6-29/30 Weekend Updates: Sat., 01:09, 02:00, 12:32; Sun. 07:09 ET.     Northern News Services by Terry Halifax, Inuvik - The Mackenzie Gas Project is calling on explorers and producers for interest in shipping natural gas on a Mackenzie Valley pipeline. On Monday, Imperial Oil and the Mackenzie Gas Project began an open house to seek out potential customers to help gain an understanding on how the pipeline should be built, said Imperial spokesperson Hart Searle. ... The open period runs from June 24 to July 26, but if potential shippers don't respond during the period, Searle said they can still contact the group afterwards. "At the end of the day, we will work with all interested shippers towards the objective of finalizing firm service agreements, while maintaining a cost-effective and timely start-up for shippers," he said. ... "The more gas we can put in the pipe, the better the economics will be and the cheaper the tolls will be," Searle said. ... While the pipeline will be designed as a Mackenzie Valley line only, Searle said that should Alaska producers bring a pipeline over the top from the North Slope, they would welcome the gas from that project in the Mackenzie pipe.  "If they want to talk about doing something jointly, we're certainly open to that and we're not planning on that basis," he said.  "We do not want to be reliant on what happens with gas from Alaska."     *   We asked Inuvik's Mayor Peter Clarkson (NGP Photo) to comment on outcome of the Inuvik Petroleum Show 2002, last week.  He writes Northern Gas Pipelines, "The Conference and Trade Show exceeded our expectations and was very successful.  Bringing together over 600 people to discuss oil and gas development in the north and the economic, social and environmental aspects of any development, is what the IPS is all about and we certainly achieved that.  The comments we received from everyone clearly state the the IPS was beneficial for everyone.  The public also enjoyed the Show during the times that it was open to the public."  Most of our Inuvik Petroleum Show 2002 photos are now up.  Check here over the weekend for more photos and the conference reports.  *  Northern News Services by Terry Halifax, Inuvik - Last week's petroleum show was a complete success, according to the event's organizers. Tourism and fundraising co-ordinator Brian Desjardin (NGP Photo) said the second show was "fantastic" and even better than last year's.  ... "They said Inuvik was just as professional as shows in Houston and Calgary and the informality created better discussion between companies."  He said they are already planning for the next show and have received 23 bookings for next year.  Inuvik's mayor, Peter Clarkson, said the show was a great success with 600 attending and 350 people registered for the conference; 110 booths were sold representing 130 companies and organizations. ... "A lot of companies that came up from Calgary said it was as good or better than any other trade show they has ever been to."   The town estimates about $1 million was brought into the local economy, with many millions more in future business resulting from the show. ... Marty Verbonac, operations manager for the Mackenzie Delta Hotel Group, said the hotels were sold out months in advance.  ... He estimates 300 guests lodged in the hotels, the MacDonald's Camp and the Arctic Star barge.   ...  Nelson Dicks, manager of Norcan Rentals, noticed quite an increase in vehicle rentals this year over last year. "Business is great," he said. "We're proud of it, because our first few years in Inuvik were pretty quiet." ... The hotel's restaurants are leased out to owner Gerhard Erler, who said they were working out of two hotel kitchens to provide the catered breakfast and lunches at the trade show. Erler said they were busier last week than he's ever seen it....  *   Northern News Services, by Derrek Neary, Fort Liard  - Shane Parrish (NGP Photo, 4-02) came to Fort Liard as an economic development officer with the territorial government in 1995. A year-and-a-half later he signed on with the Acho Dene Koe's development arm, which was undergoing rapid growth as oil and gas exploration intensified in the area.  Parrish, CEO of the ADK Corporate Group, is leaving Fort Liard this week to become an associate with a petroleum consulting company in Calgary. He will be focusing on business development and aboriginal partnerships, and still plans to do consulting work for the ADK Corporate Group.

6-28 Updates: 01:30, 02:12, 10:12, 15:50, 16:24, 16:48 ET. Today, Lord John Browne, Group Chief Executive, BP, addressed a large combined audience of the Anchorage Chamber of Commerce, Alliance and Resource Development Council for Alaska on a variety of oil and gas policy issues, including those related to an Alaska gas pipeline.  We'll have a report and event photos for you this weekend, including the text of Lord Browne's speech.   *     Yesterday, Bill Wicker, Communications Director, Senate Energy Committee told us that Chairman Billy Tauzin (NGP Photo-left) and Senator Jeff Bingaman (NGP Photo-right) appeared pleased with this initial meeting of the H.R. 4 Energy Bill Conference between house and senate (See members here).  They expressed optimism about chances of developing a conference report that will pass both Houses and go to the President's desk (but also acknowledging that a lot of hard work lies ahead).  Having monitored the meeting by Senate webcast, we agree with Bill's conclusion and most members went out of their way to project an atmosphere of cooperation, all recognizing the difficult task ahead.  But members did stake out positions, however diplomatically.  Of interest to Northerners, ANWR came up, particularly in Congressman Don Young's statement, probably the strongest of the entire morning.  He said that Members presuming to enact Alaska policy, "...should go to the area and talk to the people involved rather than sitting in their castles, breathing rarified air."  A big issue for the conference is stimulating the use of ethanol by providing taxpayer incentives.  Young said, "This is a two way street.  You want ethanol; I want ANWR."   Massachusetts Congressman Ed Markey said, "The reality is it would take 10 years to get oil from ANWR which would then go to California to run SUVs".   Congresswoman Barbara Cubin of Wyoming observed that by 2015 the U.S. is projected to require 40 TCF/Y of natural gas and said that coal bed methane in the Rockey Mountain area and producing ANWR could help satisfy the demand.  "It is essential the U.S. has a stable and smart energy policy," she said.  Texas Congressman Ralph Hall advocated a conservation and new production.  "Energy is a national asset," he said, "ten states produce it and the other 40 states use it."  In a statement after the meeting, Alaska Senator Frank Murkowski said, "America needs Alaska’s energy, and Alaskans need the jobs and revenue that production of that energy will bring, whether it’s oil from ANWR or natural gas from the North Slope,” Murkowski said.  “I am proud to continue leading the fight for ANWR and a natural gas line from Alaska to the Lower 48 markets along a route that best helps Alaskans.  The conference committee is the next battleground in this fight, and I’m glad to be here in the thick of it.”  (Comment: this observer appreciates the good intent reflected yesterday.  Ethanol and ANWR were spotlighted as leading points of contention.   Gas pipeline incentives were not center stage, though we predict that before the Conference is complete northern gas issues will receive significant attention for several reasons: a) The environmental lobbyists have acknowledged they are giving up the Alaska Highway Gas Pipeline Project for ANWR and positions of their Congressional advocates are cast in concrete.  b)  Alaskans and their allies will push hard for pipeline incentives and ANWR.  c) Lower 48 pipeline companies and the Canadian government have already expressed significant opposition to gas pipeline incentives, though not opposing the expediting portion of the legislation; they will make their views known to the Conference via the Bush Administration and through House and Senate leadership.  Without Congressional expediting legislation an Alaska gas project is likely delayed by at least a decade.  Even with Congressional gas pipeline incentives and expediting language Alaska itself will delay the project as long as it continues to delay enactment of legislation contributing to the 'fiscal certainty' of the project.  Industry still retains responsibility for assisting Alaska's government in defining 'fiscal certainty'.   -dh)

