Viewpoints: Letters / Opinions
Alaskans have no meaningful oil & gas rights
By Daniel Donkel
May 20, 2016
I wish all Alaskans better understood the oil business, but it is clear Alaskans do not have any meaningful oil and gas rights like other oil and gas states in the nation do.
I think the smaller oil and gas companies, like Blue Crest, Armstrong, Caelus, Brooks Range Petroleum, and Furie could help Alaskans and the Legislature to learn the best way to open Alaska for real business.
The Fraser Institute ranks Alaska as the least attractive place to explore and produce for oil and gas and Alaska is at the bottom of all oil and gas states in the nation, google it!
I welcome everyone who wants to help make Alaska more productive to call me, let's find solutions by working together as one people and one nation under God!
Our nation has been blessed with Alaska's great oil and gas abundance!
I pray Alaska's oil and gas wealth does not continue to be wasted and lay useless underground because of bad policies and bad laws!
The Senate Finance Committee will decide this month if HB 247 will have to wait until next year when it is understood or pass it now and find it is an as AOGA said, an Atom bomb that will ruin Alaska's economy for decades!
If the Alaska Legislature and Alaskans think the current DNR DOG lease terms and laws are too good as some think then please someone tell me why no one bid in the last State DNR DOG oil lease sale on May 2016 in the Cook Inlet Basin and 2015 Beaufort Sea sale with millions of acres and hundreds of tracts with known oil and gas wells on some tracts? The state is too harsh! No bidders in the state oil and gas lease sales and that coupled with the fact that HB 247 has not even been passed into law yet, what does that say? No one will produce oil if the state of Alaska keeps making things less attractive to oil and gas investors!
The last DNR DOG oil and gas lease sale did not receive one bid on hundreds of tracts offered at all because the Commissioner priced everyone out of the sale and now HB 247 will run all oil companies out of Alaska 24/7! Some people think, Alaska s state government should be on suicide watch. The state is running oil companies out with bad actions and this is HB 247 killing the oil industry. The state could just shoot them self in the foot with the 8,000% increase in lease rentals but it seems the legislature may just shoot themselves in the head thinking it will be less painful finish the oil industry off!
Now some leaders in the state plan run almost everyone out Alaska oil business with HB 247 and then the next legislature will quietly and quickly spend the $ 55 Billion dollar PFD and leave the voters of Alaska with nothing in around five years!
Everyone in the oil business has warned that HB 247 will end Alaska's oil business and cause massive layoffs and TAPS will shut down and many Alaskans will not be able to sell their homes easily to leave the state!
I heard some professors in Fairbanks are already putting their homes up for sale before the legislature even votes on HB 247!
AOGA said HB 247 is like a Atom Bomb that will harm Alaskans!
The state lease sale is killing Alaska's oil income! The old DNR DOG increase the lease sale rentals of 8,000%! Now at a time when oil prices dropped from $ 100.00 to $30.00 dollars per barrel and no one bid in the 2015 sale then the DNR refuses to lower the 8,000 in the 2016 Cook Inlet oil lease sale with this outrageous cost increase! Why won't the new DNR management fix this now? They see no one is bidding so why not lower the terms since HB 247 will guarantee bad results in future lease sale, it can't get worst with no bids!
It seems like the state government can't work hard enough to stop smaller oil companies from competition with the majors and its monopoly!
It just seems the state works overtime to keep Alaskan's & smaller oil and gas competitors out of Alaska's oil and gas lease sales, why? Is the state rigged?
Last year, I asked The DNR DOG Director in writing to go back to the old rental cost but acting DNR DOG Director Paul Decker said no and as a result once again no one bid in the Cook Inlet sale on May 2016, I would have bid if the DNR DOG would have lowered the 8,000% increase in this month's oil and gas lease sale!
I asked the DNR many times to lower the 8,000 % rental increase and other harsh terms but they refused.
I testified and gave public comment to the Alaska Legislature both in the House last month and the Senate about this 8,000% increase that apparently was aimed to price the smaller oil and gas competitors out of Alaska's DNR DOG oil and gas lease sales. Why not drop the 8,000% increase when no one bid in the last oil and gas lease sale?
Do you think the DNR DOG will change and make terms more attractive? Why would the legislature give the DNR DOG any budget, when they clearly run money away from the state Treasury?
These many monopoly tactics used to price competitors out of Alaska's oil business hurt everyone! I feel that is why Alaska's Governor Palin had to give the ACES credits to get smaller oil and gas investors and overcome years of corruption, remember many legislatures when to Jail when she took on big oil!
