001 (Draft)" & Background Paper, 8-9-01;Alaska Legislature Joint Committee position; Governor's position; Governor's 10-Point Plan; Anadarko Analysis; U.S. Senate Energy Committee Testimony, 10-2-01 - text version;  U.S. Senate Energy Committee Testimony, 9-14-00; Report on the Alaska Natural Gas Transportation Act of 1971, prepared by staff of the Federal Energy Regulatory Commission, 1-18-01

ALASKA: 1-23-03, Governor Frank Murkowski's State of the State Speech; 2002 DRAFT Recommendations to 2003 Legislature; '02 Alaska Legislation; Alaska Highway Natural Gas Pipeline Policy Council; Joint Legislative Gas Pipeline Committee; 9-01 Alaska Models: Canadian Routes, LNG, GTL; HR 4 Story; Cook Inlet Supply-Demand Report: AEDC; Commonwealth North Investigation & Our Article; Report: Backbone; Legislature Contacts; State Gas Pipeline Financing Study; 5-02 Alaska Producer Update; Kenai: "Oil & Gas Industry Issues and Activities Report, 11-02"; Alaska Oil & Gas Tax Structure; 2-27-02 Royalty Sale Background; Alaska Gas Pipeline Office opens, 7-01, and closes, 5-02; Betty Galbraith's 1997-1998 Chronology Our copy.

CANADA: 1-10-03, "Arctic Gas Pipeline Construction Impacts On Northern Transp."-Transport Canada-PROLOG Canada Inc.-The Van Horne Institute;Hill Times Reports, 8-30-02; 9-30-02, Cons. Info. Requirements; CBC Archives, Berger Commission; GNWT Economic Impact Study, 5-13-02; GNWT-Purvin & Gertz Study, 5-8-02; Alberta-Alaska MOU 6-02; Draft Pan- Northern Protocol for Oil and Gas Development; Yukon Government Economic Effects: 4-02 & PPT; Gas Pipeline Cooperation Plan Draft & Mackenzie Valley Environmental Impact Review Board Mackenzie Valley Pipeline MOU Draft, 6-01; FirstEnergy Analysis: 10-19-01; Integrated Delta Studies; National Post on Mackenzie Pipeline, 1-02;Northern Pipeline Act;  Haida Nation v. British Columbia; Indian Claims Commission; Skeena Cellulose decision -- aboriginal consultations required, 12-02; Misc. Pipeline Studies '02

COMPANIES: Alaska Gas Producers Pipeline Team Newsletter, 7-27-01; APG Newsletter: 5-02, 7-02 & 9-02; ArctiGas NEB PIP Filing Background; NRGPC Newsletter: Fall-02;  4-02 ArctiGas Reduces Field Work; BP's Natural Gas Page; Enbridge Perspective; Foothills Perspective; Williams Perspective; YPC Perspective, 7-02

 MEDIA REFERENCE: Alaska Journal of Commerce; Alaska Inc. Magazine; Anchorage Daily News; Canadian Broadcasting Corporation; Fairbanks Daily News Miner, Juneau Empire; Northern News Services; Oil & Gas Reporter; Petroleum News Alaska; Whitehorse Star, etc.

EXTENDED CONFERENCE NEWS: Alaska Support Industry Alliance, Anchorage Chamber of Commerce Canadian Institute, Insight Information, Inuvik Petroleum Shows, International Association of Energy Economists, Resource Development Council for Alaska, Ziff Energy Group











Northern Gas Pipelines: Please Scroll Down for April News

  • 4-24 to 5-1:We attended gas conferences in Edmonton and Houston.  Reports will follow tomorrow and over the weekend as gas pipeline coverage continues.  
  • If you would like to be alerted by email when the daily reports resume, please ask!
  • Thank you for your confidence in Northern Gas Pipelines.

Northern Gas Pipelines Readers are Cordially Invited

To Informal, Post-Conference Discussions of Gas Pipeline Issues/events.

No-host Bar and Snacks

Presented by:

Northern Gas Pipelines & Inuvialuit Environmental & Geotechnical Inc.

1.  Edmonton, Sheraton Grande, Vintage Room: April 26, 4:30 p.m.

2.  Houston, Crowne Plaza Hotel, Ballroom area: April 30, 4:30 p.m.

R.S.V.P. helpful but not required: Peter Jalkotzy, B.Sc., P.Biol.
Vice President, Environment
IEG Inc.
1338R  36th Avenue NE
Calgary, Alberta, Canada T2E 6T6
(403) 219-1248 (direct)
(403) 863-0837 (cellular)
(403) 291-1150 (fax)  (email)

Northern Gas Pipelines is scheduled to join you for two very timely Arctic gas related conferences this month:  Arctic Gas Opportunities in the North comes to Houston next week, 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 this week, 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 (i.e. in which we, of course, have no financial interest) call Peter Strickland at 1-866-456-2020 ext. 261      *     SPECIAL NOTICE:  FOR READERS WHO WILL BE IN EDMONTON ON APRIL 26 OR HOUSTON ON APRIL 30.  OUR SPONSOR, Inuvialuit Environmental & Geotechnical Inc. (IEG), WILL BE HOSTING END-OF-CONFERENCE MEETINGS SO THAT I MIGHT VISIT WITH CONFERENCE ATTENDEES AND LOCAL READERS FOR AN INFORMAL AND CANDID DISCUSSION OF PIPELINE PROJECT STATUS AND CURRENT EVENTS.  YOUR INVITATION IS BELOW.   (FYI: 3-8-02 Calgary post-conference meeting). 

