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Must Read Alaska’s Christmas Vacation

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Dear Reader,

371 days without a vacation is long enough. It’s time to go sledding!

Must Read Alaska will be off the grid for a couple of weeks, returning in early January. I won’t be checking my messages starting Dec. 19. Yes, it’s going to be a cold-turkey kind of deal.

I appreciate all of the readers of Must Read Alaska. I value the advice, the words of wisdom, and the friendly criticism. I even appreciate those who send me notes with the subject line of “Typo.” Thank you! You’re a great editor!

I am grateful to regular senior contributors Win Gruening and Art Chance, as well as the guest contributors and subject experts who give readers different perspectives on the issues of the day.

And thank you to all of the supporters of Must Read Alaska for making it all possible. And the tipsters!

There will be plenty of news over the holiday, and I expect there will be some mischief. For now, however, the Must Read Alaska news site will look pretty much how it looks right now, without the daily updates.

JOIN ME IN READING

I’ll be reading a book over the holidays and encourage you to read along: Atomic Habits by James Clear. It’s about how to improve by 1 percent each day.

British Cycling had only won a single Olympic Medal since 1908 and had not won the Tour de France in the 110-year history of the race, when it hired Dave Brailsford as its performance director. He implemented a strategy he called, “the aggregation of marginal gains,” the idea that a tiny margin of improvement in your habits can be like compound interest in savings.

If you’re of a mind, please read along with me and go for the “37.78 percent better” by this time next year. Meanwhile…

Merry Christmas, Happy New Year, and Happy Holidays!

See you on Jan. 8!

~ Suzanne
Must Read Alaska

Liberty lawsuit contends project is ‘ignoring’ climate change

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EarthJustice, a perpetual lawsuit filer based in San Francisco, found fault with the federal government’s environmental impact statement approved for the Hilcorp Liberty project.

That proposed project is an offshore Arctic oil development being built in an area that is 6 meters deep in Foggy Island Bay, six miles offshore in the Beaufort Sea.

While no final investment decision has been made, Hilcorp proposes to build a gravel island to host a drilling operation. There are 18 of these drilling islands in Alaska, and this one has an expected production lifespan of up to 20 years.

Hilcorp is the lead company in Liberty, the largest undeveloped, light-oil reservoir on the North Slope, with an estimated 80-150 million barrels of recoverable oil. The peak production is expected to be between 60,000 and 70,000 barrels per day, within two years of initial production.

The field has a life expectancy of 15 to 20 years, and first oil is expected in 2023. Oil from Liberty would be piped into the Trans Alaska Pipeline System, where it would be subject to State royalties and taxes.

The fault with the project? It ignores climate change, say the lawyers of EarthJustice, which was formerly called the Sierra Club Legal Defense Fund.

Ignoring climate change is not only not provable, it’s not illegal in the United States. It’s like saying that the environmental lawsuit group ignores its lawsuits’ damage to Alaskans, their jobs, families, and the state’s economy. Again, not provable and not illegal. Winning such an argument in court would, as a result, make ignoring climate change subject to legal sanction.

EarthJustice says the approval of Liberty’s environmental impact statement also violates federal laws because, in essence, the government’s logic for approving the EIS was flawed.

[Read: Bureau of Ocean Energy Management’s Liberty project description]

The lawyers assert that the project was rubber stamped by the federal government.

But was it rubber stamped?

Liberty began in 1982 with Shell Oil, and has a 36-year history of documentation attached to it. Hilcorp acquired the project from BP in 2014, after BP decided to put it on the back burner, in spite of the 150 million million barrels that could be recovered.

Hilcorp now has a 50 percent stake in the project, with BP retaining 40 percent and ASRC owning 10 percent.

The record of decision on the environmental impact statement was issued in October, 2018. Construction will require many more permits, and every single one of those will draw an EarthJustice lawsuit. If Hilcorp can run the litigious gauntlet, construction could start in 2020. First oil in 2023 means a project that will have been fighting lawsuits for 41 years.

The litigants also are challenging the project because they say it will endanger “imperiled polar bears.” Beaufort Sea-based polar bears have been in decline but scientists have linked that to the presence of fewer seals in the Beaufort, not to thinning ice.

The Hilcorp drilling platform includes an underwater pipeline that the litigants say is an oil spill risk that threatens wildlife and Arctic communities.

Recently a group of children sued the State of Alaska for its energy policy, saying the State was violating their constitutional rights by putting fossil fuel production above the safety of their lives. That climate change lawsuit was dismissed by a Superior Court judge and has been appealed to the Alaska Supreme Court. Our Children’s Trust is a national organization that is planning to sue governments over climate change in all 50 states.

