Friday, July 4, 2025
Home Blog Page 1667

Governor rejects lease plan: Updated

GOVERNOR REJECTS PRUDHOE PLAN

THE VENEZUELA PLAN INSTEAD

Prudhoe Bay - Wikipedia photo
Prudhoe Bay – Wikipedia photo

Without even a whisper to the media, Alaska Governor Bill Walker has rejected the Prudhoe Bay Plan of Development. He went full Venezuela.

The governor has chosen a route of planned uncertainty by rejecting the required plan and extending the existing operating agreement until November.

This is a step a sovereign might take if it planned to “nationalize” its oil. It’s the Hugo Chavez move of the century and will send shock waves throughout the energy sector.

Governor Walker is hanging the threat of lease foreclosure and eviction over the heads of producers who have been, in good faith, developing and producing oil for Alaska for over a generation.

As reported here last month, Governor Walker’s Administration demanded confidential information from the major producers in Alaska, relating to how they pan to market the gas they hold in their leases.

That part of the story is best explained by the Alaska Journal of Commerce in April.

BP, the field operator said, in no uncertain terms, that it can’t give over the marketing plans because it would be an anti-trust violation if the companies had each other’s plans.

DNR COMMISSIONER WALKS OUT

On the day when the Acting DNR Commissioner walked out on the Administration, the governor came within an inch of defaulting the lease agreement.

But the governor was undeterred. He hired himself a new DNR commissioner, Andy Mack, who has a long history of opposing development. Mack is historically on the side of the environmentalist lobby and he’s now in charge of our resource-based economy. He now has the job where he will make critical decisions regarding the gas line and the oil fields.

Over at the Alaska Gasline Development Corporation, the brand new president Keith Meyer just finished telling the Senate and House Joint Natural Resources Committee that the state is going to go it alone on the gasline.

The State of Alaska is moving ahead without the other three partners on a $55 billion construction project, the largest in North American history.

When sitting in front of the same committee on Wednesday, representatives for the three producers were all asked if they had suspended negotiations on the fiscal and commercial terms for the gasline.

They all answered they had not suspended negotiations.

That means only one partner has suspended negotiations: The Governor of Alaska.

Only one partner has taken the unprecedented step of threatening foreclosure on the companies who produce oil in good faith.

Only one partner has asked those companies to violate anti-trust laws and disclose how they would market their gas.

Although Point Thomson was in litigation for a decade, Prudhoe Bay has been a producing oil field for the past 40 years, not an undeveloped resource. What the governor has done is an unprecedented move in the history of oil and gas in Alaska.

Update: On the Friday edition of the Dave Stieren Show on KFQD, Senator Cathy Giessel, who chairs the Senate Natural Resources Committee, said the combination of events this week was startling: “Alaskans need to ask themselves if they want their state government owning an oil company.” She expressed doubt about whether the gasline project could move forward under the current conditions the governor has created.

If you would like a PDF version of the letter, contact [email protected]

June 30 PBU letter(1) June 30 PBU letter(1)

June 30 PBU letter2

June 30 PBU letter3

June 30 PBU letter4

June 30 PBU letter5

June 30 PBU letter6

June 30 PBU letter7

June 30 PBU letter8

June 30 PBU letter9

June 30 PBU letter10

June 30 PBU letter11

June 30 PBU letter12

June 30 PBU letter13

June 30 PBU letter14

June 30 PBU letter15

 

 

 

Unpacking the education paper cuts

DEMS WANTED DOLLARS, AND NO CUTS

Gov. Bill Walker took $700 million from Alaskans’ Permanent Fund dividends. More than $1,000 each.

That isn’t exactly in the playbook the Democrats were working from, but other than the money coming from one pocket rather than another, it’s right in line.

  • They wanted more money for nearly everything, including universal pre-K (programmed day care).
  • They wanted government programs and services to be held harmless.
  • They wanted State worker contracts to be kept whole.
  • They wanted taxes on Alaskans and businesses to pay for the state bureaucracy, including paying automatic raises for the 16,000 state workers — the one State worker for every 45 Alaskans that the State generously provides.