4-23 Updates: 01:20, 1:41, 11:00, 11:26, 12:00, 12:44, 13:00, 13:22, 13:34, 14:17, 18:06 ET: House Bill 302, sponsored by Rep. Jim Whitaker (Photo-l), would create the Alaska Gas Corp., a state-owned company whose first job would be to produce a feasibility study and plan for building a pipeline. The plan would include specific answers to technical, financial, regulatory and market access questions relating to the pipeline, and would be completed by early 2004.   See our Alaska gas related legislation here.  See ADN story.    *      Juneau, AP -- A measure giving up to $500 million in tax breaks for construction of a natural gas pipeline is moving quickly through the House.  Rep. Pete Kott (Photo-r), is sponsoring the bill, which would exempt a natural gas pipeline from local and state property taxes while it is being built and for the first two years of operation. It would also exempt it from sales taxes.      *     Bill Wicker, Communications Director of the Senate Energy Committee tells us, the Senate yesterday resumed consideration of an energy policy bill (S 517), with a vote set Tuesday on whether to bring the nearly two-month-long debate to a close.   Democrats are "optimistic" that they can attract the 60 votes needed to invoke cloture and move to a final vote by Thursday, according to a Democratic aide. "But Republicans have not decided whether they are ready to go along", Wicker said.  "A GOP aide said they are looking for an agreement with Democrats to limit the number of amendments and a deal allowing them to bring up an  amendment or separate bill to permanently repeal the estate tax," he said. And Republicans say the real obstacle that Majority Leader Tom Daschle, S.D., faces is his own party's long list of  amendments. "Sen. Daschle shouldn't rely on Republicans to bail him out on issues with his people," said the GOP aide. Republicans likely will decide at a meeting this morning whether to support the cloture motion.      *    CONGRESSIONAL QUARTERLY UPDATE, 14:14 ET.  Senate Majority Leader Tom Daschle, S.D., wants to end debate on an  energy bill this week, but some fellow Democrats are standing in the way. Dianne Feinstein, D-Calif., blocked Daschle's bid for unanimous consent agreement limiting remaining amendments to the energy bill (S 517) to seven for each party. Feinstein objected to Daschle's refusal to bring up an amendment she and Charles E. Schumer, D-N.Y., drafted to strike provisions encouraging the use of the fuel additive ethanol. Daschle had a relatively easy time forging an agreement with Republicans on attaching a package of energy tax credits and incentives to the bill. And he promised debate on making the estate tax repeal permanent will begin by June 28, preventing that issue from holding up the energy bill, which Republicans said they would like to finish by 6 p.m. Thursday. A cloture vote was scheduled for 2:30 p.m.       *      WASHINGTON, Gas Pipeline - Alaska Sen. Frank H. Murkowski filed a tax proposal amendment to the pending Senate energy bill yesterday that would act as a 'safety net' to help ensure the construction of an Alaska natural gas pipeline.  (Download copy here.)  "This is an important step to help make a natural gas pipeline for Alaska a reality," said Murkowski. "This tax proposal would provide a 'safety net' for construction of the pipeline. The credit would kick in only if the price of natural gas drops below $3.25 per million btu (or per thousand cubic feet), and would stay in place only until gasline construction costs are recovered. And unlike the existing gas credits, this proposal has a payback provision which never expires or disappears until all credit is paid back.  Alaskans are ready to do their part to protect America's energy security. This provision helps ensure the economic viability of the gas line project. Without these safeguards, Alaska natural gas will stay in the ground for a very long time.  "This truly is a win-win situation for all involved," Murkowski said. "The nation will benefit because the increased supplies of this clean burning fuel will provide an affordable energy product for American families and allow for expanded uses of new technology at the same time. Alaskan communities will benefit from the construction jobs and access to natural gas that will fuel their future energy needs. And in the end, because of the payback provision, it won't cost the federal government a penny."  "Increased domestic production must be a part of the Senate energy bill if it's ever going to be balanced. Now, more than ever, we must look here at home for our energy solutions. American energy solutions are free from the bloodshed of the Middle East or the chaos of Central America. They¹re stable, reliable, and help put Americans to work."  (Note: this might be the most significant gas pipeline provision--with taxpayers helping to guarantee the economic viability of a pipeline.  -dh)         *       WASHINGTON, ANWR -- Alaska Sen. Frank Murkowski yesterday welcomed the American Israel Public Affairs Committee (AIPAC) Policy Conference's endorsement of an energy policy for the Unites States which includes exploration in the coastal plain of the Arctic National Wildlife Refuge.     *       Juneau Empire by Bill McAllister-House Republican leaders said today they haven't given up on a long-range fiscal plan but will move ahead on incremental revenue-raising measures, rather than a package.    *      REMINDER: Northern Gas Pipelines is scheduled to join you for two very timely Arctic gas related conferences this month:  Arctic Gas Opportunities in the North comes to Houston next week, 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 this week, 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 (i.e. in which we, of course, have no financial interest) call Peter Strickland at 1-866-456-2020 ext. 261      *     SPECIAL NOTICE:  FOR READERS WHO WILL BE IN EDMONTON ON APRIL 26 OR HOUSTON ON APRIL 30.  OUR SPONSOR, Inuvialuit Environmental & Geotechnical Inc. (IEG), WILL BE HOSTING END-OF-CONFERENCE MEETINGS SO THAT I MIGHT VISIT WITH CONFERENCE ATTENDEES AND LOCAL READERS FOR AN INFORMAL AND CANDID DISCUSSION OF PIPELINE PROJECT STATUS AND CURRENT EVENTS.  PLEASE WATCH FOR YOUR FORMAL INVITATION IN TOMORROW'S NEWS (3-8-02 Calgary post-conference meeting). 

4-22 Updates: 02:30, 04:59, 05:20, 11:52, 12:09, 12:29, 13:10, 13:27 ET: SEE SPECIAL NOTICE BELOW.     *     Here, readers will find the Yukon government's latest Backgrounder - Northern Pipelines provides some background, analysis, and data that will be of interest. It advocates the Alaska Highway routing option.  This document can also be viewed by looking under 'Quick Reference' in the left column and scrolling down to the 'Canada' heading, or by visiting the government website:     *     Williams Energy News Live-After weeks of debate, the U.S. Senate could cast a final vote on the energy bill (this) week. The Democratic leadership filed a motion to end debate on the bill; that vote will take place (tomorrow). If successful, a vote on the bill itself could follow soon after. (Note:  We are waiting for a major amendment, the Federal guarantee of a gas price floor for North Slope gas.  -dh)    *     CBC-Inuvik, N.W.T. - Oil and gas producers are finishing their seismic programs in the Beaufort Delta and more than a thousand workers are heading home.

