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Monday, December 1, 2014

64 Degrees North


Yes, and any natural gas “North” of latitude 64 is considered “Special Gas”, not “Stranded” like many have led us to believe. Yes “Special” it was determined by lawmakers this natural gas from the Giant Prudhoe Bay oil field, with restrictions on “Export Limitations” and specifically reserved for use in the U.S., “for decades to come”. This preferential segregation this “Huge” clean energy source reserved for future use “ONLY” in the contiguous United States came about through careful and strategic thinking, starting with the Alaska Natural Gas Transportation Act of 1976 and then reinforced with the Alaska Natural Gas Pipeline Act of 2004. “Public Law” enacted by Congress, Executive Orders and “Presidential Opinions” continued to keep that a secret, yet Alaska's delegation is adamant about raiding the reserve regardless of what “Laws” are still in effect that disallows such ransacking. When one studies the original intent going back to the mid-70s when then President Jimmy Carter found responsibility with the Ford Administration's legislation protecting America's interests with Alaska natural gas, followed by additional protective measures by Congress, for the most part that gas has remained “Stranded” for a reason – it's a “Reserve”! The reason this gas has remained “Stranded”, even under George W. Bush! With a new governor at the helm and what appears to be a sincere interest and effort by “Big Oil” to finally say “OK”, will we finally see a natural gas pipeline not just a mirage, a “Pipe Dream” no longer? Since newly elected Alaska governor Walker has been involved in this “Pipe Dream” for the last 37-years, at least he understands the history behind the issues – and today it all boils down to the “economics” instead of necessity. And the Federal Energy Regulatory Commission must be glad in some respects, as every year it must submit a report to Congress, called the Report to Congress on the Alaska Natural Gas Pipeline ~ Conclusion : No progress has occurred since the last report on a project bringing Alaskan natural gas from the Alaskan North Slope to lower 48 state markets. Season 18 has come and gone with the same conclusion – nothing accomplished. Are you getting the point? No U.S. President wants his signature on legislation giving away this gas, not yet. And remember, we were guaranteed a natural gas pipeline within 5-years after “Oil In”, that happened on June 20th, 1977 for a history revival. Said again, it has remained “Stranded” for a good reason – national security! But we often hear about the “Humongous” price tag of this “Mega-Project” just recently getting over a “Big Hurdle”, so we must remain vigilant and stand our ground. Yes, the DOE has granted the Alaska Gas Pipeline Consortium(EXXON, EXXON & EXXON) an “EXPORT License”, to deliver this “Stranded” gas as LNG to FTA and non-FTA nations. Our friends and foes, some with labor laws, others that laugh at equal opportunity. Yes, this is a sell-out, as the original approved plan doesn't allow this to happen, unless the sitting President – Barack Obama – recommends the lifting of the "Export" ban through reporting on the effect it would have, to the supply and prices of lower-48 natural gas. See, if that gas were routed to its original recipient by a pipeline through Alaska and then through Canada to the U.S. border, it would lower the price based on simple supply & demand economics – so it is one of those things so designed with a strategic purpose in mind, as a “Reserve” when it is needed – for reasons of security not insanity to give it away. And today with natural gas being produced above and beyond, there is no need to touch this gas – keep it “Stranded” in that “Reserve”! Sure, build the pipeline, allow gas to flow to Alaskans, but keep the gas in “Reserve” for future use by the United States – the intent. And when it is needed, just turn on the spigot. This was not intended to be a project for “Huge” profits like the Trans-Alaska-Pipeline. The reason that Uncle Sam was willing and still willing to put up $18-Billion in U.S. Taxpayers' loot in the form of a “Grant” and at the same time offer low-interest loans to cover the construction costs. So there were supposedly checks and balances the intent of this project – for America's future! But Alaska's delegation convinced the Secretary of Energy that he best lift the ban or else, based on an outdated and obscure “Opinion of Fact” from Ronald Reagan back in 1988! It's Obama's watch, not Reagan's, and this is a cheap-shot attempt to circumvent the power vested in the “Oval Office” - it is “Treason”. Look, I am all for getting this “Stranded Gas” unrestrained, as long as it proves its worth to the American consumers, through lower energy costs and