Thursday, December 20, 2007

Stelmach in carrot on a stick mode

Ed Stelmach is in carrot on a stick election mode.

Reduce health care premium is the new one.

Fix highways, general use highways before tar sands highway.
(Further involvement 3p arrangements for our systems)

Oil Royalty on tar sands, presently at 19% is to go up 20%.
Our agreement was for 25% and the target was 45%

Conventional oil getting big bucks for using CO2 injection as an environmental perk.
As I understand it, if the oil company uses this they get millions of dollars.

This, apparently without concern for the depth. If the co2 is used at a depth above 2500 feet it just leaks out back to the surface and does nothing for the environment. The only thing that will be lighter is taxpayer pockets.

Not talked about is their plans to fully privatize the water system through the use of pay as your go pipe lines.

All of these things to come to pass if we just elect them after a dozen years of lies cheats and misdirection.

This province is so screwed!

John Clark

Alberta field requests for US power line

An exercise in PR in power export is underway. Perhaps, too late.

Trans Alta is publicly asking the Government to consider power export.
Meanwhile applications for power line extension to Montana are already in front of the AES0 (Alberta’s Electrical Systems Operator).

AES0 is a member of NERC the power standards marketing organization for the United States. One of NERC’s stated rules is the participating originations must remain completely open and honest and complete with the information they put forward to the public.

AESO has recently overhauled their computer system with the publicly stated view of allowing better operation.

In doing so, they have eliminated from public view those segments of the information that deal with the import and export of power to other jurisdictions such as BC (the US) and Saskatchewan!

Saskatchewan and BC have power for sale to Alberta. This power is available for viewing on the producer’s boards, not the public as they should be.

This allows producers in Alberta to run up their prices to gouge the public without tapping into the cheaper supplies in BC and Saskatchewan all without public complaint.

We have seen how the local crew pushed the prices from .05 kwh to 10.00 per kwh and how recently they moved the prices from 70.00 per mwh to better than 800.00 per mwh

AESO are clearly not in keeping with their agreement with NERC.

AESO is pushing the Government agenda to force up prices and hide information from the public.

I would love to hear a defense from AESO whom I respected to this point.
The members said “do it” will hardly be a defense.

If my readers can’t follow the reason it is enough to know you are getting ripped off severely and only a change in Government is going to cure that.

John Clark

Tuesday, December 18, 2007

Alberta - Conservatives Busted!

Having lived through a dozen years of lies and deceptions like this is it any wonder the Conservatives are on their way out?

December 18, 2007

Government Ignored Evidence Albertans Weren’t Getting Fair Share, FOIP Shows

Edmonton – The Alberta Liberals have obtained some of the internal royalty documents referenced by the Auditor General, which indicate that the Minister of Energy knew the royalty regime wasn’t getting a fair return for Albertans.

One of these documents, Executive Committee Decision Request, identified serious shortcomings in the existing royalty systems. Department officials recommended an increase in the royalty rates but the Minister at the time, Greg Melchin, failed to act.

“This government report clearly indicates that Albertans were not receiving a fair share,” says Alberta Liberal Shadow Energy Minister Hugh MacDonald. “Yet, the Minister hid this information from the resource owners - the public.”

The Executive Committee Decision Request raised serious warnings about the need for changes to the royalty system, including the following points:

“Wood Mackenzie: industry returns in Alberta are among the highest (out of 67 jurisdictions compared, between 1994-2003).” (Page 299)

“Inadequate competition in existing bitumen markets places a greater share of risk with the Crown that was expected when the oil sands fiscal terms were designed.” (Page 300)

“It is recommended that the Department of Energy present to Government for approval a Sustainability Levy with… increased conventional oil and natural gas royalty rates at high prices; and, royalty credits for qualifying strategic value creation investments in Alberta.” (Page 301)

“This report shows that royalty changes were urgently needed, yet the Minister of Energy continued to tell Albertans that everything was fine,” says MacDonald. “Why didn’t the Minister act in the best interest of Albertans and raise royalty rates? Albertans deserve answers.”

The Alberta Liberals received the report last week in response to a freedom of information request. The document is highly censored. MacDonald is writing a letter to the privacy commissioner asking for a review of the department’s use of the FOIP act to hide information.

“If the government has nothing to hide, then why are they censoring this report?” asks MacDonald. “The Minister has yet to provide any evidence that contradicts his department’s own reports.”
- 30 –

For more information, or for a faxed copy of the FOIP documents, please contact:

Hugh MacDonald, Shadow Energy Minister or Yolande Cole, Media Liaison
(780) 914-5270 (780) 446-6868

John Clark

Alberta Seniors about to take still another hit!

Stat Can figures are bad news for Alberta Seniors.

Alberta inflation is running close to 20%! Stat can figures of 2.5% will be the numbers used to peg the Canada Pension payments.

The socially psychotic government of Ed Stelmach has no intentions of helping Seniors in Alberta through this remarkably horrible prosperity!