4-20/21 Weekend Updates: Sat. 15:40, 16:00, 16:15, 16:25, 16:46, 17:00, 18:43, 19:55, Sun. 12:39 ET.  See our review of Alaska gas-related legislation here.    *    Cook Inlet oil platform fire.  *   Whitehorse Star-There is a more than ample market in North America to support proposed pipelines down the Alaska Highway and through the Mackenzie Valley, Energy, Mines and Resources Minister Scott Kent (NGP Photo, 11-29-02) said this week.  (See Friday's CBC story below.)   *   Anchorage Daily News, by Ben Spiess, Juneau -- ...a plan to fill Alaska's $1 billion fiscal gap failed to win support late Friday from House Republicans, a sign that any comprehensive package of new revenue measures this year is all but dead.  (Comment:  Without resolution, the state's fiscal crisis grows more desperate and prospects for predatory oil & gas taxes increase.  By Fall 2004, Alaska's government will be unable to pay operating costs. Caveat Investor.   -dh)  *   See author's new gas pipeline related articles, Alaska Oil & Gas Reporter:

Here is a recent memo from Senator John Torgerson (Chairman of the Joint Gas Pipelines Committee, NGP Photo 2-20-02) on recent energy legislation activity in the U.S. Senate with regard to a natural gas pipeline.       *     Oil & Gas Journal, by Maureen Lorenzetti, WASHINGTON--With the Senate expected to vote on final energy legislation on or around Apr. 23, the key question the oil industry is now asking is whether lawmakers can reach consensus on a final bill the White House will accept. On Apr. 18, the differences between a House bill passed last August and the pending Senate measure grew larger.    *      ANCHORAGE (AP) - Although an effort to open the Arctic National Wildlife Refuge to oil drilling failed in the Senate, supporters and opponents of drilling said the debate over the refuge is far from over.  (Please see Tuesday's Congressional Record (Items 15 & 16) documenting the ANWR debate.  Here is Wednesday's Record (Items 8 & 9).   Here is Thursday's record (Item 9).)        *     Senators Tom Carper and Arlen Specter are circulating an amendment they are considering offering to reduce by 1 million barrels a day the oil consumed through cars and light trucks.  Against ANWR, they say such conservation efforts will provide what ANWR or imports from Iraq would.  Dear Colleague Letter Fact Sheet.    *     The Commissioner of the Department of Natural Resources has postponed the Alaska Royalty Oil and Gas Development Advisory Board public hearing previously scheduled for April 17, 2002.  The Board will now meet at 8:30 am on May 21, 2002 in Room 240 of the Atwood Building, 550 West Seventh Avenue, Anchorage, Alaska.  On March 30, 2002, the Commissioner issued a preliminary finding and decision on the proposed sale of North Slope royalty gas under a multi-year contract to Anadarko Petroleum, AEC Marketing Inc., and AEC Oil & Gas Inc (AEC).   The preliminary best interest finding discusses the terms of the contracts negotiated with Anadarko and AEC.  On May 21, 2002 the Board will hold a public hearing to discuss whether this proposed royalty gas sale meets the criteria set out in AS 38.06.070.  The Board will also prepare its recommendations to the Legislature at the hearing.  Copies of the Preliminary Finding and Determination, which includes the proposed contract, may be obtained from the Division of Oil and Gas, 550 West Seventh Avenue, Suite 800, Anchorage, Alaska 99501-3560.  The Preliminary Finding may also be downloaded from the Divisions Website at  For more information regarding the sale, please contact Kevin Banks at (907) 269-8781 or vial email: In his March 30, 2002 notice of the publication of the preliminary best interest finding, the Commissioner solicited comments and information from the public by the deadline of April 29, 2002.  This deadline is unchanged.  Comments may be submitted to at the above address.

4-19 Updates: 01:05, 01:44, 02:00, 02:44, 03:00, 11:09, 11:23, 13:22, 13:32 ET.   SPECIAL LINKS TO  CURRENT ALASKA LEGISLATION       *        CBC, Yellowknife, N.W.T. - The Northwest Territory minister of finance says Ottawa is finally on the north's side when it comes to money for a Mackenzie Valley pipeline. Joe Handley (Photo-left) along with both the premier and the deputy premier, have been in Ottawa this week lobbying for both pipeline and highway money.   Premier Stephen Kakfwi has been making threats, saying the pipeline will not proceed if the American government passed legislation subsidizing the Alaska Highway route. After years of staying neutral, Ottawa is finally coming out in support of the Mackenzie Valley route being built first.  "I'm not leaking anything here, this is what they told us in the meeting," Handley says. "They just have not made a big public statement on it, but are saying that to people and probably saying it quite publicly."  ...  Meanwhile, the Yukon's director of oil and gas development disagrees with Kakfwi' s point of view. Greg Komarami (NGP Photo, 2-8-02) says there's enough demand for both the Mackenzie-Delta and Alaskan pipeline.  "Between now and 2010, most analysts agree, there's 17 billion cubic feet of natural gas needed to supply new growth and both of these projects wouldn't even supply half that," he says.   The amount of money a new study estimates a N.W.T pipeline could generate for Canada's economy is $77 billion.  It was commissioned by Calgary's TransCanada Pipelines and the N.W.T. government. Although the news that a pipeline would be economically beneficial is not new, the report narrows down details at a key time to support the territorial politicians' plights in Ottawa.   (Northern Gas Pipelines will provide readers the report as soon as it is available.)      *      Please see yesterday's report below for more details on ANWR debate and also our links to Alaska gas pipeline-related bills pending in Juneau.     *       Bill Wicker, Communications Director of the Senate Energy Committee tells us, "...before adjourning tonight, a cloture motion on the energy bill was filed.  That petition will ripen on Tuesday. Senators will have until 1:30 p.m. Monday to file first degree amendments.  Today there was action on 20 amendments: 13 amendments were adopted by unanimous consent ... four were withdrawn ... two were rejected ... and one passed on a roll call vote.  ... I'll be as descriptive as I can: -- Passed by unanimous consent: Carnahan #3015 (Nuclear Waste Transportation/ NAS Study); Voinovich #3024 (Nuclear Licensing/NRC Regulatory Reform); Grassley #3078 (GSA Report/ Federal Fleet Efficiency); Dorgan #3141 (Fuel Cell Vehicle Program); Cantwell (High Power Density); Reid (Gold Catalysis R&D); Bingaman (Report on Energy Savings); Schumer (Energy Efficient Appliance rebate Programs); Landrieu (Small Business Education and Assistance Program); Corzine (Public Housing Energy Efficiency); Kennedy (Clean School Buses); Lincoln/Hutchinson (Decommissioning Pilot Program); and Murkowski (Coal Technology Loan).  --  Withdrawn: Kerry/McCain #2999 (CAFE); Lott #3028 (Fair Treatment of Judicial Nominees); Graham #3070 (Municipal Solid Waste/RPS); and Schumer #3030 (Ethanol - Strike Sec. 819).  --  Rejected: Stevens #3133 (ANWR/Steel, 64-36) and Murkowski #3132 (Drilling in ANWR, 54-46).  --  Agreed To: Murkowski #3159 (Iraqi Oil Import Ban, 88-10).  FRIDAY:  Senate is not in session today, and in adjournment until 1:00 p.m. on Monday (which is also a no-vote day).  First hour on Monday will be morning business.  At 2:00 p.m., the Senate will resume consideration of the energy bill.  Pending business is Dayton/Grassley #3008 (Federal Fleets-Biodiesel and Ethanol).  The next vote will be on Tuesday."    See ADN Story See Washington Post story See realtimenews story CBC story.    *     WASHINGTON -- While saying he was disappointed by a procedural vote, Alaska Sen. Frank Murkowski (Photo, 2-20-02) said his efforts to open part of the Arctic coastal plain to oil exploration and development will continue unabated.  Following procedural ANWR votes today Senator Ted Stevens vowed that the fight to see that drilling can begin in the 1002 area of ANWR is far from over.      "It is a moral issue from here on out.  The Eskimo people deserve to be heard in terms of their own rights in the area.  They own 92,000 acres within the 1002 area of ANWR.  They should have a right to pursue their own interests there and drill on their own land.  We're going to pursue that on this Energy bill.   Governor Tony Knowles said after the vote today, "I share the disappointment of the vast majority of Alaskans in today's 46-54 vote in the U.S. Senate on oil and gas development in the Arctic National Wildlife Refuge, but this is hardly the final chapter. I believe the science, technology and environmental stewardship of a future America will ultimately converge to allow the responsible development of oil and gas in ANWR.  "I salute the bipartisan effort of Alaskans leading up to today's vote. Organized labor, Arctic Power, our congressional delegation,  legislators of both parties, the state administration and Alaskans across our state worked across political party lines for a common purpose.  *    Yesterday, the author addressed members of the Anchorage Hillside Rotary Club.  Rotarians learned why Northern Gas Pipelines has linked both ANWR and Alaska fiscal issues within its pages.  The author also summarized statements of senators involved in the ANWR debate and briefed members on current status of gas pipeline related legislation in Washington and Juneau (Photo-author, right, with Rotary president Michael A. Morrison, CFP, Salomon Smith Barney).  Please see Tuesday's Congressional Record (Items 15 & 16) documenting the ANWR debate.  Here is Wednesday's Record (Items 8 & 9).   Here is Thursday's record (Item 9).