Democrats got what they want it — or close enough for government work — when the governor made his dramatic unveiling of vetoes on Wednesday morning in Anchorage.

Governor Bill Walker unveils his vetoes.
Governor Bill Walker unveils his vetoes.

During his press conference, Governor Walker put on a brave face and trembling lip to tell Alaskans he’d have to dock them in order to keep the state workforce healthy. He hated to have to do it, he said in his rambling, unscripted way. But he’d be taking that $1,000 or more from them anyway.

MODEST CUT FOR EDUCATION

As for cuts, he managed to cut $6.4 million from Education’s base student allocation: $48 per student, or $4.80 per student per month (across 10 months).

This is not a grave cut, considering that per-student spending in rural Alaska is the highest in the nation, at about $30,000; it’s more than $15,000 per student in Anchorage.

After years of massive investment in education by Gov. Sean Parnell, $4.80 a month is a mere trim around the edges, practically a rounding error.

But you wouldn’t know it by listening to the Administration.

Lt. Gov. Byron Mallott warned the state would suffer irreparable harm because of the cuts they were forced to make.

LG Byron Mallott speaks about the dire state of the economy.
Lieutenant Gov. Byron Mallott speaks about the dire state of the economy on June 29, 2016.

“Both of us believe passionately that education is the key to our future…A key indicator of the state’s ability to invest in the lives of Alaskans will be severely negatively impacted,” Mallott warned.

“If we do not begin to grow the capacity, the expertise, the teachers to educate Alaska’s children in a smart and cost-effective way, Alaska is crippling itself,” he continued.

This is the mantra of the voracious, always aggrieved Left. Mallott has rehearsed the “never enough” narrative for his entire life. The Left is disciplined, if nothing else, at sticking to “the narrative.”

We ask the obvious: If education is the high priority, why did the governor overspend last year on gas line consultant Rigdon Boykin ($850,000) and his gas line sidekick Radoslav Shipkoff ($100,000 monthly)?

After all, Walker knew this year the budget would still be a huge problem for the state.

Why did he overspend on Texas oil and gas consultant Audie Setters, who made nearly $600,000 working for Walker.

Why did he buy a parade of other consultants, including Andy Mack, who has now been named Commissioner of the Department of Natural Resources, and the new head of AGDC, Keith Meyer, who makes north of $700,000, once you include his bonus.

In other words, there’s $6.4 million to be found, if the governor wants to find it for education. He did not.

SCHOOL BUDGETS SHRINK SLIGHTLY; BUT ENROLLMENTS DO TOO

The funding for education, during the years when Gov. Parnell was in office, went up dramatically. He invested in education like the future depended on it. Direct K-12 education funding increased $50 million in the budget he signed in 2012, while Parnell still reduced overall state spending by $1 billion.

In 2014, Parnell added another $100 million to education,  all while bringing the “bipartisan working group” spending under control in other areas.

In fact, there’s never been a governor more pro-education than Parnell, if you look at dollars invested in every student in the state, from K through college.

Great Alaska Schools rally at Capitol - Alaska Democrats photo
Great Alaska Schools rally at Capitol – Alaska Democrats photo

The Left, the teachers’ unions, and their media surrogates railed. They ranted. They picketed. They played every card they had, including the Great Alaska Schools, an Astroturf (well-funded, partisan grassroots) group that rallied and petitioned and threatened. They leveraged the blogs and the cause-driven reporters did their bidding to argue how anti-education Parnell was. Looking back, it seems fairly petulant. And where are these shouters now?

A $6.4 million cut to education in 2016 is not much more than a paper cut, especially because enrollment for this September will likely be down by 2,000, with the many oil jobs that have been lost in Alaska.

Last fall, the Alaska Department of Labor reported that out-migration from Alaska already exceeded in-migration by 7,500 in the year that ended one year ago, June 1, 2015.

That was the highest net departure volume since the crash of 1988, when 15,700 people left the state during a devastating recession, according to the Fairbanks News-Miner. This year’s out-migration will be similar, if not more than last years.

