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November 2010

Vol. 15, No. 48 Week of November 28, 2010

Alberta seeks backroom advice

Gary Park

For Petroleum News

Alberta Energy Minister Ron Liepert has invited many one-time critics of provincial government policy in from the cold.

In his continuing effort to rebuild bridges to the industry he has established a 21-person group, formally known as the Minister’s Oil and Gas Economics Advisory Council, whose primary mandate is to offer advice on strategies to improve Alberta’s competitiveness in developing its oil and gas resources and continuing to account for 30 percent of the province’s Gross Domestic Product.

But any thought that the council’s deliberations will be part of the public record have been swiftly dashed.

It needed pressure from two opposition parties in the Alberta legislature to disclose the makeup of the council, even though the members will qualify for C$235 per day for their attendance at meetings and other related work (the chair will get C$325), along with reimbursement for some travel expenses.

The panelists have been appointed for one year, but can qualify for an extension up to three years

Liepert initially refused to say who was on the panel, arguing the group was meant to play an “informal” role and offer advice on what the government “should or should not be doing.”

Minutes won’t be public

A government spokesman said minutes of the meetings will not be made public, so that the members can engage in “good discussion and debate.”

He said Liepert is wants to respect the ideas brought forward and not have them “debated in the public realm.”

Liepert told the Calgary Herald he wants to ensure the panel provides a broad perspective of what is happening in the industry and to “keep discussions at a high level, with a long-term focus.”

But Paul Hinman, energy spokesman for the Wildrose Alliance party, was not prepared to accept that explanation, demanding to know what was being discussed in privacy that could affect the future of Alberta’s lucrative petroleum resources.

As qualified as the council members are, he said “their job is to promote their companies and increase the return on investment for their shareholders. That doesn’t always coincide with (the best) interests of Albertans.”

A spokesman for Imperial Oil, whose Chief Executive Officer Bruce March is on the panel, said the chance to help formulate government policy was viewed as a “positive thing” by his company.

Many groups not represented

Notable by their absence are representatives of environmental organizations, consumer groups, aboriginal communities and industry associations, such as the Canadian Association of Petroleum Producers.

Many on the council were among the most outspoken critics of government policy since Ed Stelmach was elected premier four years ago, especially during the contentious debate over royalty changes.

The panel is chaired by Kathy Sendall, a former Petro-Canada executive. Members include Murray Edwards, vice chair of Canadian Natural Resources; Mike Graham, executive vice president of Encana; Lorraine Mitchelmore, chair of Shell’s Canadian operations; Murray Nunns, president of Penn West Energy; Marvin Romanow, chief executive officer of Nexen; Chris Seasons, senior vice president of Devon’s Canadian division; Steve Williams, chief operating officer of Suncor Energy; and Susan Riddell Rose, chief executive officer of Perpetual Energy. Others include representatives of the financial services and petroleum services sectors.






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