Suing over climate change is a relatively new, but growing legal specialty that is based on speculation. Is oil production good for children or bad for them?

The Liberty lawsuit and the children’s lawsuit are weakly constructed and will likely lose. But the environmental justice industry hopes one of these lawsuits, or a part of a lawsuit eventually sticks and becomes case law upon which more lawsuits can be filed and won.

If the goal is to shut down the oil industry, such an outcome would also shut down Alaska’s natural gas potential, the entire Alaska economy, as well as the economy that is booming across the West due to new oil production technologies.  The United States this year surpassed Russia and Saudi Arabia and is now the world’s largest crude oil producer. Climate change lawsuits can only be successful if oil is somehow classified as an illegal substance that must be kept in the ground.

Must Read Alaska is going on vacation for two weeks and will return in early January. Thank you for reading and sharing this news site!

Doing what your supervisor tells you? Unfashionable in State government

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THE DEEP STATE LIES IN WAIT FOR APPOINTEES

By ART CHANCE
SENIOR CONTRIBUTOR

Craig Medred, whose columns are among the few strictly Alaska blogs I read with regularity, has a good piece on the history of appointments in the Department of Fish and Game and specifically on Gov. Mike Dunleavy’s appointment of a new interim commissioner, Doug Vincent-Lang.

Lang is a career biologist in the department and the first person appointed as commissioner from the sport fishery side.

Fish and Game is long dominated, both politically and financially, by commercial fishing interests. Interestingly, Gov. Mike Dunleavy has made other appointments in ADF&G that come from more user-oriented backgrounds.

The Commercial Fisheries Division is the 800-pound gorilla. Nobody in the division would say anything to Craig Medred on the record, but he reports some rather colorful off-the-record comments about the new commissioner.

I know all about surly silence from State bureaucrats; it means they hate you but haven’t figured out how to take you out yet.

Here’s the money quote describing the new commissioner; it represents Gov. Dunleavy’s second greatest challenge behind finances in successfully running State government:

“’He has a penchant for doing what his supervisors tell him, and that skill has been increasingly marketable in the Department of Fish and Game since Frank Murkowski became governor in 2002,’ newly retired Anchorage area wildlife biologist Rick Sinnott wrote in the Alaska Dispatch at the time.”

That statement isn’t true only in the Department of Fish and Game — it is true throughout State government.

There is very much a “deep state” in State government and it is a force unto itself.

I’ve derisively referred to them as the “congenital ‘crats,” others call them the “shape changers;” they’re the people who can remain in or near appointive positions through administration after administration regardless of policies or ideology.

Some are just amoral technocrats; they’d have made good SS majors as they would carry out any order with ruthless efficiency without a thought for the legality or efficacy of the order.  Others are truly vile manipulators and liars, the true shape changers who go from administration to administration feigning at least a grudging loyalty while looking for ways to do well by “doing good.”

Most are at least somewhat aligned with the Democrats but that is true of most State employees; it’s a lot safer if you have job with any authority to at least be on speaking terms with the Democrats and when they make the ritual after the election fund-raising visit to Juneau, whip out your checkbook.

It is only sort of safe to openly be a Republican in State government when you have a Republican Governor and you’d best be on call in some help terms with the governor because they’re coming for you.

Long-time, high-level State employees have a penchant for NOT doing what their supervisors tell them to do, though some are very good at making it look like they are.

The worst I ever saw it was in the Steve Cowper and Walter Hickel Administrations.

In the Cowper years, a lot of the high-level bureaucrats and appointees were 30-somethings hired under Govs. Jay Hammond or Bill Sheffield.

Cowper brought some of his own, but since practically everybody was at least nominally a Democrat he kept them on and often paid the price with astounding disloyalty.

The State was broke and we desperately needed concessions from the unions; we couldn’t even get the support of major portions of the administration to seek concessions.

We had people walk off bargaining teams because they wouldn’t support the governor’s objectives.

We had very high-level people who couldn’t be included in discussions of bargaining strategy and tactics because they were a direct pipeline to the unions.

It was made worse by the fact that the unions were fighting amongst themselves and the State was taking sides, though not as a matter of policy but out of personal animosity between high-level players in the unions and the State.

We kinda’ sorta’ held the line, but never really achieved any savings except by gutting the capital budget, wrecking the private economy, generating a lot of hate and discontent, and fundamentally changing the nature of politics in Alaska by putting all State employees save the Troopers in AFL-CIO unions, making State employees the most powerful force in the AFL-CIO, and thus public employees the most powerful force in Democrat politics.

