What conditions?  We can guess, but where is it written and when will conditions be made public and will it be in time for Alaska’s Legislature and Governor to act before the end of the 2011 Legislative Session or will progress be delayed another year?  -dh

Juneau Empire by Pat Forgey.  Last month in Juneau, Denali spokesman Dave MacDowell (NGP Photo-l) offered a hint at what those conditions may be: Favorable tax rates set by the Alaska Legislature when it meets next January.    … "Those commitments are important, because they indicate that the market supports what we are trying to do," he said.  Denali Monday emphasized the difference between Denali’s project and the AGIA-backed pipeline being developed by TransCanada and partner ExxonMobil Corp. … Senate Energy Committee Co-chairman Bill Wielechowski, D-Anchorage (NGP Photo), called the conclusion of two open seasons "the most tangible progress we’ve seen to date" on developing the state’s huge but long-untapped North Slope natural gas reserves.  The two competing projects show that the state is on the way to hopefully getting a pipeline by 2020, he said.  "This is what we hoped for when we passed AGIA," he said.

ADN Editorial.  Like the results of the TransCanada/Exxon open season that ended in July, Denali’s open-season results are mostly confidential. Denali has reported that, as expected, conditions apply to some of the bids. Some of those conditions are beyond Denali’s control, the company says. That likely means tax and royalty terms between producers and the state of Alaska.  The Denali project, a joint effort of BP and Conoco Phillips, said it will negotiate what terms it can control with the bidders over the next several months. TransCanada and Exxon are doing the same thing and hope to have agreements in place in the next several months.  Where does this leave Alaskans who are wondering about the state’s gas line prospects?

Alaska Gas Pipeline Blog.  An ExxonMobil executive said Tuesday the producer is optimistic that an Arctic natural gas pipeline will get built despite competition from shale, but said a major sticking point remains Alaska’s tax and royalty policy.  "We take a long-term view on Alaska," said Steve Kirchhoff, ExxonMobil Gas and Power Marketing’s vice president for the Americas. "The shale definitely does enter into that equation but a real fundamental issue at this point is we need to be able to sit down with the state and work through appropriate fiscal regimes that are going to make this work against a range of price forecasts."

NASDAQ.  Imperial Oil Ltd (IMO.TO) is higher today despite reports that the National Energy Board has said a final decision on whether the $16.2 billion Mackenzie Valley natural gas pipeline in Canada’s Far North can go ahead has been postponed for a month or more.  This represents another delay in a project (that has Imperial Oil has a major partner) already years behind schedule, Reuters says.

 

MEETING OF THE

ANCHORAGE ENERGY TASKFORCE

October 6, 2010

9:00-11:00 a.m.

AGENDA BELOW

Mayor’s 8th floor conference room

 

 

I.              Call to Order/Introductions

 

II.            Review of Agenda

 

III.           Presentation

a.    Harold Heinze, Chief Executive Officer, Alaska Natural Gas Development Authority; and Bill Popp, President & CEO, Anchorage Economic Development Corporation

 

IV.          Old Business

a.    Updating transition report

 

V.            Upcoming issues/agenda

 

VI.          Next meeting dates and invited presenters

a.    Oct. 22, Utility companies – Chugach Electric (confirmed), MEA (confirmed), ML&P (confirmed), ENSTAR (invited)

 

 

To call-in: 343-6062 from w/i Anchorage or 888-572-6062 from long-distance.  Please indicate to SchubertS@muni.org whether you intend to be on the call.