Printer-friendly versionSend to friend

Attachments: 

Full Presentation

PREPARING FOR THE ALASKA NATURAL GAS PIPELINE:

Coordinating the Approach

Presented Oct. 14, 2009
To the Strategic Northern Infrastructure Symposium
Yellowknife, Northwest Territories

by Drue Pearce
Federal Coordinator,
Alaska Natural Gas Transportation Projects

SLIDE 1: COVER PAGE
THANK YOU FOR THE KIND INTRODUCTION AND BRENDAN FOR THE INVITATION TO BE HERE WITH YOU IN YELLOWKNIFE.
PREMIERS ARREAK, FENTIE AND ROLAND, SEN. MCGUIRE … THERE IS A LONG AND RICH HISTORY BETWEEN ALL OF US WHO LIVE IN AND CARE ABOUT THE NORTH AND WE ARE HERE FOR THESE TWO DAYS BECAUSE WE CARE ABOUT THE ECONOMIC DEVELOPMENTS PLANNED FOR NORTHERN CANADA.
AS AN ALASKAN, IT’S REWARDING TO KNOW THAT OUR TWO REGIONS HAVE SO MUCH IN COMMON, NOT ONLY OUR NATURAL GAS RESOURCES – THE MACKENZIE GASLINE PROJECT AND THE ALASKA PROJECT. BUT BEYOND GAS, YOU MIGHT KNOW THAT WE ALSO SHARE ICE ROAD TRUCKERS. CLICK
SLIDE 2: ICE ROAD TRUCKERS LOGO
FOR THOSE OF YOU NOT FAMILIAR, ICE ROAD TRUCKERS IS A REALITY SHOW ON THE HISTORY CHANNEL THAT CHRONICLES THE TREACHEROUS JOB OF DRIVING TRUCKS OVER FROZEN TERRAIN KNOWN AS ICE ROADS. CLICK
SLICE 3: ICE ROAD TRUCKERS COLLAGE
SEASONS 1 AND 2 FEATURED YELLOWKNIFE LEGENDS. SEASON 3, OF COURSE, FEATURED ALASKA DRIVERS AND ALASKA’S CARLYLE TRANSPORTATION DRIVING THE DALTON HIGHWAY TO THE OIL FIELDS AT PRUDHOE BAY.
THESE ARE MEN AND WOMEN WHO, I MIGHT SUGGEST, DO MAKE THEIR LIVING ON THIN ICE, AND I CAN HARDLY WAIT UNTIL THE SEASON BEGINS FEATURING TRUCKERS HAULING STEEL AND OTHER GOODS TO BUILD OUR NATURAL GAS PIPELINES.
SO, USING A PHRASE THAT A TRUCKER MIGHT USE, IT’S TURN AND BURN TIME FOR THIS PROJECT. I WANT TO TALK ABOUT THREE TOPICS TODAY THAT ARE RELAVANT. CLICK
SLIDE 4: OFC LOGO
AS FEDERAL COORDINATOR FOR THE ALASKA PIPELINE, MY OFFICE IS CHARGED WITH COORDINATING AND EXPEDITING THE WORK OF 24 PLUS FEDERAL AGENCIES – ALL OF WHICH HAVE ROLE IN PERMITTING THIS PROJECT – AS WELL AS WORKING WITH THE CANADIAN GOVERNMENT AND ALL THE STAKEHOLDERS FROM NATIVE GROUPS TO OUR FRIENDS IN THE ENVIRONMENTAL COMMUNITY.
SO TODAY, I’LL TOUCH ON: CLICK
SLIDE 5: OFFICE OF THE FEDERAL COORDINATOR
• WHAT’S GOING ON AT THE FEDERAL U.S. LEVEL AS WE PREPARE FOR THE APPLICATIONS FROM TRANSCANADA/EXXON MOBIL AND DENALI;
• I’LL SHARE HOW MY OFFICE COLLABORATES WITH CANADA’S REGULATORY AGENCIES AND ORGANIZATIONS TO EXPEDITE THE PROCESS; AND,
• I’LL BRIEF YOU ON OUR WORK WITH THE STATE OF ALASKA TO MOVE THIS PROJECT ALONG.
MY JOB AS THE FEDERAL COORDINATOR IS TO IDENTIFY AND DEVELOP POTENTIAL REGULATORY BOTTLENECKS AND EXPEDITE REGULATORY APPROVALS.