4-18 Updates: 00:01, 00:35, 01:02, 01:50, 13:03 ET.   SPECIAL LINKS TO  ALASKA LEGISLATION BELOW.     *     12:42 ET.  SPECIAL REPORT.  A few minutes ago the Senate voted on ANWR amendments cloture motions.  The strategy of Leader Daschle was to have his majority move for closing debate then voting against the motion.  It would have taken 60 votes for an affirmative vote to sustain ANWR.  By voting down their own motion, the debate on Murkowski's ANWR amendment to the Daschle-Bingaman energy bill could technically continue without limit, also without needed support.  Unless the pro-ANWR side were to filibuster in continuance of debate, the amendment is dead.  Debate on other amendments or energy bill provisions may continue if debate on ANWR ceases.  The final vote was 46-54 to not invoke cloture. -dh      *       Today, your author will be appearing before the Anchorage Hillside Rotary Club to say a few words on this historical ANWR proceeding and discuss, "History and Current Status of Northern Gas Pipelines".     *     Please see Tuesday's Congressional Record (Items 15 & 16) documenting the ANWR debate.  Here is Wednesday's Record (Items 8 & 9)Today, this debate is scheduled to end.  C-Span is carrying this historical exchange which has included numerous references to gas pipeline projects and to Canada; we hope readers are tuning in.    Bill Wicker, Communications Director of the Senate Energy Committee tells us, "Today is the (21st) working day that we've been on the energy bill.  ANWR is the pending business.  (Today), two cloture votes are scheduled on the two Arctic Refuge amendments.  If no other agreement is entered, the first vote, on Stevens #3133, will occur one hour after the Senate convenes.  The second vote, on Murkowski #3132, will follow the first vote.  It has not yet decided which amendment(s) will come up after these votes."     *     Yesterday, the ANWR debate continued from morning until about 10:30 ET, with numerous gas pipeline references.     Senator Ted Stevens (NGP Photo-r) again yesterday urged his colleagues to support oil exploration in the 1002 area of ANWR. In remarks on the Senate floor, he reminded the Senate that the Inupiaq Eskimos of the North Slope (those living nearest to the 1002 area) support oil exploration in the area; that the 1.5 million acres of the Arctic Coastal Plain is not a wilderness area; and that oil produces many products besides gasoline.  See statement.  He then advised Senators of a bipartisan letter from twelve House Members in support of Senator Stevens' effort to resolve the legacy cost burden of the steel industry. The letter states in part, "We write as members of the House... to convey our strong support of your efforts to resolve the legacy cost burden of the domestic steel industry, and especially your efforts to assist the steel industry's retirees and their dependents."    Senator Frank Murkowski (NGP Photo-l) said the federal government has not kept the promises it made when the Alaska National Interest Lands Conservation Act  (ANILCA) became law.  Murkowski quoted President Jimmy Carter's comments when he signed ANILCA in December 1980, that ANILCA "allows the development of Alaska's vital oil and gas and minerals and timber resources."       Murkowski also quoted Rep. Morris Udall, one of ANILCA's authors, as saying the people of Alaska "can get on with building their state.  This matter is settled and put to rest and the development of Alaska can go forward with balance."      "In 1980 we believed that we could get on with the development of our state," Murkowski said.  "However, the development of Alaska still rests on the whims of Congress and sometimes unfriendly administrations.  We must not forget that these were promises made to the people of Alaska.  These were promises that were not kept by the federal government."      Murkowski said objections raised by opponents and radical environmentalists that the coastal plain is a wilderness area are false.      "This area is not a wilderness.  It has never been a wilderness.  This is a refuge," Murkowski said.   "We have oil and gas exploration in refuges all the time.  For those that think it is an untouched spectacular area, they might be surprised to learn that there are people that live up there in the village of Kaktovik.      "We're fighting for the rights that we had when we became a state," Murkowski said, "the right to responsibly develop the oil in the state.  So don't tell me that somehow we're doing something wrong by trying to open a refuge in the Arctic," Murkowski said.  (Also: ADN article by Liz Ruskin)     *     Northern News Services by Richard Gleeson-Yellowknife - If Alaskan Governor Tony Knowles gets his way with an Alaska Highway pipeline, gas in the Beaufort Delta will be stranded for a long time, said Premier Stephen Kakfwi. "The exploration will cease, because there's absolutely no money in trying to develop Delta gas if Alaskan gas is going to be subsidized to that extent," said Kakfwi, speaking from Ottawa Monday. Kakfwi was referring to a bill now before the Alaskan Senate, backed by Governor Knowles, that would allow a pipeline down the Alaska Highway to be financed through $17 billion in tax-exempt bonds. The bonds would be issued through the Alaska Railroad Corporation. Supporters of the bill say such a financing plan will save the pipeline owners more than US $1 billion.    (NOTE, ALASKA GAS-RELATED LEGISLATION '02:  Readers may appreciate this ready reference to current Alaska legislation:  1.  The Alaska Railroad bill noted above is SB 296 SCR 10 expresses "the legislature's support for sale of a portion of Alaska's North Slope natural gas for electrical generation to power data centers within the North Slope Borough. SB 221 is "An Act establishing the Alaska Liquefied Natural Gas Development Authority, a public corporation, and providing for its structure, management, responsibilities, and operation."   SB 310  is "An Act amending the Alaska Right-of-Way Leasing Act to provide for the assignment and coordination in one office within the Department of Natural Resources, the State Pipeline Coordinator's Office...."  SB 360 is "An Act establishing additional requirements for the consideration of applications under the Right-of-Way Leasing Act for an Alaska North Slope natural gas project...." (Sectional Analysis.  Sponsor Statement.)  SJR 42 is a resolution "Urging the President of the United States, the United States Congress, and appropriate federal officials to support the construction and operation of the Alaska Highway Natural Gas Pipeline route."   SJR 32 applies to oil & gas pipelines: "An Act relating to the Right-of-Way Leasing Act; and providing for an effective date."  HB 9 is "An Act amending the standards applicable to determining whether a proposed new investment constitutes a qualified project for purposes of the Alaska Stranded Gas Development Act; and providing for an effective date."  HB 21 is "An Act relating to the construction of an overland natural gas pipeline to transport natural gas from North Slope reserves to North American markets."  HB 38 is "An Act amending the application deadline, and the standards applicable to determining whether a proposed new investment constitutes a qualified project, for purposes of the Alaska Stranded Gas Development Act; and providing for an effective date."  HB 60 is "An Act relating to the Right-of-Way Leasing Act; and providing for an effective date."  HB 83 is "An Act relating to natural gas pipelines, providing a statutory definition for the portion of the constitutional statement of policy on resource development as applicable to the development and transportation of the state's natural gas reserves, amending Acts relating to construction of natural gas pipelines to require conformance to the requirements of the statutory definition, and amending the standards applicable to determining whether a proposed new investment constitutes a qualified project for purposes of the Alaska Stranded Gas Development Act; and providing for an effective date."  HB 190 is "An Act levying and collecting a tax on certain North Slope natural gas in place if certain requirements relating to its sale and delivery are not met, and imposing a limit on the Department of Natural Resources that relates to the issuance or extension of oil and gas leases containing natural gas that is capable of production in paying quantities; and providing for an effective date."  HB 220 is "An Act establishing an exploration and development incentive tax credit for persons engaged in the exploration for and development of less than 150 barrels of oil or of gas for sale and delivery without reference to volume from a lease or property in the state; and providing for an effective date."  HB 302 is "An Act establishing the Alaska Gas Corporation, a public corporation, and providing for its structure, management, responsibilities, and operation, and requiring the development of a project plan to evaluate whether construction and operation of a natural gas transmission pipeline project by the corporation is feasible."    HB 308 is "An Act extending to discoveries of oil or gas in the Tanana River drainage basin the discovery royalty credits...."   HB 311 is "An Act relating to oil and gas leases; imposing a limit on the Department of Natural Resources that relates to the issuance or extension of oil and gas leases containing natural gas that is capable of production in paying quantities; and establishing tax exemptions related to oil and the recovery of oil from oil and gas leases; and providing for an effective date."  HB 394 is "An Act relating to adjustments to royalty reserved to the state to encourage otherwise uneconomic production of oil and gas; and providing for an effective date."  HB 410 is "An Act establishing the Alaska Natural Gas Development Authority, a public corporation, and providing for its structure, management, responsibilities, and operation, and requiring the development of a project plan for the construction and operation of a natural gas transmission pipeline project by the authority."   HB 519 is "An Act authorizing priority treatment under the Right-of-Way Leasing Act for an Alaska North Slope natural gas project....")    *       Oil & Gas Journal, by Steven Poruban, HOUSTON -- Conventional natural gas supplies will not be enough to meet the North American market's demand for gas over the next decade. In the coming years, demand will have to be met through all industry players working together to expand North America's gas network as well as exploring for gas in various frontier areas of the US and Canada.  This was the consensus among panelists representing US and Canadian pipelines and producers at the opening of the 2-day North American Gas Strategies Conference hosted by Ziff Energy Group Monday in Houston.    

