Arctic Resources peeved at “over-the-top” ban by U.S. House

Confident the Senate or Bush will overrule amendment; Hoglund accuses legislators of promoting “Alaska-focused” politics at expense of Lower 48

Gary Park

PNA Canadian Correspondent

Arctic Resources’ executives have scorned a U.S. House of Representatives amendment banning construction of an “over-the-top” pipeline, putting their trust in the Senate and President George W. Bush to scuttle the vote.

Harvie Andre, chairman of Arctic Resources’ Canadian subsidiary and a former cabinet minister in the Canadian government, said his company will push ahead in its negotiations with aboriginal leaders and government officials.

He said “every indication” points to the Senate rejecting, or modifying the House amendment and, failing that, Bush will still have veto power.

Houston-based Arctic Resources said in a news release the House amendment to Bush’s energy bill would only reduce gas supplies in the Lower 48, increase the cost of energy and hurt Canada, which is the most important external source of oil and gas for the United States.

Old-time, parochial, Alaska-focused politics

“Instead, it represents old-time, parochial, Alaska-focused politics at the expense of U.S. energy consumers in the Lower 48, the economy, and Canada, upon which we depend for much of our vital, clean-burning energy supplies,” he said.

Hoglund accused the House of trying to impose a legislated selection of a pipeline route when a private-sector, market-driven decision on the route should prevail after weighing business, economic and environmental concerns.

He said the Alaska Natural Gas Transportation System, along the Alaska Highway, would be “twice as long, cost at least twice as much (at $12.5 billion), and be more harmful to the environment.

“Worst of all, the two-pipeline route (with a second pipeline from the Mackenzie Delta) is uneconomic. History has shown that when politicians try to force uneconomic decisions, those projects are usually never built.”

Hoglund said the amendment would also clash with Canadian interests “causing unneeded tensions between our two countries.”

At the same time, he warned that Canada could opt to deny permits for the ANGTS project in the face of “such arbitrary and damaging political actions in Washington.”

In a separate development, the Pacific Northwest Economic Region — a public-private partnership drawn from Alaska, Idaho, Montana, Oregon and Washington as well as the Yukon, Alberta and British Columbia — called for construction of both the ANGTS and Mackenzie Valley pipelines.

Yukon Economic Development Minister Scot Kent said that choice “clearly offers northerners and western citizens in Canada and the U.S. more benefits than a single project. Two pipelines ... would create more investment and more jobs. They would also open up new areas for exploration and development in the Yukon and Northwest Territories.”

Background: Pacific Northwest Economic Region

Petroleum News Alaska

Its purpose is to promote the economic well-being and quality of life in the region. In the private sector it seems to attract a disproportionate number of people who either favor Western Canadian independence or want their region to become the 51st state.

The partnership deals with matters related to agriculture, transportation, telecommunications, energy, environment, trade, sustainable development, tourism and dispute resolution.

In late July it held a conference near Vancouver that attracted approximately 700 legislators and private sector members, including Alaska Rep. Fred Dyson.

A resolution was passed at that conference endorsing the construction of two complementary pipelines in the North; one following the Alaska Highway to transport natural gas from Alaska’s North Slope and the Yukon, and another down the Mackenzie Valley to transport natural gas from the Mackenzie Valley to market.

The Pacific Northwest Economic Region’s phone number in Seattle is (206) 443-7724. Its website is www.pnwer.org.