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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: June news is listed below in chronological order.

6/30-7/1, Weekend:   HAPPY CANADA DAY!       *     See this excellent background report, "Canadian Natural Gas: Review of 1999canadamplf.gif and Outlook to 2010", prepared by Natural Resources Canada, Natural Gas Division.  "Essentially," it says, "all U.S. demand growth since 1994 has been met by increased imports, mainly from Canada.   (By 2010)...currently uneconomic gas supply sources may be under consideration such as... Alaskan and Mackenzie Delta gas."        *         CBC:  Mexican gas may increase gas competition.        *        ANCHORAGE DAILY NEWS by Ben Spiess--A high profile environmental group has staked its opposition to an offshore natural gas pipeline route from Alaska's North Slope to Canada and the Lower 48. ...  The group opposes the offshore route through the Beaufort Sea because of its proximity to the Arctic National Wildlife Refuge and because it would travel through the largely undeveloped waters east of Prudhoe Bay.   (Note: Northern Gas Pipelines earlier cautioned that the passage of SB 164 in Alaska could indirectly support anti-ANWR efforts.  -dh)          *       "Environmental Organizations Living Off Fat of the Land", ANCHORAGE DAILY NEWS reprint--7-1-01, 1st of 4 parts-- of Pulitzer Prize-winning Tom Knudson's SACRAMENTO BEE articles (Not yet uploaded on ADN website).  "ADN Editor's note: Thirty-one years after the first Earth Day, the environmental movement has blossomed into a fund-raising, public-relations machine...."       *             HOUSTON CHRONICLE VERSION (Of earlier report, below)-- Arctic Resources Co. said two Canadian Indian bands endorsed its proposal to build a pipeline to carry gas from Canada's Arctic to U.S. markets, rejecting a rival plan from a group led by Exxon Mobil Corp.

6/29:  ABORIGINAL LEADERS SUPPORT NORTHERN ROUTE.   Late yesterday Larry Tourangeau, Ernie McDonald Land Corporation President, issued a release stating that, "On June 21st and 22nd, northern Canadian Aboriginal leaders met in Norman Wells, NT to consider a natural gas pipeline option developed by Arctic Resources Company (ARC).  Following lengthy discussions, the leaders agreed to a series of measures in support of responsible natural gas pipeline development with aboriginal enbridgemap3routes.pnginvolvement."  The release, copied here for your convenience, goes on to say that, "The Aboriginal leaders who represented the Tulita District and K'ahsho Got'ine District Land owners as well as representatives from an Alberta Aboriginal group agreed to endorse a 100% northern Canadian Aboriginal and Native American owned pipeline program developed by Arctic Resources Company." (See June and earlier Archives for more complete background on Canadian aboriginal issues.  See CBC's story here.)          *          In a related news release, Arctic Resources Company, Ltd. (ARC) Chairman and CEO Forrest Hoglund, said "the endorsement of the Aboriginal leaders marks a major milestone in getting to the right answer quickly on this important project."  That release is included here for your convenience.    When asked about the company's relationship with the Aboriginal Pipeline Working Group (APG, or APWG) , advocating a Mackenzie Delta line, ARC President Bob Murphy told Northern Gas Pipelines, "We're optimistic about the potential of working with the APG leadership."    (Reference map above: Enbridge's map of principal overland routes under consideration, mid-2001.)               *                  (Author's comment: Much as Alaskan stakeholders have debated the relative merits of alternate routes and modes for transporting Alaska North Slope (ANS) gas {i.e. see YPC story below}, so are Canadian political, business and aboriginal leaders intently negotiating terms and conditions and debating merits of three projects: a.  The Northern Route, combining ANS and Mackenzie Delta gas in a common transmission line (i.e. promoted by ARC and certain aboriginal groups, story above, and studied by the Alaskan Gas Producers Pipeline Team- see Ken Konrad  & Joe Marushack &  Robbie Schilhab & Curtis Thayer links); b. the Southern Route (ANS gas only) roughly paralleling the Trans-Alaska Pipeline System to Fairbanks, then following the Alaska Highway southward (i.e. promoted by Foothills Pipe Lines, Ltd. and studied by the Alaskan Gas Producers Pipeline Team); and c., a Mackenzie Delta Pipeline tapping only Canadian gas (i.e. promoted by the Aboriginal Pipeline Group and Mackenzie Delta Producers).  One notes that whereas we hear quite a lot from various project advocates and politicians, we hear relatively less from those who own the gas and would be presumed to be major financial backers of projects: the gas producers.  Like any other business group, they are quietly devoting significant due diligence toward determining the most efficient, environmentally acceptable way of commercializing their gas reserves.  Thus, while words of proponents and political leaders may be noteworthy--even influential--the final decisions of producers will likely chart the future of any northern gas pipeline(s). -dh)       *      Yukon Pacific Corporation (YPC), the majorvaldezroute.png LNG project proponent, has challenged a Purvin and Gertz report entitled "Alaska Gas Development Strategies", according to the "Our Gas, Our Future" website favouring an LNG project.  The website says, "the report was distributed to subscribers and sponsors (including the State of Alaska and many private companies) and has been publicly cited on a number of occasions following its release. ....according to YPC, the reworking of the report numbers ... finds many critical numbers and facts were not taken into consideration. YPC states that their numbers differ dramatically in the producer netback. While P&G shows a .22 $/MMBtu netback (22 cents), YPC numbers show 1.11 $/MMBtu; an increase of .89 $/MMBtu."  The YPC analysis may be viewed in its entirety, here.        *        KAKISA, N.W.T. , CBC- Members of the Deh Cho First Nations want more time to discuss the ownership of a Mackenzie Valley pipeline.   After two days of talks at their ninth annual assembly in Kakisa, they passed a resolution Thursday to hold another special assembly in Wrigley in August.      *        CBC--A record financial year has given the Alberta government a surplus of $6.4 billion, thanks to energy revenues in the year 2000 and 2001.

6/28:  ANCHORAGE, from Rhea DoBosh--Today the Bureau of Land Management (BLM) announced the selection of Argonne National Laboratory as the primeImg371.png contractor for preparation of the Environmental Impact Statement (EIS) on renewal of the right-of-way for the Trans-Alaska Pipeline System (TAPS).  BLM is the lead Federal agency in the Joint Pipeline Office (JPO), a consortium of six Federal and seven State agencies that oversee TAPS.  (Photo of JPO Office display: BP Exploration (Alaska) Inc., Northstar Development Project; Subsea Pipeline Bend Test, 10.75 in. OD x 0.594 in. WT, API 5L Gr. X52 Project Pipe; Test Sample 1 - Bent to 5.0% strain (9-ft radius) to demonstrate safety against potential ice gouge and permafrost thaw settlement loadings; August 1998)     *     KAKISA, N.W.T., CBC - Citizens of the Deh Cho are struggling with what to do about a proposed pipeline through their territory.  Decisions may be delayed until August.       *       Tonight, Alaskans will see one of their favorite senior statesmen, Governor Walter J. Hickel, honor another at Commonwealth North's jaytreevisionarycropped.jpg"Tribute to Jay Hammond-An Evening of Permanent Fun".  Yesterday, the two former governors were interviewed on Anchorage's NBC affiliate, Channel 2.  "Both of us have an intense love for Alaska," Hammond noted, "... if I'd have known him better, I probably wouldn't have run against him."  Hickel responded that his colleague, "...has always had the best interest of Alaska in mind...."  Asked about gas pipeline routing preferences after their interview, Hammond said it was too early to adopt a hard position and told Northern Gas Pipelines that, "The economics will determine which way the pipeline goes."  He also expressed concern about the recent approval of  SB 164 (See background, archives).  "It seems premature to close off any alternative by legislation before the producers have even completed their studies," he said.  "I'd rather see something than nothing."  -dh  (Photo above: Governor Jay Hammond, KTUU Offices, 6-27-01.  During interview, Hammond said Epicenter Press of Seattle will release his next book later this year.  See Hammond and Hickel bibliographical references here.)     *      A WHITEHORSE STAR Archive story originally published 6- 26-01, by JASON SMALL--.... Last week, Economic Development Minister Scott Kent went to his first national conference, the energy ministers conference in Calgary.  The one-day conference which Kent attended on Thursday included Ralph Goodale, the federal Minister of Natural Resources Canada.  ... A meeting about energy wouldn’t be the same without discussions on pipelines ....  The Yukon is pushing for a pipeline carrying Alaskan natural gas to markets in the United States, while the Northwest Territories is in favour of a pipeline taking the gas from Alaska through the Beaufort Sea and down through its Mackenzie Delta.  .... He heard from a few counterparts they are being told by people in the oil and gas industry that two pipelines is doable.  .... The Liberal government has pushed the idea of two pipelines – one along the Alaska Highway and one going through the Mackenzie Delta, avoiding the Beaufort Sea.  .... “I tried to communicate to my fellow ministers that Yukon is poised to become a key player,” Kent said. (See our story of Kent's appointment, 6-2001 Archives-scroll down to 6-18.)     *      A WHITEHORSE STAR Archive story originally published 6-25-01, by MICHAEL HALE--The Kaska Nation has said it will block a natural gas pipeline traveling through southeast Yukon if it has no land claims deal.  Dave Porter, a land claims negotiator for the Kaska Tribal Council, said last week the Kaska Nation will try to force the Yukon government to settle its trans-boundary land claim before a pipeline is built.


