Fairbanks Borough Assembly gives its approval to plan to truck liquefied gas
by Amanda Bohman / abohman@newsminer.com
Jul 30, 2010 | 4735 views | 45 45 comments | 10 10 recommendations | email to a friend | print
FAIRBANKS — The Borough Assembly passed a resolution approving the port authority’s plan to purchase Fairbanks Natural Gas LLC and launch a natural gas trucking operation.

The vote was 8-1, with Assemblywoman Natalie Howard the sole opponent of the plan.

A separate measure calling for a public vote on the plan narrowly failed.The vote was 5-4, with Mike Musick, Hank Bartos, Tim Beck, Kelly Brown and Matt Want opposing.

The $250 million project now goes before the Regulatory Commission of Alaska.

“People are waiting for energy relief,” Assemblywoman Kelly Brown said. “I don’t believe they need to wait anymore.”

Architects of the plan include municipal officials who belong to the Alaska Gasline Port Authority’s board of directors. The agency is backed by the Fairbanks North Star Borough and the city of Valdez.

They say the trucking operation will result in a 25 percent drop in natural gas prices in Fairbanks and a 6 percent drop in electric bills.

Supporters of the plan, including labor union officials, filled the assembly chambers. Some wore buttons that read: “We can’t wait for energy relief. Approve the plan.”

State Rep. Mike Kelly, former Rep. Hugh Fate and former Fairbanks Mayor Steve Thompson, a candidate for the state house, were among those to testify in favor of the plan.

“I hope you don’t shoot this in the head,” Kelly said.

Former trucker Tim Gunderson urged the assembly to approve the plan.

“I have been listening for 35 years that we are going to get some gas,” he said. “Give us a chance to get some gas.”

Lee DeSpain told the assembly he thinks the plan needs more review.

“Why not get an appraisal of the deal from one or more credible sources?” he said.

Howard offered amendments that would have required an appraisal of the gas company's value.

“Every single time you scratch into the details of this project, you come up with questions,” Howard said.

On the ordinance calling for a public vote on the port authority's involvement, the appraisal amendment failed 2-7. Only Howard and Assemblyman Guy Sattley favored the appraisal.

On the resolution approving the authority's development plan, the appraisal amendment failed 4-5. Assembly members Nadine Winters and Joe Blanchard joined Howard and Sattley in asking for the appraisal.

Up to 80 percent of the propane produced by the project will go to Valdez. The council there has approved the project.

The proposal would require gas treatment plants to be constructed on the North Slope and in North Pole. If the project succeeds, port authority officials say it will support about 75 long-term jobs.

The project is being financed with bonds at no liability to the municipal taxpayers, according to state law and port authority officials.

“My sense is that there are a lot of unresolved issues," Winters said. “I have doubts about this. I hope that I am wrong. I am going to support this simply because there is no public money. There is no liability.”

Contact staff writer Amanda Bohman at 459-7544.
Comments
(45)
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Akfarmer
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August 01, 2010
Industrial hemp a do good product from the past being pushed by those who “MIGHT” be able to plant a few rows of hidden illegal hemp between rows. Such a deal, according to the Canadian Drug Council, Canada’s legalizing of hemp growing is wrought with problems linked to the drug trade. Fact; they are certain species of willow that outperform hemp by far, providing wood pellets for heaters, paper, medicine, plastics, food additives, cloth and a whole lot more and can be grown almost anywhere in Alaska. It’s not shaped like any illegal product, easy cultivated and can be harvested over and over again for biomass energy. Requires no permits and can be operated on small farms as well as commercial operations. Harvesting can be done with a farm tractor and attached rotary mower/ brush rake. A central low cost refining plant provides product and that is that is needed. Profits are great, maintence is low and all ages can participate. Talk to your USDA agent and you’ll wonder why neither it, nor other biomass products is not already being done in Alaska.

Oh! Just for your information, hemp makes very poor rope [available from India, not legal for commercial tied downs or on boats because it is weak amongst other faults], cloth [pulls out of shape and stinks when wet] and biomass energy because of its high water content. But druggies are not going to adapt any other biomass plant other than hemp because it is not legal.

DistantThunder
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July 30, 2010
http://s281.photobucket.com/albums/kk209/DistantThunderbolt/?start=all

...pull my finger
just-saying
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July 30, 2010
Supertramp at 3:49pm: "Any bum can write an article that basically reads like meeting minutes..."

Truer words were never spoken.

.
stopdigging
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July 30, 2010
Two observations, from the perspective of someone who doesn't live in the Fairbanks area:

1) It is amazing to me that the folks in Fairbanks don't realize that the infrastructure to transport vast quantities of gas into the area already exists. It's called the railroad. One end is at tidewater in Whittier and provides easy access to world energy markets. The other end terminates literally a few feet from GVEA's North Pole facilities. A small investment in gas storage and GVEA could tap into nearly any gas market it might choose. Has anyone ever asked GVEA if they have considered bringing gas in via rail? Could this "bridge" project be established for less than $250,000,000?

