AGIA Hearings On-Line Now

You can listen to the legislator is debating AGIA still now this evening. You can watch or listen here:

http://www.ktoo.org/gavel/stream.cfm

click on watch or listen. You can use windows media player.

They should be voting before they go home tonight, unless the anti folks stall this long enough to prevent a vote.

7:09 - Recessed until 8:15pm

8:20 - People are back in the chambers, but the sound is background music. They aren't back in session yet

8:26pm - they are back on - Rep. Samuels

8:33pm - Rep.Ralph Samuels has gone through all the failed business projects that the State of Alaska has invested in. Now he's saying that Trans Canada's interests are only to take care of their shareholders. They have no interest in our State Interests. Trans Canada needs the gas in their hub. We're going to guarantee them a price in their hub instead of negotiating them on the cost of the gas.

It would be interesting to make a list of the predictions these legislators are making so we could see who was right down the line.

Samuels: The oil companies are making business decisions and we're making a political decision. Time is on our side now. We can wait. No customers, No Credit, No pipeline.

Gardner: I want to clarify. Eagle River rep said TC will go to the FERC and try to get the highest price they can, but so will all the others.

Seaton: Some are forgetting why we're in this position we're in now. We could see declining oil production that would lead to huge budget gap in a few years. We have money now because of high oil prices. The probability is that oil prices will fall back down and before we get a project going we'll be looking at budget deficits. So were here. Stranded Gas Act problem was that we had to prove it was stranded. The process we're in got us around that big hurdle. We now have a licensee who guarantees...??? ...we don't have to prove anything.
What is the difference between AGIA application and DEnali? The must haves: Denali people didn't like the must haves. They put them in their powerpoint, but when we asked them here, if they would commit to expand if there was nominated gas, etc. He said no we can't do that - goes back to owners - Conoco and BP. That's the point that makes the most difference to us. Why would C and BP say they want to spend all this money to ship someone else's gas? They wouldn't. Of all we talked about the only thing that was different - they didn't want an open pipeline and rolled in rates. These companies are shipping every day in Canada that have rolled in rates. What's the difference between ehre and Canda? Ak has the upstream. We'd be left with a monopoly pipeline producer group. That's why we're here - the must haves.

Cissna: I wasn't going to talk, but I've had so much time I wrote a long speech. One of my early Alaska jobs was working for an independent oil company and got to learn about oil companies very well. What I learned - saw the huge power of people who came to the state. These huge multinational corporations saw us as tiny weak player. That was 40 years ago. That power was nothing then. Also, see how Alaskans have grown more and more dependent on oil and federal money and separation of government and the people. We've become like dependent people do. We don't see the choices we could make, we got locked into how things are. What I see with AGIA - we have many issues going down hill as we focus on one thing - our relationship with these multinational corps. AGIA brings a card into the picture. It makes a statement about our being sovereign. ARe there problems? I gotta tell you. We have huge problems no matter because Alaska is very small. AGIA gives us one card that we can play here. We have a chance to really take some control. I think this is the chance to do something really good for the state.

Coghill wrap up.

Vote coming up 8:49pm

8:50
Rep. Coghill - let me tell you why I'm going against some of my friends and for AGIA. Over the years we've had oils. We've given out leases. Those who got the leases were the winners. Our life has been prosperous because of those leases. We picked some winners to do those leases and we began.
Here we find ourselves again with those leases not being produced. Timing and econonocs paly a big role.
When we put out the rfa based on conditions we set up. If nobody showed up - I would have said, a competitive process, we asked too much. But Trans Canada showed up. We picked the winner based on the application process we put forward. Is that picking a winner? As far as TC and their credibility? Yes. But getting it all done? No, because no gas going to market. We're picking someone who will work with us to get us to market. We have to pick a partner. we're defining who's at the table and what they look like. Aligns 1) what we think the state should have getting the oil to market. 2) gets us lined up with a pipeline dealer who knows how to do this.
Some people called this buying something. It has costs and rewards. Rewards for us, knowing what it will cost to get our gas to market at reasonable terms. Negotiating complete? No. STill have to find alignment. I think our case stronger knowing who the pipeline builder is and how they get to their costs. Or we could wait for the producers who have their leasers - owners of lease, of oil, of pipe - going before FERC. Who are we then? We aren't surrendering our ability to tax etc. - we know at least one part of what's going to hapen is agreed upon. That's good. ARe we getting at tax deal right away? I don't think so. Still under negotation. If you go in under position of strength, you have a little more....
Some people spoke elequently about why we shouldn't own it - and some spoke eloquently against owning. This just gives us a good partner that helps us understand things we don't know. This forces information out into the open. Should they walk out because it wouldn't work with us, we get the work project so we can see all the costs. It might be worth it for us to walk out sometime. But not looking for way out. How do we get the parties lined up to get Alaska guys sold for value beneficual to us, the oil companies, the pipeline, and the customers. There may be better ways to do this, but this is the best we have available.
Through a competitive process we got ourselves a good partner who can help us get that alignment we need to be successful. I hope you join me in granting this license so we can go together in a certain timeline with a certain product for the benefit of Alaska.

Voting now