6/27: Speaking to the Downtown Anchorage Rotary Club yesterday, State Representative Lisa Murkowski (Photo, 6-26-01) addressed long term budget issues and put gas pipeline revenue in perspective.  "Within three years," she said, "Alaska will have a $1 billion/year deficit.  Within 5 years, the state will have depleted its Constitutional Budget Reserve savings account that now fuels the deficit.  The gas pipeline will only produce about $250 million/year in state revenue  (i.e. less than 1/4 of the deficit, by the time the project could be on-line.-dh).  Alaskans must make tough decisions soon or face the edge of a fiscal cliff."       Author's comment:  Northerners in Alaska and Canada foresee positive economic growth from one or more gas pipeline projects.  However, achieving 'prosperity' requires a combination of private sector success and effective government policies.  New gas pipeline(s) may not produce the volume of revenue and other economic returns required to meet all the needs, or 'greeds' of a state, territory or province.  The Northwest Territories, Yukon Territory and Alberta in recent months have all been grappling with budget and gas pipeline-related issues.  Alaskans share the human condition of wanting maximum financial and political returns.  All of these governments have constituencies that tend to want more benefits than a project can reasonably be expected to provide.  One suggests that the greatest single northern gas pipeline challenge will be for the myriad stakeholder groups to be sufficiently disciplined, coordinated and cooperative to agree on any project(s) this decade.  The next challenge will be for the governments involved to be courageous and farsighted enough to not change the tax and regulatory rules of engagement once a project has been approved, lest the future investment climate of northern children be mortgaged for their parents' short term benefit.-dh      *     NORMAN WELLS, N.W.T., CBC - CBC reports that Larry Tourangeau, president of the Ernie McDonald Land Corporation, says the Sahtu want out of a preliminary agreement between producer and aboriginal groups that would see a Delta-only pipeline built down the Mackenzie Valley.   (Note: the Deh Cho First Nations are discussing their pipeline project position at the Deh Cho Assembly in Kakisa this week.  -See background stories in June archives.)     *     U.S. Environmental Protection Agency Administrator, Governor Christie Whitman, will address members of the Resource Development Council for Alaska and guests, 7/9/01 @ 7:30 a.m., Sheraton Anchorage Hotel, reservations:  276-0700.      *      CALGARY, CBC--We want fewer regulations, say Alberta's oil and gas producers.

6/26 Editorial Comment, Derek Neary, Deh Cho Drum, Fort Simpson--"Next week marks the annual Deh Cho Assembly in Kakisa. With people throughout the Mackenzie Valley waiting anxiously for word from the Deh Cho First Nations on a proposed pipeline agreement and with Nahanni Butte pressing for support for a seismic project, there are some ripe issues on the agenda. Hopefully these matters will be dealt with conclusively...." (See related stories in June Archive)    *     Readers can register here for a live webcast of the launch of the 50th edition of the BP Statistical Review of World Energy 2001, and a new publication, the BP Statistical Review of US Energy, hosted by Chief Executive Sir John Browne at 14.15 BST, 09.15 EST on Wednesday 27th June 2001.       CBC--Yukon Territory Earthquake this morning.     *       ANCHORAGE--"The oil industry is adding hundreds of jobs as they study gas pipeline options...," Mayor George Wuerch (photo-right) told a receptive Anchorage Chamber of Commerce audience yesterday, in his 'State of the City' speech.  mayorchamber-6-25-01-crop.pngWuerch noted that virtually all of Anchorage's economic indicators point North and introduced the City's new web page,       *      State Representative Lesil McGuire (Photo-left) told Northern Gas Pipelines after the speech, "Development and construction of a gas pipeline is lesilchamber13crop.pngthe next logical step in Alaska's resource development.  ...  It will be a major economic boost during construction with hundreds if not thousands of family support jobs.  Even with construction complete, the pipeline will provide similar jobs in the operation and maintenance areas.  Many of those people and their families will live in Anchorage."  McGuire is Chair of the House Committee on Economic Development, Trade and Tourism.  "...having access to North Slope gas across the state,"  she added, "gives many communities a better opportunity to bring in much needed industry.  For years Alaskan cities and towns have tried to convince industry to settle here.  Despite all of Alaska's selling points, industry has gone elsewhere because of a lack of reliable, cost effective energy."      *     Bloomberg Business News, NEW YORK -- Natural gas futures fell to a 13-month low....  

6/25:  FAIRBANKS DAILY NEWS-MINER, Sean Cockerham--Over the past three days Gwich'in Athabaskan Indians and their environmentalist allies convened in Arctic Village to discuss their fight against oil development in the Arctic National Wildlife Refuge.      *     CBC Story, ARCTIC VILLAGE, ALASKA - Young Gwitch'in people from Canada and the United States say they're going to take over the fight to protect the Arctic National Wildlife Refuge.      *       WHITEHORSE STAR, 6-25 Star Archive, Stephanie Waddell, (Foothills Purchasing Initiatives)--...This summer, the company is working on a northern business registry. This will give local businesses an opportunity to register with Foothills Pipe Lines Ltd. for its purchasing and contracting system.  Throughout the presentation (i.e. last Thursday, in Whitehorse) Patti Balsillie, the community relations coordinator on the project for the company, went over the opportunities that will be presented to businesses.  “Foothills is committed to maximum opportunity (for northerners),” she said.  ...“Foothills Pipe Lines will purchase goods and services from northern businesses that are able to supply those goods and services to the company on generally competitive terms,” reads an information package provided to council. “Generally competitive includes the aspects of price, quality, capability, service and delivery.”  The company also plans to ensure that its contractors and sub-contractors purchase goods and services on the same basis.  (Check here for gas pipeline contractor and client company contacts.  All Canadian and U.S. pipeline contractors and client companies have been/are invited to provide links for these pages.  Also, see 6/22 CBC story below, re: Brian Love.)

6/23-24, Weekend:  Northern News Services reports that:  (1) the Mackenzie Delta Hotel Group had three tugs tow a 40-room seismic hotel rig to Inuvik to assist in housing an overflow crowd attending the first Inuvik Petroleum Show Friday and Saturday (See Friday story below); and (2) while the Deh Cho First Nations has withdrawn from the Aboriginal Pipeline Group negotiating a 1/3 ownership arrangement with Delta producers, they are still open to supporting the arrangement but only after current investigative findings are discussed at the Deh Cho Assembly in Kakisa June 25-29    *     NEW YORK TIMES, By SAM HOWE VERHOVEK--...A photographer's journey along the pipeline, from end to end, suggests that the starkest fears of ecological devastation have not come to pass.       *     CALGARY, CBC - Canadian Alliance Leader Stockwell Day is hinting that the federal government is poised to launch a new National Energy Program.