John Clark

Stelmach's Green Plan no plan at all; just gas!

I have been asked by several to weigh in on the Stelmach-Harper CO2 pipelines. Notably any other pipe lines in use now are paid for by the oil companies and industries involved. I can understand why you think neither is to be trusted! Under Ed's new spin there is a massive way to push more tax bucks into the oil companies. As I have said before if you think you are going to see any increase in take home royalities you just havn't done your homework!

Mr. Stelmach is saying the Alberta lines will be built and paid for by the Alberta Government. Under this provinces present agreement with the Oil Companies in the Tar Sands it really makes no difference. The taxpayer will pay by waiting for a “higher” (still nothing) royalty as the oil companies add the price of the pipe line to the start up costs.

Or, the tax payer can pay for it all up front and simplify the book keeping.

There is other slight of hand in this much to show about nothing.

The Government is having you think or ignore “Tar Sands” for use in this pipeline application. (1) They are the ones sucking back all of our water and creating most of the emissions.

The formation holding the oil must be greater than 2500 feet (762 meters) This means the process will be used on older conventional oil fields which will get the free perk from the Conservatives courtesy of the tax payers.

Oil reservoir depth must be greater than 2,500 ft (762 meter) to reach CO2 minimum miscibility pressure (MMP), which is a function of lithostatic pressure, bottom hole temperature, and oil composition.

An oil gravity greater than 27 degrees API with an oil viscosity less than 10 centipoise (cp) at reservoir conditions is ideal.

Formation porosity greater than 12% with an effective permeability to oil of greater than 10 millidarcies (md) is ideal.

The tar sands are very shallow. There is no way to sequester carbon dioxide in this process. The wells must be very deep as are those in Waybern Saskatchewan..

Also when the CO2 scrubs the oil in the deeper strata and becomes sequestered in the oil strata, the oil becomes effervescent somewhat like a can of pop. When the oil is extracted now by much of its own pressure the carbon dioxide is released again into the atmosphere.

The Conservatives are in a panic to get good press on an environment fix they have no interest in.

Description of pipe line

Pipelines need space

The Waybern oil field and Carbon

John Clark

Sunday, December 16, 2007

Alberta Privatized Education on the move

Cut funding for public schools and raise funding for private schools?

Education next on the block for privatization! Apparently they think no one cares or every one is too dumb to notice. As if they are not in enough trouble already!

This is called the "Trial Baloon" See how the various instituations respond.

Only one cure for it, get rid of these turkeys. After all, Mazenkowsky isn't into schools.

It has come to my attention:
That's interesting. ALBEIT Alberta already has the highest # of Private and Charter schools in Canada (what a joke)... most people might not know that and the Tories will end up screwing themselves over the Public vs. Private debate.

John Clark

Thursday, December 13, 2007

Alberta's Auditor General to Further audit Royality crooks

Alberta's Auditor General will be adding to his duties those items brought to his attention by Alberta -- The Details.

(Right Click and save for better viewing)
John Clark

Edmonton Gravel Pits

Gravel pits are at the edge of or are part of the underground water aquifer! Any time they are opened they allow corruption to enter the water supply.

Take a look at Sundance coal generation where the coal and gravel has been removed from the back of the plant opening the water aquifer. Water south beyond Blueberry AB is now poison.

I think the City of Edmonton should put up some viable studies and proper aquatic maps for the citizens to evaluate the project' harm

Alberta Oil investing out of province is old stuff!

Alberta Oil Companies investing out of province should be focused properly.

With the exception of ENCANA they are not Alberta Oil Companies. ENCANA was an Alberta Crown Corporation before it was privatized by the ruling conservatives now it is international and taxpayers have no say in the direction it takes.

All the oil interests have been dealing in Saskatchewan heavily for the past 6 years. And, have been involved the carbon dioxide oil recovery program in Saskatchewan which is a proven success.

Their moves have little or nothing to do with the royalty regime which in the final draft (after an election) are expected to change nothing. It is all smoke and mirrors!

Monday, December 10, 2007

Alberta Water is Topped Out!

Calgary Harold Editorial December 3, 2007. Quote:

It had money, by the billions. It had successful partners and powerful politicians on side. And the Balzac project definitely had panache, including a grand horse racing track, Vegas-style slot parlor and southern Alberta’s biggest shopping complex. But for three agonizing years, the biggest development outside the oilsands was nearly sunk for lack of one essential ingredient water. In the first of a three-part report, the Herald examines how Alberta’s water supply is under pressure like nowhere else in Canada. Southern rivers are tapped out, while the great oilsands rush is poised to strain the province’s northern supply. A new money-for-water market is rapidly emerging. Former premier Peter Lougheed warns water will be a limiting factor to Alberta’s future growth, while famed water researcher David Schindler predicts, “There will be some water wars coming” But the clashes over Alberta’s water have already begun
End of quote

Alberta water shortage is out of control and very nearly beyond recovery!