When school enrollments shrink, so should budgets in these lean times.

 

Alaskana bits

0

CORRECTION FAVOR 

 We throw in a correction here on behalf of Casey Reynolds, who reported in his blog that Rep. Gabrielle LeDoux was at the “Boss Vince” Beltrami fundraiser last Friday.

The union-fueled blog took it down several hours later without comment, but not before we received several shocked messages, including one from Rep. LeDoux herself.

We did spot a few folks, including the broadside of the aforementioned Mr. Reynolds.

LeDoux was so bothered by it she penned her own letter to her colleagues to make sure they knew she was nowhere near the union event. This case of mistaken identity was a smear tactic.

DRIVING MISS DAILY

A Cessna 206 owned by Alaska Dispatch Publisher Alice Rogoff was said to have been damaged when it rammed into the dock at Halibut Cove yesterday. Halibut Cove is the location of former Lt. Gov. Mead Treadwell’s wedding this week, officiated by former Senator Clem Tillion.

Word is that Rogoff was piloting the Cessna when she dinged the dock, and the plane was brought back to Anchorage under its own power by another pilot.

Rogoff hosted an elegant engagement party at her home earlier this month in Anchorage for Mead Treadwell and Clay McClure.

RECALL THAT GUY?

We heard about a recall effort when we were in the valley last week, and this week an endeavor popped up on Facebook to explore whether people are serious about taking on a sitting governor.

So while Gov. Bill Walker recalls legislators to Juneau for a special session, there may be a diffent kind of recall going on.

LANDFIELD GETS BIG LABOR AFL-CIO ENDORSEMENT

Jeff Landfield, candidate for Senate District L, received the AFL-CIO Anchorage Central Labor Council’s endorsement. Landfield, a Republican, is running against Natasha Von Imhof and Rep. Craig Johnson in the Republican primary on Aug. 16.   The endorsement means union cash will flow into his campaign.

 LOTS TO PRAY ABOUT

The Kenai Peninsula Borough Assembly will continue to open its meetings with prayer. An ordinance to ban the practice was offered by Assembly President Blaine Gilman.

Prayer won. Pray on.

FEDERAL VICTORY TEAM APPOINTED

Alaska Republican Party Chairman Tuckerman Babcock named the following Alaskans to the Victory 2016 Committee, which will head up Alaska’s efforts in the federal campaigns, focused on the race for the Presidency, and including efforts to promote the entire federal ticket with the U.S. Senate, and U.S. House of Representatives:

  • Drue Pearce, Chair, Victory 2016
  • Lesil McGuire, Co-Chair, Finance
  • Jerry Ward, Co-Chair, Rural Alaska
  • Mike Robbins, Co-Chair, Events and Activities
  • George Lamoreaux, Vice Chair, Volunteers
  • Stephanie Haydn, Vice Chair, Finance
  • David Morgan, Vice Chair, Special Events
  • Jim Crawford, Alaska Spokesman for presidential campaign

Ms. Pearce is the former senate president of the Alaska Legislature, while Lesil McGuire serves as state senator and Jerry Ward is a former state senator. Mike Robbins is a businessman and Trump alternate delegate to the National Convention, and Jim Crawford is a past Alaska Republican Party chairman.

Governor was able to make cuts after all

0

BIGGEST CUT IS NOT TO GOVERNMENT

IT’S TO ALASKANS
GOVERNOR BILL WALKER
Governor Bill Walker answers a reporter’s question during media availability.

After claiming for seven months he cannot cut government, but that taxes are essential to Alaska’s survival, Gov. Bill Walker made good on his word today.

His choice was to barely touch government spending. There are still more than 16,000 filled positions and a travel freeze that never quite froze.

He chose to trim around the edges in education and commerce, but not touch the lavish labor contracts or ask employees to cover some of their own health insurance premiums.

Instead of program cuts, Walker chose instead to slash the Permanent Fund dividend and various road projects — projects that are completed by the private sector.

The cut to the Permanent Fund Dividend equates to a 50 percent or more tax. (The IRS will take another $300 (plus or minus), leaving taxpayers with roughly $700 in actual benefit from oil royalties).