WE ARE EXPEDITIOUSLY MOVING FORWARD. CLICK
SLIDE 6: TRANS CANADA AND DENALI LOGOS
FIRST, IN THE COMING MONTHS, AS TRANSCANDA/EXXON MOBIL AND DENALI PREPARE THEIR PACKAGES FOR “OPEN SEASON,” WE’RE WORKING WITH BOTH PROJECTS AND THE U.S. FEDERAL AGENCIES TO IDENTIFY GAPS AND SIMPLIFY THE PERMITTING PROCESS.
TO DO THIS, THE OFC IS DEVELOPING IMPLEMENTATION PLANS FOR BOTH APPLICANTS THAT WILL BE THE ROADMAP FOR EACH COMPANY TO FOLLOW AS THEY HEAD THROUGH THE PERMITTING PROCESS. WE KNOW THAT EARLY COORDINATION MEANS ADOPTING A PROJECT MANAGEMENT APPROACH BASED ON A COMMON UNDERSTANDING AND COMMITMENT TO THE PERMITTING PROCESS.
THE IMPLEMENTATION PLANS WILL ALLOW US TO DO JUST THAT. AND, ON THE FLIP SIDE, THEY WILL ALLOW US TO MAKE SURE THAT ALL FEDERAL AGENCIES COMPLY WITH THE FEDERAL LAW THAT GOVERNS THIS PROJECT.
WE’VE COMPLETED THE FIRST PHASE OF DENALI’S PLAN AND ARE WORKING ON THE FIRST PHASE OF TRANSCANADA/EXXON MOBIL’S. CLICK
SLIDE 7: OFC PROJECTS
WE’RE ALSO DRAWING AN OVERALL PICTURE OF THE PERMITTING PROCESS… A PERMITTING MATRIX…. SO THAT ALL AGENCIES AND BOTH COMPANIES HAVE AN ORGANIZED FRAMEWORK TO REVIEW AND ISSUE PERMITS AND AUTHORIZATIONS.
WE’VE PULLED TOGETHER A TECHNICAL REVIEW TEAM TO DISCUSS AND SHARE ENGINEERING INFORMATION AND EXPERTISE RELEVANT TO CONSTRUCTION OF NATURAL GAS PIPELINE PROJECTS IN THE ARCTIC. THE TEAM INCLUDES REPRESENTATIVES FROM FEDERAL AND STATE AGENCIES.
ALSO ON OUR ‘TO DO’ LIST IS THE DEVELOPMENT OF A PROTOTYPE GEOGRAPHIC INFORMATION SYSTEM FOR A PORTION OF THE PIPELINE ROUTE.
AS YOU KNOW, THE ARCTIC IS NOT WELL MAPPED. IN FACT, THERE’S NO ACCESSIBLE STANDARD SET OF MAPS AND DATA FOR THE PIPELINE ROUTE.
BUT BY THE END OF THE YEAR, WE’LL HAVE INFORMATION ON A 20-MILE STRETCH OF THE ROUTE AT ATIGUN PASS LOADED INTO THE PROTOTYPE THAT WILL ALLOW USERS TO CLICK ANY POINT ALONG THAT STRETCH OF THE PIPELINE AND PULL UP A RANGE OF EXISTING DATA INCLUDING DOCUMENTS, STUDIES AND RESEARCH FROM PRIVATE SECTOR AND GOVERNMENT SOURCES, AND VIEW RELEVANT MAPPING AND REPORT DATA. CLICK
SLIDE 8: GIS PROTOTYPE
THE PLAN IS TO GIVE EVERY AGENCY AND THE PUBLIC INVOLVED IN THE PIPELINE PROJECT USE OF THE SAME GEOSPATIALLY REFERENCED BASELINE DATA THAT SHOWS INFORMATION SUCH AS FAULT AND LANDSLIDE HAZARDS, WETLANDS AND STREAM CROSSINGS. IT ALSO WILL HELP WITH ANALYSIS OF CLIMATE CHANGE IMPACTS ALONG THE PIPELINE CORRIDOR.
IF THE PROTOTYPE IS USEFUL, WE’LL EXPAND IT FOR THE ENTIRE ALASKA ROUTE AND WE HOPE CANADA WILL DO THE SAME FOR ITS PORTION OF THE LINE.
