Dear Senator:Please do not grant an exclusive gas pipeline license to TransCanada at this time. Hold them in reserve as a 2nd option.
We need to help encourage and induce the Palin administration to sit down and talk to the North Slope producers and quickly flesh out the terms of tax predictability and the issue of rolled in rates for the Denali Pipeline project which is already going forward.
That way we will have 2 fleshed out gas line proposals instead of one.
If negotiations with
But if TransCanada is given the license now, that will leave the
That would be a shame because
This is because the Denali project is in perfect alignment with the
The AGIA/TransCanada proposal, however, is seriously cross threaded with the lease holders right out of the gate.
The big advantage of
I do not believe that TransCanada is as motivated to keep the costs down. This is because cost overruns can be passed on to the shippers (producers).
After a successful open season in which the shipping commitments are signed, TransCanada would have the producers over a barrel.
For this reason I believe the producers will be leery at committing to long term shipping agreements, and the TransCanada open season may very likely fail. This could delay the building of an
Some critics of the oil companies say that it was a mistake for the producers to have owned the Trans Alaska Oil Pipeline, and that we don’t want to repeat that “mistake” with a gas pipeline.
I disagree and think that the owners have done an excellent job of building and operating the Trans Alaska Oil Pipeline.
Critics say that the pipeline tariffs have been too high.
As an example, they point to the case of an independent oil company (which did not own a share of the oil pipeline) that built the Milne Point oil field (35 miles west of
Milne Point started flowing in 1985, but the field operator, Conoco (before they became ConocoPhillips), left the
It’s not fair to just try to blame tariffs for why they left. There were many factors involved in their departure. Please see my web site www.alaskafalcon.com for more information about Milne Point.
The 1985 Trans
Recently, however, there have been a few tariff rate disputes.
The Federal Energy Regulatory Commission is supposed to have final determination on tariff rates. In any event, the knowledge and experience gained from the
I would imagine that TransCanada would also petition for as big a tariff as they are entitled. After all that is their bread and butter.
The Palin administration is unable to back away from the TransCanada deal even if they wanted to, in my opinion. And I’m not suggesting that they want to. But I do feel, that they feel that they are honor bound to follow through on what they started. After all, the administration is the creator of AGIA and the solicitor of the applicants. It would look odd if the Administration turned course on its own. So I agree that the Administration is honor bound to continue headlong on its present course.
The genesis of AGIA slowed down the gas line because the swirling ideology behind it, led to the demise of the 2006 proposed gasline fiscal agreement which involved
However AGIA was brought forward in part, on the desire to get an even better deal for
Another good thing that came out of AGIA was the TransCanada proposal. I very much appreciate the work that TransCanada has done with their application to the AGIA process. The information and expertise that they bring to the discussion is very useful to
My number one priority as a
I do not care if it is by TransCanada, Denali Pipeline or the Port Authority.
I just happen to think that
And yes, I want the best deal for
I do not work in the oil industry, nor do I have any stock in an oil company. However, I’m not part of the anti-oil company tide that sweeps over the people from time to time.
I worked for Arco from 1983 to 1994 as a blue collar worker (drillsite/plant operator) at Kuparuk, and realize that a productive oil industry is vital for the state and the nation.
Sincerely, Randy S. Griffin,