Calgary has only surface water rights. That is, the rivers, both of which are glacier fed and those same glaciers are almost finished as are the rivers as far as drinking water is concerned. As flows slow, water becomes un-usable long before the rivers are dry.

The Viking Aquifer is the underground river that supplies most of Alberta with water. The conservatives in their march for privatizing everything and making sure the resources end up in the hands of their friends have long ago gave the water rights in Calgary to private concerns those being Calgary Malting, the old aquarium site and Dasani the old brewery site ( Now owned by Coca Cola courtesy of Klein when he was Calgary Mayor).

The Calgary Malting water rights are all from the Viking Aquifer and are greater in total than is the City of Calgary's surface rights! Dasani on the other hand at the "old Brewery site" has a greater allotment by double of that of the Calgary Malting Company!

If Calgary is not buying their water from these private companies now, they soon will be as the potable water life of those rivers is, as I have come to understand it, below 10 years! This is why the big rush for water meters in Calgary is on.

The Viking Aquifer originates on the east slope of the Rocky Mountains forming under the once famous open grazing lands.

Recently, Mike Cardinal as Minister sold off all the public grazing lands to the Agra Food industry for an undisclosed amount of money. As usual bids were asked on the properties and were opened in secret. We have no idea who bid, who received the property or who was pushed aside because they were not on the inner list of friends list.

I find it very troubling I cannot get answers as to whether the water rights were given with the property title or not. Water rules of “First in Line, First in Time” frankly scares me and Alberta’s future looks very bleak if this Government is allowed to continue. I can see no reason other than water rights for the sale of the long standing crown grazing lands at this time!

strong>But the clashes over Alberta's water have already begun.

Clashes continue Part II

Tapped out Oil

Big pay day for Conservative insiders (all four of them)

Very hard to distinguish this Government from Organzied Crime!

December 7-07 further stonewall by Mike Cardinal.

"Mr. Clark, we have no record of what lands wer sold in the eastern slope, unless you give us a specific legal description. If you want copies of the land titles you can go to land titles and request them if you have the specific land locations. Sorry I couldn't be of further assistance to you. Eveline Zuk

From: Lynda Ferguson Sent: Thursday, December 06, 2007 11:11 AMTo: Eveline ZukSubject: Crown Lands sold on eastern slope of rockies by Mr. Cardinal.
for follow up

Lynda Ferguson
Sustainable Resource Development Lands Division, Land Disposition Branch 5th floor, 9915-108 Street Edmonton, Alberta T5K 2G8
Ph. 780, 427-3570, Fax 780, 427-1029 Direct line 780, 415-4658, Web-site: "

John Clark

Saturday, December 08, 2007

Prominent Conservative describes this Government's foolish ways.

Prominent Conservative: Does very well at assessing the foolish path the Alberta Conservatives have taken on both electrical deregulation (didn't work in California;won't work here)and the mess of the Bituman upgrade chances.

john Clark

Tuesday, December 04, 2007

Alberta-Let the market prevail!

Let the market prevail is the conservative mantra. I say, Okay, lets do that!

Immediately put into play the recommendations put down by the Royalty committee. All of them, now!

Those oil companies that want to work petroleum in Alberta under these conditions can stay. Others hit the door.

Unfortunately there will be no exodus so, put in my recommendation of 40% and let the pieces fall where they may.

Not are we giving up our natural resources too cheaply we are squandering our drinking water down hole and into cisterns from which there will be no recovery.

If allowed to complete their programs the Alberta Conservatives will have driven this province into a pit from which there may probably be no recovery!

John Clark

Sunday, December 02, 2007

Alberta excesses are hurting!

Industry in Alberta is paying 22.00 plus packages for forklift and warehouses personnel. Interviews with some put forward a common thread “we don’t get much at 22.00!”

Office jobs are now at 18.50 per hour for the entry position with many options about working hours with a view to “do the job” as opposed to “watch the clock”

Other interesting comment is “A few years ago, people may fudge their resume in order to get a job at a company and, now it is the companies who are fudging their profiles and job descriptions to get people into their organization”

Alberta Consumer cost index is sitting solid at near 20% increase.

Isn’t Government mismanagement fun?

Copy from the Alberta Gazette.

The following data was used in the calculation:
Alberta Consumer
Price Index
Price Index
October-05 109.7 October-06 113.0
November-05 109.6 November-06 113.7
December-05 109.0 December-06 114.2
January-06 110.4 January-07 114.7
February-06 109.7 February-07 115.0
March-06 110.3 March-07 116.4
April-06 111.4 April-07 117.5
May-06 112.2 May-07 117.8
June-06 111.8 June-07 118.8
July-06 113.4 July-07 119.1
August-06 113.9 August-07 119.3
September-06 114.1 September-07 119.4
Summation (B) 1335.5 Summation (A) 1398.9
2005 basket, monthly (2002=100)

Note: Starting in May 2007 the monthly amount used by Statistics Canada
was rebased to reflect 2002=100 rather than the previous measure of

This rebasing did not change the overall percentage of 3.6%
used to calculate the 2007 amount, but some of the table values did change
and that change is reflected above.

