Croft’s E-News Gasline Update
7 July 2006Issue number six of Eric Croft’s excellent E-News Gasline Update was released recently. It includes a fascinating historical discussion about The Stranded Gas Act, and a systematic critique of the Governor’s position on the issue. Here is the conclusion from the most recent issue of Croft’s newsletter…
The Stranded Gas Act, as written, would allow a governor to negotiate gas-in-kind and a few other tax terms, but only if the gas was uneconomical. According to the Governor’s chief of staff, the gas-in-kind provision is the core of the contract and is absolutely non-negotiable. But the gas is very economical, so the entire contract is inappropriate. Beyond that, the Governor has given away much more than what he’s authorized by the existing terms of the Stranded Gas Act, and now wants the Legislature to give him much looser terms.
We don’t need to accept the threats and empty promises of big oil. Rather than this package of carrots, Alaskans should make better use of the sticks we currently have. The main reason overseas projects are being developed before ours, is that those countries will take back the leases if a company doesn’t move quickly to develop the gas. If the oil companies refuse to play by the rules, we should get someone else to build our gasline.
You can sign up on Croft’s webpage to receive future copies of his Gasline Update. You can also find on that page links to a number of other analyses and observations regarding Alaska energy policy issues.
Looking for an alternative analysis? See the Governor’s extensive website on the Gas Pipeline.
ldw