6-27 Updates: 01:25. 02:23, 11:23, 12:40 ET.  FOR OUR WASHINGTON READERS-The Senate-House energy conference begins at 9:30 a.m. today in 2123 Rayburn. The opening session will be webcast on the Energy Committee website.  H.R. 4 conference proceedings:   Click here to view the proceedings live at 9:30 A.M. EST on June 27, 2002.   Download a copy of the Daschle-Bingaman Energy Bill.  There is reserved seating for media in the hearing room.  Note: at 12:40 ET the conference adjourned and the live coverage has concluded.  For those who missed it, we will provide a brief summary tomorrow morning.    *    Alaska Oil & Gas Reporter by Ian McKinnon, CALGARY, Alberta -- Rhetoric in the Canadian energy industry against federal subsidies for an Alaskan pipeline is heating up as the head of the world's largest independent gas producer ridiculed the proposal as "ill-conceived" and virtually guaranteeing a messy regulatory showdown in the future.  Gwyn Morgan (Photo), chief executive of EnCana Corp., said tax credits contained in proposed energy bills from the Congress and Senate would significantly harm the Canadian gas industry.    *    Northern News Services by Thorunn Howatt, Yellowknife - Oil and gas companies have a new roadmap outlining regulatory requirements. ... the Beaufort Sea Offshore guide completes a series of booklets produced by the Canadian Association of Petroleum Producers and the Department of Indian and Northern Affairs.  "The joint work on this guide -- and others in the series -- demonstrates the co-operation by government, the petroleum industry and the Inuvialuit in encouraging the exploration and development of the oil and gas potential of the Northwest Territories," said Minister of Indian and Northern Affairs Robert Nault. ....   *     WASHINGTON -- In an effort to speed extension of the Alaska Railroad toward the Canadian border, Alaska Sen. Frank Murkowski today introduced the National Defense Rail Connection Act. The legislation will require the government to quickly settle on a corridor and to permit land exchanges to acquire title to any land needed for extending the Alaska Railroad into Delta.  (Note: Murkowski has previously referred to this "transportation corridor" suitable for hosting a railroad extension, communications cable and a gas pipeline.  -dh)     *      Most of our Inuvik photos are available here, now.  Inuvik Petroleum Conference 2002 photos and reports will be added over the next few days.

6-26 Updates: 00:50, 01:40, 02:12 ET.  Inuvik Petroleum Conference 2002 photos and reports will be added here over the next few days.  Inuvik residents and IPC 2002 participants are welcome to email us editorial material or photos (NGP Photo: Inuvik's "Igloo Church").   *   WASHINGTON ­ Majority Leader Tom Daschle and Senator Frank Murkowski yesterday called on the Senate to redouble their commitment to developing Alaska¹s natural gas after a new report by Charles River Associates Inc., widely respected as a national leader in independent, non-partisan energy analysis. The new report finds the increased supply of natural gas made possible by the Alaska gas pipeline will help guard against price spikes associated with future demand increases. The report also shows the pipeline will contribute $65 billion to American and Canadian economies by 2020. Further, the proposed safety net plan to help development is likely to have no cost to taxpayers.  (Note: "The Alaska Gas Pipeline Tax Mechanism" was prepared by Charles River Associates, Inc., for Phillips Petroleum Company.  The report 'analyzes the impacts that a new pipeline to deliver natural gas supplies from Alaska's North Slope would have on North American gas markets and the U.S. and Canadian economies. The report concludes that the pipeline would provide significant economic benefits, and that the tax mechanism included in the Senate Energy Bill is not likely to impose a cost on the Federal budget.'  You may download your copy here.  See our earlier report linking related, recent studies.  -dh)   *   Northern News Services by Mike W. Bryant, Yellowknife - When former British Columbia Supreme Court Justice Thomas Berger unveiled his report on the Mackenzie Valley pipeline in May 1977, its findings opened the eyes of a nation toward the aspirations of aboriginal people in the North.  He was in Yellowknife last week to attend The Living History Symposium -- a "family reunion" he called it.  N/N: In your opinion, how has the North changed since you headed the inquiry into the Mackenzie Valley pipeline in 1976?  Thomas Berger: Well, Yellowknife is a lot bigger. The native people obviously play a much bigger part in government and business of the Northwest Territories. The idea in planning a major pipeline, and environmental values, and rights of the Dene and Inuvialuit have to be taken into account, have been firmly planted, so those are pretty big changes, I think. N/N: The political apparatus of the NWT has indeed changed quite a bit. A lot of the members that represented the Indian Brotherhood in those days are now in government or in recent governments passed. They are much more keen toward development today.  TB: Yes, when I wrote my report 25 years ago, I recommended that there be no pipeline in the Mackenzie Valley for 10 years in order to settle land claims. ... People like Steve Kakfwi and Jim Antoine, and others ... there were a lot of young chiefs who spoke against it (Mackenzie Valley pipeline) 25 years ago, but are now prepared to go along with it, and indeed think it could be very useful to native peoples. ... I wrote a second volume that came out six months later. Nobody read it, but in it, I said when you build a pipeline, here are the terms and conditions you should impose to ensure that you protect the environment, to ensure that native people are trained to work on skilled jobs on the pipeline, to ensure that there are lasting benefits to the North. ... N/N: How closely have you been following events in the NWT since you headed the inquiry?  TB: I've been back to the North every few years, and I still have friends here that we stay in touch with, and of course, we read about it in the business section of the Globe and Mail. We're always reading about the latest twists and turns of the Mackenzie Valley pipeline. There are alarms and excursions all the time, and that's not surprising because everybody jockeys for position. It's kind of interesting to watch. ... N/N: What do you think you will take away from this conference? ... The idea that the inquiry would go into communities where people lived and listen to them has caught on. I went to Alaska to head the Alaskan Native Review Commission from 1983 to 1985. They thought the model we had established in the Mackenzie Valley was the one to follow, and I went to India for the World Bank in 1991-92, and certainly the people in India who were concerned about this gigantic dam and canal that was going to displace 250,000 people, they wanted us to follow the idea of community hearings. Some people in India had copies of Northern Frontier/Northern Homeland, which is astonishing. N/N: It seems everyone in Canada with a humanities degree knows who you are. Do you still intend to stay in public life?  TB: ... I avoid anything that might lead anyone to think that I have expertise to offer today, but sure, I'm still around.   *     Whitehorse Star by Jason Small-The two Kaska first nations did not sign final land claim agreements by the federally imposed deadline to end negotiations by midnight Friday.  However, the final offer to the Kaska is still available, according to both the federal and territorial governments.  ... Yukon Premier Pat Duncan said this afternoon there will be no more negotiations, that is it is now up to first nations to decide whether they will accept the final offer made. ... The Kaska, however, are no longer receiving money from the federal government to negotiate.     *   CBC-John Davies, spokesperson for the Industrial Association of Southern Alberta, says the Klein government should be concerned when companies start shifting production to outside the province.   