John Clark

Thursday, November 29, 2007

Alberta uses clubs to silence protests.

Closure in this case equates to a physical beating of land owners!

Stelmach Government Uses Closure on Bill 46
Edmonton – The Stelmach government is using closure to choke off debate on its contentious
Bill 46, which takes away rights of landowners.

“This government has resorted to the most undemocratic means to ram through this
undemocratic piece of legislation,” says Alberta Liberal Opposition House Leader Laurie

“This is just another example of this government trampling on the rights of ordinary Albertans,”
says Blakeman. “When Ed Stelmach was chosen as Premier, he promised to be open and
accountable. This makes a mockery of his promise.”

Government House Leader David Hancock served notice in the Legislature that when Bill 46
returns to the House next Monday, debate will be limited to just one hour before the secondreading vote will be called.

The government is also expected to use House rules to limit debate during clause-by-clause
study in committee and on third and final reading.

Blakeman says the Alberta Liberal Opposition has had only four hours to debate the bill so far.
She says the government’s tactics could limit debate to only another five hours.

The government is proposing 22 amendments to the Bill. The Official Opposition has proposed
more than 40 amendments.

Per notes from Liberal Caucus

The protests were not about building power lines. The protests are about giving their land up to people to build power lines on to export electricity without fair renumeration to thoes people who own the land.

Even while this is going on, the Government is doubling the power capacity of the lines south of Calgary to the US border.

Conservatives lie when they say these lines are not for export of electricity!

Get out and vote this time and get rid of these crooks!

John Clark

Wednesday, November 28, 2007

Harper and his crew admit their pending defeat.

Harper is in real trouble so he is beating the war drums on crime and punishment. This is an old political trick and, it usually works! The conservatives know we live in fear for our personal well being at every level under his Government so he turns loose the hawks.

Sad but true, there are very few doves in the sky when the media hungry hawks are flying.

John Clark

Alberta ready to give away still more royalty cash.

Stelmach ready to “tweak” away still more royalty.

His last bit of tweaking was reducing our 25% down to 19%!

His numbers are all over the place. Time lines mixed with color charts and dream schemes.

I really don’t believe Albertans will see one red cent of the propaganda dollars if this batch of Oil Yes Men is voted in again!

John Clark

Monday, November 26, 2007

Alberta Electricity a rip off - 4 cents to 12 cents!

Rural Electricity goes from 4 cents to 12 cents

Rural Alberta agrees with urban Alberta that electricity in Alberta is a rip off for no reason other than profit taking.

The Bruderheim-REA has taken the time to document just how bad the Conservatives rip off is and shows in detail what our future will look like under the Conservatives and, it is not good!

ATCO prices in their service areas are much higher than this!

These people are in the Electricity supply business. A very good read of right wing discontent.

The Bruderheim REA amalgamated with Battle River REA as of January 1, 2007. The Bruderheim REA is therefore no longer a legal entity.

John Clark

Friday, November 23, 2007

Pipeline Planned from High Level to McMurray Tar Sands

TransCanada pipelines are planning a pipeline from High Level Alberta into Fort McMurray tar sands.

Although the pipelines have not had the press and exercise the power lines have it is a safe bet Albertan’s will be asked to pay for the line on their utility bill!

I wonder why Trans Canada Pipeline never tell you who is paying for the line when they make their announcements?


Flaherty takes his lead from Stelmach

Taking his lead from Stelmach’s subsidy to oilfield profits, Flaherty is considering tax breaks to the Manufacturing sector.

The breaks he can give through taxes are miniscule compared to the outright program to replace profits.

Unremarkable, there is no word from either Conservative group that they will cover the high heating or fuel bills brought about by the same problems. Let market forces prevail has no meaning to them when the market is working against their tight group of friends.

John Clark

Wednesday, November 21, 2007

Alberta Oil Sands important details

Oil sands deposits contain approximately 1.7 trillion barrels of bitumen.

Approximately 10 % or 174 billion barrels are proven reserves that can be recovered using current technology.

Current economic limit for oil sand surface mining is approximately 80 m. which makes up 20 % of the proven reserves.

Current oil sand production is approximately 1 million barrels per day, 1/2 is from surface mining.

1 million barrels per day at 100.00 per bbl us is 100 million dollars per day US.

1% start up rate returns 1 million dollars per day into royalty funds.
25% agreed production returns 25 million dollars per day in royalties.

19% Stelmach adjusted rate brings in 19 million dollars per day royalties.

Stelmach has moved 6 million dollars per day from Alberta Taxpayers into the hands of the Oil Companies while he is telling us he has found the “middle road” turning even more revenue into oil company’s profits.

For this kind of change, is it any wonder the Conservatives won't go to the polls until after the Canadian dollar hits 85 cents, where it belongs?

