DRILL OR GET OFF THE PLOT

“Drill or get off the plot.” So says, in a manner of speaking, the agreement that finally resolves the Point Thompson issues. That agreement set the stage for Friday’s historic “alignment” – a meeting of the minds on a legal document - between the major oil and gas producers in cooperation with the TransCanada pipeline people about moving forward on a gas pipeline project from the North Slope to tidewater, under the existing AGIA framework.

The alignment could result in a large diameter gas pipeline to deliver large volumes of gas at a cheaper rate than a smaller diameter “bullet” line. Alaska needs in-state affordable gas for homes and businesses, and as well as revenue from gas sales in Asia, At some point in the distant future, when it might make economic sense, nothing would prevent a takeoff line to the Lower 48,

Hats off and congratulations to Governor Parnell, the Commissioner of Natural Resources and his staff, the producers, and everyone else involved. They followed the adage “Come let us reason together.” Breaking ground for the long awaited gas pipeline is “no done deal” – however pivotal progress has nonetheless been achieved. I think we have good reason to be optimistic. No one should be in our legislature unless they are optimistic about being able to help make things better.

Features in HB9, “Bullet Line” legislation the House passed a few nights ago (but which is being delayed by the Senate, late in the session, with multiple committee assignments), will help with many issues in the large pipeline to tidewater.

Hopefully, we’re “on a roll.” Hopefully the self-imposed logjam in the Senate on oil tax reduction can be resolved before the end of session. Hope springs eternal! Whatever, something needs to be done and done quickly to stop declining oil production. That’s why I voted “YES” on HB110 last year.