Tomorrow: New Report Download Supporting Alaska Highway Gas Pipeline Incentives

6-25 Updates: 00:52, 01:06, 12:02, 14:10, 15:35 ET.  CBC - Social needs in the Beaufort Delta are playing a bigger role in this year's Petroleum Show, which opened Wednesday in Inuvik.  IPS Agenda.  See NNS story below.  (We shall begin posting the first of our photo galleries on this conference today as reports are being prepared.  NGP Photos: Mayor Peter Clarkson and staff last week, planning conference; and Brian Desjardins-r, Conference Coordinator.  The author celebrated National Aboriginal Day last Friday in Inuvik with Able  Tingmiak, blanket toss expert and Peggy Jay, Communications Executive, IRC.  -dh)  *     We thank Bill Wicker, Communications Director, Senate Energy Committee for this note:  The first meeting of the House-Senate conference on energy legislation will be this Thursday, June 27, in Rayburn 2123, starting at 9:30 am. The press and public can attend this opening session, which also will be televised. Most of this meeting is expected to be spent on opening statements, and any organizational business that may be necessary.   *   National Petroleum News - Sen. Frank Murkowski, R-Alaska, told his Senate colleagues the energy bill was "something we can be proud of."  *   Recent Williams stories regarding sale of Alaska assets: Anchorage Daily News-Williams Cos. announced Tuesday it plans to sell all its businesses in Alaska, including the North Pole refinery, convenience stores and stake in the trans-Alaska pipeline.   Anchorage Daily News - Speculation gathered Wednesday on who might buy Williams Alaska Petroleum Inc., which runs the state's biggest crude oil refinery and a string of gas stations.  (Williams is a participant in the Alaska Highway Natural Gas Pipeline Project.  -dh)  *   Northern News Services by Thorunn Howatt (NGP Photo), Inuvik - Multinational executives, energy company bigwigs and politicians slept on couches and loaded planes to capacity. The Town of Inuvik was bursting at the seams, with everyone there for the most important energy conference of the year.  "Since the show last year Inuvik has become a phenomenon," said The Harbour Company's Dave Harbour. He produces an informational Arctic pipeline-watching Web site out of Alaska. ... Last week's second Inuvik Petroleum Show was jammed between other energy symposiums held everywhere from Houston to Calgary. But the Inuvik show was the important one. Inuvik is where the seed of the Mackenzie Valley pipeline is germinating. And this year's show is a "moment." It is suspended during a time 25 years after an inquiry placed a moratorium on pipeline, and coinciding with a push for a competing Alaskan pipe. There is a sense of urgency. ... Drilling for natural gas is pointless if there is no way to transport the natural gas to southern markets. ... If pipeline talk doesn't get more serious pretty soon, energy companies are going to get more reluctant about spending their dollars in the Delta. "The greatest restraint on exploration spending is the uncertainty of a pipeline. It is of no use to find lots of gas if it can't be moved from the ground," said ChevronTexaco northern gas program manager Rod Maier (NGP Photo-left).  He represents a group of Mackenzie-Beaufort explorers who do not belong to the Mackenzie Delta Producers' Group. ... The territory has a nearly new regulatory Mackenzie Valley Land and Water Board that is wrestling with the environmental impacts of huge diamond mining projects as well as the prospect of a pipeline. The pipeline proponents also need to have the aboriginal groups on-side. Twenty-five years ago a pipeline proposal was shut down because of anti-pipeline uproar from aboriginal groups. So, last year, the Aboriginal Pipeline Group (APG) hooked in with the producers' group for a one-third piece of the proposed pipe. That group is led by former premier Nellie Cournoyea (NGP Photo) and has representation from most of the Northwest Territories' aboriginal regions. ... Last week, Imperial Oil sent out invitations to other companies.  They want nominations for gas and expressions of interest for room in the pipeline. ... Explorers want to know more details though -- pipe size and toll costs -- before they commit to any pipeline. And the APG-producers' group proposal has more competition in its own backyard. ... Arctic Resources Corporation (ARC) wants to build a completely debt-financed pipe from Alaska to the Mackenzie Delta and then south following the same route as the Mackenzie Valley Pipeline. They are touting the proposal as 100 per cent aboriginal owned. Many are blaming the proposal for the hold-up, a diversion from the focus of a Mackenzie Valley pipeline. ...  Inuvik's Nihtat Gwich'in Council Chief James Firth signed on with ARC-linked Northern Route Gas Pipeline Corporation. But others aren't drawn by the temptation of 100 per cent ownership. "My personal opinion is why do we need to own it anyway? What are we going to do with it at the end of the day?" said Fort McPherson's Tetlit Gwich'in Chief Abe Wilson. None of the reserves in the south own pipelines, he said, adding, "They just get the access agreement and fees. We have our own land claim."

6-24 Updates: 11:17, 12:24, 12:46, 14:50 ET.  Inuvik Petroleum Show was a great success (NGP Photos: Igloo Church & Mackenzie Hotel Inukshook).  We are back and shall resume updates this afternoon with show reports, photos and presentations coming.  *    Anchorage Daily News  by George Bryson-Paul Okalik, premier of the Nunavut territory, will deliver the keynote speech this year at the annual convention of the Alaska Federation of Natives. AFN president Julie Kitka calls the Nunavut story "an international role model for indigenous self-determination."    *    NEB: Board Chairs Finalize Cooperation Plan (News Release) Cooperation Plan for the Environmental Impact Assessment and Regulatory Review of a Northern Gas Pipeline Project through the Northwest Territories (Adobe Acrobat pdf format - 1037kb)   *   CALGARY, June 22 (Dow Jones)-Companies exploring Canada's North for natural gas hailed as positive Friday producers' call for interest on a proposed C$3-billion pipeline to bring volume to southern markets. The notice of a non-binding open season for space on the Mackenzie Valley pipeline indicates the producer-lead project group is taking exploration companies' concerns into account, Michelle Scott, with Devon Canada, said. "This is the first concrete step that we've seen to include interests other than the producers in the process," Scott, vice-president of frontiers said. "This is a good first step because it canvasses what people's ideas are." Backing the proposed 2,200-kilometer pipeline is a consortium of four major oil companies led by Imperial Oil Limited, (IMO) all with proven reserves in the region. The open season is important in planning a pipeline and determining shippers' capacity requirements, Mackenzie Delta Producers group spokesman Hart Searle said.   *   June 18 (Upstream) - Alyeska, the operator of the trans-Alaska oil pipeline, hopes for a smooth renewal of the 30-year federal and state leases that are due to expire in 2004, the company's president said in a speech last Monday. The Alyeska Pipeline Service consortium operates the 800-mile line and its Valdez marine terminal. It has steadily improved operations and proved itself worthy of renewal of the leases that allow it to operate over state and federal land, David Wight (Photo) told the Anchorage Chamber of Commerce.

6-17/23-02, Inuvik Petroleum Conference (logo, right, and Inuvik aerial photo).  This week we are delighted to participate in the Inuvik Petroleum Conference and shall provide reports to you upon our return (See NNS story below.).  Your author hopes to visit with Northern Gas Pipelines readers who live in or will be visiting Inuvik this week.  Please feel free to email us here, or contact us c/o Brian Desjardins, IPS Coordinator, Town of Inuvik, Phone: 867-777-8618, Cell:  867-777-6306.  Meanwhile, we leave for your reflection reminders of Arctic gas pipeline progress in recent days:

• Recent GNWT, Yukon & Alaska gas pipeline related studies, here.

• Governor Tony Knowles defends Senate gasline incentives, here.

• Latest Alaska North Slope Gas Producer Information, here.  This PowerPoint presentation is being used in conversations with government officials in Canada and the United States.

• American Gas Association president David Parker addresses Senate gasline incentives, here.

• Several key Bush administration agencies oppose mandating a preferred route for a potential natural gas pipeline to Alaska's North Slope, here.

• Alaska Senator John Torgerson and International Alaska Highway Pipeline Committee meet in Calgary to move Highway project forward, here.

• Mackenzie Valley Environmental Impact Review Board sent notices to those who commented on its draft cooperation plan, here.

• Our June article in Far North Oil & Gas Review, here.

• Alaska Business Monthly, Publisher's review, here, and paper to which it refers.