John Clark

Re think the old NEP!

Where is the hurt?  It is in the  pack of lies handed down by Conservatives and financed by the US dominated oil companies!

The royalty on the tar sands is taken in US dollars. This has been the case since the conception as it was agreed oil would be priced at New York prices, the lowest of the price boards and, is in US$

When the Canadian dollar went up the royalty paid into Alberta was reduced by more than 20% because, our dollar was worth 20% more. The difference between our production costs (royalty) and our market costs shrunk, a straight loss to us.

This Government not being concerned about our losses of revenue instead lowered the royalty rate taken to 19% US$. The extra percentage was taken by the oil companies. This is one reason why the oil stocks were not affected by the high dollar syndrome that has bothered other stocks and dividends.

Syncrude upgraded their plant to include the Firestorm technology which increased output. They argued they should be able to get the 1% start up rates on this and have it listed as a “new” project. The rules as they stood showed this was not a new project but, was an enhanced operating cost of a fully producing project. Hence the 25% (Now 19%) was the rate that should be in place.

Klein went fishing with Syncrude and the “Firestorm” dropped off the media maps. What went down on that fishing trip we will never know for sure. Other projects are incorporating this production into their systems. At who’s expense?

The Conservatives true to their operating plans of destabilizing before privatizing (who would go along with privatizing something if it is working well?) have been deliberately curtailing growth of the Heritage Trust fund by pulling the profits made from investment out of the fund. What trust fund can exist if it is not allowed to reinvest the profits?

What we do know for sure is this Government continues to deal in secrecy and not for the benefit of Albertans. Following their mantra of “minimum taxation” they deliberately confuse royalty revenue with taxes. They have cost this province more money than the old and dated federal National Energy Program. Our enemies are not in Ottawa!

I have said before and I will say again it would be hard to distinguish this Governments actions from that of organized crime.

John Clark

Monday, November 19, 2007

To answer some questions

To answer some of the questions:

With the dollar at par with the US for the short term, any number of slight of hand graphs and ideas are available to the Government.

The Conventional Oil graph is in Canadian Funds. This is a first. You will recall conventional oil groups asking for “the same deal the tar sands are getting”. Stelmach has responded by putting their royalty into Canadian Dollars away from the traditional US which the contracts were originated on.

This means the money we will receive after the election is 25 – 30% less than the current when the Canadian Dollar moves back to where it should be, at about 85 cents US.

Stelmach will be able to say I published the figures etc.

The charts produced by the Government are chewing gum for the mind, totally out of contest from the reality such as it is. Not meant to be reconciled, only to cause speculation. . Straight line what if projections based on nothing.

Combined with the 19% they are presently charging because it is part of the giant concessions he has made to the oil companies.

The bottom line is you and I have absolutely no idea what the final figures are going to be. Look to the history. We will come up short again, very short.

Time to get an honest Government.

John Clark

Saturday, November 17, 2007

Alberta Auditor General invited to investigate royalty

John Clark
14815 – 123 Ave
Edmonton, AB
T5L 2Y7

November 17, 2007
Fred J. Dunn, FCA, ICD.D. - Auditor General
Office of the Auditor General
8th floor, 9925 - 109 Street
Edmonton, Alberta T5K 2J8

Dear Sir:

As was reported extensively by the media (Edmonton Journal) this Government has reduced the contacted 25% royalty on mature tar sands projects down to 19%. This happened at a time when the Canadian Dollar was rising in value.

As with many companies dealing across the border, manufacturing, lumber, agriculture and newsprint, oil producers a crisis of sorts was created more so for some, than others.

Higher Canadian dollars meant higher costs in manufacture or production being paid for by a reduced value based on the lowered value of the agreed tender, the US dollar.

It appears this Government, ever sensitive to the wishes of the Petroleum consortium decided to reduce the royalty to allow more revenue to stay on the corporate side of the books at the sacrifice of taxpayer revenues.

Because the costs of start up are born by the taxpayer by agreement and the costs of production are by large paid for by the taxpayer this move in royalty adjustment could only improve the stock position of these corporations. I have never before heard of a Government cutting taxpayer’s revenue income to enhance the stock market of specific companies. This must surly be illegal!

Considering most if not all of the Government members have shares in the various petroleum companies either held directly or known to exist in their “blind” trusts it must also be a conflict in interest.

I beg you to use the power and influence of your office to investigate further this crass situation.

Yours very truly

John Clark

Wednesday, November 14, 2007

The Conservative Malaise

I have been asked why I am so hard on Conservatives and would I treat other Governments the same.

I respond:
Conservatives have some reasonable ideas, some I like very much. The problem comes in the execution of these plans.

Contracts are more times than not opened behind closed doors and the details of the winning contracts are not made public. In short, they channel all the construction and companies to their private group of friends. Internally these are called “friends”

None of their schemes allow for a fair return to the tax payer or the provincial treasury. This is prevalent in 3P0 projects. The “lowest” bidder gets the project and if they fall short in building the project in any way the taxpayer picks it up. There is no performance guarantees put in place. In the duration profits are taken and because the length of time is so great, many extending over 25 years, who keeps track? Why are all the bids not made public?