6/22 Whitehorse, YT, CBC--Foothills Northern Manager Brian Love told Whitehorse Councillors he expects the oil companies that own the gas to announce construction plans sometime next year.  (He also said...) Yukoners will have access to pipeline gas if the Alaska Highway route is chosen by the oil companies.        *       Key Northern Canadian Meetings begin today.  The Inuvik Petroleum Show has filled the small Arctic town to overflowing, with guests (agenda), while the Sahtu are hosting a meeting of aboriginal groups in Norman Wells to discuss the ARC 'northern route' proposal vs. the nearly completed agreement the Aboriginal Pipeline Group (APG) has negotiated with four major Mackenzie Delta producers for construction of a Canadian-only line tapping Delta reserves.  (See 6/2-10 stories in June Archives)      *      CBC, CALGARY - The Chretien government says it will not act alone when it comes to continental energy issues. Federal Energy Minister Ralph Goodale says there will be consultation with those who own the energy resources, namely the provinces and territories.      *     Commonwealth North's (CWN) meeting with Interior Secretary Gale Norton this week (see below) again drew attention to the gas pipeline issue.   The CWN board has charged members of its North Slope gas commercialization study group with determining:  "How can the best interests of the people of Alaska be realized in the commercialization of the North Slope natural gas resources?"  While the group continues its research, one janie1-a.pngCWN board member at yesterday's meeting was Janie Leask (Photo-right), a corporate executive and former President of the Alaska Federation of Natives.  Of the gas commercialization study, Leask remarked that, "...this study fits within the purpose of Commonwealth North, 'to educate ourselves and all other Alaskans on relevant public policy issues and assist in their resolution.'  The gasline study group is a perfect example of trying to educate ourselves and Alaskans on an issue that directly impacts our lives." 

6/21:  CBC, FORT MCPHERSON, N.W.T. - Gwich'in teenagers from both sides of the U.S., Canada border are gathering in Arctic Village ....     *      Oil & Gas Journal, Maureen Lorenzetti, WASHINGTON, DC, June 20 -- A nonpartisan report prepared for the US Congress says new oil drilling technology may be an important factor in addressing the debate over exploration of the Arctic National Wildlife Refuge's coastal plain region.   Terry Twyman, visiting scholar in Economic Growth and Entrepreneurship of the CRS's Resources, Science, and Industry Division authored the overview.  Based on interviews with government and industry officials and other stakeholders, Twyman said the oil industry's drilling methods are vastly different since the development of Prudhoe Bay in the 1970s.  "Recent advances in drilling are lessening the footprint of petroleum operations in arctic environments," he said.       *      Commonwealth North Memberscwnsecretaryjoe6-20-011.png (CWN) and guests filled Anchorage's Hotel Captain Cook ballroom yesterday morning to hear Interior Secretary Gale Norton's review of her most recent Alaska trip (See Anchorage Daily News story).  CWN Vice President Joe Griffith (Photo, with Secretary Norton, 6-20-01; Griffith is Chugach Electric Association's Executive Manager-Finance and Energy Supply, active on CWN 's North Slope gas commercialization study project), congratulated the Secretary's recent appointees: Cam Toohey, Special Assistant for Alaska, and Drue Pearce, Senior Advisor on Alaska Affairs.  Toohey fills the traditional top Interior job in Alaska while Pearce will move to the Capital in mid-August, advising the Secretary on Alaska matters.  (Photo below, State Senate President Pearce and Governor Walter J. Hickel following Norton's presentation.  The two have in common, being appointed to high rankng Interior positions and achievement of elected office). 


Norton presented former Interior Secretary and CWN co-founder, Walter J. Hickel, with a memento--a "token of the respect we at the Department have for you...."  She spoke about many hours of visiting and listening to citizen concerns in Arctic Village and Kaktovik, and indicated her optimism at "...finding ways to maintain caribou herds and protect the environment while tapping the resources below ground."  While focusing more on Trans Alaska Pipeline, ANWR and NPR issues, she answered a gas pipeline routing question, saying "I think there will be a natural gas pipeline that meets the needs ...."

Dr. Arlon Tussing's presentation to IAEE, informal notes on main talk points, courtesy Will Nebesky, IAEE Chapter President: "Arlon related the history of gas pricing with regulation reform and provided a critical review of the performance of price forecasting services as reflected in DOE Energy Information Administration past forecasts....(more)"


6/20:   On this day in 1977, construction of the nearly 800 mile Trans-Alaska Pipeline was completed with a dedicated army of 23,000 workers and an investment of  $7.7 billion.  While the original reserves are depleting, Alaska's exploration companies are discovering new oil & gas and U.S. consumers continue to depend on the pipeline's operator, Alyeska Pipeline Service Company-currently providing over 15% of domestic oil production.   "...Prudhoe Bay has produced more than 10 billion barrels of crude," BP Alaska's Regional President, Richard Campbell told registrants at the 6th Natural Gas Conversion Symposium in Girdwood this week.  "...while this is a billion barrels more than experts at the time projected..., we're confident we'll be able to produce at least another 3 billion barrels."  Campbell also briefed the group on BP's $86 million GTL plant now under construction in Nikiski, saying that, "With construction of this plant, a major portion of BP's global GTL program has now shifted to Alaska."    Campbell also addressed commercialization of North Slope gas, saying major producers "...are working together to prove the viability of a gas pipeline to deliver ... gas to  If all goes well, we will have an application filed with the Federal Energy Regulatory Commission...and the National Energy the not-too-distant future."  (See BP's Juneau Report-Winter 2000 & Current Alaska Inc. Magazine report.)     *     After their trip to the Kenai Peninsula this week, Lieutenant Governor Fran Ulmer told Northern Gas Pipelines that Interior Secretary Gale Norton is interested in understanding Alaska, "as is appropriate since half of the public lands managed by DOI are in Alaska".   Ulmer said she "...welcomed the opportunity to spend Sunday with Secretary Norton on the Kenai River, as it provided a great opportunity to talk about the challenges that land managers face.  We discussed the abundance of natural gas," she said, "and the state's hope for ulmerparkerroderick.pngcommercial development in the near future." (Photo: Lieutenant Governor Fran Ulmer attending Natural Gas Pipeline Policy Council presentation at Agrium's Kenai Nitrogen Operation with Agrium's Lisa Parker and Council Member Jack Roderick. 5-17-01)  ///   Ulmer addressed the Natural Gas Conversion Symposium conference this week in Girdwood, saying that much of the discussion focused on gas to liquid technology.  "Experts from around the world have gathered in Alaska to share research results and scientific studies of this promising source of clean fuels for the world's energy hungry population," she said.gasconf6-19.png  "Alaska is particularly likely as a candidate for such a facility because of our proximity to a high demand market for clean diesel (California) and because the product could be transported down the existing oil line (batched or in suspension)."  According to Ulmer, "That could add to the useful life of that line and in turn make the development of marginal oil more likely."    *      (Photo: Two participants enjoying the technical program and scenery at Girdwood's Alyeska Prince Hotel this week, were Ad R. Punt-left, Shell Global Solutions' Business Manager Gas, from The Hague and his colleague, Dr. Arend Hoek, Shell's Principal Research Technologist, from Amsterdam.  Program information here. )

