Blog: Dermot Cole

Hickel blasts Exxon deal with TransCanada

Published Thursday, June 11, 2009

Former Gov. Wally Hickel is calling on Alaskans to "rise up and oppose the TransCanada - ExxonMobil deal" or risk returning to the situation that existed during territorial days.

He released this statement today:

When Governor Sarah Palin was elected in 2006, we believed she would put Alaska first. But once elected, she put Sarah first.

Because of her national ambitions, she is promoting an agenda that will allow Outside corporations to dominate Alaska’s resources, including our energy and the jobs it provides.

Over my objection, the Governor negotiated a contract last year with TransCanada under AGIA, supported by the legislature, that will now provide ExxonMobil Corporation with half of $500 million of state funds.

I have urged the Governor many times to lead our state in another direction. We should build and own a natural gas pipeline from Prudhoe Bay to Valdez and ship Liquefied Natural Gas (LNG) to world markets.

She has taken another road.

Unless the people of Alaska rise up and oppose the TransCanada -ExxonMobil deal, we will revert to the situation in territorial days when Outside interests controlled our lives.

Alaska must not lose its way as an Owner State. We have created a state based on commonly-owned resources and lands. That model is alive and well in Alaska. It’s an important concept for the world, and we mustn’t lose what the founders of our state created 50 years ago.

  1. AKReport
    6/11/2009, 5:20 p.m.
    Suggest removal

    Wally Hickel = HATER

  2. chillyfilly
    6/11/2009, 6:02 p.m.
    Suggest removal

    Wow! Walter Hickel was the worst governor this state and possibly any state ever had. It would behoove him to be quiet and enter the dustbin of history where he belongs.

  3. Stakeholder
    6/11/2009, 6:21 p.m.
    Suggest removal

    Now it gets interesting.

    Go Walter Hickel, tell'em like it is.

    Remember the outside fish and mining interest that ran the territory before statehood.

  4. bluetarp
    6/11/2009, 6:27 p.m.
    Suggest removal

    I'll bet Dermot Cole and Wally Hickel wrote that press statement wearing their witches hats and stirring a big pot of lizard soup.

    If Walter Hickel is the new authority on what's best for Alaska...wow.

    From the 1992 Sierra Magazine:

    (Hickel)"has been pushing a second Alaska Pipeline, this one to carry natural gas from the North Slope to the port of Valdez.

    The latter bubble burst when independent environmental activist Chip Thoma pointed out that it involved Hickel in a blatant conflict of interest: The governor owned a 12-percent share of Yukon Pacific, the corporation angling to build the pipeline. A subsequent state ethics investigation confirmed the charge, and Hickel was forced to donate his stock to a charity for the homeless. (They could use some help, as the governor recently slashed funding for social services in order to bankroll his pet megalo-measures. Not a penny will be realized from the stock, of course, unless the pipeline is actually built.) Unfazed, Hickel is still pushing what he calls the state's "most important" development priority.

    Wally Hickel is what's known in Alaska as a "boomer," a True Believer in the redemptive power of unbridled natural-resource development. He long ago sloughed off the reputation as an environmental populist he gained after Richard Nixon plucked him out of the governor's office in 1969 and made him Interior Secretary. A year later he was fired for questioning the attack on antiwar students at Kent State. Returning to Alaska, he made multimillions in real-estate development, but was frustrated in three attempts to return to the statehouse."

    Read More -

    http://findarticles.com/p/articles/mi_m1...

  5. DistantThunder
    6/11/2009, 6:31 p.m.
    Suggest removal

    Wally Hickel resigned from Nixon's cabinet largely over his opposition to Nixon's secret war in Cambodia which was promoted by Kissinger,et al ...
    http://www.time.com/time/magazine/articl...
    Many years ago I had a long conversation with one of the top US communications specialists in Vietnam during the war..
    he said Kissinger made it a habit to hog high-security bandwidth with many long-winded pompous verbose nonsense messages just to make himself look important to all of the government hacks.
    http://images.google.com/images?hl=en&am...
    ...don't be gullible

  6. FreeDarfur
    6/11/2009, 7:11 p.m.
    Suggest removal

    Nixon fired Hickel, Hickel didn't resign. Hickel expected to make billions off of Yukon Pacific and was brought up on ethic charges when Governor over it. Providence hospital came out a winner because of it. His idea is for the people of Alaska to use their permanent fund and any other monies to build a pipeline and purchase his right of ways and then let the Japanese corporation have the gas for next to nothing. Why hasn't Hickel given the people of Alaska his right of ways, because we would soon find out they are worthless. He could only make money off of them if he could sucker the State into buying them.