THOSE ARE SOME OF THE PROJECTS ON OUR PLATE FOR THE NEXT SIX MONTHS. CLICK
SLIDE 9: COORDINATING WITH CANADA
PARALLEL TO THE WORK WE’RE DOING ON THE U.S. SIDE IS THE WORK AND THE ENERGY DIALOGUE WE’RE HAVING WITH OUR PARTNERS IN CANADA.
I DO WANT TO TAKE A MOMENT AND RECOGNIZE MINISTER BOB MCLEOD WHO HAS ALWAYS WORKED HARD ON BEHALF OF THE CITIZENS OF THE NORTHWEST TERRITORIES. HE AND I HAVE FOUND OURSESELVES ON THE SPEAKING CIRCUIT TOGETHER, MUCH LIKE BRENDAN BELL AND I DID FOR YEARS. THEY BOTH ARE GREAT ADVOCATES FOR THE NORTH.
I MEET WITH LEADERS ACROSS CANADA REGULARLY AND KNOW THAT OUR RELATIONSHIPS ARE ONES THAT WILL MAKE OUR RESPECTIVE PIPELINE PROJECTS HAPPEN. EARLY RESOLUTION OF ANY CROSS-BORDER ISSUES IS CRUCIAL TO THE PROJECT.
FOLLOWING ADMINISTRATION MEETINGS IN SEPTEMBER IN WASHINGTON, DC BETWEEN OUR TWO COUNTRIES ON ECONOMIC AND BILATERAL ISSUES, I WENT TO OTTAWA FOR A SERIES OF MEETINGS. I CAN TELL YOU THAT THE U.S. EMBASSY HAS A VERY HIGH LEVEL OF INTEREST IN ARCTIC GAS PIPELINES LIKE THE MACKENZIE GASLINE AND ALASKA NATURAL GAS PROJECTS AND IS VERY ENGAGED IN BRINGING THE ALASKA GAS PIPELINE TO FRUITION.
MY GENERAL COUNSEL AND I MET WITH MINISTERS PRENTICE AND RAITT ON PIPELINE ISSUES. WE MET WITH PHIL JENNINGS AND HIS STAFF AT THE MAJOR PROJECTS MANAGEMENT OFFICE [MPMO], OUR COORDINATING AGENCY COUNTERPART FOR THE DENALI PROJECT IN CANADA. WE SPENT TIME WITH PETER SYLVESTER, PRESIDENT OF THE CANADIAN ENVIRONMENTAL ASSESSMENT AGENCY (CEAA), TO DISCUSS TIMELINES, PROCEDURES AND CONSULTATION PROCESS WITH US, AND WE MET WITH DEPUTY MINISTER CASSIE DOYLE AT NR CANADA.
AS I MENTIONED EARLIER, WE’RE CREATING A TECHNICAL REVIEW TEAM TO DISCUSS AND SHARE ENGINEERING INFORMATION AND EXPERTISE RELEVANT TO CONSTRUCTION OF ARCTIC NATURAL GAS PIPELINE PROJECTS. WE HAVE INVITED THE NEB, NPA AND MPMO TO PARTICIPATE.
THE US FEDERAL ENERGY REGULATORY COMMISSION'S [FERC] SCHEDULE TO COMPLETE THE ENVIRONMENTAL IMPACT STATEMENT IS AMBITIOUS, AND WE DISCUSSED THE CANADIAN GOVERNMENT’S PLEDGE TO PARALLEL THE FERC SCHEDULE FOR THE PROJECT'S 1000 MILES IN CANADA.
PRIOR TO MY VISIT, MY DIRECTOR OF PERMITS, SCHEDULING & COMPLIANCE AND OUR ENVIRONMENTAL ENGINEER VISITED WITH SENIOR STAFF WITH TRANSCANADA/EXXON MOBIL, DENALI CANADA AND CANADA’S NATION ENERGY BOARD IN CALGARY, CANADA.
IN MEETINGS WITH THE COMPANIES, THEY WORKED THROUGH SOME OF THE DIFFERENCES IN EACH APPLICANT’S PLAN. FOR EXAMPLE, TRANSCANADA/EXXON MOBIL IS OFFERING A VALDEZ TERMINUS FOR LIQUEFIED NATURAL GAS (LNG) OPTION DURING ITS OPENS SEASON NEXT YEAR, AND DENALI IS NOT. WITH AN LNG OPTION, ADDITIONAL PERMITS MAY BE REQUIRED FOR FACILITIES IN VALDEZ.
