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Alaska Gasline Project

Posted by aurorawatcher on Monday, August 03, 2009 5:30:07 PM

Although I am not willing to pin my hopes on the gas pipeline after 30 years of waiting, I do admit that Sarah Palin brought Alaska closer to the realization of the gas pipeline that any governor has since the days of the TransAlaska Pipeline construction. Most of the governors offered huge concessions on taxes and other incentives just for a promise that a pipeline might be considered while Sarah held the line on a fair revenue-sharing program between the owners of the resources (the residents of the State of Alaska) and the petroleum companies.

So, I've been following the Denali project casually, but today I received their brochure in my email box and I thought I'd share some of what it says.

"Denali is headquartered in the Northern Lights Building in Anchorage. A Canadian office has also been opened in Calgary’s Gulf Canada Square that will house Denali Canada’s operations.

The Denali project is being designed to deliver 4 billion cubic feet of clean burning natural gas from Alaska’s North Slope to North American markets. The project will consist of a gas treatment plant on the North Slope, a pipeline approximately 2,000 miles long to Alberta, Canada and if required, a 1,500 mile long pipeline from Alberta to Chicago. The current estimated cost of the project is $30 billion.

The gas treatment plant on the North Slope will remove water, carbon dioxide (CO2) and other impurities, making the gas "pipeline ready." The CO2 will be re-injected, reducing greenhouse gas emissions. The plant will also compress the gas and chill it to prevent thawing of permafrost near the pipeline. The gas treatment plant will be the largest of its kind in the world.

Millions of tons of steel will be used to build a large diameter pipeline that will transport the gas. The pipeline will be coated to protect it from corrosion and buried underground. A number of other features will be incorporated into the design to insure safe and environmentally sound operations.

The construction and operation of the Denali pipeline will lead to the creation of a multitude of jobs and business opportunities. With the market access Denali will provide, it will also help form the economic basis for gas exploration in hydrocarbon prone regions along the pipeline’s route. New revenue from royalties, taxes and the creation of new jobs and businesses will have a long term, positive impact on the economies of Alaska and Canada.

The Denali team has completed a comprehensive and successful 2008 work program. Focusing on the area between Delta Junction and the Alaska-Canada border, Denali surveyed over 200 miles of wetlands, investigated 70 archeological sites, shot over 1,700 miles of ortho-photography, shot 730 miles of immersive video, investigated 538 potential stream/river crossings, performed route reconnaissance, opened a field office in Tok, employed as many as 80 people in the field, and began its stakeholder engagement efforts in Alaska and Canada. Denali also progressed work in the areas of route optimization, cost estimates, scheduling and project execution planning; pre-filed with the Federal Energy Regulatory Commission (FERC); filed for a right of way in Alaska with the US Bureau of Land Management; and employed over 90 people in its project engineering and management efforts. Denali spent approximately $55 million in 2008.

The primary components of Denali’s 2009 work program consist of field work; performing preliminary engineering and updating cost estimates for the pipeline and gas treatment plant; continuing stakeholder engagement efforts in Canada and Alaska; and working with regulatory agencies. The 2009 program is focused on providing the support necessary to meet Denali’s first major milestone – a successful open season commencing in 2010. If the open season is successful, Denali will pursue approval by the FERC in the US and the National Energy Board (NEB) in Canada to construct the project. Construction can begin after regulatory approvals are received.

Denali will be formulating its tariff structure after updating its cost estimate for the project. However, there are a number of principles that Denali will be following as it develops its commercial terms. Specifically:

Denali will be an open access pipeline.• Any party that has the financial capacity can commit to reserve space in the pipeline.

Rates will be distance sensitive.• The fee charged to ship gas will be based upon the distance the gas is transported.

The project will provide for efficient expandability. • The initial design will incorporate the ability to expand the capacity of the line through the installation of additional compression.

