(HB 110 Passed the House Last Night: 22 Republicans Plus Nome Democrat Neal Foster Voted Yes, While All Other Democrats Plus Kodiak Republican Alan Austerman Voted Against Improving Alaska’s Investment Climate.  Now On To The More Stubborn, Pro-Tax Senate.  See Christopher Eshleman’s News Miner Report.  See Juneau Empire Editorial, John Meyer.  -dh)

Follow-Up Propane Report

by

Dave Harbour

(Original Report Here)

Yesterday, representatives of various propane industries throughout the U.S. and Canada met to discuss the potential of a massive Alaska North Slope (ANS) propane extraction and marketing program.  Alaskan representatives included the conference organizers from the Alaska Natural Gas Development Authority led by Mary Ann Pease (NGP Photo), an ANGDA consultant, ANGDA Chairman Scott Heyworth (NGP Photo-L), along with an ANS producer, several Native corporations, state and village agencies and various entrepreneurs.

Convened at the University of Alaska-Anchorage Commons Building, the new Chancellor, Tom Case (NGP Photo-L), welcomed participants, noting the critical importance of economic development such as the propane project to the current and future economy of Alaska and to career opportunites for students.  

While Anchorage Mayor Dan Sullivan was scheduled to deliver opening remarks, his lobying activity in Juneau kept him there and Chief of Staff Larry Baker (NGP Photo) addressed the group.  "The Mayor is fighting to keep Alaska open for business and competitive and strongly supports HB 110’s passage," he said.  The bill is aimed at moderating earlier production tax legislation which elevated Alaska into the unenviable position if being the harshest oil and gas investment climate in North America (See story about Wednesday’s HB 110 Rally).  

Pease then gave a detailed PowerPoint presentation on the project, citing its benefits to rural Alaskans.  "There is a huge part of the state a gas pipeline will never touch," she said.  "But this project can energize their communities." 

Lieutenant Governor Mead Treadwell (NGP Photo) emphasized his support for Governor Parnell’s investment climate tax bill (HB 110) and the importance of developing state policies that support the long term best interests of the state and not just short term gains.  He made reference to the gradual opening of the Northwest Passage recalling that, "If Russia can ship liquid gas from Northeastern Siberia via the Bering Strait to China, then so can we."    He said that marine traffic through the Bering Strait had multiplied five or six times in the last several years and that Alaskans would likely be, "…tackling the issue of northern ports for the next generation.  Arctic shipping is here now," he said, "and here to stay."  Concluding with the HB 110 tax issue, Treadwell said that he and the Lieutenant Governor of North Dakota last week made a bet as to whose state would be the largest oil producer when they both left office.  As to the high, uncompetitive oil and gas tax regime, he said that it is a question of, "Are we going to feed government or feed our families."  Asked about the questionable Senate support for the house bill, he said he believed Senate leaders are "…flexible, and I would say where there is flexibility, apply friction."

Your author is scheduled to address the conference later today and will complete this report in Monday’s posting.  -dh