Because of Gov. Palin's support of the smaller oil companies I was able to bring new oil and gas companies to Alaska, like APACHE who bought around 200,000 acres from me and much more from the state! I feel After Gov. Palin left I feel bad management took over and APACHE left because of DNR DOG harsh unit denials and other abuses and other bad state treatment in favor of the majors!
The big oil monopoly in Alaska and these bad Agency abuses are clearly why no one bids or invest even before HB 247 gets approved, which will be like increasing the cost to invest in Alaska 80,000 % instead of the DNR's 8,000% lease sale rental increase! It is insane!
These many bad state oil and gas policies and actions show that clearly Alaska is very unattractive to Alaskans or others oil and gas explorers! If things were good at least one of those tracts in the DNR DOG lease sale with proven oil and gas would have got a minimum bid in these lease sales! No one bid in either of these lease sales with 1,000 to over 8,000% increase in rentals, it is crazy! What is Governor Walker telling the DNR DOG and why did DNR DOG Commissioner Mark Myers leave this month when Governor Walker disagree over so much and HB 247 was being pushed on him? The Truth will come out so wait on HB 247 before it is too late to save Alaska and the PFD!
Please see my link at donkeloil.com. I have invested in Alaska's oil lease sales since 1983 and I love Alaska and the many interesting people I have become friends with over the decades.
In the 1990's I owned Redoubt oil and gas field and found Forcenergy and got them to get this old AMOCO 1967 discovery into production!
All Alaskans have enjoyed 16 years of royalty oil income to the state and the Permanent Fund Dividend from all the oil that came on line since 2000 thanks in part to my efforts. Alaska needs more Alaska people in the business getting oil into production, so Alaska can prosper!
Paul Craig, Bruce Webb, Pat Foley, David Boelens and many more Alaskans bring more oil to the PFD and HB 247 will end it for all!
Alaska needs more people like me to get more oil in the PFD so Alaskans can enjoy more money!
Bill Armstrong may find another Prudhoe Bay and Kuparuk if he stays and explores and gets lucky!
He is a great oil man and it only takes Bill one wildcat oil well to find a GIANT OIL FIELD, so let people like Bill Armstrong and do everything to make Alaska the most attractive place to find and sell oil at a profit so Alaskans can be the richest people on Earth from royalty income!
I have helped caused new oil production and never received a credit or any money from the state but I made the state lots of money! Most Alaskan oil worker know that I have fought against the big oil monopoly in Alaska and the a few bad apples that work in the oil and gas agencies that are in bed with big oil!
Call me anytime if you want to help make Alaska better or maybe someone can help me drill our leases at Stinson and Hemi Springs and make money now! I think we have over a billion barrels of oil and I have reports to show oil companies that want to help me make Alaska more productive!
I am looking for a Giant oil discovery in Alaska not Texas, please help me, I have 88,000 acres of DNR DOG leashes I bought before they went crazy and raised the rent 8,000% when oil prices crashed 70%!!
I am trying to get my Alaska oil and gas leases drilled and online at Stinson and Hemi Springs both are old oil and gas discoveries on the North Slope!
I believe we can make money for me and the state if we can get a permit to drill but that is 76 times the mean higher than the average lower 48 state cost. Even with all the DNR DOG, AOGCC, DEC and many other harsh rules and bonds and laws suites that lay ahead I feel we can find 1 billion barrels at Stinson and Hemi Springs!
I believe it should be a mutually beneficial deal but so far it is a one way street and that is why Alaskans don't drill and produce they know the state and big oil rigged the system! Let's fix it! I love Ray Metcalf and his noble efforts but we have to understand why things are as they are!
I don't want these credits I just the state oil and gas agencies to help and not harm oil and gas production efforts!
HB 247 Tax laws will run most out of Alaska oil business in favor of the Majors! I was against SB 21just ask anyone and I also offered the 777 Plan! Now HB 247 is a big trick that will hurt the smaller competitors and all Alaskans. Read it!
Wait until next year and pass a law that you know what is in, this House Bill 247 will run all oil and gas companies out of Alaska 24/7 and Alaska will have to live off the PFD until it's gone in a few year! No More PFD check for anyone, so sad!
If Alaska would use its $8 billion the oil companies provided under law the state can pay this $ 4 billion shortfall because of the Saudi oil flood and keep Alaska oil workers paying 90% of the state bills and pays for the PFD and the CBR!
HB 247 kills Alaska lets fix the oil laws next Session and be smart and not lay off 130,000 Alaskans oil workers and others that benefit by getting PFD checks each year!
Received May 17, 2016
- Published May 20, 2016
About: Dan Donkel has been working in Alaska since 1985 and during this time his oil companies have owned over 1 million acres of oil and gas interests.
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