HOME PAGE SUBSCRIPTIONS, Print Editions, Newsletter PRODUCTS READ THE PETROLEUM NEWS ARCHIVE! ADVERTISING INFORMATION EVENTS PETROLEUM NEWS BAKKEN MINING NEWS

Providing coverage of Alaska and northern Canada's oil and gas industry
June 2002

Vol. 7, No. 22 Week of June 02, 2002

Governments, industry plan cross-border cooperation

Allen Baker, PNA contributing writer

Gov. Tony Knowles plans to sign a memorandum of understanding with his counterpart from Alberta on June 4 in Anchorage. At the same time, industry groups from both sides of the border will sign a similar agreement. Both are general statements of friendship and cooperation, but they are also aimed at laying the groundwork for working together on an Arctic gas pipeline. (See related stories on page 1, 13 and 14 of this issue.)

That project could require an international treaty to make the work proceed smoothly, according to Chuck Becker, director of the Alaska Export Assistance Center, a federal agency. Becker is also chairman of the international committee for Alaska Support Industry Alliance.

Border issues

“One of the issues is crews working on the pipeline crossing borders,” he noted. While much of the construction of a pipeline will be done by Canadian crews working in Canada and U.S. crews working in Alaska, it may be more efficient for more specialized work to be done by crews with expertise that can work on particular tasks, such as building compressor stations, on both sides of the border.

“One of the executives at BP noted that there would have to be significant cooperation between companies here and in Canada to get a pipeline constructed,” Becker said. “Meanwhile, the governments of Alaska and Alberta were pursuing a comparable track.”

Industry groups align

So the industry groups, the Alaska Support Industry Alliance and the Petroleum Services Association of Canada, came up with an agreement that will be signed the same day the governments sign theirs. Becker says the PSAC is “an almost mirror image” of the Alliance.

For now, the industry organizations don’t have any formulas for what can be done to minimize border problems for pipeline companies and their workers.

“We’re just now at the point where the memorandum of understanding is being signed,” Becker said. “Once we’ve agreed we have things in common and common objectives, then we go after them.”

The draft memorandum notes that the two organizations each promote responsible development of oil and gas resources and work to improve public understand of the relationship of political decisions on their respective economies.

“(The) compatibility of these goals and objectives of the Petroleum Services Association of Canada and the Alaska Support Industry Alliance, coupled with the potential development of a cross-border pipeline to carry Arctic gas to market, make bilateral cooperation between the two organizations desirable and warranted,” the draft agreement says.

The agreement closes with a pledge by the two organizations to work together closely to achieve common objectives.

The focus of the memorandum between the two governments is a bit more general, though the oil and gas industry is the chief common area for the two jurisdictions.

The administrations of Knowles and Alberta Premier Ralph Klein want to formalize the relationship between Alberta and Alaska, said Bob King, a spokesman for the governor.

The state already has close ties with its immediate Canadian neighbors, British Columbia and the Yukon, he noted.

“The memorandum of understanding will set up a council involving the two governments that will meet on a regular basis on the gas line, but on other issues as well,” King said.

Knowles to Canada

The day after the agreement is signed Knowles will head to Dawson, in the Yukon territory, where Western Canadian leaders are meeting. The Yukon premier will host premiers from Nunavut, the Northwest Territories, Manitoba, Saskatchewan, Alberta and British Columbia.

Alberta Premier Klein is stopping off in Alaska to sign the agreement with Alaska on his way to that meeting.

The two leaders and the two industry groups will sign their memorandums of understanding at noon on June 4 at the Hilton Anchorage Hotel.






Petroleum News - Phone: 1-907 522-9469 - Fax: 1-907 522-9583
[email protected] --- http://www.petroleumnews.com ---
S U B S C R I B E

Copyright Petroleum Newspapers of Alaska, LLC (Petroleum News)(PNA)©2013 All rights reserved. The content of this article and web site may not be copied, replaced, distributed, published, displayed or transferred in any form or by any means except with the prior written permission of Petroleum Newspapers of Alaska, LLC (Petroleum News)(PNA). Copyright infringement is a violation of federal law subject to criminal and civil penalties.