Denali plans to solicit customers for interest in expansion • of capacity every two years. Following the initial successful open season, Denali will actively solicit interest in pipeline expansion every two years. Should there be demand for a capacity increase, Denali will secure the financial commitments from shippers to support the expansion and begin the process of increasing the pipeline’s capacity.

Flexibility to use existing or new infrastructure out of Canada.• At the pipeline terminus in Alberta, Denali will provide shippers the flexibility to move their gas to market through the existing pipeline system, or, if required, through a new pipeline to the Lower 48 that Denali would build.

Rolled in rates. • Denali will provide for rolled in rates for subsequent expansions consistent with applicable FERC regulations in the U.S. and National Energy Board (NEB) regulations in Canada."

As I've said, I won't actually believe that the pipeline is a reality until the construction begins, but things have never looked so hopeful and that means a great deal to the future of Alaska, particularly in terms of economic independence. I foresee a day when Alaska will no longer need the economic assistance of the federal government, which has never done us any favors, but has always prevented us from building infrastructure and having control of our own land, resulting in dependence upon that same federal government. Lower energy costs means more economic viability of industry and thus, more chance to grow into the full-fledged state we were promised we would become in 1959, but have been denied thus far.

Here's hoping and I'll keep you informed!
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Remembering the King!

Posted by aurorawatcher on Sunday, August 02, 2009 8:44:56 PM
Our church held Lord's Supper this morning. It was sort of unexpected. We normally scheduled  it once a quarter and end up doing it about three times a year, but someone in the congregation has been pushing to have it every month. So we walked in and there it was. I normally like to coach our 10-year-old for the week before the service because I think far too many Christians take the Lord's Supper for granted in the same way they take the song service for granted. For many, it's a mere ritual without a lot of thought behind it. I don't think that was what it was ever meant to be.
 
We're told in the New Testament that we should approach the altar of God with reverence and a clean heart. The Amish have the right of it in that they make the Lord's Supper a month-long process of self-evaluation, repentence and reconciliation. They teach that only when you're right before God and man can you approach the Lord's Supper cleanly. I'm not quite so adament, believing that Corinthians suggests we should remember our sins and be prepared to reconcile with those we have wronged, but that we should still do the Lord's Supper, then go and take care of our sins and those we have sinned against.
 
I was impressed with KR's memory on the Lord's Supper. The bread represents Christ's death on the cross for us. The juice represents Jesus' blood that washes away our sin and "makes us white as snow" (KR announced). There is nothing magical in the elements of the Lord's Supper. It's just a wafer of unleavened bread and a little cup of juice. Nothing special. We've done home Lord's Suppers with what we found in the cabinet. I once partook of a Lord's Supper on a mountain top with Ritz crackers and Dr. Pepper. It's not the elements that make the Lord's Supper a special worship time. It's what they represent. They remind us that Christ hung on a cross for our sins and that His blood washes those sins away.
 
I can't say I pay a whole lot of attention to the pastor as he reads the Scripture and prays. I shelved that under "mindless ritual" a decade or more ago. Instead, I practice my own worship set to make the Lord's Supper meaningful to me. I call to mind the scene on Calvary and Christ's blood flowing down. If I've had warning, and I didn't today, I have already prayed for those sins and those slighted. Sometimes I've had the opportunity to apologize and make amends. Today, I found myself hastily remembering a few and asking God to remember the rest and bring them to my mind this week. KR remembered that he hadn't really played with one of his best friends all summer, so he invited his friend to our house for the afternoon.
 
Ultimately, the Lord's Supper is a time when we strive to walk into the presence of our God and Savior. We should seek to do that with a clean heart and light conscience. Nothing in the Lord's Supper cleanses us from sin or makes us right before God. Salvation does that. The Lord's Supper is a part of sanctification, the ongoing growth toward being Christ-like. With every Lord's Supper, we should strive to set aside our sins and settle our grievances. And, above all, the Lord's Supper should never be rote ritual, but a vital time when we seek the face of God and hold up unclean hands for Him to wipe clean.
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