The governor’s unilaterally imposed dividend tax will give him another $700 million to work with.

YOU’RE A STATE TAXPAYER NOW

Alaskans, by having their dividends garnished, have become state taxpayers without a vote.

This, however, is not a hard hit to the Alaska economy, as the cash goes from your pocket into that of a public employee, and it will still get spent in the Alaska market.

But if you’re an air carrier with a route to Hawaii, you’re already re-calculating the coming winter travel season.

Walker also made cuts to projects under way and on the planning table. They include the Knik Arm Crossing, Susitna-Watana Hydro, and various roads being built or planned with state funds.

He did not cut the Juneau Access Road today, although that fully funded project is still in peril under the Walker Administration. If he was smart, he’d let that project go through.

As predicted, Governor Walker cut cash credits due to the smaller oil and gas producers, chopping them from $430 million down to $30 million. Those are bills he’ll have to pay later; he did the same thing in his first budget.

WALKER: BLAME LEGISLATURE FIRST

Walker began his morning by breathlessly blaming the Alaska Legislature for not giving him a fiscal plan. He glossed over his responsibility in providing his own prudent plan first. The plan he presented earlier was panned by the public, but Walker insisted that all components worked together, and must be passed together.

At a March news conference, Walker said he would call a special session if the Legislature didn’t pass his multiple tax proposals. He wrote to legislators that taxes, spending cuts and a restructuring of the Permanent Fund are “written in pen.” But he could not bring Democrats to the table to agree to cuts, and their vote was essential.

The Legislature, closer to the people, dug in. Sen. Pete Kelly, co-chair of Finance, said taxes would not be considered before budgets came down.

CERTAINTY ABOUT ONE THING: THE SIZE OF YOUR DIVIDEND

Has there ever been a time in Alaska Permanent Fund history when the amount of the dividend was announced in June? Not that anyone can remember. The announcement is usually made in the fall after an extensive calculations — and the amount has been a well kept secret until its unveiling.

At least Alaskans know and can plan accordingly.

 

 

The governor’s vetoes, as leaked

$1.6 BILLION IS THE HIGH END OF THE TARGET

The talk of the town in Juneau is which state programs are being cut when Governor Bill Walker announces his vetoes on Wednesday at 9 am. Because vetoes are straight ahead as the fiscal year starts July 1.

Walker will hold a press conference on the First Floor Conference Room of the Atwood Building in Anchorage to announce his vetoes, and they are believed to be up to $1.6 billion.

The cuts may include $700 million to the Permanent Fund Earnings Reserve Fund, which cuts Alaskans’ Permanent Fund Dividends down by $1,000, or roughly in half.

Cuts also are said to include $300 million in oil and gas tax credits, which would be cashable credits to the smaller companies, possibly pushing off the liability that Walker began building last year when he refused to pay the owed credits.

Another $500 million would be from the budget itself. Not from employee contracts, not from education, and not from Medicaid. But the wheel is spinning and something will have to go.

###

Surprise: Jahna Lindemuth for AG

0
Jana Lindemuth
Jana Lindemuth

Governor Bill Walker named Jahna Lindemuth his new attorney general. Lindemuth is an attorney in private practice with Dorsey and Whitney LLP of Anchorage.

Her areas of practice includes Appellate; Class Action Litigation; Construction and Design; Energy; Health Litigation; Indian and Gaming; Insurance Law; and Professional Malpractice.

She is a graduate of University of California, Berkeley School of Law, and Drew University.

 

 

 

 

Gasline czar Keith Meyer to face panel

SUMMER IS GRILLING SEASON

Keith Meyer, AGDC President
Keith Meyer, AGDC President

The new head of the Alaska Gasline Development Corporation will on Wednesday get his first chance to meet with the Senate Natural Resources Committee.

The committee convenes at 10 am (Anchorage Legislative Information Office) to receive its mandated update on AK-LNG, the Alaska Gasline project. The last time the committee held an update session, it went for six hours, with presenters wilting under the pressure of senators’ questions.

