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The Oil Patch Insider
Mounties probe suspicious gas plant fires; evoke memories of Weibo Ludwig and EnCana In a unpleasant echo of an earlier spate of sabotage and bombings, two natural gas plants in northern Alberta were destroyed by fire in mid August.
The plants, owned by Calgary-based Canadian Natural Resources, are near Calling Lake about 110 miles north of Edmonton and processed 13 million cubic feet per day. Damage is estimated at C$500,000.
The Royal Canadian Mounted Police are investigating, although there is “nothing to indicate whether it was or wasn’t sabotage,” said a spokesman for the Mounties.
A spokesman for Canadian Natural said the severity of the fire removed any conclusive evidence of the cause. He said the company has no previous history of vandalism and no reason to suspect that the fires were set deliberately.
But the incidents revived memories of a vandalism spree that resulted in 18 charges against Weibo Ludwig, a preacher, rancher and long-time crusader against oil industry environmental practices, and his friend Richard Boonstra.
The case took many bizarre twists and turns, including a stunning revelation by Alberta Energy Co. (before it became EnCana) that it provided the Mounties with computer, software and technical support to aid a police undercover operation.
It also emerged that Alberta Energy participated in a staged terrorist attack on one of its own well sites — an episode that Alberta Energy and now EnCana CEO Gwyn Morgan admitted went “well beyond my depth.”
Alberta Energy, in an attempt to have Ludwig leave Alberta, made an offer of C$800,000, which Ludwig rejected because of confidentiality clauses and demands for an environmental waiver.
In the end, Ludwig served 28 months behind bars on five charges of vandalism relating to Suncor Energy and Norcen Energy facilities and Boonstra was sentenced to 21 days. Jim Palmer working with CIRI on gas line – i.e. Pacific Star Former BP Exploration (Alaska) executive Jim Palmer has added another name to his list of clients for the Palmer Group.
Cook Inlet Region Inc., an Alaska Native regional corporation based in Anchorage, has retained Palmer’s firm to work with it on its involvement in Pacific Star Energy, a limited liability company set up by former ARCO executive Ken Thompson.
The goal of Pacific Star is to own 10 percent of the proposed natural gas pipeline that will deliver the North Slope’s stranded gas to Alberta.
BP, Palmer’s former employer, is one of the three North Slope gas producers looking at building the gas pipeline. While none of the three producers have ruled out a local ownership group such as Pacific Star, they have not expressed any great enthusiasm for the concept either.
Palmer opened his office in Anchorage Feb. 1, announcing at that time that he had signed his first client, TotalFinaElf, a new operator on Alaska’s North Slope. His services include management consulting, strategic planning and government and public relations — the same services he provided BP in Alaska during his 22 years with the company. Calgary Flames net new oil baron Oil and water might not mix, but oil and ice apparently do in Calgary, with yet another petroleum executive joining the ranks of Calgary Flames co-owners.
Clay Riddell, chairman and chief executive officer of Paramount Resources, will become an equal partner of the National Hockey League franchise joining seven others — the bulk of whom have made their fortunes in the oil patch.
Riddell was ranked the 52nd richest man in Canada in 2001 by Canadian Business Magazine, with an estimated worth of more than C$500 million.
But the floundering Flames might burn a hole in his deep pockets. The team hasn’t made the playoffs for seven years, hasn’t won a playoff series since it won the Stanley Cup in 1989, has struggled to maintain a viable season-ticket base and has lost an estimated C$25 million over the past four seasons.
Riddell’s investment is expected to ease the financial burden on the other owners, who include Allan Markin, chairman of Canadian Natural Resources; Murray Edwards, who has piled up personal riches as an oil entrepreneur; the Seaman brothers, Byron and Daryl, who secured their financial futures through Bow Valley Industries; and Harley Hotchkiss, who built Sabre Petroleums from scratch before selling out in 1976.
“The Flames are a key part of Calgary and southern Alberta and I’m proud to do what I can to ensure we all enjoy the team for years to come,” said Riddell.
“Hockey is Canada’s national pastime and Calgary deserves to continue to play a prominent role in the future of our game.”
The club would not reveal the value of Riddell’s stake beyond putting it in double-figures — millions that is.
Oil Patch Insider is compiled by Paula Easley and Kay Cashman with news coming from a variety of sources. If you have a news tip or press release for Oil Patch Insider, please call (907) 245-2297, fax (907) 522-9583, or email [email protected].
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