  7. DistantThunder
    6/11/2009, 7:17 p.m.
    Suggest removal

    boondoggle....
    whut's th' wall thickness of that good used 4" polypipe you got??
    Do you wanna hook it to Doyon's well, or do you wanna wildcat our own well in the Minto Flats?
    Anybody within 20miles of Nenana wanna play along?

  8. Alan Staats
    6/11/2009, 7:19 p.m.
    Suggest removal

    It would still be a GREAT idea to run an in-state plastic line to the cities in Alaska that need a cheaper heating fuel, one that can be completed long before the pipe for this one is even ordered....

  9. Put_Alaska_First
    6/11/2009, 7:37 p.m.
    Suggest removal

    Alaska has had no better friend than Gov. Hickel. The 100 million acres Alaska received at statehood were a direct result of Wally going to Washington DC and demanding at least 100 million acres for the state to sustain itself. Many in DC only wanted to give Alaska 3 million acres.

    All that land at Prudhoe bay is state land- Alaska land- and all those dividends we've received would not have happened. If that was federal land, Alaska as we know it would not exist.

    We should listen to Wally in this debate. A published author, a self made millionaire, an Interior Secratary, a governor elected in two different eras- how many can come close to achieving even one of those accomplishments?

    That Wally told tricky Dicky he was wrong over the Viet Nam war took balls.

    That Wally led an effort as Interior Secratary to save the Blue Whale took vision.

    That Wally told Big Oil to "Drill, or I will", at Prudhoe bay took determination.

    We should listen to Wally. So should Sarah.

  10. glow
    6/11/2009, 7:41 p.m.
    Suggest removal

    AKReport = SHILL.

  11. 8starsnorth
    6/11/2009, 7:46 p.m.
    Suggest removal

    'Over my objection...'

    He claims Sarah is putting Sarah first. Sounds to me like our ex-Gov is putting himself and his opinion first.

    Wally has done a lot for this state. But there is new leadership. He can support or oppose projects just like the rest of the state's residents.

  12. dobieman
    6/11/2009, 8:07 p.m.
    Suggest removal

    Oh, my...whatever will Boonie (in his/her..what? 210th post this month?) and roadtrip et al do, now? They can't yell "Liberal!" They can't yell "Greenie!" All they can do is sit back and whine as one of their own Republicans rips up their idol.
    Oh, my......Christmas is early this year! *Laugh*

  13. Oh_please
    6/11/2009, 8:29 p.m.
    Suggest removal

    AKReport = SHILL

    ---------------------

    Actually, glow, they call soulless PR people 'flacks'.

    /The more you know...

  14. Barks
    6/11/2009, 8:46 p.m.
    Suggest removal

    I have come to the conclusion that not one person in Alaska is capable of putting a plan for a Gas Line forward that is economically feasible enough to get any investor to buy bonds or stock in the project , even with government loan guarantees . Most people will not willingly invest their hard earned money into a questionable project unless they have a pretty good chance of making a profit . The last I have heard is there is a possibility that the government may be persuaded to guarantee about seventy five percent of the loan , but they won't guarantee a profit . Natural Gas yesterday was under four dollars . Even if it was thirteen dollars would any of you invest in it ? Because in six months it could be back to four dollars , and stay there for ten years . I doubt that four dollar would even pay the flow cost .

  15. North_pole_rules
    6/11/2009, 8:59 p.m.
    Suggest removal

    I for one would like to see the state build it, or better yet, have the PFD Corp build it and operate it as a corporation, it would make a ton of money and our PFD's would go higher, every one wins, Alaska gets gas to markets, including Anchorage and fairbanks, we sell more of our resources and the pfd goes sky high....Am I missing something, the PFD corp invests in other things, why not the gas line...

  16. glow
    6/11/2009, 9:24 p.m.
    Suggest removal

    What if Alaska built a natural-gas operated electrical utility at the source, then shipped electricity across low-impact grids all over the state? Northern and central Alaska, northwestern Canada would all get affordable energy. Why ship gas thousands of miles when it can be used on site to power Alaska? Why spend so much of our money to build infrastructure that only enriches Big Oil? We don't need to build a gasline, we just need to harness natural gas energy to benefit Alaskans.

  17. 1AkFox
    6/11/2009, 10:01 p.m.
    Suggest removal

    The year Wally was elected there was ballot prop to legalize pot.

    Pot got more votes.

    He said God talked to him about building a under the sea fresh water line to Ca.