During the winter update, the simmering tension between the Walker administration and Alaska’s oil producers

 

Committee chairwoman Sen. Cathy Giessel sent a list of questions to AGDC President Keith Meyer, who at this point is expected to be the sole presenter on behalf of the state.

ON THE GRILL

We obtained that list of Senator Giessel’s questions:

Honorable Presenters,

The Alaska Legislature’s Senate and House Resources Committees (Committees) have been engaged in the second half of the 29th Legislature. Now that the most recent special session draws to a close, the Committees turn their attention to the Alaska LNG Project (AK LNG). Under the enabling legislation for AK LNG, Senate Bill 138, the project participants are to give an update every quarter to the Legislature.

Since the last update in January, there have been several potentially new developments. In February, Governor Walker and the project participants held a joint press conference that alluded to possible changes to the structure in AK LNG. In addition, legislative offices have received inquiries from members of the press and the public regarding articles covering speculative changes to AK LNG.

Given the timeliness of the upcoming AK LNG update on June 29, 2016, I am providing questions with the expectation that responses will be provided by the date of the update. This is similar to the request made before the update in September, 2015. Unless otherwise stated, the questions are directed to all project participants.

  1. The Pre-Front End Engineering and Design Phase (Pre-FEED) has been indicated to be completed by the fall of 2016.
    1. Please describe what is envisioned, from the perspective of each participant, as to what will occur after the completion of Pre-FEED
    2. Please describe what is the envisioned, from the perspective of each participant, as to the management structure after the completion of Pre-FEED. If possible, provide an organizational chart with names and job descriptions
    3. To the State of Alaska Gas Team (State Gas Team), what is the expectation for the role of the Alaska Gasline Development Corporation (AGDC) and the Department of Natural Resources (DNR) after the completion of Pre-FEED
    4. What is the funding source effort to proceed after the completion of Pre-FEED
    5. What is the anticipated Work Plan & Budget (WP&B) for the 2017 calendar year
    6. How does the State of Alaska (SOA) plan to fund activities after the completion of Pre-FEED
  1. Does the (SOA) still intend to pursue a liquefied natural gas (LNG) project as proscribed in the AK LNG Heads of Agreement (HOA) and Senate Bill 138? In the event it does not:
    1. Is the SOA still pursuing an LNG project that is not proscribed by the AK LNG HOA and Senate Bill 138? If so
      1. Will the SOA pursue a project pursuant to the authorizations proscribed in Senate Bill 138 or House Bill 4? Does the SOA foresee authorizations that can be interchanged between the enabling legislation
      2. What is the structure of the venture
  • Has an analysis from a consultancy been conducted on that new structure that show potential revenues and risks to the SOA, such as the study conducted by Black & Veatch for Senate Bill 138
  1. Will the SOA experience any increase in liability under the new venture structure
  2. Does the SOA intend to purchase property in the Matanuska-Susitna Borough or the Kenai Peninsula Borough for the new venture structure? If so, who will manage those properties
  3. Is there a reason the Legislature has yet to be briefed on the details of that structure by the State Gas Team
  • Has any company, government entity, or investment group, been identified as potential participants in the venture structure? If so
    1. Has an assessment been conducted as to the cost or charge fees of those participants
    2. Has an analysis been done for government take for the SOA under the venture structure
  • Has the SOA engaged in any discussion related to pursuing an LNG project with a company or government entity besides the AK LNG project participants? If so
    1. Has the SOA signed confidentiality agreements with anyone other than the AK LNG project participants? What is the purpose of those agreements
    2. Has the SOA signed a Memorandum of Understanding (MOU) that has not been publically announced
    3. Do the project participants reaffirm their commitment that any agreement that has a term in excess of two years will come before the Legislature for approval? If not
      1. Please describe the type of agreements, to the extent possible, that may bypass the Legislature, and the reason that action is necessary.

It is my intent that, by having these questions presented to the project participants in writing before the update, there is sufficient time to provide responses. If responses are not possible, there is sufficient time to have an explanation as to why that is the case. Should there be any questions, please do not hesitate to contact my office.