creating as many jobs as possible. That ain't so when we ship this gas overseas! To just sell it to other nations so Alaska can make additional “$billions$ on top of its $54-Billion “Reserve”, this ain't right. So it appears that those interested politically will do anything too undermine “Public Law” and “Executive Orders” to make favor with their alter-ego-constituency, that lobby hobby, of disenfranchising the “True” constituency once again. Look, what is good for the lobby is good for us except it is based on the trickle-downspout theory, which is like water-boarding – gasping for air is like the acceptance nod. We don't like it, but “or else” rules! Anyway, there came other valuable and exciting requirements to “Un-strand” this gas. Like the “Sense of Congress” to make sure America was counted in not out this project, by reassuring the project would use U.S. made steel, from the pipeline to the ships used for transport. Along with that, a requirement that during the “Construction” stage of an “Alaska Natural Gas Pipeline”, a Project Labor Agreement under a “collective bargaining” agreement would be in effect, to determine working conditions and wages. Now PLAs had been in effect since the 1930s, but came under the ax when George H.W. Bush came into being, through “Executive Order 12818-1992” that which prohibited PLAs. Clinton rescinded that “prohibition” with “EO 12836-1993” but found the courts unfriendly to his desires to re-instate PLAs on projects falling under FERC or other government oversight. So it was a washed down version but maintained some semblance of adherence to PLA requirements, especially in the wage category. Then in 2001, George W. Bush axed the PLA again, through “EO 13202”. But when Obama arrived at the “Oval Office”, those acts of omission and errors by “Dubya” were also axed, and the PLA requirement was re-instituted under “EO 13502-2009”. So this may be the fight of the century with this project! See, this project will most likely not begin until after Obama leaves office, and then we will see Obama's trumping of Bush's prohibition “EO” trumped again, disqualifying once again the PLA, and find sub-standard working conditions along with sub-standard wages to get this project going. The consortium is carefully guarding the calendar, the time-clock on this project for the added benefit of its bottom-line, as this “Gas” is no longer secure and will be given away to the highest bidder but at a time & date that is in their favor. See, why doesn't Congress do its job. Make it a “Public Law”, as this wishy-washy “EO” stuff is not good for the nation. But with a powerful “Steel” industry that finds a strong “Union”, we should see too it that this project at least adheres to the requirements to “Use steel that is manufactured in North America”, as this may be the only benefit Americans find now that the government has been misinformed and allowing for this gas to be sold, to non-FTA nations. Look, to use an outdated “Opinion” by a dead president, it is preposterous. In fact, why not ask Jimmy Carter – who was involved in the legislation of an Alaskan Natural Gas Pipeline – why not ask him for an opinion of fact on what is going on today in conflict with the original intent of this “Stranded Gas”. But that is why we see the “higher” price tag with this project, upwards $65-Billion and if that higher price discourages advancement this project, the cost saving measures will be introduced and shoved down America's throat by greedy politicians on the take and make of the consortium “lobby”. It will be labor & materials used as an excuse. If this project is allowed to use cheap foreign made steel, the price tag finds $45-Billion a reality. To use the American ingenuity, to use “Made in America” the price goes up, as we treat our workforce a whole lot better then what they get “Made in Japan” or China! We must make sure we fight this project to include “Americans”! In this case, they are either with us or against us as we have before us “Public Law” that we can use to our advantage. And if the labor and or steel options are compromised, then we must make every effort to make sure we fight the “Go Ahead” permit all the way to the end, else we loose out again!
SEC. 111. SENSE OF CONGRESS CONCERNING USE OF STEEL MANUFACTURED IN NORTH AMERICA & NEGOTIATION OF A PROJECT LABOR AGREEMENT.
It is the sense of Congress that-
(1) an Alaska natural gas transportation project would provide significant economic benefits to the United States and Canada; and
(2) to maximize those benefits, the sponsors of the Alaska natural gas transportation project should make every effort to-
(A) use steel that is manufactured in North America; and
(B) negotiate a project labor agreement to expedite construction of the pipeline.

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