6/19:  CBC, INUVIK, N.W.T. - There's a big 'no vacancy' sign hanging over the town of Inuvik this week. ...larger-than-expected number of people attending a petroleum show that starts later this week.  Initially, about 200 people were expected to participate. That's more than doubled.... The town has stopped accepting registrations ... not enough room .... Peter Clarkson ... mayor of Inuvik. "The attention and interest in this has been overwhelming," he says. "People looked at how much money is going to be spent in the oil and gas and pipeline area in the next three to four years."     *      CALGARY HERALD, Stephen Ewart--If the Deh Cho First Nation hopes to negotiate a land-claim settlement with Ottawa it will not get a better bargaining chip than the Mackenzie Valley pipeline, said Northwest Territories Premier Stephen Kakfwi.... Analyst Ed Small of Cambridge Energy Research Associates noted there are potential rivals in Alaskan and Scotian shelf gas as well as development of liquefied natural gas technology to the N.W.T....(See Archives, 5-25 Ed Small report here)    *     CBC, CALGARY - Prime Minister Jean Chretien extended an olive branch to Albertans Monday night....  He also said he approved of Premier Ralph Klein's trip to Washington to press the province's reasons to be involved in any negotiations on a continental energy program.       *     DENVER--Forest Oil Corporation announced today the successful Cook Inlet, Redoubt Unit No. 2 well extends the field from the discovery well.  Forrest drilled to a total depth of 15,325 feet and estimates the production rate at 3,000 barrels of oil per day. With the results of the No. 2 well, the Company estimates that recoverable oil in Redoubt Shoal will exceed 50 million barrels.   (See Archives, 4-19-01 story, Gary Carlson re: 'New Cook Inlet Prospects'.)  *     6th Natural Gas Conversion Symposium-June 17-22, 2001 Girdwood, AK-Alaska Science & Technology     *      Dawn Ostrem, Northern News Services, INUVIK - Anderson Resources spent at least $30 million on drilling in the NWT and will be back again this winter after a summer of seismic exploration.     *     HAY RIVER HUB EDITORIALYou can’t have your cake and eat it, too.  Or, in this case, you can’t have your pipeline and own it all, too.  The Deh Cho and the NWT in general should be breathing a sigh of relief that natural gas producers, led by Imperial Oil, are taking the high road. The could just as well have taken their pipeline plans to Alaska. Instead, they’ve agreed to wait until the Deh Cho are ready to ink a deal.  The Deh Cho’s decision to not sign an agreement that would lead to aboriginals owning one-third of a $3 billion pipeline looks, on the surface, like a sign that they’re not yet ready for such development.  That was the same message given during the Berger inquiry. Let’s hope it’s not another 25 years before the Deh Cho can say they’re ready.  The problem, it would seem, is more political. Deh Cho leaders, for the most part, seemed ready to sign the deal. But they’re being held back by constituents, including traditionalists, who want more information and more control. While wanting to have all the information on the table is a good thing, so is having trust in your leaders.
True, leaders are chosen or elected to represent the people, and so the Deh Cho leaders have made the right choice in listening to their constituents. However, leaders are also chosen and elected to make decisions for the people. Having everyone in the Deh Cho making the decision is a small step from anarchy – and anarchy is bad for business.  (Also, see related story by reporter Dave Zimmerman, "Deh Cho refuse pipeline deal"--see archive here.  See our 6/5 story quoting Hay River Mayor Duncan McNeill below, or in 6-01archives.)    

6/18 (and week-end update):   ANCHORAGE DAILY NEWS, Elizabeth Manning, 6/17--Noting the importance of Alaska to President Bush's energy plan, Interior Secretary Gale Norton (Photo) on Saturday named not one but two Interior Department special assistants to work on Alaska issues.  (Note: at this time, 9:45 a.m., AST, Norton is holding a Department of Interior meeting at the Alaska Center for the Performing Arts.)     *     WHITEHORSE, 6/12 – Premier Pat Duncan has introduced Riverside MLA Scott Kent as the Yukon’s new Minister of Economic Development.  Kent, who was sworn in during a brief ceremony at the legislature this morning, takes over the portfolio from Duncan.  “Scott Kent brings a wealth of experience to his new job,” said Duncan.  “He was a member of the business community for 10 years before being elected.  He knows what it takes for a business to survive through the ups and downs of the Yukon’s economy.”  Kent (Photo, author introduces Honourable Scott Kent-right, Yukon Legislative Assembly @ PacRim Conference, 2/14/2001) remarked that, “I look forward to working with members of thekentharbour2.png Yukon’s business community....  I have been working closely with Pat Duncan over the past year and I believe we are on the right track economically.  There are several positive signs emerging: the CanTung mine will soon re-open and the Alaska Highway natural gas pipeline is on the radar screen.”  Kent has served as Caucus Chair, Deputy House Leader, Chair of the Standing Committee on Rules Elections and Privileges, Deputy Chair of the Committee of the Whole, the Premier’s special representative on Youth and the Premier’s special representative on economic development.  "Scott has shown Yukoners his leadership abilities,” added Duncan.  “He is ready for this new challenge.”   (Related CBC story)  *     ARC's Forrest Hoglund tells Houston Chronicle's Michael Davis that,  "Most companies brag about their employees being their greatest asset. We say this map is our greatest asset..." The map illustrates a route for a natural gas pipeline that would go offshore in Prudhoe Bay and parallel the coast line down to northern Canada and the Mackenzie Delta, estimated to have 60 trillion cubic feet of gas that has been largely undeveloped. The system would then travel on to Edmonton, where it would link with other systems to move the gas into the Chicago area...."     Derek Neary, Northern News Services, Yellowknife (6/15/01) - The Deh Cho First Nations have withdrawn from the Aboriginal Pipeline Group while they analyze the proposed agreement for a Mackenzie Valley pipeline....  APG Chair, Nellie Cournoyea nellie photo colour-j.png(Photo) said she remains hopeful that the DCFN will decide to get on board with the APG following the Deh Cho Assembly (Kakisa June 25-29).     *      Alberta Natural Gas Royalty Regulation, A.R. 351/93 Prices and Allowances – April 2001.     *     ANCHORAGE DAILY NEWS' TIM BRADNER, 6/17:  Several hundred scientists and senior petroleum industry officials from around the world are gathered at Girdwood this week for conferences on new technologies in natural gas conversion, or the converting of gas into high-value liquids and petrochemical building blocks.      *      ANCHORAGE DAILY NEWS'  LUCAS WALL:  On The Alaska-Yukon Border -- People have crossed between the United States and Canada at Poker Creek since the Gold Rush. But only since 1972 have U.S. inspectors been present. Now, for the first time, a permanent joint U.S.-Canadian facility has opened to process the thousands of travelers who pass through each summer.     *     Premier Ralph Klein's OP-Ed letter to Vice President Dick Cheney in the National Post.     CBC Staff Story, 6/14:  Klein said he and Cheney talked about ways to come up with a continental approach to energy, integrating the province into the U.S.'s plans. He said he would welcome American investment in the tar sands, and wants any new oil or gas pipeline from Alaska to run through Alberta.     Also:  ...Klein and the vice-president also talked about a northern pipeline....     *     CALGARY, Alberta, 6/14 (Reuters) — The El Paso Corporation, a natural gas producer and pipeline operator, bid 347 million Canadian dollars ($228 million) today for Velvet Exploration Ltd. of Canada, the latest in a steady stream of takeovers of Canadian gas suppliers by United States companies.     *     YELLOWKNIFE, N.W.T., CBC-North - Air travel in the N.W.T. has become a little more expensive.     *     Last week's Joint Pipeline Office Oversight Report of TAPS: Assessment of Operations Material Sites - This assessment was conducted to determine if Alyeska met the requirements in the Grant and Lease for Material Sites, provisions of the Federal and State material sale contracts, and the Mining and Reclamation Plans for each site.  Of the 65 sites inspected in August 2000, all were found to be in compliance, clean, and well maintained.  (Check out JPO's homepage at and the State-Federal TAPS Renewal website at:

ken konrad cmyk1.png

6/13:  Ken Konrad (Photo-right, also here), BP's management representative to The Alaskan Gas Producers Pipeline Team, told Northern Gas Pipelines this week that, “Our primary challenge is to create an economically and environmentally viable project.  The first step in the process is to determine if any project is viable.  The second step is to identify what project should be undertaken.” 