In one of my very few forays into insubordination I back-channeled a memo to the governor asking him to step in and stop us from helping ASEA decertify APEA. I don’t know if he ever saw it, I know he didn’t stop us, and my boss looked at me cross-eyed for awhile.

It only got worse under Hickel. The Hickel people thought it was still 1968 and the Democrats were their friends across the aisle with whom they had a few minor policy differences. They didn’t realize that these weren’t their fathers’ Democrats; these were 30-something children of the Sixties, many of whom had carried around a copy of Mao’s “Little Red Book” in their pocket in college.

I’ll never forget walking back from Gov. Hickel’s swearing in at Centennial Hall in a group of appointees and direct reports. A woman appointee married to another appointee (remarkably for Juneau they both had the same last name) summed up her view of the new government: “This is going to be like asking your parents for the car keys again.”

The holdovers simply went to war with the Hickel people and programs. The ‘crats and unions almost immediately chased a Hickel appointed director out of the Department of Labor. I watched as my director set up the commissioner by helping write and approve a memo on vetting new hires. That memo and vicious criticism of it was on the front page of the Juneau Empire and Anchorage Daily News practically before the ink was dry.

I watched that director and another holdover director go for the gold as they set up and took out two commissioners.

ASEA/AFSCME now represented our largest group of employees and they were still in the hands of national staff.   If you’ve ever wondered what happed to all the SDS radicals of the Sixties look no further than the offices of the big public employee unions in the Eighties and Nineties.

The leather-bound hornbooks, treatises, and reporters gathered dust as we studied Lenin, Mao, Trotsky, and especially Saul Alinsky.  It was open war on our supervisors and managers and the Hickel administration was so averse to any controversy that they really didn’t offer much protection from union/leftist attacks on either their appointees or supervisors/managers carrying out their policies.

The grievance traffic skyrocketed; we had a professional staff of six or so at the time and at times we had nearly a thousand active grievances. I practically lived before the Alaska Labor Relations Agency dealing with bargaining questions and unfair labor practice complaints.   If you look at the ALRA’s decisions in the ‘80s and early ‘90s, you’ll see my name on many an “appearance” line.

It  got worse in the Knowles Administration.  While we were beating ASEA like a rented mule in collective bargaining, they went out and bought themselves a governor.  ASEA went from racked-and-stacked for decertification to controlling the State’s labor relations policy.  Knowles first commissioner of administration waddled into our office and announced that he’d campaigned for the job with the unions and had promised them he would replace us all with people acceptable to the unions. He never got to keep that promise and in one particularly heated encounter I jeered at him that I would be going to his going-away party. I didn’t but I was there long after he was gone.

Alaska got pretty close to the old Soviet saw about how “they pretend to pay us and we pretend to work.”   ASEA made life a misery for State supervisors and they got no support so they just stopped supervising; there’s no point in trying to discipline a poorly performing employee if the only result is the supervisor getting in trouble.   The more favored unions didn’t need grievances; they had the commissioner’s phone number.

But you can always count on lefties to overplay their hand. By the last couple of years, even the Knowles administration, once a wholly-owned subsidiary of ASEA/AFSCME, had had it with their union friends and understood that it was impossible to make them happy and have peace; they didn’t want peace; they wanted Trotsky’s never-ending revolution.

They made the mistake of attacking some Knowles appointees and for one of the very few times in my career I was allowed to cry “Havoc” and let slip the dogs of war. I made smoke and noise, broke things, and left a series of career-ending events in my wake as I took out a bunch of self-anointed radicals who thought they were untouchable. The silence was deafening.

When Frank Murkowski came into office, we resolved to keep it quiet on the labor front and it took a bit of whack-a-mole with self-styled radicals. But pretty soon peace broke out all over, supervisors were free to once again supervise and to get back to having employees doing what their supervisors told them to do, a quality that became increasingly marketable in State government.

I’m afraid Gov. Dunleavy is going to have to rebuild some of that marketability.

Art Chance is a retired Director of Labor Relations for the State of Alaska, formerly of Juneau and now living in Anchorage. He is the author of the book, “Red on Blue, Establishing a Republican Governance,” available at Amazon.

12 hope to be next Muni Assembly person for Eagle River, Chugiak

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A dozen people applied to be named the interim Anchorage Assembly member from Eagle River and Chugiak. One will be chosen on Thursday during a special Assembly meeting.

