Alaska's Cing Cing

Alaska Stuff: Remember Sing Sing? Yes a maximum security prison some many miles from the 49er. But way here north we have CING CING! Maybe best said, Ka-Ching Ka-Ching! And it also falls under the “maximum security” definition, of course not criminals incarcerated with the latter, but a place to hideout “money” in safe-keeping away from the “general public”. See, I am talking CING-SA, or when expanded Cook Inlet Natural Gas -Storage Alaska. Now CING-SA started out with “surprise, surprise, surprise”! Surprise #1 when a surplus of Cook Inlet natural gas was discovered. Surprise #2 when it tried to rip off the south-central consumers because of a faulty gas cash register at Elmendorf Air Force Base...OK, CING-SA is Enstar in disguise and when it tried to short-change the U.S. Taxpayers some $10-million for a faulty register at the base's laundromatt the MPs started loading the revenge rifles! But the CING-SA grand idea was to take this “surprise” surplus natural gas found in over-abundance in Cook Inlet and store-it-now use-it-later, like is utilized in many places especially up in Canada wherein depleted underground caverns that once incarcerated hydrocarbons are recycled for storage! Amazing how all of a sudden there is more then enough “Cook Inlet” gas, like that magic wand that changes the corporate welfare taxation acts as a divining rod – dig here! But “storage” does makes sense, as to find gas sales contracts that are not take-or-pay, well that kind of instrument does not exist in this day and age of the Wall Street energy “investment” infrastructure, so what you don't use in the warmer months of summer – store it for those cold & dark Alaskan days. So this was...OK, why today is someone really interested in storing gas? Well for many years, when natural gas was first discovered up until Alaska was invaded by outsiders – when SEMCO came “North to Alaska” with the intent of ripping us off – the natural gas supply and demand scenario was very “consumer driven”. There came no need to manipulate and since Alaska was far and removed from the “mainstream”, all was in good faith abundance! But when SEMCO overpaid the Seagull for Enstar – in the neighborhood of $200-Million over the “Fair Market Value” – well that's when the Michiganites decided it was best to get Ben Stevens on the payola payroll, as to have a state senator that had ties to a U.S. senator...miracles happen – that was Surprise #3. Anybody seen Ben? Anyway, when Enstar started flexing its Ben erection, the gas owners like Marathon and ARCO also became greedy – thus a good thing for the consumers came to an end. That's what happens when we don't secure the border and let outsiders in...and who bought Dan Sullivan's ticket to paradise? OUTSIDERS! Anyway, SEMCO was then forced to build a storage facility for natural gas due these “Take-or-Pay” contracts in-force today due their own “corruption”, and was able to purchase a bone-dry and depleted reservoir known as the Cannery Loop down in Kenai. Remember, this “storage” was out of desperation because it tried to screw over the “Big Players” and now it was an eye-for-an-eye tooth-for-a-tooth tragedy. Look, now the consumers suffer! See, Enstar was caught stealing gas - from Marathon so it could satisfy its Aurora buddy that was low on gas which meant the Anchorage School district would have to shut-down the schools! So fudge the books...long story! Anyway, now that Enstar had bit the hand that fed, it started modifying the “Loop” in efforts to allow the storage of surplus gas during the summer then be able to draw on that reserve, so we could heat our homes during the brutal winter and not worry about curtailments of natural gas which had become a serious threat in the early 2000 time-frame. So this “storage” opportunity was good, except under the circumstances of why it was required – to re-iterate, “cheating” was the cause! Now many have heard the horror stories about “Fracing”, but what you don't know is that using explosive forces to pry open the earth's core in efforts to force out hydrocarbons trapped, this has been going on in Alaska – even before the regulators had time to write the rule book, which is due out next month. Sure enough, one on Ben's campaign contributors was the 1^st entity in Alaska to perform a “Frac” job, without even the regulators being aware! It happened one April night back some years ago, with a full moon lighting the way from Oliktok Pt. to Pioneer Natural Resources “Oooguruk” prospect – a man-made disaster located in Harrison Bay of the pristine Colville River delta. It was all hush-hush, as there existed no permits that allowed a convoy of well over 30-frac tanks to move across the frozen bay – scaring polar bears out of dens and...well due a bumpy road a few barrels of hazardous something went missing and may still be floating around in the Beaufort – just blame SHELL! And since “No Labeling Required”, hey young native kids don't touch that goo! But according to Haliburton, it's all “food grade”! OK, so the regulators were aware of it after-the-fact so hid! Now, when Enstar started working over the old Marathon wells at Canary Loop, low and behold the damn “mud man” miscalculated the mud weight and fractured the formation! See, Enstar had no idea what it was getting into, with “drilling”! So the excess pressure acted like a freak'n “FRAC” attack, and ruptured the formation which started communicating with an unknown gas pool – a pocket that is estimated to contain about 18-Billion cubic feet of gas – enough gas to warm Anchorage for about 15-months! So this “find” has started a WAR! Enstar is claiming “rightful ownership” of the gas. Since it held the required “permits” to drill, it is no different then any other “lease holder”. But those that held contracts with Enstar for “storage”, like Chugach Electric and MLP, they also want to claim piece-of-the-pie ownership! The value of that gas finds an estimate of $140-Million. The sad thing, Enstar will most likely prevail on this matter, which I am in favor based on the scenario. Justifiably so, the state will get its royalty share of $18-million, the remainder goes to Enstar. So Enstar may find itself “richer”, which means now is the time to secure that border as the way Enstar has behaved, that money will not benefit at all the “resources” rightful owners – that's we Alaskans! In perspective, if that “loot” stays here, add about $225 to that PFD – else be happy with an extra $2 and chump change!

Alaska Constitution Refresher ~

§ 1. Statement of Policy

It is the policy of the State to encourage the settlement of its land and the development of its resources by making them available for maximum use consistent with the public interest.

§ 11. Mineral Rights

Discovery and appropriation shall be the basis for establishing a right in those minerals reserved to the State which, upon the date of ratification of this constitution by the people of Alaska, were subject to location under the federal mining laws. Prior discovery, location, and filing, as prescribed by law, shall establish a prior right to these minerals and also a prior right to permits, leases, and transferable licenses for their extraction. Continuation of these rights shall depend upon the performance of annual labor, or the payment of fees, rents, or royalties, or upon other requirements as may be prescribed by law. Surface uses of land by a mineral claimant shall be limited to those necessary for the extraction or basic processing of the mineral deposits, or for both. Discovery and appropriation shall initiate a right, subject to further requirements of law, to patent of mineral lands if authorized by the State and not prohibited by Congress. The provisions of this section shall apply to all other minerals reserved to the State which by law are declared subject to appropriation.