Today's news: 6-17-02.  Northern News Services by Thorunn Howatt-Inuvik's Nihtat Gwich'in Council wants its support withdrawn from the Aboriginal Pipeline Group's memorandum of understanding. Last March, Chief James Firth of the Inuvik Native Band moved support behind a different pipeline proposal. Now he has written a letter to Nellie Cournoyea, chair of the Aboriginal Pipeline Group (APG), explaining the move....     *     CBC-Inuvik, N.W.T. - A controversial pipeline proposal in the Northwest Territories has attracted new support.     *     "Fostering Alaska Business Development," a presentation given this month to the Anchorage Chamber of Commerce and, earlier, to Commonwealth North by Edward Lee Gorsuch (NGP Photo, 9-7-01), Chancellor, University of Alaska Anchorage.  The presentation features strategies and opportunities facing the state's economy and focuses on Alaska's fiscal crisis.  The presentation is reflective of the 'fiscal certainty' requirement which Alaska's gas producers consider critical to forward movement of an Alaska gas pipeline project.   *     Northern News Services by Thorunn Howatt-Yellowknife - It's a race to the bottom the for corporate income tax rates. The Northwest Territories' could be dropping in July.  "We want to see more businesses starting up and more businesses locating in the Northwest Territories," said NWT Finance Minister Joe Handley. He wants to drop the general corporate income tax rate to 12 per cent from 14 per cent.  The small business rate could also move to four per cent from five per cent on the first $200,000 of income on Canadian controlled private corporations.   *     Whitehorse Star-The government has also awarded a bridge rail replacement project to West Shore Constructors Ltd. of North Vancouver. The contract is for work on the Seaforth Creek Bridge on the Alaska Highway, south of Jakes Corner.     *    Northern News Services by Derek Neary-Fort Providence - Changing the proposed design of a Mackenzie River bridge could push the cost beyond the reach of the group that wants to built it.     *     Northern News Services by Lynn Lau-Inuvik (June 17/02) - ...Now in its second year, the Inuvik Petroleum Show, June 19 to 21, is expected to draw 500 to 600 conference delegates and trade show exhibitors -- far more than the 200 conventional hotel and bed-and-breakfast rooms available in town. Accommodations have been booked solid since mid-March. "We've had quite a few calls from surrounding areas that I guess thought they'd wait until the last minute," says Jane Leigh with the Mackenzie Delta Hotel Group.  "They phone and they say, 'Is there accommodations?' and all you can do is laugh. A lot of the hotel rooms were booked up to a year ago."  ... Last week, the Arctic Star barge camp was floated down the Mackenzie River to provide 44 rooms at the town's dock. The McDonald Bros. Electric staff camp is providing 30 rooms, and another 25 rooms have been made available at the Aurora College student residence. Petroleum Show coordinator Brian Desjardins estimates the show will inject as much as $2 million into the local economy, although the town itself is aiming to break even -- spending as much on the conference and facility upgrades as it brings in from conference fees. "The phone's been ringing off the hook in the last two weeks," says Desjardins. "We're still getting a lot of people wanting to register. We've been telling them "yes," if you can make arrangements for accommodations -- if you know family, friends, or business connections where you can sleep on someone's couch, spare bedroom or floor." Desjardins says he has even referred delegates to the campgrounds. ... The majority of the trade fair booths and tables have been set up in the arena, and the curling rink will hold additional 35 to 40 booths this year. Even with 110 booths, there are still 10 companies on the waiting list for space.  Last year, there were 75 booths and 400 delegates and exhibitors.       *      EENews-Now that the House has named 44 energy conferees to match the Senate's 17, the preconference limelight has turned to the question of who will chair the proceedings as participants prepare to slog through rival bills to produce the first major comprehensive energy conference report in the last decade.     *     Congressional Quarterly-Sen. Jeff Bingaman, D-N.M., and Rep. Billy Tauzin, R-La., will meet this week to settle a disagreement over who will be chairman of the conference on a comprehensive energy bill (HR 4). Bingaman, chairman of the Senate Energy and Natural Resources Committee, and Tauzin, chairman of the House Energy and Commerce Committee, each say it is their turn to lead a conference on an energy bill. They will also discuss other organizational issues. Once those issues are settled, the conference can begin. "We're hoping the initial meeting can take place before the July Fourth recess,"  Bingaman spokesman Bill Wicker said. Neither Bingaman nor Tauzin has shown any willingness to allow the other to lead the conference. "We're moving forward under the assumption that [Tauzin] will eventually be named the chairman," Tauzin spokesman Ken Johnson said.    *   Here are energy bill House Conferees, and Senate Conferees are here.

6-15/16 Weekend Updates: Sat. 12:10, 14:11, 14:51; Sun. 23:00 ET.  LA Times opinion: Dr. Karl Francis (NGP Photo, 1-02),  advisor to the Kaktovik City Council:  I was reminded the last time I drove the Alaska Highway that Fairbanks is a long way from Los Angeles, about 4,000 miles. But that is hardly an excuse for the recent spate of articles, editorials and letters about Alaska and its people in the debate over drilling for oil in the Arctic National Wildlife Refuge.  2.  As uncomfortable and bewildering as it may be to Karl Francis, neither he nor other Alaskans own the Arctic National Wildlife Refuge (Commentary, June 10).   CBC, OTTAWA - The federal government has unveiled controversial changes to the Indian Act in a move that is already being criticized by aboriginal leaders.  (Our readers will recall that one of the four requirements Alaska gas producers have established for pipeline feasibility is: "NEB/First Nations regulatory clarity."  Ref. doc. page 6. -dh)    *   NNS review of last week's Premiers meetings and our report.   *   Realtime News, (Upstream) - A US Congressional committee has cleared legislation to reauthorize and strengthen federal safety programs for the 1.6 million miles of pipelines that transport oil, petroleum products and natural gas across the country.