4-17 Updates: 00:27, 10:54, 15:25 ET.  Alaska Senate Bill 360 seeks to expedite construction and operation of an Alaska gas line from the North Slope through Canada to the lower 48 or to Alaska tidewater for shipment as LNG (“project”).  Sponsor Statement Sectional Analysis. *   Today, Harold Heinze (Photo, 9-19-01), former President of Arco Alaska Inc., will present to the Senate Resources Committee the results of a research project he conducted for the Legislature: "Legislator Attitudes on Issues Related to North Slope Gas Development."  Here is the study Here are the appendices.    *     "The Arctic Refuge amendment (Murkowski #3132) was offered (yesterday).  A second degree amendment (Stevens #3133) with the steel language also was introduced.  After a few hours of debate on these two ANWR amendments, cloture petitions were filed on both.  If no further consent is entered, these cloture votes will occur one hour after the Senate convenes on Thursday --  first on the Stevens amendment, then, if cloture is not invoked on Stevens, the Senate will vote on cloture on the Murkowski amendment.  TODAY:  Session begins at 10:00 a.m., going straight to a vote on a judicial nominee.  After that vote, the Senate will resume debate on the Arctic Refuge amendments.  Today will be all talk -- no other amendments are expected, no votes are scheduled."  Bill Wicker, Communications Director, Senate Energy Committee.  (Yesterday's Congressional Record)    *     WASHINGTON -- Alaska Sens. Frank Murkowski (NGP Photo-right) and Ted  Stevens (NGP Photo-left) and Sen. John Breaux, D-La., yesterday introduced the American Homeland Energy Security Act of 2002 (with ANWR provisions) as an amendment to the Senate energy bill (Full Text).  See Liz Ruskin's ADN story, Karen Masterson's HC story.      *     WASHINGTON -- Senator Ted Stevens yesterday introduced an amendment to secure the viability of the U.S. steel industry and to ensure that the industry is prepared to participate in the construction of an Alaska Natural Gas Pipeline.  (Full Text).   Comment:  These Alaskan Senators provided factual, informative, inspirational presentations which we believe could benefit the education of every Alaskan student above the 5th grade and, certainly, every adult.   We hope the speeches will be replayed many hundreds of times for years to come.  The floor debate, carried by C-Span, continues today, as opponents and proponents are heard.  Then the ANWR support effort will face a procedural block (cloture vote noted above) erected by the Democrat leadership for Thursday's agenda.  -dh

