The US/Canada softwood lumber dispute is getting tangled up with the proposed Alaska natural gas pipeline. See item below in bold...
Canadian portion of pipeline could create delays
ktuu.com
Tuesday, November 1, 2005 - by Bill McAllister
Anchorage, Alaska - Alaska Gov. Frank Murkowski met with the premiers of three Western Canadian provinces Monday about ways they can jointly expedite a gas pipeline along the Alaska Highway. But the issues still to be resolved in Canada are at least as complicated as those facing Alaska.
Murkowski traveled to Vancouver Monday for his meeting with Alberta Premier Ralph Klein, British Columbia Premier Gordon Campbell and Yukon Premier Dennis Fentie. The four leaders agreed to develop a strategic action plan to head off potential delays with the Alaska Highway gas pipeline once it crosses the border into Canada. But the Canadian premiers cannot deliver that portion of the pipeline on their own, and might face opposition from their federal government.
Murkowski is still waiting to hear from two of the three North Slope producers on a proposed contract for a gas pipeline along the Alaska Highway, but he has started to look at the issues that lay beyond that.
“As we approach finalization of a gas pipeline agreement, the governor wants to turn his attention to the other side of the border to address some of the issues on the Canadian side,” said Becky Hultberg, governor's press secretary.
“The Canadian political environment, particularly on a national level, is quite uncertain at this point,” said Sen. Fred Dyson, R-Eagle River (right).
Dyson is a native of Canada who still has family there. He has twice traveled to Ottawa to meet with federal officials on the prospects for a gas line.
“The huge issue right now in Canada is the softwood lumber issue and they believe that the U.S.’s surcharge on Canadian lumber is illegal, and they have two or three NAFTA rulings on that,” said Dyson.
That trade dispute has spilled over into the gas line issue, with a prominent Canadian calling on the federal government to block the project.
“Progress on the Alaska gas pipeline should cease,” said Thomas Axworthy, a former cabinet minister.
Also, Canadian companies TransCanada and Enbridge Inc., face potential litigation over whether TransCanada's permits from the 1970s give it exclusive rights to build the Canadian portion of the line. In addition, aboriginal claims along the line route have not been resolved. There is a proposal to build a different gas line from the Mackenzie Valley in the Northwest territories.
“That's just the nature of the business of building pipelines,” said Chuck Logsdon, Murkowski gas line advisor.
Logsdon says the problems in Canada can be overcome.
“I think we've got a pretty good start. I wouldn't want to deny that there isn't some work to be done,” said Logsdon (right).
The Alaska Gasline Port Authority, which wants to build an in-state project to tidewater, warns about the uncertainty in Canada.
“We're not opposed to a Canadian line. We’re opposed to a Canadian line holding up an Alaskan line that's ready to go now,” said Bill Walker, Alaska Gasline Port Authority.
While Alaskans have been focused on negotiations between Murkowski and the producers, events across the border could make or break the project.
KTUU-TV was unable to obtain comment from Canadian federal officials Tuesday. Dyson says the Western Canadian provinces are not unlike the Western states of the Sagebrush Rebellion, in that there is antipathy for the federal government, whether it's in Ottawa or in Washington, D.C.
ExxonMobil CEO Lee Raymond said earlier this year that the Mackenzie Valley project should happen first, which upset some Alaskans. A lot of people want both projects to happen, but Dyson says there aren't enough pipe welders or steel mills in the world to allow them to build them simultaneously.
Walker says an all-Alaska project actually helps the highway line, because it would create worry in Canada about missing a market opportunity.
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