    Nixon fired him.

    "Owner ship state" is what the Russians called a "communist state"

    It took the Russians 70 years to learn communism does not work. Proving they are slow learners, who can't read the history book's lesson about Utopian socialism.

    Look up "Shakers" sometime.
    There are about 3 left; to bad they made nice furniture in their hay days.

  18. Yukonjohn
    6/11/2009, 10:20 p.m.
    Suggest removal

    I was upset in 92 when Wally ran as the AIP candidate. He was never and AIP supporter, he was a Republican. Well, that said, I agree with him 100% on this. He did have that interest in Yukon Pacific and it would have been a conflict of interest most likely, but it wouldn't now. He is correct that we are an "owner state". It says so in our Constitution. We need to stand up like owners and as he said, "rise up in opposition" to this proposal. If we do not, we will end up getting what we pay for. As an Alaskan, I say ENOUGH, let us take charge of this situation and stop this process now!! Wally Hickel is no idiot and we do owe many things we have here today to his foresight.

  19. Stakeholder
    6/12/2009, 2:59 a.m.
    Suggest removal

    Gov. Sarah Palin

    "So Ronald Reagan spoke to us then with us here in our hearts is where he reached us, and that’s where he won the arguments and then, this was, this was the good part, we the American [Alaskan] people through him, we imposed our will on Washington [Juneau], and that is the way it’s supposed to be.

    Our government is supposed to be working for us, we are not to be working for our government [or Exxon]. It’s our will to be imposed on them. (applause) He captured our hearts so he could affect positive change by what he did. He focused on our kids, on our children, on their future, on the future of America [and Alaska]. And when he fought socialism [, crony capitalism] and any sort of tyranny that he knew would ruin us, he stood strong on his knowing that the framework through which he believed that positive change that framework for our kids, it was freedom.

    - by Sarah Palin plagiarizing Newt Gingrich

    http://community.adn.com/adn/node/141649...

  20. Stakeholder
    6/12/2009, 3:06 a.m.
    Suggest removal

    Exxon Mobil joins TransCanada on Alaska gas line

    By TOM FOWLER

    Copyright 2009 Houston Chronicle
    June 11, 2009, 2:56PM

    http://www.chron.com/disp/story.mpl/fron...

    [snip]

    "The state license to TransCanada also provides much of the fiscal stability Exxon is expected to ask for in the project, Gibson said, including a freeze on tax rates for the first 10 years of the pipeline’s operation, and “a willingness to revisit some of the state’s prerogatives on royalty treatment in order to not create obstructions.”

    The Chronicle reported Wednesday that Exxon and TransCanada were in talks about the pipeline project.

    Steve Rinehart, a spokesman for BP, said the company hasn’t seen details of the Exxon/TransCanada deal, but that the company’s goal “has been and is to get North Slope gas to market,”

    “We need to and will consider any viable project to delivery the gas to market, but the project we’re a part of is Denali, we believe in it and it’s moving forward.”

    If all goes as planned Exxon and TransCanada expect to conduct an open-season – where customers make bids to indicate their interest in having gas shipped on the line – by July 2010. They would apply for Federal Energy Regulatory Commission licenses in 2011 and 2012, begin construction in 2016 and start operations in September 2018.

    The long-sought natural gas pipeline would be a companion to the Trans-Alaska Pipeline System that has been moving oil to U.S. markets since 1977.

  21. Stakeholder
    6/12/2009, 3:07 a.m.
    Suggest removal

    The license followed a public bidding process initiated by Palin, who canceled a pipeline deal that her predecessor, Frank Murkowski, had negotiated in closed-door sessions with the three major North Slope producers. That deal was an issue in the Republican gubernatorial primary where Palin defeated Murkowski.

    The three producers, Exxon, BP and Conoco, did not take part in Palin’s state bidding process, saying it did not provide the kind of tax and tariff assurances they needed. ConocoPhillips announced its competing project shortly after, and BP joined in that project in April 2008, which is now called Denali.

    Many were skeptical of the state-backed project from the beginning, saying it cannot proceed without cooperation from the producers. Dwindling state coffers in Alaska, which relies heavily on royalties payments and taxes from oil and gas production, also undermined support. Some state lawmakers even pushed a resolution asking Palin to revisit the $500 million in incentives given TransCanada.

    But a TransCanada-Exxon partnership would bolster the state-backed project, since Exxon holds many of the largest natural gas fields on the North Slope.

    The Denali and TransCanada projects have been moving forward with planning work.