IN TALKS WITH DENALI CANADA SENIOR STAFF, THEY DISCUSSED THE LICENSING AND CERTIFICATION APPLICATION PROCESS THAT WILL BE HANDLED BY THE MPMO. WITH TRANSCANADA/EXXON MOBIL SENIOR STAFF, THEY DISCUSSED DETAILS FOR THE FIRST PHASE OF ITS IMPLEMENTATION PLAN. AND, FINALLY, THEY VISITED SENIOR STAFF OF THE CANADA’S NEB TO REVIEW ITS EXPERIENCE IN PERMITTING/EVALUATING ARCTIC CONSTRUCTION PROJECTS. CLICK
SLIDE 10: RIGHTS-OF-WAY
ON BOTH SIDES OF THE BORDER, WE WILL NEED TO WORK THROUGH ISSUES PERTAINING TO THE PIPELINE RIGHTS-OF-WAY.
IN ALASKA, THIS PIPELINE WILL TRAVERSE 750 MILES ALONG FEDERAL, STATE, PRIVATE AND NATIVE ALLOTMENT LANDS.
ON THE CANADIAN SIDE, THE ROUTE IS NEARLY 1,000 MILES LONG. TRANSCANADA, THROUGH ITS CANADIAN SUBSIDIARY FOOTHILLS PIPELINE COMPANY, BELIEVES IT ALREADY HOLDS MOST OF THE ACCESS RIGHTS AND CERTIFICATES NEEDED TO BUILD THE PIPELINE IN CANADA BY VIRTUE OF ITS APPROVALS UNDER THE 1978 NORTHERN PIPELINE ACT. THE NORTHERN PIPELINE AGENCY WILL PROCESS TRANSCANADA’S UPDATED FILING. CLICK
SLIDE 11: PIPE IN GROUND
THE OTHER APPLICANT, DENALI, ALSO PLANS TO APPLY FOR RIGHTS-OF-WAY ALONG THE ALASKA HIGHWAY CORRIDOR THROUGH CANADA VIA THE NEB PROCESS.
CANADA’S MAJOR PROJECTS MANAGEMENT OFFICE WILL OVERSEE DENALI’S APPLICATION PROCESS.
THE LAST ITEM I WANT TO TOUCH ON IS ALASKA’S NEW GOVERNOR AND HIS COMMITMENT TO THE GAS PIPELINE PROJECT. I KNOW THERE’S A LOT OF INTEREST AND SOME CONCERN HERE ABOUT HOW THE CHANGE IN LEADERSHIP IN ALASKA COULD AFFECT THE PROJECT, BUT OUR WORKING RELATIONSHIP WITH THE GOVERNOR AND THE DEPARTMENT OF NATURAL RESOURCES HASN’T CHANGED, AND NEITHER HAS ALASKA’S COMMITMENT TO THE PROJECT. CLICK
SLIDE 12: GOV. PARNELL WITH SEC. SALAZAR + DELEGATION
THE GOVERNOR AND HIS ADMINISTRATION ARE COMMITTED TO WORKING WITH SEC. OF THE INTERIOR SALAZAR AS WELL AS WITH OUR CONGRESSIONAL DELEGATION TO ENCOURAGE JOBS AND ECONOMIC GROWTH VIA THE PIPELINE, AND HE’S BEEN VERY PUBLIC ABOUT THAT.
MUCH LIKE IN CANADA, THERE ARE TWO SEPARATE PROCESSES MOVING FORWARD IN THE STATE OF ALASKA. IN 2007 THE ALASKA LEGISLATURE PASSED THE ALASKA GASLINE INDUCEMENT ACT, THROUGH WHICH TRANSCANADA ALASKA BECAME THE LICENSEE FOR THE PROJECT IN A FINANCIAL AGREEMENT WITH THE STATE.
ALTHOUGH TRANSCANADA AND THE STATE ARE FINANCIAL PARTNERS, THE STATE PERMITTING AGENCY – THE DEPARTMENT OF NATURAL RESOURCES – CONTINUES TO WORK ON BOTH THE TRANSCANADA/EXXON MOBIL AND DENALI PROJECTS.
THE OFC IS ALSO DEVELOPING A SURVEILLANCE AND MONITORING AGREEMENT WITH ALASKA, WHICH WILL LAYOUT THE PROCESS FOR WORKING TOGETHER FROM THE PERMITTING PHASE OF THE PROJECT THROUGH CONSTRUCTION.