Conservatives are long on “Let the market prevail” but very short on this idea when it comes to the provincial resource being sold. The market in these cases is bent beyond recognition. Who can’t make money when they buy the store for 5 cents on the dollar of value and assume 60 years of infrastructure in a few seconds?

In brief, Conservatives have a big problem in keeping their fingers out of the till.

John Clark

Tuesday, November 13, 2007

Conservatives caught in lies?

Taft hard on the job! A chance for Alberta.
(right click and save to computer to read)

A good review and project on the oil sands

A good amount of research has been put into this article and it covers a broad range of implications from a different angle than I view it. Worth while reading!

john Clark

Alberta royality review is a phony.

Alberta oil review charts need a careful read! This document is written so it can be represented as almost anything at a later date.

Oil Royality Rates comparison are taken in Canadian Dollars at a premium with the US dollar. When the Canadian dollar drops to .85 cents as it should be, these numbers will all drop 20% from where. They are.

For a realistic view of the numbers drop the projections down 2 lines!

If in his dealings with the oil companies he reverts to Canadian Dollars away from the USD as has been our standard we stand to loose billions, even on the short term.

When has this Government ever done anything for the population of this province? What they have done is enriched corporation without regard to the cost to individuals then, tell individuals they are getting a good deal not because of any reason but because they say so.

John Clark

Vehicle years taken differently in Canada and US

What are you buying when you buy a US vehicle?

Canadian VIN numbers and year make is taken from the body of the vehicle.

US VIN numbers and body year is taken from the frame or under carriage.

Undercarriage and frames are built usually 1 year before the bodies.

A vehicle sold in the US as a 2007 model is actually a 2006 model when registered under a Canadian system.

This is more a paper/insurance thing than it is a mechanical issue thing.

John Clark

Sunday, November 11, 2007

Alberta Electricty manipulated - again.

The Conservatives are up to their old games again. Destabilize by what ever means to give them the foundation for what ever change they propose.

Case in point:
It has been reported to the Calgary MLAs are talking about a series of on going brownouts in Alberta in the near future.

Appreciate brownouts don’t happen, they are caused. By accident, two generation stations may close at the same time for upgrade throwing the grid into a brownout condition.

The Conservatives know there is going to be brownouts they then know what to do to avoid them!

Why would these be deliberately triggered?

Their power line construction on the south corridor has been defeated by the public. They need this power line to export power.

By creating brownouts they will be in a position to make the case claiming it is because of the lack of power lines.

Fording Coal is nearly complete their environmental assessment for the building of a power generation plant near Brooks. This plant will be twice the size of Wabamum. The power it will generate will go to Calgary. It may well be complete by the time the power line is built.

AESO claim to have plans of reporting in place that will avoid any brownouts because of plant upgrades or maintenance. If this is true and the brownouts appear as predicted by the MLAs, I would say there is room for legal challenge for any costs accumulated because of a contrived power shortage.

If you have not watched the CBC production “Wise Guys in the Room” I would suggest you find a copy.

Brownouts will make a case for the power supply companies to raise your electrical rates even though their costs remain the same or are lower. They have no accountability unless you hold the city councils responsible and start lighting up their phones.

By the time this Government is trough, there will only be three or four industries in this province that are not servicing the oil patch. In addition to this the health care structure is organized for immediate sale or hand off.

If these guys don’t get out of office in a hurry the province will be owned outright by no more than a half dozen of their selected friends.

John Clark

Friday, November 09, 2007

More power line rip off coming for Alberta Rate Payers

Does any one really think Alberta is going to come out 20% ahead? Not with this Government!

New plans filed with AESO for a 22 million dollar transmission line from McMurray for the use of North American Oilsands Leismer Facility near McMurray. Project to be built by ATCO. ATCO, headed by Mr. Laugheed who said recently Albertan's should not be expected to pay for all of the highway to McMurray.

This project is strictly to serve the oil companies.

Alberta taxpayers will be expected to pay 100% of this line under the Conservative Governments power line rules.

Beyond this, Stelmach's payment "in kind" trade for crude which is to be sold short or given free to the up graders will mean Albertan's are further in the hole after this deal than they were before it!

If this does not take all the change, it is worth while to note on thier propaganda charts the all the energy revenues with the exception of tar sands is posted in US dollars.

(The government has taken down their site with the .pdf forms showing their projections. This happened directly after I first pointed up the Canadian dollar figure in Tar Sands computations)

The tar sands has changed to Canadian dollars in this exercise of lies. By mid summer at the latest the Canadian Dollar is expected to be back at .85 cents, where it should be!

Couple this change in the exchange rate which will take place after the election with the rest of this circus and you will see there is nothing to be happy about; no win for the people of Alberta but a major loss. A giant Scam!

