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December 2009

Vol. 14, No. 50 Week of December 13, 2009

Obama picks Persily as new coordinator

Veteran of state government, journalism will replace Pearce, lead small agency designed to streamline work on Alaska gas pipeline

Wesley Loy

For Petroleum News

President Obama on Dec. 9 announced he’ll nominate Larry Persily of Juneau for the job of federal coordinator for Alaska natural gas transportation projects.

If confirmed by the Senate, Persily will replace Drue Pearce, who was the first person to hold the position and who has said she’s resigning at the president’s request effective Jan. 3.

Persily had confirmed to Petroleum News in November that he was under consideration for a federal post.

The coordinator’s office was created with the Alaska Natural Gas Pipeline Act of 2004. It is headquartered in Washington, D.C., with a second office in Anchorage.

The intent of Congress was for an office to help coordinate and spur along the many regulatory agencies that would be involved in permitting a potentially $30 billion megaproject to tap the vast natural gas reserves on Alaska’s North Slope.

Two corporate partnerships are now proposing pipelines to carry gas out of Alaska and across much of Canada, and both are approaching key open seasons next year to try to recruit customers.

Persily’s background

Persily, 58, has held a variety of jobs in state government as well as in journalism.

He currently works as a legislative aide to state Rep. Mike Hawker, an Anchorage Republican and co-chairman of the powerful House Finance Committee.

A press release from the Obama administration noted Persily’s work under three Alaska governors, including his time as deputy state revenue commissioner.

“Mr. Persily is known statewide for his bipartisan credentials — he has worked for Democrats and Republicans — and his knowledge on oil and gas matters, particularly the history of the 40-year effort to develop a North Slope natural gas pipeline,” the press release said.

The release cited his work as editor of the state Department of Revenue’s 2002 report, “State Financial Participation in an Alaska Natural Gas Pipeline.”

Persily formerly was editorial page editor for the state’s largest newspaper, the Anchorage Daily News, and he also was a writer for Petroleum News.

He has a journalism degree from Purdue University.

Congressional delegation applauds

Alaska’s congressional trio commended Obama’s choice of Persily.

“With more than 30 years experience in Alaska and more than a decade working on oil and gas issues for three governors, Larry is an excellent choice for this important position. Few people can match his depth of knowledge and history on Alaska oil and gas issues,” said U.S. Sen. Mark Begich, a Democrat. “His credentials are outstanding and I look forward to working with Larry to move an Alaska natural gas pipeline project to reality.”

“I’ve known Larry for years. He has solid knowledge of oil and gas industry finance and the state’s regulatory process,” said Republican Sen. Lisa Murkowski. “Commercializing Alaska’s vast reserves of natural gas is vital not only for the economy of the state, but the energy security of the nation as well. We’ve waited decades for this project to get under way. I have faith that the new coordinator will do his upmost to see it completed successfully.”

“I appreciate the president’s commitment to the natural gas pipeline,” said U.S. Rep. Young, a Republican and Alaska’s lone congressman. “I look forward to seeing Larry continue the good work done by Drue Pearce, a great supporter of the natural gas pipeline and a wonderful advocate for Alaskan resources.”

First things first

Most likely, the coordinator’s office will have an interim chief pending Senate confirmation of Persily.

That will be Thomas Barrett, now serving as deputy federal coordinator. Barrett is a retired vice admiral who formerly headed the U.S. Coast Guard in Alaska. He also ran the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration.

Persily, in an interview with Petroleum News, said he assumes the job will pay $100,000-plus, but added he never asked about the salary.

He said his first priority as coordinator will be to “listen and learn.” That means talking with the agency staffers as well as “all the players” in the gas pipeline derby, including the major energy companies now advancing projects.

“We’ve started gas line projects before in the last 40 years and haven’t gotten over,” he said. “What can we do this time to make it different?”






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