With most gas pipeline news for the last month flowing from the Canadian side of the border, momentum in Canada is building for approval of a transmission line tapping only the gas reserves in the Mackenzie Delta.  Four producing companies there are working with leaders of northern territorial governments and aboriginal groups on a concept providing local equity ownership (see stories below). 

Questioned about a Canadian-only project's impact on Alaska planning, Konrad said, "The North American market can accommodate both Mackenzie Delta and Alaska North Slope gas.  With annual demand growth of 1-2 bcfd (billion cubic feet per day) and more significantly, the natural decline of existing wells and fields, there will be an annual call for new supplies of up to 10 bcfd.  These supplies will come from many sources including tight gas, coalbed gas, field extensions, infill drilling, deepwater Gulf of Mexico, LNG and eastern Canada among others."

"If Alaska can create a project that has a competitive cost of supply against these alternatives," Konrad concluded, "the market will accommodate us.  Approval of a Canadian-only line at around 1 bcfd would not materially alter gas market dynamics.  However, due to the limited pipe manufacturing capacity and expert labor available for such mammoth projects, approval of one pipeline could result in delays for other large projects in a similar time frame."  -dh     

CALGARY HERALD (by Chris Varcoe)--Ambassador Paul Cellucci said Tuesday the new American administration would like Canadian officials to speed up approval for new energy projects, including major pipeline and electricity developments.  Two days before Alberta Premier Ralph Klein (See CBC story) meets with U.S. Vice-President Dick Cheney to discuss energy, Cellucci told a Canadian audience his government wants to increase energy sales between the two trading partners.  While governments don't build pipelines or other energy infrastructure, they can grant permits faster, he said at a meeting in Ottawa.  ...    Energy economist Andre Plourde of the University of Alberta agreed new investments in power plants and gas pipelines will be driven by companies, not government policies. (emphasis added -dh)       *     This week in Calgary (NORTH OF SIXTY BUSINESS OPPORTUNITIES CENTRE GO-EXPO): "The Alaska Support Industry Alliance - Is it time for a Canadian Counterpart to Support Northern Pipeline Construction?"  Larry Houle, The Alaska Support Industry Alliance; bob reid.png"A View to the North", Bob Reid (Photo), Senior Vice President-Northern Projects, TransCanada PipeLines, Ltd. (obtain copy of PowerPoint presentation here); "Transporting the Industry to the North", Carmen Loberg, Canadian North & Northern Transportation Company Ltd.     *     TOKYO, June 13 (Reuters) - A Japanese consortium including Itochu Corp and U.S. oil giant Exxon Mobil Corp (NYSE:XOM - news) are considering piping natural gas from Russia's eastern island of Sakhalin to Japan, an Itochu spokesman said on Wednesday.     *     CBC North--YELLOWKNIFE, N.W.T. - The N.W.T. government is exploring a plan that could see a series of hydro dams built in the territory to supply the south with electricity. Among the proposals is a project to dam the Mackenzie River.

6/12: Maureen Lorenzetti, OGJ Online, WASHINGTON, DC, June 12 -- "US House Republican leaders are drafting legislation that includes several highly controversial proposals sought by the oil industry but vehemently opposed by environmental groups"  ...including, "opening the Arctic National Wildlife Refuge coastal plain to exploration, reducing state authority over coastal zone management, and expanding deepwater royalty relief...."     *      CALGARY HERALD-- Designed as a median between the annual National Petroleum Show and the bi-annual Global Petroleum Show...GO-EXPO will feature more than 500 indoor and 60 outdoor exhibits today through Thursday at the Roundup Centre, including a special "North of Sixty Business Opportunities" feature that highlights future exploration and development options in Alaska, the Yukon and the Northwest Territories.      *      YELLOWKNIFE – Premier Kakfwi says the work of the Aboriginal Pipeline Group (APG) will provide long term revenue benefits for the Aboriginal people of the NWT and has confirmed the GNWT’s support for the partnership.      *      Alberta's Premier Ralph Klein is in Ottawa today meeting with Federal officials just prior to his meetings in Washington later in the week with Vice President Cheney and other government leaders.   Edmonton Journal Political Editor, Graham Thomson--Yesterday, Klein spoke on Provincial energy revenues to a sold out Chamber of Commerce audience in Halifax.

6/11:  (***See stories below):  FAIRBANKS DAILY NEWS-MINER:  "Alaska Gasline Port Authority is and remains a risky investment, offering prospects for a truly spectacular payoff but absolutely no guarantee that its promise will be realized.  (Advocates want another $50,000 investment from the Borough; report says Borough Mayor Rhonda Boyles wants business plan.  -dh)"      *       YELLOWKNIFE, N.W.T., CBC - Canadian North has announced a new flight from Calgary direct to Yellowknife and Inuvik beginning July 9...requested by oil and gas industry.....      *     NORMAN WELLS, N.W.T., CBC - A Sahtu business leader is upset with the Aboriginal Pipeline Working Group. (See related 6/8 stories, and others ***, below)      *     June is an important pipeline meeting month Governor's Alaska Highway Natural Gas Policy Council:  6-14,Tok.  Dr. Arlon R. Tussing, Anchorage Chapter of the International Association of Energy Economists (IAEE),"Natural Gas Markets: Long Term Price Trends", 6/15.  NORTH OF SIXTY BUSINESS OPPORTUNITIES CENTRE GO-EXPO, 6/12-14.  6th Natural Gas Conversion Symposium-Girdwood, AK-Alaska Science & Technology, 6/17-22.  Inuvik Petroleum Show, Agendathe show is sold out,  6/21-22***.  Sahtu hosted meeting in Norman Wells, 6/21-22***.  Deh Cho Nation assembly, Kakisa, NWT, 6/26-28***         *        VOICE OF THE TIMES--Perhaps Americans and Canadians concerned about immoral, unpatriotic and dangerous disinformation programs should read of the latest outrage, courtesy of Field & Stream, and thankfully exposed; then refer to what the "Bucket Brigade" is doing to defend against such deceit.     *      Vote here on exploring ANWR, a slight majority answering this poll, as of today, say "yes".

6-10:  ANCHORAGE DAILY NEWS, Ben Spiess--"But the stealth player in this game may be Calgary-based Foothills Pipeline. The company holds a sheaf of critical permits that may give it the right under U.S. and Canadian law to construct and operate a pipeline from Prudhoe Bay south along the Alaska Highway to the Lower 48."  (Interview with Mike Stewart, co-chief executive of Foothills Pipe Lines Ltd. and executive vice president of  Westcoast Energy)        *          NEW YORK TIMES FEATURE: ARCTIC NATIONAL WILDLIFE REFUGE — "They journeyed above the Arctic Circle and beyond the Brooks Range, to a spot called Caribou Pass on the Kongakut River near its mouth at the Arctic Ocean. It was not easy, nor was it cheap."  (See ANWR Page)