    When ConocoPhillips and BP unveiled their Denali venture in April last year, they invited Exxon to join them. Exxon declined, and said publicly that it wasn’t aware of that proposal until a few days before it was announced. Exxon said at the time that it would evaluate the Denali plan as well as that of TransCanada, which was the only one of five in the Alaska bidding process that was chosen for further review by Palin’s administration."

    tom.fowler@chron.com

    http://www.chron.com/disp/story.mpl/fron...

  22. Stakeholder
    6/12/2009, 3:21 a.m.
    Suggest removal

    1AkFox you said:

    "Owner ship state" is what the Russians called a "communist state"

    It took the Russians 70 years to learn communism does not work. Proving they are slow learners, who can't read the history book's lesson about Utopian socialism.

    ========================
    1AkFox,

    It only took two years for the West Coast to learn that Enron and "crony Capitalism" didn't work.

    See:
    http://www.house.gov/inslee/docs/pdfs/en...

    1AkFox,

    Isn't there a middle ground?

  23. Dove
    6/12/2009, 3:45 a.m.
    Suggest removal

    Dove supports DistantThunder, YukonJohn, PutAlaskaFirst in their opinions regarding Walter Hikel. Walter Hikel is no fool. He has some unique ideas (water pipeline to CA), which often fail to capture the public's logic.

    State owned LNG pipeline, plastic multi piping system across Alaska to provide fuel for Alaska first.

    Sarah should be ashamed to team up with Exxon.

    What an insult to Alaska!

  24. twain
    6/12/2009, 6:38 a.m.
    Suggest removal

    Since the very beginning big oil wanted to have a large
    pipeline through Canada. It was proposed by the oil companies in the late 60s early 70s before the trans canada
    oil line was built. The people rejected it then because of
    the fear of losing control of their recourses to a foreign
    country. A discussion I participated in and agreed with.

    Now when the gas line comes up here here we go again.Whats
    so ironic this time around instead of having leaders who
    stood up to the oil companies and said no, we have a self
    centered,more interested in her own career than the people,
    of alaska. One who in the name of standing up to tha oil
    companies gave them their dream of the big line draining us
    dry in as short a time as possible and threw in a 500
    million bribe to savage us again.

    Those of you who think we are going to get cheap gas from
    these corporate pigs are smoking the wrong kind of tobaccy.
    Your going to lose control, Exxon of all people, they should
    be run out of this state decorated with tar and feathers,
    rather than allowed to move in under the guise of trans
    canada umbrella.

  25. 1AkFox
    6/12/2009, 7:21 a.m.
    Suggest removal

    Also, Wally, the day after being elected as an AIP candidate,-- renounced every thing AIP stood for.

    Wiped his feet on their carpet!

    Definitely a believable politician with sound character you want to run the state while having pipe dreams.

    ------
    Which reminds me of the x x UA president who made a radio adv supporting an oil company cause.

    The adv went something like this... and 20 years ago an oil company exec stuck a check in my pocket for $20,000 .. and I have been a friend of the oil industry ever sense!

    Cheap sob (son of Bob) -- confessed: they bought him $1,000 per year!

  26. 1AkFox
    6/12/2009, 7:32 a.m.
    Suggest removal

    Stakeholder
    6/12/2009, 3:21 a.m.
    Suggest removal

    1AkFox,

    Isn't there a middle ground?
    ----

    Regulated capitalism and sending the criminals to jail.
    To date non-of the crooks who put in the Freddie and Fanny debacle have been sent to the slammer.

    Recommend re reading Adam Smith on the "Wealth of Nations"

    Socialism does not work and is always a failure because of corruption

  27. Shokd
    6/12/2009, 8:22 a.m.
    Suggest removal

    We can "rise up" all we want. It's not like our elected "representatives" seem to care. I'm sure they'd get a good laugh at the lowly masses "rising up". They're making their little fortunes, at the expense of the people.
    Not so different at all from what we're seeing from the feds. Well, at least our "representatives" have the smarts to see a good scam and adopt it as their own.

  28. moondoggie
    6/12/2009, 8:38 a.m.
    Suggest removal

    What's Wally, about a hundred years old? There ought to be a rest home for all these old politicians where they can sit on benches in the sun and talk about the old days. Oh wait...they are called minimum security Federal prisons. My bad.

  29. BullsEye
    6/12/2009, 8:52 a.m.
    Suggest removal

    Over my objection, the Governor negotiated a contract last year with TransCanada under AGIA,

    Over my objection???

    Who The heck does he think he is????

    King Hickel???

    And Why is Dermot giving this clown media exposure???

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