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In-state natural gasline gets boost

Posted: January 25, 2012 - 1:04am
Speaker of the House Mike Chenault, R-Nikiski, right, and Rep. Mike Hawker, R-Anchorage, announce House Bill 9 for an instate natural gas pipeline at the press conference at the Capitol on Tuesday.  Michael Penn/Juneau Empire
Michael Penn/Juneau Empire
Speaker of the House Mike Chenault, R-Nikiski, right, and Rep. Mike Hawker, R-Anchorage, announce House Bill 9 for an instate natural gas pipeline at the press conference at the Capitol on Tuesday.

Two top members of the House Republican leadership urged the state to drive forward with a small-diameter natural gas pipeline to Southcentral.

The plan, developed by House Speaker Mike Chenault, R-Nikiski, and Rep. Mike Hawker, R-Anchorage, will vie with other efforts to bring energy to Alaskans, including the state’s official effort at a big pipeline, the Alaska Gasline Inducement Act.

It was endorsed by the Legislature with $28 million in preliminary funding last year, and has been making good progress since then said Hawker.

“I truly believe in my heart we are closer than ever to seeing an Alaskan natural gas pipeline on the verge, on the cusp, of being constructed, a pipeline that will actually bring Alaskans’ gas to Alaskans,” Hawker said.

Chenault and allies rolled out the proposed “Alaska Stand Alone Pipeline, or ASAP, last year to bring small volumes of natural gas

Chenault said that completing the job of bringing the project to “sanction,” when the decision is made to go forward with, would cost about $400 million.

The proposal by Chenault and Hawker is an updated version of House Bill 9, and would incorporate three other bills already passed by the House that would make other changes to state law to make more likely to happen.

The ASAP is being developed by the state created Alaska Gasline Development Corporation, a subsidiary of the Alaska Housing Finance Corporation. AHFC Executive Director Dan Fauske is also serving as head of the AGDC.

The plan would abandon one previous effort, the voter-initiated Alaska Natural Gas Development Corporation. Chenault’s’ legislation will replace its board of directors with the AHFC board.

Chenault said the final decision to construct the ASAP pipeline would be left to a future Legislature, and his proposal is only to get to the decision point.

Chenault said the ASAP line would not be in competition with the larger AGIA line, but that if the large line goes forward the small line could be used to bring gas to markets from the big line.

“Let’s say AGIA does go forward… then it becomes a spur line coming off the big line,” said Dan Fauske, ASAP executive director.

Some Democrats were immediately skeptical if Chenault’s plan was the way to go.

House Minority Leader Beth Kerttula, D-Juneau, expressed skepticism about taking on one more pipeline project.

“What concerns me is, without understanding a lot more about (where) the speaker and Rep. Hawker are going, I’m not really in the mood to put a lot lot more money out there on these amorphous proposals,” she said.

The plan would bring new supplies of natural gas to Cook Inlet, but that’s something the state has already been spending money to bring about by subsidizing gas exploration in the inlet.

That effort shows initial signs of paying off, with Buccaneer Energy and Escopeta Oil both announcing big discoveries in the inlet.

Chenault said building a pipeline wouldn’t discourage more exploration, but give explorers new markets into which to sell their gas.

That might mean the line, though a terminus is not yet determined, would go to the Nikiski LNG plant.

Rep. Mike Doogan, D-Anchorage, asked why the proposed line plans to bypass Fairbanks, if part of its original purpose was to bring cheaper gas to Fairbanks.

“The problem is that Fairbanks doesn’t have energy, so why are we building a line that goes to Nikiski?” he said.

Doogan said the state should just build a gasline to Fairbanks, if that was the goal.

• Contact reporter Pat Forgey at 523-2250 or patrick.forgey@juneauempire.com.

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ima49er
5237
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ima49er 01/25/12 - 08:28 am
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How inspiring....

Nice capture Mr Penn

snowowl
-1
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snowowl 01/25/12 - 10:03 am
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Our state has Geo thermal, so lets develop it

Our state has Geo thermal and so why in the world is this not being developed? It is clean energy for Alaskans and a good investment for future Alaskans.

It is time to end handouts to the oil and gas iindustry

Top contributor to Rep. Mike Chenault is the oil and gas industry
Mike voted for reducing taxes on the oil and gas industry
Mike voted against extending Alaskas Coastal Management Plan that gives Alaskans a Voice.

Remember legislators who took VECO money well:

Rep. Mike Chenault, R-Nikiski, took $32,000; and
Rep. Mike Hawker, R-Anchorage, took $21,350
(Mike is also married to a ConocoPhillips employee)

We need change in Alaska!

Banditrider
633
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Banditrider 01/25/12 - 10:36 am
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Geo thermal?