THERE ARE SOME ISSUES THAT STAND BEFORE US. CLICK
SLIDE 13: INFRASTRUCTURE AND LABOR
IN ORDER TO CONSTRUCT A MAJOR PIPELINE, IT IS IMPERATIVE TO HAVE THE NECESSARY INFRASTRUCTURE IN PLACE TO STAGE PERSONNEL AND MATERIALS FOR CONSTRUCTION.
IN BOTH ALASKA AND CANADA, THE PROJECT APPLICANTS ARE TALKING TO THE APPROPRIATE AGENCIES ABOUT WHAT BRIDGES, HIGHWAYS, AIRPORTS, MATERIAL SITES AND MAINTENANCE CAMPS WILL BE NEEDED TO SUPPORT TENS OF THOUSANDS OF WORKERS, HEAVY EQUIPMENT AND THE 2.5 MILLION TONS OF STEEL TO CONSTRUCT THE PIPELINE.
IN THE UNITED STATES IT TYPICALLY TAKES 4-6 YEARS TO COMPLETE THE MAJOR INFRASTRUCTURE PROJECTS AND MOST OF THEM MUST BE DONE BEFORE PIPELINE CONSTRUCTION CAN BEGIN. SO ADDRESSING THIS ISSUE DEMANDS EARLY ATTENTION.
IN ADDTION TO INFRATRUCTURE, THIS PROJECT WILL EMPLOY TENS OF THOUSANDS OF WORKERS WITH GOOD PAYING, GREEN JOBS AND WILL CREATE ITS OWN ECONOMIC STIMULUS FOR OUR RESPECTIVE ECONOMIES. CLICK
SLIDE 14: FEDERAL SUPPORT
THERE’S GOOD WILL AND GOOD SUPPORT FOR IT, INCLUDING FROM THE AFL-CIO WHO RECENTLY ENDORSED THE PROJECT AT ITS ANNUAL CONVENTION AND FROM PRESIDENT OBAMA WHO HAS CHALLENGED AMERICA TO COME UP WITH GREEN ENERGY IDEAS THAT WILL TAKE US INTO THE FUTURE.
DECISIONS MADE ON ENERGY IN THE NEXT TWO YEARS WILL HAVE PROFOUND IMPACTS FOR YEARS TO COME, SO IT’S ESSENTIAL THAT WE CONTINUE TO HAVE THE PRESIDENT’S SUPPORT AS WELL AS THE CONGRESS AS ENERGY AND CLIMATE CHANGE LEGISLATION IS CONSIDERED.
I THINK THAT YOU’LL AGREE WITH ME THAT THERE IS AND ALWAYS WILL BE INDUSTRIAL AND CONSUMER DEMAND FOR ENERGY. ONLY NOW, WE ARE DEMANDING THAT SOURCE OF ENERGY NOT ONLY BE RELIABLE AND AFFORDABLE, BUT THAT IT BE CLEAN AND ENVIRONMENTALLY FRIENDLY. CLICK

SLIDE 15: OFC CONTACT INFORMATION
THE OFC KNOWS THE ALASKA NATURAL GAS PIPELINE CAN SUPPLY THE RESOURCES TO HELP MEET THAT GROWING DEMAND AND SO DO OTHERS, EVIDENT BY THE FOUR GLOBAL ENERGY COMPANIES NOW VYING TO BUILD THIS PIPELINE.
FINALLY, THIS PIPELINE REPRESENTS ENERGY AND ECONOMIC SECURITY FOR NORTH AMERICA. IT WILL BE GREAT FOR THE ECONOMY, FOR THE ENVIRONMENT, AND IT'S GREAT FOR NORTH AMERICA.
I AM OPTIMISTIC THAT IT WILL BE BUILT IN PART BECAUSE OF THE BENEFITS IT WILL BRING BUT ALSO BECAUSE OF THE VERY STRONG WORKING RELATIONSHIP THE PROJECT IS HELPING US BUILD BETWEEN THE UNITED STATES AND CANADA. I AM PROUD TO BE ABLE TO CONTRIBUTE TO THAT RELATIONSHIP, TO COUNT ON IT, AND I’M DELIGHTED TO BE TOGETHER WITH ALL OF YOU HERE TODAY.
THANK YOU.