6/9: YELLOWKNIFE, N.W.T. - NWT Legislature debates energy policy, wants gas for local use as Alaska does. (CBC story)     *     Premier Kakfwi  statements: "the price of gas is dropping... and time is of the essence....  "If the Alaskans are determined to get it out through the state and through the lower Yukon, by the time the Deh Cho come ... to sign, the deal may not be on the table any more....   ... some of the chiefs ... need time ... so I think they made the right decision," he says.     *     Hay River, NNS reports various viewpoints: - Deh Cho First Nation Grand Chief Michael Nadli is holding out hope that a deal can be struck on the proposed Mackenzie Valley pipeline later this month.  "We're not closing a door -- we want that door to stay open," Nadli said after he refused to sign a memorandum of understanding following two days of talks between territorial leaders on the Hay River Dene Reserve.  Nellie Cournoyea (Photo below), chair of the Aboriginal Pipeline Group, (APG) said ... "This is very, very good news; they're certainly willing to tackle the situation as quickly as possible and I believe they will."   Senior vice-president of Imperial Oil Limited, K.C. Williams said...,  "The producer group is encouraged by the progress we've made. We are grateful to the aboriginal leaders for their hard work in helping to negotiate principles they believe represent the interests of their people."  ...Randy Ottenbreit of Imperial Oil said, "we understand that aboriginal support is essential to the success of the project."  ...Larry Tourangeau, president of the Ernie MacDonald Land Corporation and other Sahtu delegates agreed to "sign with reservations."  ...Winter Lennie, president of the Western Arctic Energy Corporation wants the leaders hold out for 100 per cent ownership of the pipeline....   APG Deh Cho representatives Doug Cardinal and Dennis Nelner ... "...disappointed...confident progress will be made."    ..."As much as we love the land and are determined to look after it, we all know we can no longer make a living hunting and trapping," (quoting Fred Carmichael, president of the Gwich'in Tribal Council) "...Let's face it, we are in the year 2001 and the way of life for aboriginal people has changed."    *     In this excellent feature,    Terry Halifax of Northern News Services provides additional perspectives of the meeting:  Dennie Lennie, chair of the Inuvialuit Development Corporation...., "We've all heard that there is a race on between the Alaska pipeline and Canada's pipeline through our area," Lennie said.  "In Canada's eyes, we are being watched today and hopefully we can work something out to share our resources and our wealth with the rest of Canada."  (See Friday's report below.)

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6/8:   Aboriginal Pipeline Group (APG) Chair, Nellie Cournoyea (Photo), told Northern Gas Pipelines from Inuvik this morning that the Mackenzie Delta pipeline project is moving toward consensus.  According to Cournoyea, who also serves as Chair of the Inuvialuit Regional Corporation, "The Inuvialuit, Gwich’in and Sahtu leaders, together with the leaders of the  Deninu K’ue First Nations, Yellowknives Dene First Nations, the Dogrib Treaty 11 Council and the North Slave Metis Alliance have unanimously supported, and signed the Memorandum of Understanding for a Mackenzie Valley Pipeline."

In a prepared statement, Cournoyea went on to say that the "...memorandum establishes a set of principles and processes to be utilized in developing benefit agreements and related arrangements and sets out the conditions within which the Aboriginal Peoples of the NWT will have a one-third interest in a Mackenzie Valley pipeline being studied by the Producers Group. The Producers Group is composed of Imperial Oil Resources, Gulf Canada Resources,  Shell Canada and ExxonMobil Canada."

Some factions of the APG, as reported here earlier, are studying the prospects of 100% aboriginal ownership of a pipeline accessing both Mackenzie Delta and Prudhoe Bay reserves, as proposed by the ARC group.  Cournoyea told Northern Gas Pipelines that "Legislation to allow funding for 100% aboriginal ownership is not available in Canada.  In any case, I'm not sure we would want 100% of the ownership; we'd then have 100% of the liability and the operating responsibility." 

The remaining text of Cournoyea's APG statement follows: "The leaders of the Deh Cho Nation have requested a delay of the signing the Memorandum of Understanding by the Producers Group until their assembly at the end of June 26 – 28 in Kakisa, NWT.  

"The Producers Group have agreed to delay signing the MOU pending the outcome of the assembly at the end of the month.  The Aboriginal Pipeline Group has been working cooperatively with the Producers Group to define principles appropriate to guide future  work that may lead to regulatory approval of a Mackenzie Valley pipeline, its design and construction.  The MOU is the result of that work.

"The Aboriginal Pipeline Group originated in January, 2000 in Ft. Laird where the Aboriginal leaders of the NWT resolved: 'We the aboriginal people of the Northwest Territories agree in principle to build a business partnership to maximize ownership and benefits of a Mackenzie Valley Pipeline.'

"The work of the APG began on June 30, 2000 in Fort Simpson. A Working Group was formed and is composed of representatives appointed by leaders to carry out the mandate to 'form a business alliance and develop a business plan to achieve the NWT Aboriginal Leaders Vision'.  On August 25, 2000 the Working Group selected a small group, the Executive Committee, to carry out the tasks needed to fulfill the mandate.

"The Executive Committee has:

·         Obtained short term funding from (Government of the NWT) and (DIAD) to undertake these tasks.

·         Formed a business alliance with the “Producers Group”.

·         Negotiated a “business case” which, when  approved and implemented, will achieve the goal of maximizing ownership and benefits.

"The business alliance has consisted of a relationship between the executive of the APG and representatives of the Producers Group. APG has incorporated a company called Mackenzie Valley Aboriginal Pipeline Corporation. A formal arrangement, called “Memorandum of Understanding” has been negotiated between the Mackenzie Valley Aboriginal Pipeline Corporation and Imperial Oil Resources Ltd., Gulf Canada Resources Ltd., Shell Canada Limited and ExxonMobil Canada Properties.

"This MOU was presented to the Aboriginal Leaders of the NWT on June 5-6, 2001 in Hay  River for ratification and signing.

"The agreement calls for the Mackenzie Valley Aboriginal Pipeline Corporation, on behalf of the Aboriginal peoples of the NWT, to take a one-third interest in a Mackenzie Valley Pipeline. APG must obtain financing and bring its share of shipping commitments to the project.

"The Producers Group supports this participation and will work actively to assist APG with these tasks.

"The final signing of the agreement awaits the deliberation of the Deh Cho First Nations communities at their assembly on June 26-28, 2001."

Hay River --Today, Mayor Duncan McNeill told the author that of the meetings earlier this week in his town, "Total agreement was not reached; however, I expect it will be reached by the end of June.  There do not appear to be any serious obstacles."  (See Hay River story below, 5/6/01)

Larry Tourangeau questions Joe Handley and Stephen Kakfwi’s comments and actions regarding the proposed Mackenzie Valley Pipeline.

(Author's note: Various perspectives of the week's events, below. -dh)

6/7: OIL & GAS JOURNAL, CALGARY-- (Please see more current update, above.  dh) "Mackenzie Delta producers failed Wednesday to get a deal with all Aboriginal groups on proposed plans for a natural gas pipeline from the Canadian Arctic to southern markets....  'We are encouraged by the support which was shown for the proposed memorandum, and we realize that work still needs to be done. We are breaking new ground, and the discussions are complex,' said K.C. Williams, senior vice-pres. of Imperial and spokesman for the producer group....  Winter Lennie of the Western Arctic Energy Corp. said native leaders should aim for 100% ownership of a pipeline and said that is essential to absolute control of what happens on their lands (See weekend story below.).....  NWT Premier Stephen Kakfwi told Aboriginal leaders that a Mackenzie Valley pipeline could be delayed for 10 to 15 years if a competing pipeline from Alaska is developed first...."  (Map: Enbridge's map of principal overland routes under consideration.  Author's note: Next step is a Norman Wellsenbridgemap3routes.png meeting of aboriginal leaders, June 21-22, organized by Winter Lennie's Western Arctic Energy Corp and hosted by the Ernie McDonald Land Corporation. At stake: will the first line approved be a Mackenzie Delta line, the ANGTS-Alaska Highway route or a joint system...or, will political impasse on both sides of the border provide the delay needed to create opportunity for LNG, GTL and/or non-Arctic projects? Will citizens / industry of the northern territories, Alberta and Alaska construct compromises sufficient to neutralize delay and 'make a deal'? -dh)    *     HAY RIVER, N.W.T. , CBC story- The N.W.T.' s Aboriginal Pipeline Group does not have a deal for part-ownership in a Mackenzie Valley pipeline.     *     Yesterday's and recent editorials are here.     *     Northern News Services, by Richard Gleeson, YELLOWKNIFE--"Premier Stephen Kakfwi said Ottawa learned a valuable lesson on unilateral energy decisions the last time it and oil companies tried to push a pipeline down the Mackenzie Valley.  'It was a disaster,' Kakfwi said, referring to the attempt, made 30 years ago. The proposal was brought to a screeching halt by falling energy prices and an independent federal inquiry that recommended a 10-year moratorium on pipeline development in the North.  'We have a chance now to recover from that. But they're overly-cautious now. They're a little bit shy. We have to coax them out onto the dance floor.'"     *     ANCHORAGE--Dr. Arlon R. Tussing will address the Anchorage Chapter of the International Association of Energy Economists (IAEE) Friday (6/15) on the subject of "Natural Gas Markets: Long Term Price Trends".  According to chapter president, Will Nebesky, Tussing " a national expert in natural gas industry issues.  The event is a supplement to the continuing series of luncheon presentations sponsored by IAEE."   Reference earlier IAEE natural gas pipeline speaker, Ken Thompson, Archives, 4/19.     *     Now available:  "Update on National Energy Board Regulatory Approaches" - Presented to: North American Pipelines Conference.  ("The National Energy Board is supporting northern development initiatives by working with other regulators to provide a transparent, predictable and efficient regulatory process.")