I sincerely thank each and every one of the project participants of AK LNG. This is potentially one of the largest infrastructure projects in the world, and Alaskans have waited generations to commercialize their North Slope natural gas. It is through this venue that the Alaskan public can see the progress of a venture that, thanks to changes made in 2015, gives each resident a one-quarter share in AK LNG.

DETAILS

Joint Resources Committee to Hear LNG Status

ANCHORAGE – Senator Cathy Giessel (R-Anchorage), Chair of the Senate Resources Committee will convene an information session of the Joint House and Senate Resource Committees to review the progress of the Alaska LNG Gasline Project.

Who: Senate Resources Committee & House Resources Committee

What: Update on the Alaska LNG Gasline Project

WhenWednesday, June 29 at 10:00 a.m.

Where: Anchorage LIO – Auditorium A, 716 W. 4th Ave., Anchorage, AK 99501 – Live Stream available: http://akl.tv

Why: The joint meeting of the Resources Committees will receive an update on the AKLNG project from the following stakeholders:
Steve Butt, AK LNG Project Manager
AK LNG State Gas Team
AK LNG Fiscal Team

For more information or to schedule an interview, contact Jane Conway or Kari Nore in Sen. Giessel’s office at  (907) 269-0181.

Decision points led to commissioner’s exit

LEASES, TERMINATED AND TRANSFERRED?

The Alaska Department of Natural Resources commissioner has been dealing with a certain lease that has been terminated, and what to do with it.

Everything involving the oil patch is complicated, but this question is not complicated at all:

Should the department do what the Division of Oil and Gas usually does, which is to take  terminated leases back and put them out to bid, or do what the governor says to do, which is to let the leaseholder sell the leases directly to another company?

The implications are enormous.

Marty Rutherford
Exit Marty Rutherford

The answer is: The leases in question go back into the pool for independent bidding.

Outgoing Commissioner Marty Rutherford thought so, anyway. Former Commissioner Mark Myers thought so. And Parnell Administration Commissioner Joe Balash, who started the process, also probably thought so.

But Gov. Bill Walker has other plans. No one seems to know why except his Deputy Chief of Staff Marcia Davis.

At the time that DNR took action to terminate these leases, sales on the North Slope were the biggest in history.

The leases are not junk, according to our sources. Not junk at all. They are in the same geography where Armstrong and Repsol found oil. The leases could be soaked in oil and competitively bid at millions, perhaps tens of millions of dollars.

When the leaseholder (we’ll call them XYZ) hit financial challenges, the State began the lengthy termination process. That was under Commissioner Balash in 2014.

Today, the State could surely use the money and by state constitution, the State is required to get the most money it can for it.

XYZ, in an effort to get some value from the leases to satisfy debt, wanted to sell the leases to another company, one we’ll call ABC.

That would have been a usual practice if the leases were active, and if such a lease sale was approved by the Division of Oil and Gas.

But once leases are inactive, it’s a whole other ball game. They get re-bid.

This, we are told, is one of the ethical challenges over which Commissioner Rutherford had to stare down the governor.

Marcia Davis got in the middle of it, trying to steer the leases to the second company. Rutherford, already facing other dilemmas with this governor, had to make a decision to stay or go. She had won the battle, but lost the war, because there were even bigger ethical challenges just on the horizon.

SIDELINED ANYWAY, OVER AK-LNG

Rutherford, once part of the inner circle of Gov. Bill Walker, had found herself in outer orbit for the past few months. It was widely thought that since she came in with Mark Myers, former commissioner, the two would also leave together. They worked together to keep Walker from going off the rails continually. And leaving together is how it is shaping up. Mark left in March. Marty in June, at the end of a very difficult fiscal year, and the beginning of an even worse one.

This Wednesday, the State Senate Natural Resources Committee will convene to hear its scheduled update on the AK-LNG project, the $55 billion gasline for which the Alaska Gasline Development Corporation is representing the State’s interests.

Giving testimony all by himself will be the new head of the AGDC, Keith Meyers, who has been on the job for a few short weeks.