6-14-02 Updates: 08:35, 08:51, 10:42, 11:00, 11:32, 14:12 ET.  Calgary Herald by Frank Dabbs-...Next week in Yellowknife, a remarkable assortment of Canadians will gather for a symposium to look back at 25 years of development in the Northwest Territories and to cast a national vision for the future (See our agenda here).  In 1977, then-justice Thomas Berger (File photo, 10-83) recommended a 10-year moratorium on a Mackenzie Valley gas pipeline until land claims could be settled and a permanent ban on an onshore line from Alaska across Yukon's North Slope to protect the coastal wilderness forever. During Berger's inquiry and parallel National Energy Board hearings into the Mackenzie Valley and alternative Alaska pipeline applications, CARC delivered a sophisticated technical intervention, including a court challenge, while First Nations' organizers rounded up 800 witnesses to tell the social impact story.  Beginning Monday, a who's who of politicians, activists and resource executives will assess the moratorium's impact and mull over what comes next. Two people to watch are Karen Wristen (File photo below), CARC's new executive director, and Kevin O'Reilly, its Yellowknife-based researcher.  ...  In recent years, CARC has worked on the cumulative impacts of Arctic diamond mining and of persistent organic pollutants.  When the pipeline moved back onto the radar screen, it began marshalling resources to intervene in National Energy Board, Canadian Environmental Assessment, Mackenzie Valley Resource Management and Inuvialuit Final (land claim) Agreement processes.  It responded to last year's draft regulatory co-operation agreement between regulators and pipeline proponents, and commissioned a brief from the Canadian Institute of Resource Law on managing the opportunities for interventions....CARC is back, and -- don't kid yourself -- the bar for the pipeline's approval has been moved a great deal higher.  *    CBC-There are more than 450 claims outstanding, some of them dating back to the 1800s. Indian Affairs Minister Robert Nault said First Nations often end up in long and expensive court battles with the federal government. He said the tribunal would help settle the claims more quickly.  *    Globe & Mail June 14 search, by BARRIE MCKENNA-It was a crafty move by the soft-spoken Alaska Governor.  As Western Canadian premiers gathered in Dawson last week, Tony Knowles (NGP Photo, 1-25-02) moved to blunt Canadian complaints about the heaps of U.S. government cash destined for the trans-Alaska natural gas pipeline megaproject.   He arrived in the storied Yukon Gold Rush town with a simple, but clear message: People who live in glass houses shouldn't throw stones.  Mr. Knowles released a study detailing all the government money that's been poured into Canadian energy megaprojects over the years in the name of economic development.  (See our earlier report and download.) The report pointed out that Ottawa and the provinces have spent nearly $1-billion on the Alberta oil sands and another $2.7-billion on Hibernia off the Newfoundland coast.  "Governmental incentives for the domestic oil industry are a common part of the landscape in Canada," concluded the report prepared by energy consultants hired by the state. "In their eagerness to advance their own interests, they have ignored the reality that both the national government of Canada and the governments of other Canadian provinces provide special economic support to developing and establishing oil interests, including protection against swings in commodity prices."  Ouch. That must have smarted in Ottawa and the Northwest Territories, where officials and industry executives have been waging a vigorous campaign to discredit proposed U.S. government incentives for a pipeline to ship Alaskan Arctic gas though the state and then southeastward via the Yukon, British Columbia and Alberta.  ... The U.S. Senate recently passed legislation to give the project billions of dollars in loan guarantees plus a special tax credit that would kick in when the natural gas price dips below $3.25 (U.S.) for 1,000 cubic feet.  The rhetoric, of late, on the Canadian side has been all about no government meddling and letting the market dictate where the pipeline should go. Ottawa's track record suggests they don't really believe that.  Mr. Knowles made a compelling case that Canadian officials are being more than a little two-faced. He rightly complained that subsidies seem to be okay only when they benefit Canadians.  ... So you can chalk one up for Mr. Knowles' argument -- that massive subsidies for energy projects are okay because everyone does it. He argues that Canada should quit griping and do what it can to get both pipelines built.  But there's another lesson here: Neither pipeline scheme is economically viable right now. Maybe, they're just grandiose government schemes in the tradition of the Lloydminster heavy oil upgrader and Hibernia.  ... In Alaska, the industry has been careful to let politicians pitch subsidies, while publicly insisting they don't want or need government cash.   By delaying decisions on their pipelines indefinitely, gas producers in both countries are implicitly inviting governments to play Let's Make a Deal. And governments are enthusiastically playing the game.  ... Mr. Knowles is right to point out that Canada's stand is hypocritical. It is.  But Canada's mistakes of the past century don't justify perpetuating energy boondoggles in this one.  Until consumers in Canada and the United States start paying a greater share of what energy actually costs to extract and produce, governments will be forever trapped on the subsidies merry-go-round....   *   Truly, Northern Gas Pipelines readers were remembered yesterday as author (orange) joined cousin Roy Orton (N.Y.-blue), brother Doug Harbour (Colo.-far right) and son, Billy (yellow) on a half-day halibut trip, Kenai Peninsula.  We didn't catch a limit but the one 70-pounder caught on several of our tangled lines and a seafood feast in Soldotna on the way home contributed to family unity. -dh

6-13-02 Updates: 01:15, 01:30, 02:00 ET.  WASHINGTON -- Alaska Sen. Frank Murkowski (NGP Photo, 11-3-01) today applauded the appointment of conferees from the U.S. House of Representatives to the House-Senate Conference on the Energy bill.  "The future of American energy security rests on the decisions we make today," said Murkowski, who is one of the Senate conferees. "I'm pleased that the House has assembled a great team, including Alaska's Congressman, Don Young.  I'm confident we're now ready to make the important decisions necessary to craft a national energy policy.  "The House- and Senate-approved bills, taken as a whole, include virtually all of the provisions in the President's energy plan," Murkowski said. "It's up to us to arrange all of these pieces to create a comprehensive, balanced package for the President's signature. But we will not be successful unless the final bill boosts the use of alternative fuels, promotes conservation, and increases domestic production."  Murkowski noted that ANWR passed the House by a significant margin and is, therefore, alive and well in the Conference.  "I have worked with most of the Senate conferees on the issue and I look forward to working with them again," Murkowski said. "Given who the conferees are, I expect a lively discussion, but I believe we now have an opportunity to report out a truly balanced energy bill that President Bush can sign."  In addition to Majority Whip Tom DeLay, Speaker Dennis Hastert today appointed the following Republicans to the House-Senate Energy Conference:  Energy & Commerce: Billy Tauzin, Mike Bilirakis, Joe Barton, Fred Upton, Cliff Stearns, Paul Gillmor & Richard Burr; Armed Services: Bob Stump & Curt Weldon; Agriculture: Larry Combest & Frank Lucas; Budget: Jim Nussle & Gil Gutknecht; Education & Workforce: Buck McKeon & Charlie Norwood; Financial Services: Mike Oxley & Marge Roukema; Judiciary: Jim Sensenbrenner & Lamar Smith; Resources: Jim Hansen & Barbara Cubin; Science: Sherry Boehlert & Roscoe Bartlett; Transportation: Don Young & Tom Petri; Ways & Means: Bill Thomas & Jim McCrery. Democratic House Conferees were appointed today, but their names were not made available at this writing.  ALL NAMES WILL BE UPLOADED IN THIS COMING WEEKEND'S NEWS.    *    LEGISLATIVE WATCH-The House and Senate have selected their members for the energy bill conference committee, which will likely need several months to negotiate a compromise bill. On 4/25, the Senate passed its version of the bill (S. 517) after rejecting, on 4/18, amendments from Sen. Murkowski and Sen. Stevens to open the Arctic National Wildlife Refuge to oil drilling by votes of 46-54 and 36-64, respectively. The House energy bill (H.R. 4) would allow oil drilling in the Arctic refuge. The House bill includes over $33 billion in tax incentives that are largely for the oil, coal, and nuclear energy industries. The Senate bill includes $15 billion in incentives, about half of which would be available to improve energy efficiency in vehicles, appliances, and buildings, as well as to increase the use of solar, wind, and other cleaner alternative energy sources.       *    Fairbanks Daily News-Miner, by SAM BISHOP, WASHINGTON--Owners of the trans-Alaska oil pipeline last month asked their operating company to try to complete maintenance work this year while spending only 90 percent of the money budgeted, according to an internal letter obtained by the News-Miner.   *   CBC, Whitehorse, Yukon - Yukon business owners are worried the territory is becoming a "one-industry" town... and that industry is government. A recent study shows government now accounts for more than 80 percent of the Yukon economy.   *   CBC, Yellowknife-Yellowknife, N.W.T. - City councillors in Yellowknife say a projected surplus won't end up in taxpayers' pockets, at least for now.