4-16 Updates:  00:26, 11:10, 11:15, 12:00, 12:06, 15:02 ET.  (17:43 ET note:  Senators Murkowski and Stevens just completed stunning floor speeches covering ANWR and gas pipeline...again vindicating our year-long insistence that the issues are related.  We'll have a report tomorrow as the Senate energy bill debate continues....) COMING RIGHT UP, AS REPORTED BY Bill Wicker, Communications Director, Senate Energy Committee.  Today we will be back on the energy bill, starting at 2:15 p.m.  The Senate reconvened at 11:00 a.m.  It is in a period of morning business until 12:30 p.m. The Senate will recess for weekly policy lunches at 12:30 p.m.  At 14:15 p.m., the Senate will resume consideration of the energy bill.  Under previous order, the first person to be recognized will be Sen. Murkowski, to offer his amendment on the Arctic Refuge.  After that, we'll wait and watch ...  (See late breaking stories from Canada, below.)     *     Today a bipartisan group of US Senators and Labor Unions are rallying at the Capital in support of ANWR.  Our Washington readers may want to join them in the Senate Swamp at 14:30.  They include: Senators Santorum, Hutchison, Landrieu, Voinovich, Thomas, Burns and Jerry Hood-Teamsters; Ed Sullivan-AFL-CIO.     *     Late yesterday, Senator Ted Stevens (NGP Photo, 8-14-01) spoke on the Senate floor about the need to bolster the U.S. steel industry in order to ensure the completion of an Alaska natural gas pipeline and maintain a strong national defense.  (Full text)    Stevens explained that in the last three years more than 23,000 U.S. steel workers have lost their jobs.  Those that remain employed in the industry help pay for a portion of the 600,000 retirees and their benefits.  These benefits  represent a promise that was made to previous workers for their contribution to building America's military and civilian infrastructures.      "America's steel industry must undergo consolidation, but this can only happen if existing cost structures are addressed, which includes addressing health care costs for retirees.  Failure to act now on both ANWR and rejuvenating the U.S. steel industry will put us at the mercy of foreign providers," said Stevens.       Stevens went on to argue the consequences of not adopting an amendment to ensure the health benefits of retired steel workers as part of an amendment to open ANWR.  "If our amendment is defeated ANWR will not proceed, the steel industry will not proceed, the natural gas pipeline will not proceed, but not one radical environmentalist will lose their  health care coverage.  America's steel workers are going to be the ones to pay the price in the long run."      Stevens also reminded the Senate again of the commitment made to Alaska in 1980 in an amendment authored by then Senators Paul Tsongas (D-MA) and Henry "Scoop" Jackson (D-WA) and adopted during consideration of the Alaska National Interest Lands Conservation Act (ANILCA).  The amendment set aside 1.5 million acres for oil and gas exploration within ANWR's 19 million acres.  It was accepted as part of a larger compromise that withdrew 104 million acres in Alaska for the federal government.  Stevens is now concerned that this deal will be reneged on.      Stevens said if ANWR is voted down, "Don't trust the United States Senate. Don't trust a commitment that is made by your colleagues.  Don't trust an agreement that you make with the federal government.  Unless we can get this area opened, there's no way I will trust a future agreement that's made here on the Senate floor.  I will insist that anything to benefit my State be done when promised."     *       The Department of Revenue today released its Spring 2002 Revenue Forecast, predicting Alaska  North Slope oil will average $20.50 a barrel in Fiscal 2003 and $19.50 a barrel in Fiscal 2004. At those prices, and with an estimated state general fund budget the next two years of a steady $2.523 billion, the department projects the state will draw $963.4 million and $1.013 billion from the Constitutional Budget Reserve Fund in Fiscal Years 2003 and 2004.  "At those projections, the Budget Reserve will run out of money in October 2004," said Revenue Commissioner Wilson Condon (NGP Photo, 4-15-02).  Dr. Charles Logsdon, Economist (NGP Photo-right), also offered remarks.  The department's oil price forecast for Fiscal 2003, which starts July 1, is about $1.70 per barrel higher than it had projected in its Fall 2001 Revenue Forecast.  "Although the higher oil prices have slightly reduced our withdrawal of funds from the Constitutional Budget Reserve Fund, it is not enough to give us much breathing room in dealing with Alaska's fiscal problem," Condon said. "The higher prices are certainly good news, but they reduce the total three-year draw from the Budget Reserve by only $143 million for Fiscal Years 2002-2004."  Acknowledging some Alaskans might argue that the department's oil price forecast is too low, Condon pointed to several factors he believes back up the department's estimate: 1) The $26 price of two weeks ago was a temporary spike, with prices sliding back more than $3.50 a barrel since then.  2. The $20.50 forecast for Fiscal 2003 is more than $3 above the average price for North Slope oil since 1986.  3. The $20.50 estimate is not that far off from the low end of the price range where OPEC nations would like to see oil prices.   Logsdon said, "While we are enjoying oil prices above the historical average, we are still spending more than the revenues permit and are required to draw from the Constitutional Budget Reserve.  The state still has a fiscal gap and the big picture is unchanged."  (NGP Photo-KTUU-TV's Julie Haskett with Logsdon)   Condon said, "The Department of Revenue shares the view that non-OPEC production will continue to grow, that OPEC will continue to have problems holding all of its member nations to their production quotas, and that world oil prices will gradually revert back toward a more moderate price range."  The Spring 2002 Revenue Sources book offers the following  forecasts:  1) Alaska North Slope oil will average $21.50 per barrel for Fiscal 2002, ending June 30. It had averaged $21.28 through Friday.  2) The state will draw an estimated $826.7 million from the Budget Reserve for Fiscal 2002.  3) If oil were to stay at $22 a barrel for the next three years, the Budget Reserve would gain five months of life but would still run out of money in March 2005.  4) If North Slope oil prices dropped to $17.50 and then held steady at that historical average, the Constitutional Budget Reserve Fund would run out of money in July 2004.  "The hard truth is that as we continue to draw down our reserves to pay for public services, the end date of the fund just doesn't move that much with price," Condon said. (Photo, 4-15-02, Condon-Press)    Related story, by Bill McAllister, Juneau Empire.     *     Northern News Services by Thorunn Howatt, Yellowknife - A Mackenzie Valley natural gas pipeline would fuel the Northwest Territories' economy with billions of dollars and more than 53,000 jobs.  ... "The Northwest Territories will get so much benefit they will probably not be able to absorb it all," said Robert Marshall a Trans Canada employee on loan to the territorial government. The territory already has the lowest unemployment rate in the country according to last month's NWT employment statistics. ... Territorial government revenue will add up to as much as $4.5 billion. "The federal government's revenue is extremely high compared to the Northwest Territories government revenues." said Marshall explaining the study is a step toward going after better natural resource revenue sharing. The pipeline's economic spin-offs could add as much as $49 billion to the NWT gross domestic product (GDP) and $77 billion to Canada's GDP.     *     Far North Oil & Gas Review's Sunny Munroe (NGP Photo, 2-8-02) informs us this that: "This morning Premier Stephen Kakfwi was interviewed on CBC radio (See story. -dh) and said that if the Senate bill passes, it could have the effect of killing the Mackenzie Valley pipeline. The reason for this, he said was because of the floor price for gas that the Senate bill promises. It would mean that the market playing field for Mackenzie gas would not be level, since Alaska gas would no longer be priced according market conditions but would be subsidized."  Munroe is concerned that price subsidies might be considered a breach of NAFTA and questions whether US national security "trumps NAFTA".  "It seems from here", Munroe says, "that the Senators seem not to care that they could be seriously annoying their friends and neighbours. If security of supply is indeed the issue, why couldn't they find a cooperative way to do this? Both Canada and Mexico could benefit along with the US, instead of the trading partners being in the position where they could look into suing under NAFTA. That treaty works both ways. The Senators can't break the rules but then still expect the rules to work for them when they want them to."    *       Arctic Resources Corp.'s  (ARC) Dr. Bruce Hall, Managing Director, sent the following letter to various Inuvialuit and the Gwich'in regulatory bodies, dated March 26, which states: "ArctiGas Resources Corp would like to inform all the participants in the regulatory approval process for the proposed Inuvialuit and Gwich’in Pipeline Construction Evaluation sites on Harrison Island and near Campbell Creek that due to unforeseen circumstances ArctiGas will not be proceeding with this field work this winter.  The recent amendments approved by the United States Senate to the pending Energy Bill (S517) mandates the Alaskan Highway Pipeline option as the only way to transport the North Slope, Alaska reserves to the lower 48 states through Canada.  This Highway option is in direct conflict with the proposed “Over-the-Top” (OTT) project (the Northern Gas Pipeline Project – NGPP) being advanced by ArctiGas Resources Corp for almost three years.  ArctiGas still believes this pipeline option to be the shortest, cheapest and most environmentally acceptable pipeline project to accommodate the transportation of Alaskan and NWT natural gas reserves to Canada and the lower 48 states.  ArctiGas Resources and its parent company Arctic Resources Corp have been working hard to lobby both the US and Canadian federal governments to prevent the mandating of any northern pipeline option in either the United States or Canada.  Although meeting with some success, ArctiGas finds the immediate political situation too uncertain at this time to allow it to proceed with the major capital expenditures required for these Pipeline Construction Evaluation Programs.  (Boldface added for emphasis.  -dh) ArctiGas would like to express its sincere thanks for the extensive cooperation, efforts and guidance received from all the regulatory bodies in Yellowknife, Hay River and Inuvik.  ArctiGas looks forward to planning this evaluation work for next winter.  Yours Sincerely.  Bruce Hall" - The letter was sent to:  Inuvialuit Land Administration, Inuvialuit Land Administration Commission, Environmental Impact Screening Committee for the Inuvialuit Settlement Region, Environmental Impact Review Board for the Inuvialuit Settlement Region, Joint Secretariat for the Inuvialuit Settlement Region, Gwich'in Land and Water Board, Gwich'in Tribal Council - Inuvik, Gwich'in Development Corporation - Inuvik, Aurora Research Institute - Inuvik, Department of Transportation - Hay River, Department of Transportation - Inuvik     *     Late report, Congressional Quarterly-Sen. Frank H. Murkowski, R-Alaska,  plans to offer this afternoon an amendment to the energy bill (S 517) to allow oil drilling in Alaska's Arctic National Wildlife Refuge. It is unclear whether Murkowski will include a bailout for steel  companies, though aides say it may be added as an amendment to Murkowski's proposal. Pro-drilling forces are attempting to win over steel-state lawmakers by offering financial help for steel companies burdened by payments for laid-off and retired workers' pensions and health benefits. Murkowski is short of the 60 votes to overcome an expected Democratic-led filibuster. Ted Stevens, R-Alaska, told the annual legislative conference of the AFL-CIO's Building and Construction Trades Council that he needed their help to persuade wavering Democratic lawmakers to support ANWR drilling. "All I can do is plead with you," Stevens said. "We don't have 60 votes yet. We may not even have 50 votes by the time we are through, though we have 55 votes going in."