And by the way, those tracks pass within spitting distance of the idle power plant in Healy that is being acquired by GVEA. Does anyone really think the current EPA regime will allow that plant to burn coal anytime soon? What if competitively priced gas was available via rail? I wonder how difficult it would be to convert that plant and avoid years of litigation? Hmmm...

2) Unless AGPA or FNG have the RCA certificates allowing them to operate a gas utility in Valdez, which they do not, they can truck all the propane in Alaska down there, but they can't set up and operate a utility. Is the big idea to compete with the retail propane businesses already established there? I'll bet those businesses won't be happy to hear that.
Supertramp
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July 30, 2010
Okay, that does make some sense when you talk about the requirements for the Port Authority to operate. But if they're making conclusions for our savings based on an equation where they say that Valdez will be receiving propane, that means that none of the other numbers that come out of that equation can be correct. Just one more way to misconstrue and confuse the numbers. I'm glad to be an Alaskan, but our reporters must start being a little more investigative. Any bum can write an article that basically reads like meeting minutes...
Pipe2Valdez
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July 30, 2010
Supertramp - There is no contract for any Propane to go to Valdez. No real commitment or distribution plan. In fact, there is a good chance Valdez will see zero energy savings, jobs or capital in this project. Pretty poor return on a ten year investment in AGPA if you ask me. The Propane commitment really looks like a lame attempt at meeting the coterminous (end to end) requirements of the state rules that empower the Port Authority. NSB gets more benefit without even being a sponsor. NSB was wise to opt out.
out_in_the_cold
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July 30, 2010
Yep, the Fairbanks borro is putting on the saddle for the pony express. I can see it now, mil rate increase for property owners and sales tax for all the shoppers. And don't forget to plug Santa's sneak hole into the house when your pocket book is empty and there is a chill in the air. HEE-HAW ..
Supertramp
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July 30, 2010
So does the $250 million include the construction process for the two additional refineries that will be needed? Also, what are the details of the contract that provides Valdez with 80% of the propane? Have they received a deal that makes our borough money or cost it money? Sounds to me like if anyone is going to save money, it will be them. If this does go through (Regulatory Commission, please save us) they hopefully will at least have the vision to incorporate the new refineries into a system that can work with any potential pipeline.
Praise_Be
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July 30, 2010
I, for one, am aghast at the open act of violence being condoned by Mr. Kelly. Since when is it acceptable for Christians to talk about shooting anyone or anything in the head? Turn the other cheek, good sir.
just-saying
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July 30, 2010
Lee Despain was entirely correct: An honest, unbiased appraisal is a necessity before acceptance of the offer. It's only common sense!!

Submit Comments to Regulatory Commission of Alaska
FreeLiberTea
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July 30, 2010
Why would supporters of the Second Amendment be protesting a gun sale? Pay attention. Your liberty is on the line here. Alaska should advocate nothing but complete self-sufficiency. Please pick up a free pamphlet at our Tanana Valley State Fair booth and speak with some TRUE representatives of the Interior Tea Party for once, not one of these online fakers.
northpolesanta
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July 30, 2010
well there they go again. public-CANs like kelly pushing their SOCIALIST agenda on america. gov takeover of the private sector.

where are my tea baggers?

will the baggers be protesting this this weekend at their gun sale?

poor poor public-CANs, hard to tell which way you are going these days. you're starting to look like SOCIALIST/NAZI/COMMIE/FASCITS. what would beck-ie or the drug addict say?!?

i guess maybe its not SOCIALISM when it benefits YOUR pocket.

sooooo confusing, the compass of these guys...
Pearl=W
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July 30, 2010
I had really hoped sanity would prevail with the assembly memebers. DeSpain, Howard, and a number of others had it right, even Winters [but went along with the power-push, and voted for it against her own (sound) judgement].

What fools! This kind of purchase price; a secret, unexamined contract for the gas; no assessment of the business being bought [at a very high price] that is independent of those pushing so hard and fast for the deal; no independent examination of the business plan; high interest [junk] bonding . . . .

I have to say, I'm really glad I'm not a GVEA or a FNG customer. I certainly wouldn't want to be stuck with paying off this boondoggle for the next 20yrs.

You vote for people that seem sound and reasonable, have a hx for honesty, and then they get in a group and allow themselves to be swayed by hucksters like Bartos, pressured into conforming with a power-push, hurried into ill-considered action . . . .

I wish I lived somewhere close enough to reasonably consider I could attend meetings, etc.
FreeLiberTea
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July 30, 2010
And your Mother Land, Fairbanks, Alaska, should have taught you that rifles are for hunting moose, not tofu. Take your "California Love" back Outside. Hope you don't lose your Crocs on the trail, hippy. Say hi to TeaPartyPatriot for me.
EnviroLib
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July 30, 2010
They should stop this.

Can you imagine how much exhaust will be pumped into the air from these trucks driving back and forth all day?

If anything, maybe you should start listening to California FreeLiberTea. They could teach you something about saving our Mother Earth.

Better than the WasillaBilly Alaska put into office.
FreeLiberTea
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July 30, 2010
Am I hearing this correctly, TeaPartyPatriot? Outside independent consultant? Which Tea Party do you come from? Go back to California.
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