Applicants are seeking to the seat vacated by Amy Demboski, who took a position with the Dunleavy Administration. Of the 12, two are Democrats, six are Republican, two are nonpartisan, and two are Undeclared. Demboski was a Republican and the area of Anchorage leans heavily conservative.

The applicants, along with their political party designation (the seat is nonpartisan):

  • Oliver Schiess, who ran for state Senate earlier this year. Democrat.
  • Gretchen Wehmhoff, vice-chair of the Birchwood Community Council. She has run for state House and Assembly in the past. Democrat.
  • Bill Starr, former member of the Assembly until 2017, serving for nine years before being term-limited. Republican.
  • Nick Miller of Chugiak, owner of a marijuana store and board member of the Alaska Alcohol and Marijuana Control Board. Republican.
  • Elaine Hedden,  Eagle River business owner. Republican.
  • R. Scott Williams, retired U.S. Marine Corps fighter pilot, and Air Force veteran. Republican.
  • Eugene Harnett, a former liaison for the Eagle River Community Council to the Federation of Community Councils, ran for state House this year. Works in public relations. Republican.
  • Elisa Snelling, Anchorage School Board member, second term. Accountant. Republican.
  • Will Earnhart, former member of the Anchorage Planning and Zoning Board, former chair of Board of Examiners and Appeals. Licensed attorney. Nonpartisan.
  • Matt Cruickshank, Chugiak/Eagle River, member of the Birchwood Community Council. Nonpartisan.
  • Sharon Gibbons, Eagle River. She has run for the Assembly in 2014 against Bill Starr. Undeclared.
  • Blake Merrifield, Vice President of the Chugiak Community Council. Has previously run for Assembly and state House. Undeclared.

The Anchorage Assembly will convene a public meeting on Thursday from 2-4 pm to interview the applicants, and will choose one of the applicants after the public meeting, from 4-6 pm. Meetings are held at the Loussac Library. The successful applicant will have the seat until the April municipal election.

ProPublica’s ‘moral force’ backers

THE ANCHORAGE DAILY PLANET

The Anchorage Daily News announced the other day it would be partnering with ProPublica – an investigative reporting organization that is the brainchild of left-leaning, Bay Area billionaires and former mortgage bankers Herb and Marion Sandler.

The ADN reported it was one of 14 newsrooms across the country to be picked from among 215 applicants for ProPublica’s Local Reporting Network in 2019. The New York-based, Pulitizer Prize-winning organization’s local reporting program, launched earlier this year, provides investigative and accountability reporting support at local and regional levels, the newspaper stated.

This year, with seven newsrooms involved, Propublica’s selected newspapers pursued a wide range of reporting projects. In 2019, with seven more, the focus will be on state government and politics, the ADN says.

Says the state’s largest newspaper: “ProPublica editors will provide support to Daily News staff members on reporting throughout the year. The organization, which bills itself as an independent, nonprofit newsroom with 125 employees, will underwrite the salary of ADN Special Projects Editor Kyle Hopkins for the year.”

For its part, ProPublica’s senior editor Charles Ornstein says he is “excited to pursue another year of investigative projects with moral force,” the ADN reports.

That is nice, we suppose, but we wonder exactly whose moral force is he talking about?

The Sandlers’ Golden West Financial Corp. “allegedly targeted subprime borrowers with “pick-a-pay” mortgages that left negative-amortization dupes owing more after each payment,” says Ron Arnold, executive vice president of the Center for the Defense of Free Enterprise, in a Washington Examiner column.

[Read more at The Anchorage Daily Planet]

Dec. 16: Alaska exceeds 50,000 earthquakes in 2018

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Another milestone for Alaska: 2018 marks the first time the state has recorded 50,000 earthquakes in a calendar year. As of tonight, more than 50,036 earthquakes were recorded by the Alaska Earthquake Center, which has an earthquake counter at the bottom of its page.

Today’s largest quake so far was 4.2 magnitude. It was the largest in days and was centered 19 miles northwest of Anchorage in the Big Lake area, in the same general location as the 4.8 aftershock that occurred Dec. 9.

At least 4,000 aftershocks have been recorded since the Nov. 30 earthquake. At least two dozen of them have registered over 4.0.

 

Matt Shuckerow named Dunleavy’s press secretary

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Matt Shuckerow is becoming the press secretary for Gov. Mike Dunleavy, starting Jan. 2. He will be leaving the staff of U.S. Sen. Dan Sullivan, where he occupies the same role as deputy communications director and spokesman.  He is also the former communications director and spokesman for Congressman Don Young.