It would break a snakes back to follow this crew!

John Clark

Thursday, November 08, 2007

Saskatchewan turns out 74% of eligible voters!

The Saskatchewan Party wave that began a decade ago in rural Saskatchewan swept into the cities in Wednesday’s provincial election and pushed the New Democratic Party out of power after 16 years.

74 percent of the eligible voters turned out to vote is the real big news. This can happen in Alberta too.

John Clark

Northern shipping caught by early cold snap??

All is not what it seems in the northern marine world. Fort Good Hope did not get delivered. The reasons are a bit more complex but it could have been avoided.

The short story is that some one made a decision to keep one boat out of the water this year. This one boat did not have to be in the water all year, only for the last 10 days or so. In the past boats have been frozen in, in the north, the crews sent south to Hay River to man still another boat to finish the south end. Or, the boat could have been put on earlier in the year to accommodate the same thing.

The logistics are more complex than I have outlined but the process is the same. Management made a decision not to put the power in the water. That would be a profit and loss decision. The Government will pick up the entire tab and then some for the extra cost of flying and the extended crews to do this.

The weather makes an easy cop out.

John Clark

Monday, November 05, 2007

Alberta Carbon Credits?

Carbon Credits – A money maker?

When you get BC and Alberta both looking at a form of carbon credit or carbon exchange you have to know it is a scam.

Under the Kyoto protocol every obvious thing is not a carbon credit. It takes some very serious study to see if you are in or out of favor.

For instance if you cut a stand of trees you loose carbon credit. If you replant a forest in its place you do not get a carbon credit because you lost it by cutting it. It is a loss.

If a company in the US cuts the emissions on a Coal Generation unit or enters into a carbon dioxide sump program they may have an excess of carbon credits that they can sell to a company in Canada.

Money changes hands in this case moving from Canada south. It is one way a company has of moving funds around regulators. A transfer of cash is now an investment, not a transfer of profits.

On the other extreme is China which has one of the most advanced electrical generation and transmission systems in the world. China works under a heavy burden of pollution of the coal generation which it is about the change, going to hydro generation with the biggest hydro dam in the world. This should replace some coal generation.

The result is that China will very shortly have multi billions of dollars of carbon credits for sale. Companies in Alberta who change nothing will be able to produce a good picture on paper by buying credits from China.

Environment is on every ones mind. Some on how to protect it others on how to exploit it. Case in point Alberta’s electrical system.

A group of like minded Conservatives met in Lethbridge and decided the best way to curtail the use of power was to increase the price so people could not afford to use it. No consideration was given to distinguish between needed use and frivalent use.

With climate change pushing up our summer heat extremes, air conditioning I think is a necessity but, under the Alberta scheme you will cook rather than turn it on. On the other hand our mean temperatures in the winter are much lower than our competitors in the south. It costs us much more electricity to heat our homes. Competative or not, suck it up is the view.

You can look forward to both Epcor and Enmax pushing their rates ever higher with a view to curtailing your use while targeting the surplus power saved for export at still higher premiums.

Epcor is owned by the City of Edmonton and Enmax is owned by the City of Calgary. All profits are in effect indirect taxation.

Because they are separate companies the councilors can throw their aprons over their faces and say it is out of their control which is a lie.

Private Health Care in Alberta alive and well.

In answer to enquiries regarding health care privatization:

Yes, the health regions are private companies and run like private companies. You will find the Minister of Health will avoid entering into any conversation regarding a complaint about the system. He refers all to Capital Health or the appropriate division.

The so called prototypical hospitals that dot Alberta’s landscape from elections past are run by a hospital board. The way these arrangements are structured the hospital boards own the hospital. The Government keeps an eye on the funding totals.

The structure is set up so any hospital, any part of a hospital, any health region can be sold all or in part to who ever the Government decides on selling it to. The Health region is responsible for building new hospitals. That is not to say they cannot sell the same new multi billion hospital to still another private company for a dollar.

The rules in this kind of transaction ring familiar. The Health Region must get a “fair value” for Alberta.

John Clark

Sunday, November 04, 2007

Alberta - Half of available water going to Oil

Really superb article by Hanneke Brooymans, The Edmonton Journal
Quote in part:
"We have no idea what the effects of all these allocations might be," said Bill Donahue, an independent water research scientist who has worked with renowned ecologist David Schindler.

"What I think is most alarming is that the province has never had any plan for development in Alberta, and they continue to approve and promote very water-intensive industries, and again they have minimal understanding of their water supply.

They have no understanding of the effects of climate change and what they're going to be on the water supplies of Alberta."

Another factor is the consumptive use of the up graders. They will use the water to produce steam, some of which will evaporate from cooling towers. And about 20 to 25 per cent will be used to make hydrogen, said Peter Symons, a Petro-Canada spokesman.

If this figure is applied to the water licenses for all the up graders, up to 25 billion liters of river water a year could be used to produce hydrogen. That would be water that doesn't return to the river.