6/6 Hay River (A.M. Interview & Comment)--Today, Mayor Duncan McNeill's town is hosting a conference of industry and aboriginal leaders that could well direct historical outcome of the great pipeline debate (See history).    McNeill, part-time mayor of Hay River who works as a financial planner for Sun Life Assurance of Canada, says, "It's a very exciting day and at the end of the day there will be agreement; but the 'end of the day' may not be today, as several issues may remain to be solved."  Gathered this week in Hay River are leaders of the Deh Cho, Gwitch’in, Inuvialuit, and Sahtu groups, joined by Mackenzie Delta Producer representatives (See weekend story below).   The Aboriginal Pipeline Group (APG) is proposing an agreement with industry involving a  1/3 interest in a Mackenzie Delta -only pipeline.  As of this morning, some Deh Cho representatives were still undecided on final terms and some Sahtu representatives seek 100% line ownership of a project which includes the economies of scale offered by including Alaska North Slope gas volumes.  (Both Deh Cho and Sahtu are represented in APG.)  According to McNeill, "Everyone is aware of economies of scale for a project involving Alaska gas; but whichever project goes first could result in delay for the other line due to limited gasline construction manpower and limited worldwide pipe production capabilities. (See editorials)"  Larry Tourangeau, a Sahtu and the president of Ernie McDonald Land Corp., has already called for a another aboriginal meeting later this month in Norman Wells to evaluate the ARC 'over the top' proposal, advocating up to 100-per-cent aboriginal ownership of the line.   -dh       *      HAY RIVER HUB, by SEAN PERCY, editor- (Deh Cho First Nation) Grand Chief Michael Nadli said the APWG has given the impression that all aboriginal groups have given approval to a Mackenzie Valley pipeline.  Because the Deh Cho has yet to sign even a framework agreement (that happens later this week in Fort Simpson), there are many steps to be taken before the Deh Cho can approve a pipeline, Nadli suggested.     *      CBC North, HAY RIVER, N.W.T. --"Chiefs reluctant to approve deal," but "...there is pressure for a decision. Many chiefs say they want development now. They say they don't want to have to wait another 25 years, like they did after the Berger inquiry."         *        CBC, HAY RIVER, NWT--Decision expected today: "The stakeholders are meeting in Hay River this week to work out the details on a deal that would give aboriginal people one-third ownership in (a Mackenzie Delta-only pipeline). The plan was agreed to in principle last year."     *     Inuvik Petroleum Show coordinator, Patricia Black, has provided us the Agenda for this year's Show on June 21 and 22.  She began organizing the event 6 weeks ago, cautions that the show is sold out, and... "will likely become an annual event given the incredible draw that this one has had."  June 20 & 21 are the tentative show dates for 2002; inquire with Town of Inuvik directly at 867-777-2607.   -dh     *      Anchorage Daily News,  Liz Ruskin, Washington -- Sen. Frank Murkowski, on his final day as chairman of the Energy Committee before Democrats wrest control of the Senate, made one more pitch for his national energy bill.  ...Open the Arctic National Wildlife Refuge to oil drilling (somewhat misleading, as proponents point out that only a small portion of the Refuge would be open to exploration; ANWR development activity would be in an area about the size of Dulles Airport set in a state about the size of North Carolina.  See ANWR page.  -dh), increase domestic oil production, license new nuclear power plants, build more refineries, and improve clean coal technology. 

 6/5:  CALGARY HERALD--Chris Varcoe and Stephen Ewart report this morning that, "Executives with Canada's largest oil companies are expected to sign a historic deal Wednesday giving northern aboriginals a massive equity stake in a proposed $3-billion Arctic gas pipeline....(i.e. Alaska gas not needed. -dh)  ...Larry Tourangeau, a Sahtu and the president of Ernie McDonald Land Corp., has already called for a another meeting to evaluate a rival proposal from a Houston company (i.e. ARC) that promises 100-per-cent aboriginal ownership of the line.... (i.e. Alaska gas needed-dh)  Ron McIntosh, chief operating officer of Gulf, Ray Woods of Shell Canada, Glenn McNamara of Exxon-Mobil Canada, and K.C. Williams of Imperial Oil will attend the signing ceremony.  'We're certainly very hopeful that this is the something that can be endorsed by the aboriginal leaders -- and we're there to do that, to get an arrangement signed,' said Hart Searle of Imperial.  Ron McIntosh of Gulf said Wednesday's signing will prove the oil patch and aboriginals can co-operate on the mega-project."  (See our special weekend report, below.)        *         Dawn Ostrem, Northern News Services, Inuvik -- "There are 30 names on a waiting list to set up exhibition booths at the Midnight Sun Recreation Complex in late June.   Interest in the 2001 Inuvik Petroleum Show, being held June 21 and 22, has outgrown organizers' expectations. The number of booths has leapt from a predicted 45 to 70, there are 250 delegates slated to attend the conference and 30 speakers for it."  (Subscribe)       *       Jorge Barrera, Northern News Services, Fort -- "The Yellowknives Dene and Dogrib have thrown their support behind a Deh Cho First Nations demand for a better deal in any Mackenzie Valley pipeline.   *   Though the proposed pipeline, to bring Beaufort Sea gas to southern markets, would not cross either group's land, both are members of the Aboriginal Pipeline Group, which is trying to negotiate ownership criteria with an industry consortium.   *   ...Recent political shifts in the United States and the purchase of Gulf Canada by U.S.-based Conoco have bolstered the Mackenzie Valley project's chances."  (Subscribe)     *     EDMONTON JOURNAL, Bryant Avery, Journal Business Writer story--Natural gas prices are down but still double last years' and exploration continues.     

6/4: YELLOWKNIFE, N.W.T., CBC (Also, see our special weekend news below) - A N.W.T. land claim group says it's against a tentative pipeline deal struck by the Aboriginal Working group.     *        YELLOWKNIFE, CBC story- The National Round Table on the Environment and the Economy -- meeting here--will discuss ways for Aboriginal Peoples to take advantage of billions of dollars expected to be invested over the next few decades in diamond mining, natural gas development, and pipeline construction in the Northwest Territories.  The group includes representatives from government, business and aboriginal groups.  See Calgary Herald story.      Carol Howes of the Financial Post writes, "The federal government must invest at least $100-million in the Arctic to kick-start resource development, says a long-awaited report to be released today by the National Round Table on the Environment and the Economy. "  *     Denakkanaaga Inc., an Interior Native elders group, will sponsor The Midnight Sun Intertribal Powwow from July 6-8 at the Tanana Valley Fairgrounds in Fairbanks, involving 4,000 to 6,000 Native Americans, Alaska Natives and First Nation Peoples of Canada.     *       Alaska LNG Advocates release poll with favorable public opinion indications.  (See LNG page, here)    *     Reminder: OPEC meets Tuesday/Wednesday.     (Note, please review weekend news, below):

6/2-3:   SPECIAL WEEKEND REPORT:  Northern Aboriginal Land Owners will meet June 21 & 22 to hear presentations by Arctic Resources Company and Western Arctic Energy Corporation, on a proposed northern gas pipeline project.  The project would deliver natural gas from Prudhoe Bay and the Mackenzie Delta via the Yukon and Northwest Territories to major pipeline interconnects at Edmonton, Alberta.  (Map: Enbridge's map of principal overland routes under consideration.)