Born in Kodiak, Shuckerow grew up in Anchorage and went to Dimond High School. His college years were spent at the University of Nevada, where he graduated with a bachelors degree in journalism.

Shuckerow worked for Sen. Lisa Murkowski for over three years in a variety of roles, including press secretary.

He has also commercially fished for salmon in Prince William Sound.

With his work for the entire Alaska delegation, he has traveled extensively throughout the state and has a close working knowledge of Alaska and its many nuanced issues. His family lives in Anchorage, where they own a business.

Shuckerow will be the primary contact for all news media inquiries and requests in the Dunleavy Administration and said he looks forward to returning home to work with Alaska’s press corps.

 

 

 

 

Taking a few days off – Dec. 19-Jan. 7 to recharge my batteries. Thanks for your support!

AK-LNG & ASAP: A citizen considers risks of continuing government ownership

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BY DAVE HARBOUR
NORTHERN GAS PIPELINES

How would you cope with the smorgasbord of problems/challenges Gov. Mike Dunleavy assumed upon being sworn in this December?

Some of the challenges blocking Alaska’s road to economic recovery include: a fiscal crisis and annual budget deficits, billions of dollars in state employee unfunded pension liability, the highest unemployment rate in the nation, an amazingly burdensome array of “entitlement” programs, high utility rates and one of our country’s most ineffective state educational systems.

On Gov. Dunleavy’s list of challenges, is the question of what to do with the government owned, Alaska North Slope (ANS) natural gas monetization project, AK-LNG.  Should he let it quietly go into the night and allow its current funding to lapse?  Should he try to terminate the project as soon as possible and reclaim remaining dollars? Or, should he support continued public funding of the effort to create a profitable, government-run natural gas/LNG hybrid transportation project for export and for intrastate use?

Since Gov. Dunleavy will seriously consider the opinion of citizens when making such critical decisions, it may be of some value to review the risks involved in continued government ownership of this project.  After fully considering these and other matters, citizens might feel more qualified to offer their legislators and the Governor valuable counsel.

The previous Alaska administration led the effort to expropriate the AK-LNG project from private parties when those parties, the three major ANS producers, concluded that it was not time to move the project forward.

While the administration expropriated [1, Scroll down for end notes] the project, the three producers did not object.  After all, from that point forward, they would be “off the hook” should an apparently uneconomic project fail to attract either/or gas purchasers and financing.

In short, the administration led the citizens of Alaska into an uneconomic, risky, tens of billions of dollars energy project in the midst of a state fiscal crisis because the past governor was proclaiming it would be Alaska’s financial “get-well card”.

At the time, we tried for our local and international readers to inventory the risks of such a venture.

[Read this column in full at Northern Gas Pipelines]

Fairbanks throws The Party of the Year for the new governor

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Gov. Mike Dunleavy roared into the Fairbanks Inaugural Celebration Sunday night on a 2019 Can-Am XMR 1000 all-terrain vehicle.

Lt. Gov. Kevin Meyer was right behind him on a Can-Am Defender XMR side-by-side, with two ladies on board. It was quite the entrance.

Over 800 Fairbanksians attended the Carlson Center celebration to greet the new governor and lieutenant governor and their wives, Rose Dunleavy and Marti Meyer, both of whom were on the Can-Am side-by-side with the lieutenant governor.

In addition to a photo booth with a reindeer and another photo booth for portraits with the governor, there were dog sled rides outside, ice sculptures, and lots of activities for children.

What knocked everyone out was the program. Emcee Craig Compeau kept it light and moving along. Jim Sackett, director of the Fairbanks Office of the Governor, introduced Dunleavy and Meyer.

The Interior Athabaskan dancers gave a dance and drum performance.

Craig Compeau, emcee of the Fairbanks Inaugural Celebration.

Singer-songwriter David Wilcoxson sang a version of Lee Greenwood’s song “I’m proud to be an American,” but the words were: “I’m proud to be an Alaskans,” which brought the house down, especially the line about being “twice the size of Texas.” A former music teacher who is retired from the Fairbanks North Star School District, Wilcoxson is always in demand for his version of the National Anthem at Nanooks Hockey Games.

Popular Fairbanks singer Willa Watts sang the Alaska Flag Song and everyone joined in; she also led the crowd in singing happy birthday to Glenn Hackney, surprising the icon of Fairbanks, who turns 94 on Saturday.

As he arrived in the arena, Gov. Dunleavy found a very welcoming crowd. Even Democrats Don Gray and Scott Kawasaki attended and appeared to have a good time, along with a smattering of other Democrats.