Sitting on the side but not participating will be Rutherford, who will know more than anyone in the room about the project, and her replacement, Andy Mack, who becomes DNR commissioner upon her departure Thursday afternoon. Andy comes from PT Capital, an investment firm. He will need to come up to speed before taking the microphone in a Senate hearing.

GASLINE PARTNERSHIP FALLING APART?

Currently, AGDC, BP, ConocoPhillips, and ExxonMobil are partners in the AK-LNG Project, which is in the preliminary front-end engineering and design phase. To advance to the next stage, the partners must each commit $500 million.

But that’s not likely to happen soon. The industry partners have told the governor they are too strapped to commit.

ConocoPhillips’ Natalie Lowman told a reporter last week that the governor through AGDC “has proposed a state-controlled project, and conversations to better understand that proposal are under way.”

Conversations are indeed being had all across the oil patch regarding the governor’s proposals. He’ll have to move carefully now that everyone is watching him, and conversing about him.

 

 

New AG: Beth Kerttula or Marcia Davis?

Screen Shot 2016-06-27 at 6.17.57 PM
Beth Kerttula

Kerttula: Obama loyalist and oil industry foe

Former House Rep. Beth Kerttula is being discussed by Juneau insiders as Governor Bill Walker’s next pick for attorney general for Alaska. An announcement will be made Tuesday afternoon at the governor’s press conference.

Kerttula, a lifelong Democrat, served as Juneau’s representative from 1998 until she resigned in 2014 to accept a fellowship at the Center for Ocean Solutions at Stanford Junior University, her alma mater. She had been passed over by then-Gov. Sarah Palin when a Senate seat opened up. That seat was awarded to now-Sen. Dennis Egan.

Kerttula left the Stanford fellowship after just a few months to become the Obama White House ocean czar.

Her father is former state senator Jalmar “Jay” Kerttula.

When she was in the legislature she was the only legislator who voted against a resolution in support of opening the Arctic National Wildlife Refuge.

Screen Shot 2016-06-27 at 6.16.24 PM

Davis: Engineered the win for Walker

Marcia Davis
Marcia Davis

The other top choice being discussed throughout the Capitol is Marcia Davis, currently the deputy chief of staff for the governor.

The Alaska Public Offices Commission filed a complaint against her for hiding sources of money to help Bill Walker win in 2014.

The complaint, dated Nov. 3, 2015 alleged Your Future Alaska Inc. was created specifically “to ‘sanitize’ campaign money.

It is illegal under state statute and regulation to use a third party to hide the source of a campaign donation.

The complaint stated that YFA gave $21,000 to Alaskans First, which had the same officers as YFA.

There were a tangle of other offenses in the case, which Davis was able to settle with the Alaska Public Offices Commission.

The Republican Party of Alaska called for Davis’ firing because of her unethical behavior. However, Grace Jang, the governor’s communications director, said her past actions had no bearing on her role in the governor’s office.

RICHARDS LEFT QUICKLY

Gov. Walker’s first attorney general left quickly last week, with one day of notice. Craig Richards said he needs to spend more time with his family.

“With great reluctance, I have accepted Craig’s resignation,” Governor Walker said in his press release. “When I appointed Craig in December 2014 as Attorney General, I knew Alaskans would benefit from his deep respect for the law and his vast knowledge of finance. As the state’s top attorney, work has pulled him away from his 3-year-old son, and I am grateful for the sacrifices he and his family have made in service to Alaska. Given Craig’s knowledge of gasline issues, I’m certain the state will continue to benefit from his oil and gas expertise as we push toward completion of a project.” (Underline ours)

“It is with a heavy heart that I announce my resignation as Attorney General,” said Attorney General Craig Richards in the governor’s press release. “I support the Governor and was honored to serve as the head of the State’s legal team. My reasons for leaving are personal. I feel I need to re-focus on my family, which is impractical given the travel and workload requirements of the job. The Department of Law has top notch lawyers, and I know the State is in good hands with these devoted public servants.”

Jim Cantor, who is Deputy Attorney General, is acting Attorney General until the appointment is made on Tuesday.