4-15 Updates: 00:19, 02:24, 14:17 ET.  CALGARY, Alberta - April 15, 2002 - Yesterday at approximately 11:00 p.m. (CDT), a line break occurred near Brookdale, Manitoba, on a natural gas pipeline owned and operated by TransCanada PipeLines Limited.  The incident occurred in a relatively remote area with the nearest residents approximately two kilometres from the site. The escaping natural gas caught fire. There have been no reported injuries.  more....      *     Alaska's Fiscal Crisis-See Anchorage Daily News last and previous installments in a series of eight editorials.     *      The Alaska Department of Revenue will release its spring 2002 Revenue Forecast at a press conference in Anchorage and Juneau today at 11 a.m.  We will report.        *        Bill Wicker, Senate Energy Committee Communications Director affirms the information we provided Friday and this weekend: "By agreement, when the Senate returns to energy legislation, Sen. Murkowski will be recognized to offer an amendment on the Arctic Refuge (Tuesday).      *      See video clips of Forrest E. Hoglund, Chairman and CEO of Arctic Resources Company, discussing the Senate's Energy Policy Act.     *     Baltimore Sun by Karen Hosler, WASHINGTON - Sen. Barbara A. Mikulski (Photo) of Maryland is a prime target of a last-ditch bid to win Senate approval for oil drilling in the Alaska wildlife refuge, with supporters offering in return to help pay health care costs of steel-industry retirees.  (New York Times)     *     Northern News Services by Derek Neary, Fort Providence - Even though Deh Cho First Nations' self-government negotiations are stalled, Grand Chief Michael Nadli (NGP Photo, 2-8-02), isn't about to open the door to a Mackenzie Valley pipeline.  Nadli referred to a new pipeline study as another industry "smoke screen."  According to a Canadian Press report, an analysis conducted by University of Calgary economists indicates that a Mackenzie Valley natural gas pipeline will generate up to $77 billion for the Canadian economy and create more than 157,000 person-years of employment during its lifetime. The study was sponsored by the GNWT and TransCanada Pipeline.  "It's just an information campaign to woo our members and people down the Mackenzie Valley," Nadli said of the report, adding that a pipeline is at least four years from becoming a reality anyway. Meanwhile, the DCFN is still striving to reach an Interim Resource Development Agreement (IRDA) with the federal government. The original target date was March 31, but the two sides can't agree how benefits -- particularly a cash-bidding process -- from oil and gas will be will be derived and shared. ... As well, the DCFN still hasn't decided whether it will take legal action against DIAND for initially excluding the Deh Cho from a regulatory streamlining process for the Mackenzie Valley pipeline, Nadli noted. ....     *     By Ian McKinnon For the Alaska Oil & Gas Reporter - Yukon Natives need up to $60 million Canadian to ensure they have meaningful participation in the permitting process for any pipeline taking Alaska's gas reserves to southern markets, says the territory's former leader.