6-12-02 Updates: 00:38, 00:52, 11:11, 11:43, 12:25 ET.  Yellowknife-Shannon Ward of the Mackenzie Valley Environmental Impact Review Board this week sent notices to those who commented on its draft cooperation plan.  These included the Alaska Gas Producers Pipeline Team, TransCanada Pipelines, Ltd., Mackenzie Delta Explorers Group c/o Chevron Canada Resources, Mackenzie Delta Producers Group c/o Imperial Oil Resources, L.B. Noble Resources Management Ltd., Enbridge Inc., Environment Canada, CPAWS-NWT Chapter, CARC, WWF-NT Region, Department of Fisheries and Oceans.  In part, the notice thanks participants for comments on the "Draft Cooperation Plan for the Environmental Impact Assessment and Regulatory Review of a Northern Gas Pipeline Project through the Northwest Territories."  According to an accompanying letter, "The plan now clarifies the role of the National Energy Board in the joint panel process.  (Note:  Readers may find the thirteen formal submissions here.  -dh)       *   Calgary-Today's opening session of the "North of Sixty Industry Forum" will feature gas pipeline government executives: Alaska Senator John Torgerson, Alberta Natural Resources Minister Murray Smith, Yukon Energy, Mines and Resources Minister Scott Kent, and British Columbia Minister of Energy, Mines and Resources, Richard Neufeld.   *   Whitehorse Star-Promoting the Alaska Highway Pipeline and the services Yukon businesses can offer to the oil and gas industry are high on Energy, Mines and Resources Minister Scott Kent’s agenda in Calgary this week.  “I will be discussing the massive Canadian benefits of the Alaska Highway Pipeline and the value of international and inter-provincial cooperation to move this project ahead,” Kent said in a statement Monday.   *    National Post by Tony Seskus, CALGARY - The Yukon government, one of the biggest Canadian supporters of a controversial Alaska Highway pipeline, still believes a U.S. subsidy-backed project will proceed -- despite significant new doubts raised by the head of a major U.S. lobby group.  Scott Kent, Energy Minister for the Yukon, said he believes Alaska will get the pipeline because the long-term demand for natural gas will make the project viable.  ... This week, David Parker, president of the American Gas Association, an influential lobby group for U.S. natural gas utilities, told an industry conference in Vancouver the Alaska pipeline deal will be scrapped because of Canadian concerns and its potential adverse impact on U.S. taxpayers.  ... "[U.S. taxpayers are] not going to subsidize the development of that natural gas line. "Certainly not at this time."  ... But Mr. Kent, who will join (Alaska Senator) John Torgerson, ... today in speaking about the project at the Global Petroleum Show in Calgary, said the demand for future gas means the project is sound. He believes pipelines in Alaska and the N.W.T. can co-exist.  ... "I think it's a viable project."    *         Vancouver Sun by Scott Simpson-A proposed Alaska gas pipeline deal that threatens to cost Canada billions of dollars in lost revenue will be scrapped because of Canadian opposition and its potential adverse impact on American taxpayers, the president of the American Gas Association told an executive conference Monday in Vancouver.  The line proposed by the U.S. Senate would cost $20 billion to build -- but senators want to tie the project to $10 billion in federal loan guarantees and include a subsidized floor price that Canadian leaders warn will distort the North American gas market.  But American Gas Association president David Parker told the annual general meeting of the Canadian Gas Association that Canadians should regard the proposal as an effort to secure government seats for politicians rather than a long-term gas supply for the American people.  "My expectation, based on my own political judgment, is that it's a dead issue," said Parker during a panel discussion on the challenges of a continental energy market.  The proposal is still in development by legislators -- the U.S. Senate and Congress are separately developing energy legislation packages -- and has drawn a hail of criticism from Canadian government leaders.  Former parliamentarian Roger Simmons (NGP Photo, 1-25-02), now Consul General of Canada, said that even some U.S. financial analysts think it's a mistake.  "We strongly feel the private sector should decide if such a line is appropriate," Simmons said.  The line down the Alaska Highway is one of two pipeline projects under consideration -- the other would follow the Mackenzie Valley.  Canada is neutral on which line the U.S. chooses because either line will eventually have favourable economic impact on Canada -- as long as it's driven by market rather than political motives.  Canadian government representatives are vigorously opposing the Senate's effort to link the highway project to a U.S. federal handout, while premiers of the Western provinces are saying it's a violation of the North American Free Trade Agreement.  They say the subsidy could cost Canada $18 billion in lost royalties and $57 billion in foregone gross domestic product benefits to B.C., Alberta and Ontario.  Parker spent 17 years at senior positions in the White House, the U.S. department of commerce and the U.S. department of the interior before moving to the private sector.  Singling out $172 billion US subsidy package proposed for farmers by President George W. Bush, Parker said every piece of legislation moving through the Senate and through Congress must be viewed in the context of upcoming elections.  "The most important thing driving every issue in Washington today including the farm bill is the election and control of our congress going forward in the year 2003, 2004," Parker said.  "It's extremely important to both the Republicans and the Democrats to win re-election in key areas."  He said Americans, particularly residents of the lower 48 states, aren't prepared to subsidize the highway pipeline.  "I don't think it will come about. I think the cry and hue that was raised by not only the Canadians -- but probably just as importantly by the producers who own the leases up in the north slope Alaska and by the resident American electorate.  "They're not going to subsidize the development of that natural gas line.  "Certainly not at this time."  Parker noted that the U.S. has to build $150 billion worth of infrastructure for the transmission and distribution of natural gas to meet upcoming demand.  Political issues "will recede into the background in the months ahead" as Canadian, U.S. and Mexican governments and energy companies begin to negotiate secure trading relationships and gas supplies for all three nations.  "Seventy per cent of all new homes [in the U.S.] have natural gas. The other 30 per cent are being built in areas where there still isn't a main.  "Natural gas clearly is the choice as the energy of the future."    *     GREENWIRE-Several key agencies in the Bush administration oppose mandating a preferred route for a potential natural gas pipeline to Alaska's North Slope, according to an internal White House memorandum....  According to the memo... the White House Council on Economic Advisors and the Office of Management and Budget think the energy bills' attempts to designate a southern route for the pipe through Alaska "would unnecessarily restrict the route that a potential natural gas pipeline could follow and constrain builders from opting for routes that may prove more cost-effective."   Further, OMB, CEA and the Federal Trade Commission firmly oppose the Senate bill's inclusion of loan guarantees for construction of a pipeline along the preferred southern route. "If the full $10 billion in guarantees were to be made, this would be one of the largest credit programs in government, managed by an agency [the Energy Department] that has no credit programs or expertise," the memo said.  The report also directed a crack at Sen. Frank Murkowski's inclusion of a $20 million job program.... The Labor Department recommended deletion, saying "such a requirement could set a precedent leading [to] the balkanization of federal training programs."   CEA backed Labor's opposition, describing the training subsidy as "a poor use of taxpayer funds" ....  Because both the House and Senate bills call for a southern pipeline route through the heart of Alaska rather than neutrality or an "over-the-top" northern route over the Beaufort Sea to Canadian natural gas reserves in the Mackenzie Delta, White House opposition could set up an interesting split between the administration and congressional leaders during conference negotiations meant to reconcile the House and Senate bills. In the Senate, the preferred-route provisions were drafted primarily by Murkowski and backed by the GOP leadership, but the North Slope subsidy was also presented by the Democratic leadership as a supply alternative to drilling in the Arctic National Wildlife Refuge. Murkowski' s amendment to the Democratic energy bill (S. 517) passed overwhelmingly, 93-5, and House support was equally convincing.  "This is an economic development program for Alaska," said Majority Whip Harry Reid at the time, touting the project as a means to create 400,000 U.S. jobs and use 5 million tons of steel, a boon to steel unions and the Alaskan labor market ( Environment & Energy Daily, March 7).  A Murkowski spokesman pointed out that opposition from several agencies should not be interpreted as something akin to an official Statement of Administration Policy. "It hasn't gone up and down the flagpole," said Murkowski spokesman David Woodruff. "This is not a Statement of Administration Policy."   More interesting perhaps than the dynamic heading into conference is the effect Canadian opposition may have had on Bush administration officials.  (See our earlier stories. -dh) Though Canadian officials have refused to say whether such a provision would be challenged under the North American Free Trade Agreement, the Canadian government has made its opposition to pipeline subsidies and the preferred route felt in Washington circles, pulling out all the stops in meetings with Hill staff and the administration.  When asked recently whether the Canadian government was considering a challenge under NAFTA, embassy officials Carl Hartill and Lynda Watson said it was too soon to say. The Canadian Association of Petroleum Producers' vice president of markets and fiscal policy, Greg Stringham, adopted much the same line....  "We haven't done a detailed analysis of a NAFTA challenge," said Stringham, stopping short of saying whether such action is possible. "We're still saying, 'Let the market operate.' The market should determine where this pipeline gets built."  Watson indicated the Canadian government would probably be unwilling to inflame the issue with an international legal challenge, instead preferring to wage this battle through lobbying efforts to avoid the appearance of a trade war with U.S. energy importers. Both Stringham and Watson said the construction of two pipelines -- along both southern and over-the-top routes -- is possible, but probably uneconomic.   For now, the Canadian government is emphasizing the importance of balanced energy trade relations given the ever-increasing U.S. reliance on energy imports from the north. In a speech presented at the Canadian Embassy in Washington last month, the No. 2 man at the embassy, Economic Minister Bertin Cote, repeatedly framed the issue in the context of North American continental energy security as defined under NAFTA's free-trade clauses, saying the United States needs Canadian oil and natural gas to operate independently of less trustworthy trade partners outside, particularly in the Middle East.  "Canada is keeping the lights on in a large part of the United States,"  said Cote, pointing out that over 15 percent of U.S. natural gas domestic consumption came from the 3.7 trillion cubic feet of natural gas Canada exported to the United States in 2001. Tapping into the Mackenzie Delta along with Alaska's North Slope, and bringing the gas to market, makes sense in terms of continental security, he said.   Officials from Canada's Northwest Territories have been more forceful.  Northwest Territories Premier Stephen Kakfwi recently aid in a statement that the U.S. Senate had decided to back an "uneconomic" project at the expense of the "fairness and balance consistent with U.S./Canada energy trade relations."  Kakfwi has called on Canadian Prime Minister Jean Chretien to protect Canadian interests along its western-most border.  What is not yet clear in all this is the industry's position. British Petroleum, ExxonMobil and Phillips Co. are in the process of conducting a $125 million study of all routes to Alaska's North Slope and Canada's Mackenzie Delta, and thus far the producers have maintained route-neutrality as they continue to scope the economic viability of any project. But that doesn't mean government action can't shake things up; at a Senate Energy and Natural Resources Committee hearing last October, producers told senators that federal intervention meant to take away the volatility of gas prices and uncertainty of construction costs could make them lean toward the southern route.  At the same time, some committee members were cautious about subsidizing the pipeline. Sen. Mary Landrieu said it would set "a dangerous precedent," and other members questioned why the Alaska gas pipeline should get special treatment. To date, all U.S. pipelines are privately constructed, owned and operated.   *    CBC, Edmonton-Air North began operating a direct-flight to Whitehorse on Friday. The only other jet service is on Air Canada through Vancouver.