“The meeting will be hosted in Norman Wells by the Ernie McDonald Land Corporation”, said corporation president, Larry Tourangeau.   The corporation is one of the seven Land Settlement Groups in the Sahtu region.  According to Tourangeau, the meeting is being organized by Western Arctic Energy Corporation a potential Sahtu Consortium Member.  An Arctic pipeline would cross four Aboriginal territories, Deh Cho, Gwich'in, Inuvialuit, and Sahtu

“Besides the 100% ownership issue of the pipeline,” Tourangeau said, “the meeting will review the Arctic Resources Company’s model and program for 100% Aboriginal ownership of the Northern Gas Pipeline Project. In addition, the agenda will address and discuss the development, engineering, economics, socio-economics, structure, corporate involvement and other important areas of interest to Aboriginals in the area”. 

In an interview this week, Western Arctic President, Winter Lennie, said that “our goal of 100% ownership doesn’t exclude producer involvement; we’re not unreasonable.  Since producers don’t typically own and operate gas pipelines, we envision a model somewhat on the order of the Alliance pipeline.  There, the producers played a key role in organizing the project but moved ownership interests to other parties.”

The Aboriginal Pipeline Group (APG) is another organization gaining headlines recently for negotiating a 1/3 share in a Mackenzie-only pipeline with producers (See news reports below).  Lennie says, “The Sabtu landowners were not consulted about the final arrangement.  We believe 100% ownership by northern interests is valid.  We believe in including all interests, including those represented by the APG.  Interest in the project is yet to be determined, but could be based roughly on the percentage of territory the pipeline crosses.”

As to routing, Lennie and Tourangeau believe economies of scale will most strongly support a project which also includes Alaska gas.  While Canadian Crown lands would be included in pipeline routing, Lennie says that "the Federal government is committed to providing economic interest in support of our First Nations.  We see no reason why the government will not be supportive of this concept.”   -dh  (News items relating to the above groups may be requested.)

Fort Simpson, by Derek Neary, NNS - "The Aboriginal Pipeline Group (APG), has a proposed Mackenzie Valley pipeline agreement that it expects the NWT's First Nations leaders to sign next week in Hay River. * Wilf Blonde, secretary for the Aboriginal Pipeline Group, said time is of the essence.  *  'First of all, it costs a lot of money to bring a lot of leaders together, so you don't do that frequently,' he said.  *  'The producers (oil companies) are coming towards the end of their feasibility study. If we're going to get in on the deal now is the time to do it....'" (See other comments here from:  Chief Negotiator, Chris Reid; NWT Premier Stephen Kakfwi; DCFN Grand Chief Michael Nadli. -dh)     *     Claudia Cattaneo and Carol Howes, Financial Post, CALGARY - "Shares of Gulf Canada Resources Ltd. rocketed to a 52-week high yesterday on speculation that international oil giant Royal Dutch/Shell Group is preparing a bid to topple a $9.8-billion cash and debt offer from Conoco Inc. of Houston...."  Shell, based in The Hague...has large operations in Canada, including ... 600-million cubic feet a day of natural gas production and large reserves in the Mackenzie Delta (emphasis added-dh)...."     *     MOOSE JAW, SASK., CBC- Western premiers ended their annual meeting Friday...."  "...Intergovernmental Affairs Minister Stephane Dion assured premiers Friday that they will have a say in new energy export talks with the United States."  "...emphasizing ...need for the country to be represented by a strong federal government."  "'Canada must speak with one voice,' Dion told the House of Commons. 'The government of Canada will make sure that what we do about energy will be for the benefit of all the provinces.'"

6/1:  MOOSE JAW, SASKATCHEWAN - Premier Ralph Klein says all of Canada's premiers should be involved in creating a continental energy policy.... Klein is to meet with U.S. Vice President Dick Cheney in Washington later this month. He says he wants the Americans to know Alberta is a major player in the energy business.       *       Ian Jack, Financial Post (Photo: Tom Hanson, The Canadian Press, "Tony Knowles, governor of Alaska, answers questions yesterday following his speech on joint Canada-U. S. natural gas co-operation at the National Press Club in Ottawa.") OTTAWA--Development of an Arctic natural gas pipeline must move forward urgently, Tony Knowles, Governor of Alaska, said yesterday after he gained an ally in a powerful federal minister, who told him red tape should be cleared away as quickly as possible.     *    
FORT PROVIDENCE, N.W.T, CBC North - More details are emerging on a proposed deal for a Mackenzie Valley pipeline.
 CBC NEWS, OTTAWA-- "Alaska governor seeks Ottawa's support over pipeline.   The governor of Alaska is in Ottawa on Friday hoping to get Canada's support for a gas pipeline through the Yukon and British Columbia."      *       ANCHORAGE DAILY NEWS By Ottawa Correspondent, Dave Todd-- "Hailing what he termed a 'new partnership of prosperity,' Alaska Gov. Tony Knowles said Thursday that he and Canadian Prime Minister Jean Chretien had agreed to try to speed development of a natural gas pipeline from Alaska to the Lower 48. * At the same time he expressed concern that the United States and Canada may not be on the same wavelength in terms of key issues relating to Arctic gas pipeline development across their borders. * After meeting with Chretien on his first official trip to Canada's capital, Knowles said he is aware of Canadian concerns about a new Alaska law that allows permitting for a natural gas pipeline to proceed for an Alaska Highway route, not for an offshore route toward undeveloped Canadian gas deposits in the Mackenzie River Delta."  (See author's editorial)      *       NEW YORK TIMES this week says Alaska is on the verge of a boom, with or without ANWR.      *     This letter is to inform you that we plan to use your site as our "Link of the Week" in an upcoming issue.  Keith Essenburg, Managing Editor, Lewis Mosburg's Internet Oil and Gas Newsletter.       *         OIL & GAS JOURNAL: Alaska Governor Tony Knowles in Ottawa this week said, "The Alaska Highway pipeline will be an enormous economic shot in the arm to both Alaska and Canada. Construction alone will last 3-5 years, creating up to direct 6,000 construction jobs in Alaska and Canada."     *     PIPELINE & GAS INDUSTRY (The following report corrects information provided earlier.-dh, 6-5-01):  "Alaskan Northwest Continues with Highway Gas Pipeline ROW Submission.  Alaskan Northwest Natural Gas Transportation Co. has advised the State of Alaska that it wishes to continue its pending pipeline right-of-way (ROW) application on State Lands. The request was made as Alaskan Northwest steps up its efforts to perfect its ROW application in anticipation of an agreement to deliver Alaska North Slope Gas to the Lower 48 states.. The ROW request on State lands is for 235 mi. Alaskan Northwest says it already has a Federal ROW grant for more than 400 mi in Alaska. The original application was filed in 1981. Alaskan Northwest, formed by subsidiaries of Foothills Pipe Lines Ltd. and TransCanada Pipe Lines Ltd., says the application has been kept active and in good standing."   ...     Anthony Izzo, ENSTAR Natural Gas, Anchorage, Alaska:  "ENSTAR Natural Gas has successfully deployed automated meter-reading (AMR) technology on 90,000 gas meters in a five-month timeframe."        *        EDMONTON, ALBERTA--The National Energy Board has approved an application by Enbridge Pipelines to build the second phase of the Terrace Expansion Program.




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