BishopAccountability.org
 
  Alaska Newsreader
Fairbanks Chamber of Commerce CEO resigns over gas line letter

Anchorage Daily News
June 17, 2008

http://www.adn.com/news/alaska/newsreader/story/438991.html

FAIRBANKS -- The chief executive of the Greater Fairbanks Chamber of Commerce resigned Monday immediately after the chamber's board of directors approved a letter saying the natural gas pipeline proposal of ConocoPhillips and BP has a better chance of success than TransCanada's proposal.

Chamber CEO Jewelz Nutter said the board's vote clearly supports the oil company's pipeline effort, which the companies call "Denali," over any other.

In a letter to Gov. Sarah Palin and the Legislature, the chamber wrote it "views the Denali project as representing a high opportunity for success, particularly in comparison to a TC Alaska project absent strategic partnerships."

But the letter ultimately recommends that the Legislature and Palin pull the oil companies — usually referred to as the "producers" — pipeline builders and other stakeholders together into a common project, which the chamber says significantly increase the odds of a pipeline being built.

A 12-1 chamber board vote approving the letter prompted Nutter's resignation.

"It is my belief that today's board action will be detrimental to the reputation of this organization," Nutter said, reading from a letter she had prepared prior to the meeting. "It is my concern that the membership will draw inference that there is a conflict of interest regarding our current board chairman's company and the advocacy of the board to support the Conoco/BP Denali project."

Chamber board chairman Rick Solie is director of the northern region office for ConocoPhillips. Following a brief welcome at lunch Monday, he turned the gavel over to chair-elect Jack Wilbur and left for a doctor's appointment.

Solie said later in the day that he was not involved in discussions about the letter, including the scheduling of discussion before the board, and did not attend committee meetings when the topic was discussed.

"I didn't attempt to influence the board or committees in any manner," he said.

Chamber member and BP employee John Ringstad, who also serves on the governmental relations committee, likewise excused himself from all discussion on the matter. Wilbur said he has never had occasion to question Solie's impartiality.

Solie said he was "surprised and disappointed" that Nutter resigned in the manner she did.

"She impugned the board, and that's not right," he said. "The board had a process that they followed and Jewelz should have respected that."

At Monday's noon meeting, discussion weighed various aspects of the pipeline proposals and the letter itself.

Charlie Boddy, vice president of governmental relations for Usibelli Coal Mine, cast the lone dissenting vote after commenting that the letter is "strictly a no vote on AGIA from this chamber" and serves little purpose.

"It's hard for me to envision how this community loses with either pipeline," he said. "When you choose one over the other, you better hope you choose right. Fairbanks stands to gain a lot by either project going forward."

Wilbur said following the meeting that while much of the pre-vote discussion weighed the two pipeline projects against each other, he believes votes were cast supporting the letter and a call for everyone to work together.

Margaret Russell, general manager at Seekins Ford Lincoln Mercury, served on the committee that drafted the letter. She said it is "very appropriate" that the chamber weigh in.

"We need to very quickly move from an oil economy to a natural gas economy," she said.

Neither the Alaska Chamber of Commerce nor the Anchorage Chamber of Commerce has taken formal positions on the pipeline.

Alaska Chamber of Commerce president Wayne Stevens said the group has debated the pipeline proposals at length. While members agree the chamber should issue a statement, consensus hasn't built around what the message should be, he said.

"Our position is, build a gas line," Stevens said. "We are not prepared to say that one is better than the other. Each of them bring their own strengths to the project, each of them have their own challenges."

TransCanada, BP and ConocoPhillips are all chamber members, he noted.

Anchorage Chamber of Commerce president Stacey Schubert said her organization is monitoring the legislative hearings on TransCanada's proposal and is working to be an educational resource for members.

The announcement of the Denali project, coupled with the administration's approval of TransCanada's application under the Alaska Gasline Inducement Act, prompted the Fairbanks chamber's action, said Brian Hove, chairman of the chamber's governmental relations committee. He was largely responsible for the development of the letter.

In short, Hove said, the TransCanada proposal is a good opportunity for Alaska, but several outstanding issues limit the plan's chances of success. Denali has a "leg up" with gas to commit, offering better odds, he said. Best of all, however, would be all parties coming together to craft a single proposal that would get a line built efficiently and economically, he concluded. He also advocated allowing Exxon Mobil to develop leases on the Point Thomson unit.

"I think it's something as a body we can support," Hove said.

 
 

Any original material on these pages is copyright © BishopAccountability.org 2004. Reproduce freely with attribution.