Breaking news--We are obtaining contents of a 'leaked' White House memorandum on gas pipeline policy circulating around Washington today, and will provide a report for readers tomorrow morning.   Also, we'll have the report of a key U.S. gas executive concluding that the U.S. government will disapprove the incentive package for the Alaska Highway Pipeline Project, as proposed by the U.S. Senate version of the energy bill, H.R. 4.  -dh

6-11-02 Updates: 01:05, 01:40, 11:29, 16:18, 16:50 ET.  From Congressional Quarterly-A House Energy and Commerce panel will consider legislation (today) that would tighten safety regulations for oil and gas pipeline companies.  Energy and Air Quality Subcommittee Chairman Joe L. Barton, is a cosponsor of the legislation (HR 3609), as is full committee Chairman Billy Tauzin.  ... Critics say the measure would not do enough to protect the environment and improve safety. Leaders of the Energy and Transportation committees agreed to more frequent pipeline inspections, but Transportation Chairman Don Young (NGP Photo, '01) did not agree to other changes sought by Democrats on both panels and backed by Tauzin and Barton.  (See AGA release.)     *     In the "Upcoming Events" listing in the right column, note next week's important events in Calgary and the Inuvik Petroleum Show the following week in which your author will moderate opening sessions.  Then, new today are: Ziff's American Gas Strategies Conference in Calgary (October); and, The American Conference Institute's Second Arctic Gas Symposium which your author will have the pleasure of serving as chairman on November 18 & 19 (Houston).  *   ANCHORAGE-Sen. John Torgerson will be departing this week for Calgary with a delegation of public and private sector leaders for the 2002 Global Petroleum Show and a one day panel meeting of the International Alaska Highway Pipeline Committee, tomorrow.  The International Alaska Highway Pipeline Committee was formed last year by Torgerson as a means of opening lines of communication between parties who have a vested interest in seeing the Alaska Highway Gas Pipeline move forward.  ... "We are going to look at workforce development through discussions of reciprocity agreements and cross-border training programs, to assure a Northern states work force for starters," said Torgerson. "We are also going to explore ways to synchronize or at least make more efficient the regulatory and permitting process. There will also be discussions with members of the 'First Nations' to look at access to resources and employment among the Native societies in Alaska and western Canada, among other topics."  Torgerson points out the positive "buzz" surrounding the upcoming meetings, quoting Yukon Territory Minister of Energy, Mines and Resources Scott Kent: "I look forward to building on the positive relationship we have with our neighboring jurisdictions as we work to advance the Alaska Highway Natural Gas Pipeline project.  The committee meetings takes place in conjunction with the 2002 Global Petroleum Show, in which the Alaska State Legislature has funded a booth for members of both the private and public sectors to promote Alaskan oil and gas development.  Co-sponsors of the booth include Lynden Inc., Natchiq Inc., Flowline Alaska Inc. and Sourdough Productions. The State Division of Oil and Gas will also be on-hand to meet with potential customers for state lease sales.  Legislators visiting Calgary include: Sen. John Torgerson, chair; Rep. Joe Green, vice-chair; Sen. Donny Olson, Rep. Jeanette James; Rep. Reggie Joule; and Rep. Mike Chenault.  See our earlier report.  See "Upcoming Events", right column, for agendas.  (NGP Photo above, 7-01, l to r: Olson, Rep. Scott Ogan, Green and Torgerson.

