FERC approves Kenai Borough as intervenor in Alaska LNG

By Larry Persily
Sept. 12, 2018

All three Alaska municipalities vying for a multibillion-dollar natural gas liquefaction plant and marine terminal are now intervenors in the federal regulatory process, giving each the legal right to challenge Federal Energy Regulatory Commission (FERC) decisions on the proposed Alaska LNG project. …  Scroll down for Persily’s full story below (Larry Persily, Northern Gas Pipelines photo by Dave Harbour)

Our comment: In Alaska only the oil & gas industry must pay a special, state-wide property tax — in addition to a production tax, a corporate income tax and a royalty payment.  The state transfers the tax from a proportionate share of oil & gas property within a local municipality to that local government.  Therefore, local governments can be attracted to having oil & gas activity for the jobs, tax revenue and general economic benefits offered.  -dh

Oh, Canada!

Carolyn Bennett vows government ‘will do better’ on duty to consult following Trans Mountain …  CBC.ca … the third now on life support,” he said, referring to the Mackenzie Valley natural-gas pipeline in 2006 and the Northern Gateway oil pipeline in 2016.

Who says the oilsands is history? Colossal Fort Hills mine could be blueprint for survival Calgary Herald   Calgary Herald Homepage … Pipes leading to a processing unit at Suncor Fort Hills facility in Fort McMurray Alta, which opened on Monday. … In a forest clearing roughly the size of Cleveland, building-sized trucks dump … While the Calgary-based company doesn’t plan to invest in a new mine for at ..

Varcoe: Oilpatch ‘boiling over’ as energy CEOs tackle pipeline impasse with premier Calgary Herald  It was near the end of an hour-long meeting Thursday on the 21st floor of a downtown Calgary office tower when junior oil producer Doug Bartole …

Bell: Jason Kenney skewers Justin Trudeau  Calgary Herald “If Justin Trudeau is concerned about the dumbing-down of politics, that … For Kenney, Trudeau is no supporter of pipelines or the oilpatch or those …

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Oh, US!


Dave Harbour

As climate change looms large for the oil industry, what could that mean for Alaska? This spring, ExxonMobil held a meeting with investors.  (See our editorial addressing this issueHere’s a detailed analysis.  And here’s one more)

We can understand a company becoming politically neutral on the issue of “climate change”; but supporting a carbon tax — as ExxonMobil has — redistributes more wealth to anti-fossil fuel government and civilian constituencies and gains no ‘creds’ for industry.  It is a suicidal, anti-shareholder blunder.

Industry should by now know not to provide any kind of support or funding to anti-fossil organizations/activists.  Why?  Their goal is to kill capitalism and the fossil businesses consisting of primarily conservative voters.  Climate statutes and regulation make more jobs and redistribute more money to liberal lawmakers and regulators and restrict free enterprise advocates and prosperity. 

Please remember recent headlines featuring attacks on big Canadian and U.S. oil and gas pipelines!  Please do not forget how vigorously activists have and continue to oppose and kill pipelines, thus severing the link between production and markets. 

Quit being naive, industry leaders! Some of you are making decisions that are like embedded time bombs designed to destroy your businesses.  Alaska’s current governor has devised a way to put control of natural resource permitting into the hands of a “cabal” of some 230 “sovereign” tribes and local governments, heavily influenced by environmental activists. 

Earlier this summer we asked the question, Will Alaskans Let A CABAL Kill Their Economy?  Did Alaska’s great oil companies heed the warning even as they now deal with a dangerous anti-development voters initiative scheduled for the November Ballot?  We hope so, for even if a new governor nixes this climate change initiative, the activists will continue looking for another way to destroy fossil businesses.  Remember: social activists and anarchists never compromise vs. traditional citizens who ALWAYS tend to compromise.  This process is like slowly raising the temperature of water in the pot as the politically correct frog is slowly cooked.

Fossil businesses are the foundation of American and Alaskan economies.  The least such companies should do for their country and shareholders is stop contributing money to activist and non-profit interests intent on their destruction and on the downfall of freedom itself.    -dh  References: It’s Time to Stop Investing in New Oil and Gas Pipelines – Scientific …World Bank to end financial support for oil and gas extraction …


Alaska LNG project gets fast-tracked by regulators, environmental groups oppose  KTUU.com The Alaska Gasline Development Corporation says that, while it’s a good sign that Alaska LNG is advancing, the one month advance won’t impact the …

Another Big Step For Alaska LNG  COMPRESSORtech2  The Alaska LNG Project has taken a second major step as it announced that ExxonMobil Alaska Production Inc. (ExxonMobil) and Alaska Gasline 

ExxonMobil signs gasline agreements with stateAlaskajournal.com The announcement with ExxonMobil means ConocoPhillips is the only major North Slope producer to not yet sign a preliminary gas deal with AGDC.

US federal authorities streamline LNG project review process LNG World Shipping US federal authorities streamline LNG project review process … LNG, Jacksonville Eagle, Annova LNG, Plaquemines, Jordan Cove and Alaska LNG

Continued from above....

FERC approves Kenai Borough as intervenor in Alaska LNG

By Larry Persily paper@alaskan.com
Sept. 12, 2018

Larry Persily. Northern Gas Pipelines photo by Dave Harbour

All three Alaska municipalities vying for a multibillion-dollar natural gas liquefaction plant and marine terminal are now intervenors in the federal regulatory process, giving each the legal right to challenge Federal Energy Regulatory Commission (FERC) decisions on the proposed Alaska LNG project.


FERC on Sept. 11 approved the Kenai Peninsula Borough’s late motion to intervene in the proceedings. The commission in February approved a late motion to intervene from the Matanuska-Susitna Borough. The city of Valdez also is an intervenor, after it filed its motion on time in May 2017.


The Alaska Gasline Development Corp. (AGDC), which is directing the state-led project, filed its application with FERC in April 2017, starting the lengthy safety and environmental review that is scheduled to reach a draft environmental impact statement in February 2019.


The development team for the proposed $43 billion North Slope gas pipeline and Southcentral Alaska gas liquefaction plant, after considering more than two dozen possible locations, in 2013 settled on Nikiski, in the Kenai Borough, as its preferred site for the LNG plant and marine terminal. The Matanuska-Susitna Borough believes its property at Port MacKenzie would be a better location, just as Valdez has long advocated it would be the best site for the development that would cover hundreds of acres and create thousands of construction jobs and hundreds of permanent positions.


Only parties to a proceeding have the right to request a rehearing of a FERC order and to challenge a final commission order in federal court.


In its Aug. 10 motion to intervene, the Kenai Borough said it filed with FERC to protect its interests against the Matanuska-Susitna Borough’s advocacy of Port MacKenzie.“Siting the Alaska LNG project within the Mat-Su Borough would be to the detriment and prejudice to the citizens and businesses of the Kenai Peninsula Borough,” said the Kenai Borough’s motion to FERC.


“Right now we have Valdez and Mat-Su hemming and hawing for this project, and they’re intervenors,” John Quick, the mayor’s chief of staff, told the Kenai Borough’s advisory committee on the project Aug. 6. “I think this will put us in a better position to have a bigger voice from the borough and do everything we can to make sure this project lands in Nikiski.”