Geo Thermal is an up and coming source I'm sure but its not proven yet and I doubt the technology is there. Alaska needs inexpensive, viable energy today. Clean burning natural gas is the key. Enough making Obama's buddies rich with Gov't paid for windmills, solar panels, and burning Chevy Volts.

ima49er
5237
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ima49er 01/25/12 - 11:48 am
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Banditrider, not proven?

If Chevron is the top result of a google search for geo thermal in use today. I'd say you might be slanting the truth a bit

Who cares if geo thermal is not proven....at least we're not pumping something (most likely toxic) into the ground, to force something else out. There must be something that makes better sense.

I don't care whose buddies are getting rich off energy.

I care how rich they are getting.

I care if in the process of harnessing that energy (whatever form) it makes the air and water cleaner.

I care if it provides a better life for everyone, or just those that are providing it.

I care if our elected officials work for everyone, or just those that elected them.

So let's start to hold them all accountable, not just the ones we didn't vote for.

Persnickety Persimmon
4173
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Persnickety Persimmon 01/25/12 - 12:26 pm
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Banditrider is full of a filtered word

Banditrider is full of a filtered word. Geothermal power is a proven technology--there are geothermal plants in California and Alaska that work quite well. He could have easily gone to Wikipedia for a few seconds to fact check himself, but he didn't (predictably).

See below for how the geothermal plant in Chena works.

http://www.popularmechanics.com/science/environment/4245896

And, of course, Iceland is almost entirely geothermal powered.

kpawsuh
10138
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kpawsuh 01/25/12 - 12:49 pm
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Geothermal is great. I

Geothermal is great. I looked into it before installing a new boiler. Problem is in Juneau they charge $30k for a well. For our house we would need probably four. Or an $8000 oil burner

Banditrider
633
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Banditrider 01/25/12 - 12:58 pm
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Read a little closer

I googled Geothermal energy and was not enlightened. Do you know what kind of tax breaks are given to big oil to have these green energy concoctions? The Chevron one is a huge publicity and PR stunt. Geotherm energy can be a supplement but in no means can it replace anything. I'm talking energy TODAY, something to alleviate this $4 + per gallon oil we're forced to heat our homes with. Natural gas is clean burning and can power anything from generation plants to our cars. Alas, I have been called many filtered words in my lifetime and I'm a better human for it :)

Persnickety Persimmon
4173
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Persnickety Persimmon 01/25/12 - 01:11 pm
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That's a geothermal heat

That's a geothermal heat pump. A geothermal power plant is used the same way as hydroelectric power or a coal plant (but greener than either).

kpawsuh
10138
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kpawsuh 01/25/12 - 01:21 pm
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Ummmm, yeah. Thats correct.

Ummmm, yeah. Thats correct. Glad you were paying attention there PP. Geothermal can do lots of stuff. Heat pumps would go a long way towards solving our problems in Alaska, as they are even using them in Fairbanks although thats on the edge of their useful range for sure. The power plants are incredible, but thats not something many of us are going to install. Its also out of the range of most Alaskan communities. Anchorage could certainly do it. I heard I think it was Dutch Harbor(?) put one in. Makes great sense out there with all their seismic activity. Anything, individual or as a community, that we can do to minimize oil usage is a good thing.

Banditrider
633
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Banditrider 01/25/12 - 01:25 pm
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A closer look

I googled geothermal energy and I'm hopeful but not enlightened. The Chevron plant? Do you know about the huge tax breaks big oil is given for these green energy concoctions? The Chevron plant looks to me like a huge tax relieving PR ploy, not to mention the extra bucks for the CEO pay. Geotherm energy is a supplement, not a replacement and it only occurs on a few isolated places on earth, like Iceland. Alas, I've been called filtered words for much of my life and I'm a better human for it :)

droog9000
14
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droog9000 01/25/12 - 02:02 pm
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Can we talk about what's important?

Our Dear Speaker looks very unhealthy.

Latitude58
14400
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Latitude58 01/25/12 - 09:17 pm
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Agreed droog

It appears that he has a gas problem.

ima49er
5237
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ima49er 01/26/12 - 01:59 am
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It appears the shot

was taken just after pressure release. Hawker looks like he's going into a methane induced coma.

Mama T
2396
Points
Mama T 01/26/12 - 06:29 am
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Hummm....

The proposed pipeline bypasses Fairbanks? And exactly how will this line help villages where energy is needed most? Nah...right to cook inlet and the penninsula within easy reach of Anchorage. Might as well name the whole state Anchorage...they are the only city that counts in Alaska according to our lawmakers. And sounds like a Palin move...400 mil to get ready to build this line? We are still out 500 mil to Trans Canada and no jobs for Alaskans. Good ole boys club and on the peoples dime too. Personal agenda is written all over this proposal.

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