Oil & Gas Journal: "Contrary to some widely held beliefs, discovered volumes, over a long period of time, have not been closely related to price fluctuations. They have been driven more by the evolution of technology and geopolitical developments that improve access."  - ExxonMobil Executive Vice President, Harry Longwell (Photo)

6-10 Updates: 00:28, 10:51, 12:10, 14:00 ET.  CBC, Dawson City, Yukon - Alaska Governor Tony Knowles admits a Mackenzie Valley pipeline could--and perhaps should--be built before the Alaska Highway route. Knowles said there's a need for an Arctic energy strategy. But Knowles also says both Canada and the U-S should develop an Arctic energy strategy, and eventually build both the Alaska Highway and Mackenzie Valley pipelines. ... Knowles says whichever project goes first, the other still will get built. But he's warning that if northern politicians bicker too long, gas companies will find the resources they need elsewhere.  (Note:   "A Tale of Two Pipelines: Americans and Canadians both want gas pipeline projects; will they risk long-standing friendships in the process?"  See our related June opinion piece: Far North Oil & Gas Review.)    *     Gas Pipeline Petrochemical Options Affected by Kyoto.  Edmonton Sun, by David Sands-The pollution-cutting Kyoto accord threatens an Alberta bonanza from Alaska gas.   "It's all a matter of economics," said David Chappell, vice-president of operations for Williams Energy, the largest natural-gas liquids producer in Canada.  "Right now, our study into the economics favours Alberta slightly over Alaska."   He's talking about where his industry would most want to tap into the proposed Alaska gas pipeline to "strip" valuable chemicals from the fuel, which is headed into the mainland U.S.   "This is an international company from the United States that does not have to invest in Alberta," said MLA Mark Hlady (Photo), chairman of the Tory Policy Committee on Energy. ... Alberta claims energy costs would soar under federal options for implementing the Kyoto accord. The United States, however, will not endorse the 1997 deal, suggesting the cost of doing business there will be lower than in Canada.   "We can't force somebody to say they will sell their NGLs to the Alberta hub," said Alberta Energy spokesman Eoin Kenny. "What we can do is provide the competitive market."   Alberta badly wants to avoid having Alaska gas in a so-called "bullet line" through the province. Currently, only the massive Alliance pipeline carries untapped natural gas into - and straight out of - Alberta.  Chappell said Williams Energy, which has $1.2 billion invested in Alberta, likes the province because of the ready market in the existing petrochemical industry.  But the company ... doesn't have nearly enough information about the potential impacts of Kyoto.  "It's hard to do your economics when you don't know what's going to happen," said Chappell.    *    BARTLESVILLE, Okla. --- James J. Mulva (Photo), chairman and chief executive officer of Phillips Petroleum Company [NYSE:P], has been named the 2002 Petroleum Executive of the Year. Mulva will receive the award at a special ceremony during the 23rd annual Oil and Money Conference, scheduled Nov. 5 in London. The conference is co-hosted by the Energy Intelligence Group (EIG) and the International Herald Tribune.  Tom Wallin, president of EIG, says Mulva was chosen for the award in recognition of the aggressive steps he has taken to grow Phillips and position it to compete long-term in an increasingly difficult business environment. Since Mulva became CEO in 1999, Phillips' asset base has grown from $15 billion to one that will exceed $75 billion when the company's merger with Conoco is completed later this year.   *  

6-8/9 Weekend Updates: Sat. 20:52 ET.  Williams Energy News Live-We'll hear from Regulatory Commission of Alaska Chair Nanette Thompson and Alaska State Senator Gene Therriault on Monday as they discuss the possibility of the RCA being terminated. Catch details of this story from the West Coast bureau next week.  *    CBC, Dawson City, Yukon - ... Stephen Kakfwi was hoping to get a statement of support for Canadian gas. He says that would translate into support for a Mackenzie Valley pipeline.  But Kakfwi didn't get the endorsement he was looking for from Alberta Premier Ralph Klein. "No, he said, he'd like to have them both," said Kakfwi. "He's going to play both sides of the fence. I just pointed out the two camps are miles apart. I just said good luck if you are going to keep your foot in both camps."   The premier did sign an agreement opposing trade subsidies.  But Kakfwi says there was some disagreement whether the current U.S. proposal to promote Alaska gas could be considered a subsidy.

"A Tale of Two Pipelines: Americans and Canadians both want gas pipeline projects; will they risk long-standing friendships in the process?"  See June opinion piece: Far North Oil & Gas Review.  Subscribe.

6-7-02 Updates: 02:36, 12:00, 12:12, 13:05, 13:30 ET.  WASHINGTON, (Dow Jones by Campion Walsh) - Alaska Governor Tony Knowles met Wednesday with premiers from Canada's western provinces and territories to defend proposed U.S. government support for a pipeline to carry Alaska gas via Canada to the lower-48 states.  (See our several downloads here.)  *    CBC, by Yereth Rosen, ANCHORAGE, Alaska (Reuters) - Alaska and Alberta on Tuesday signed an agreement that leaders of the two North American states said could spur multi-billion-dollar commercial development of Arctic natural gas.  (Note:  See our extensive reports below.  -dh)   *   Whitehorse Star by Jason Small, DAWSON CITY – The former Klondike capital is the site of the latest battle in the northern pipeline war.  ... Officials for Northwest Territories Premier Stephen Kakfwi started it off by scheduling an early-morning press conference Wednesday.  The Yukon countered shortly after with an impromptu press conference by Energy, Mines and Resources Minister Scott Kent.  As well, while the premiers were in private meetings, two pipeline representatives from both sides – Don Dempster from the Yukon’s pipeline unit and Brian Kennedy, a Washington, D.C.-based lobbyist working for the Northwest Territories – argued over the latest developments in pipelines. ... The Yukon supports a pipeline that would take Alaska natural gas to the continental U.S. through the Yukon and B.C. along the Alaska Highway corridor to Alberta .  The Northwest Territories wants a pipeline that would take gas from the territory’s Mackenzie Delta south through the N.W.T.  The N.W.T. would also like to see a connecting pipeline built between Alaska’s North Slope and the Mackenzie Delta under the Beaufort Sea, something both the Yukon and Alaska are against.  Both the N.W.T. and the Yukon say they are not opposed to the other’s pipeline being constructed, along as their line of choice is built first.  This is where both territories are concerned. Both believe that if the other line is built first, their line will not be built at all. ...  Alaska Gov. Tony Knowles entered the fray today, saying it is possible the Mackenzie Valley pipeline could be built first because it is shorter.  The Yukon government has insisted the Alaska Highway pipeline be built first but Kent said yesterday that it is still possible for two pipelines to be built.  “Atlantic Canada didn’t have to choose between Hibernia and Sable Island and I don’t think Northern Canada should have to choose between an Alaska Highway pipeline or a Mackenzie Valley pipeline,” said Kent. “By the end of the decade, anybody with a spare cubic foot of gas will be able to sell it in the North American marketplace.”  ...  But the N.W.T. is worried that a second pipeline might not be built.  The other concern is what is better for Canada.  Kakfwi has regularly said that the Mackenzie Valley project deals with Canadian gas and that it would be better for Canada for it to be built first.  But Kent countered that the Alaska Highway route is also Canadian.  “It is a Canadian project. Two-thirds of the route is in Canada. It’s something that will benefit all of Canada if it is done,” said Kent.  No matter what the two territories want, the decision will be ultimately up to the companies that own the natural gas in both Alaska and the Northwest Territories. Until then, people from both sides of the border will try to get their pipeline built first.  (Also, Northern News Service subscription coverage: Premier Steven Kakfwi disagrees with Klein-Knowles MOU.)

6-6-02 Updates: 01:11, 11:18 ET.  Following are several notable items for today.  Readers who've not checked in daily should scroll down for recent, not-to-be-missed news and downloads.  -dh

• As he left Anchorage for the Western Premiers Conference in Dawson yesterday, Alaska's Governor took with him a study released by his office this week which counters many of the arguments being raised at that forum over Alaskan and Congressional support for the Alaska Highway gas pipeline project  (See yesterday's report and Whitehorse Star feature).  Several of the chief executives have released recent studies supporting their gas pipeline positions, all worthy of review as the issues gain prominence:

  • Alaska Gas Pipeline Tax Credit: Office of Governor