Ralph Klein has gone and it is time to retire Ralph's World. Thanks to all of you who have supported this venture by contributing material and through your comments. It has been fun.

Should we get another blog underway? Let me know your thoughts by e-mailing me at johnnyslow@gmail.com.

John Slow
January 1, 2007

Saturday, April 30, 2005

Understanding the Mackenzie valley pipeline will cost Alberta Taxpayers. 

John Clark
Edmonton, AB
April 30, 2005

Ralph was talking McMurray Railroad and planning MacKenzie (Hay River) rail. A champion of misdirection. Then, he says "No new McMurray railroad" but says nothing about his real target, Hay River.

The jewel in the Arctic gas lies in the ethylene to be extracted from the gas to support the plastic industry. Laws were put into Alberta natural resources which allowed the Government to strip ethylene from the gas, giving it to NOVA declaring that ethylene was not part of the “natural gas contract”.

Where the pipeline goes will dictate who gets the ethylene and how much do they get. At the table the oil and gas Exploration Company and the pipeline company with the Alberta Government looking over their shoulders like you would expect in a bad poker game.

On the other side of the table are the natives of the Mackenzie River valley who have limited sources of income. They do not want to be trapped into a deal like Albertan’s have, the lowest royalties in the world! They see themselves not as six native tribes who are land owners but as an empowered although not recognized government body. They are holding out for a larger, more reasonable cut of the profit.

As part of the bid or play, the oil/pipeline companies are saying they will need a new railroad into Hay River NWT as the existing rail does not have the capacity to move a pipeline. (Keep in mind Ralph and company looking over their shoulder and Ralph’s recent news break saying no rail road to McMurray which has nothing to do about anything; you can bet that Ralph is still looking at railroad).

Sitting at the next poker table is the USA, BC and the Alaska natives. A good old boy’s game, the USA is telling BC they can deliver the Alaska native approval for an Alaska/BC pipeline; no problem. The US will keep most the ethylene.

If this happens and it is likely it will, BC will harvest a share of the essential ethylene. My information is they (BC) are willing to accept much less of a cut of this essential than Alberta would demand from the Mackenzie line a boost for BC plastic industry.

Of course, the USA hand is showing a “give up no ethylene”.

Ethylene is turned into resin a secondary manufacturing scheme which Alberta has restricted with supply to NOVA. Most Alberta food plastic manufacturers buy their resin from the US!

A recent appearance of the Fort Simpson NWT representative on CBC telling the Federal Government to get involved is not boding well for a Mackenzie deal. I think they are asking for the Feds to couple with Alberta in building that railroad. At the heart of this is time. Just how long will it take the US to sign on BC and the Alaska Natives? Not long I’m afraid and with Harper’s messing around it will more than probably go to BC! With the competence of the Alberta Conservatives and the Federal Conservative untimely stirring for self gratitude; it is practically assured.

Uncertainty is deadly. When Dome was building Tarsuit (arctic man made island) they declared the inland transportation system was not dependable. Hence, a lot of the pipe and materials were manufactured in Korea and transported by barge into the Prudhoe area. History has a way of repeating its self!

John Clark

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