Cogito Ergo Non Serviam

Alberta Energy Minister Ken Hughes on the XL Pipeline -- Part 3

Kensington: When it comes to provincial revenue, how much better off would Alberta be with the pipeline open and running at full capacity? Compared to not having the pipeline at all?

Minister Hughes: Not having access to Brent crude prices is estimated to have cost Alberta more than $3 billion in foregone royalties and taxes, and the federal government $1 billion in foregone taxes. The Government of Alberta receives $223 million in royalty revenue for every dollar increase in the price of crude oil so the more oil sold at a greater price, means greater revenues not only for Alberta, but also for Canada.

The route of the pipeline through Nebraska has been the chief issue, passing over the Ogallala Aquifer. Have you worked with the government of the State of Nebraska directly of resolving the issue? How cooperative or not have they been? Are they more receptive to the idea than the people at the State Department?

The Alberta government is not involved in the application for the pipeline and respects the U.S. process and decisions for the development of pipelines. What?s important is that these decisions impacting the economic wellbeing and energy security of the United States are based on fact, not emotion.

Kensington: What political and governmental similarities and differences do you see between an energy province like Alberta and a similar state (Wyoming or North Dakota for example) in the US?

Minister Hughes: The biggest difference is that most mineral rights in North Dakota belong to land owners whereas in Alberta the majority of mineral rights are owned by the province. Alberta has title to mineral rights within approximately 81% of Alberta's land area. The remaining 19% are privately-owned or freehold mineral rights.  These are held by the federal government under National Parks and Indian Reserves (10.6%); by private individuals and corporations (8.4%). However, both our jurisdictions are committed to maximizing the economic benefits to the people from the resources, while ensuring development is accomplished in an environmentally sound manner.

© Copyright 2012 by The Kensington Review, Jeff Myhre, PhD, Editor. No part of this publication may be reproduced without written consent. Produced using Ubuntu Linux.



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