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

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 - 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.

4-6/7-02 Weekend Updates: Sat. 00:20, 12:46, 13:27, 14:14, 20:13, 23:23; Sun. 01:04,12:49 ET-Canadian Press-EDMONTON (CP) - The Mackenzie Valley natural gas pipeline will pump up to $77 billion into the Canadian economy and create thousands of jobs over the lifetime of the project, a new study says.     *     Williams Energy News Live-The U.S. Senate returns to work on comprehensive energy legislation on Monday. Drilling in Alaska's Arctic National Wildlife Refuge, electricity and tax provisions are still up for debate.     *     Juneau Empire Op-Ed by Ray Metcalfe (Photo)-In 1974, Saudi Arabia established "OPEC-Terms," a tax equaling 85 percent of the profits the oil companies received from the sale of OPEC oil, plus a 20 percent royalty. ...  Had our oil tax been what should have been over the past 25 years, Alaska's Permanent Fund, and your dividend would likely be three times what they are today.... Tax oil not me! (Comment: the reason Northern Gas Pipelines has continually linked Alaska state budget issues to gas pipeline issues is highlighted above.  What oil wealth Alaska enjoys today results from tax and regulatory rules established in the past.  The editorial in some cases equates tax policies of monarchies where oil & gas are produced in huge volumes near tidewater locations, with North American private companies competing in a free market to transport oil and gas from remote areas in harsh climates to tidewater through hundreds of miles of pipelines.  Based on certain financial assumptions, Alaskan investment occurred.  Were those assumptions more rigorous and the tax climate less attractive, companies could have made different investment decisions.  Knowing for nearly 30 years North Slope production would decline, leaders (including the Op-Ed writer, a former legislator and candidate for governor) and greedy constituents have taken some but insufficient steps to defend against fiscal calamity.  The state is spending about $1 billion/year more than it takes in.  The savings accounts funding the deficit will be depleted in two years.  Nero fiddles while the fiscal chasm approaches.  Those with current investment in the state and those considering Alaska as an investment destination are watching, concerned.  More and more respected economists are warning of the risks of investing in Alaska.  The Op-Ed writer quoted above, represents a mindset that has already taken seed and could become more widespread: "We can't solve our budget challenges, so let's be more like Arab oil barons, correct this inequity and tax what's left of Alaska's oil patch to make up for our own deficiencies.  Establish a gas reserves tax.  Increase severance, income and property taxes. Never mind stability.  Never mind investment climate.  Never mind the free market.  Never mind establishing rules and respecting them.  Tax oil not me.  Never mind the future."    Northern Gas Pipelines urges leaders in Canadian provinces, territories and First Nations to carefully study the Alaska model.  Too much dependence on any cyclical industry can surface the baser human survival instincts when production and demand cycles turn lower.  By 2005, will Alaska have kept implied promises to its investors and solved its fiscal crisis through creativity and--if necessary--sacrifice?  Investors are watching and Alaska's new generation will pay or profit from today's decisions.  {Thanks to readers for editorial comments....-dh}   *  Yesterday's suggestion by Alaska's Natural Resources Commissioner that the state is open to establishing tax certainty for pipeline investors jumps higher on the priority list in wake such editorial comment.  It also begs the question that, "If tax certainty is justified for gas pipeline investors, why should it not be expected for other  investments?  Wouldn't northern citizens prefer to be known for fiscal responsibility than as fiscal risks?  -dh)    *     Oil & Gas Journal, HOUSTON -- US drilling activity declined this week, wiping out last week's gain that was the first after 9 weeks of straight losses, officials of Baker Hughes Inc., Houston, reported Friday. There were 738 rotary rigs drilling in the US and its waters this week, 23 fewer than last week when there was a gain of 11 units. A year ago at this time, the US rig count was at 1,200 and still climbing.    

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 commendedgasnatchiq4-16.png 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 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  (, 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.


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