Petro-Canada has opted to use treated waste water from a regional treatment plant to lessen its overall environmental impact.

This offers an explanation to a lot of things. For instance, the amount of electrical power it will take to turn this amount of water into Hydrogen and Oxygen or Hydrogen. In some of the popular programs there is a large amount of Carbon Dioxide made. This is usually pumped down hole into underground or under water storage.

This of course leaves the door open for the Conservatives to offer further tax breaks to the Oil Companies as the “Carbon Credit Made In Alberta Plan” where apparently no money is to be paid out for buying carbon credits.

Under Kyoto, this type of carbon saving would not be allowed. The carbon is being taken from a “bound” source. That is the carbon is not loose in the atmosphere. In effect this process as far as carbon dioxide is concerned does nothing for the environment.

John Clark

Thursday, November 01, 2007

Alberta right wing parties appear to split the votes.

We have two new right wing parties showing up to win over the goose stepping hearts of Alberta.

The Alberta Alliance is further right wing than the present Blue Conservatives. They support all the Fraser Institute ideals of a fence around Alberta. These people in my mind represent the very worst kind of extreme there is. Private police forces, walk away from the Canada Pension Plan. A separate country if need be.

In brief they are a bunch of fundamentalists who want the power for themselves and, what ever harp they play or what ever drum they beat they will, to get that power.

The Wild Rose Party is another right wing goose stepping outfit. There is no such thing as social conservatives any more.

Both parties enjoy the support of the Stelmach Government. Anything that will split the vote is a good thing for them.

John Clark

Alberta muzzels protests!

Bill 46 which comes up for final reading this sitting and will be pushed through by Stelmach and his energy companies will eliminate the right to protest in regards to the power schemes and, will also impact by way of precedence the right to protest the privatization of water and the associated pipelines.
John Clark

Monday, October 29, 2007

The US exchange is part of the Royality scam

It is worth while to note the constant sell out of Alberta by this Government.

For nearly 20 years the price of oil has been in US dollars.

Now, all of Stelmach’s paper is quoting Canadian Dollars.
Canadian dollar expected to be back to 85 cents next year. Who picks up the other 15 percent of Stelmach's numbers? Guess!

With the view that the Canadian dollar supremacy will be short lived one can assume that a further discount in royalties will be given the oil companies in the field of currency exchange.

John Clark

Alberta Election Agenda

Keep in mind the Government in Power has the advantage in the Election because they can choose the agenda. If that same agenda is ripped way from them by the opposition they will probably loose or come close to it.

Royalty review with rubber numbers and little substance is an Agenda setter. Whether or not it will succeed is pretty much in your hands.

Don’t forget the goals of this Government it to further privatize health care; privatize the water and water distribution, privatize the penal system and, the police force. (There is no legislation in place supporting the highway sheriffs and the Health Authorities have written up services to uninsured).

Never in your life in Alberta has your vote been more important and at no point in our history can your vote make such a difference.

John Clark

Alberta Oil reaches 94.00 per bbl

Oil reaches 94.00 per bbl US

Under present reduced conditions (19%) created by Stelmach
Alberta gets 17.86 cents
Oil companies take away 76.74

This will continue until 20.10 causing Alberta to loose over 50 billions of dollars.

Under the schedule as it was defined (25%)
Alberta would get 23.50
Oil companies take away 70.50

Under Stelmach’s BS 20% increase paid in “like funds” or bitumen Alberta will be taking home between 20. and 23 dollars after the bitumen is sold short to the up-graders.

Stelmach’s deal is no deal at all. If anything it further reducing Alberta’s share in the resources.

Eastern financial papers are saying “How much does Alberta Need” rather than saying “Alberta is entitled to”

John Clark

Saturday, October 27, 2007

Alberta Royality Scam-Consequence

If my assumptions are correct and the whole Royalty show is a carefully organized scam it would follow there is room here for the R.C.M.P. and the securities people to investigate what would be insider trading for those who manipulated stocks and then picked them up cheap. Hardly speculation!

The people on the Royalty Committee were taken unfair advantage of if this is the case.

John Clark

Alberta Conservatives want you to trust them!

Vote for me again and just maybe I will do something for the citizens of this province!

The window Stelmach has given, moving into 2010 will put them past another election and, depending on what the oil companies say, the scaled increases will be put in place. He would like you to move forward with warm and fuzzy thoughts and, no substance.

This sounds a lot like the last election when they were fighting privatizing health care. 23% (We) voted them back in and yes, the health care is now privatized! The Health Care regions are set up as private corporations, hospitals are owned by the board members and Capital health has completed lists for un insuring segments health care. Buy more insurance is the mantra.

The “New” Royalty Regime” is still another exercise in creating projects with no accountability. Rather than go to the voter and say “we want you to subsidize oil up-graders” they will now take bitumen as currency and give this bitumen to the up-graders at reduced rates. I would guess rather than getting a dollar on this product we will be getting 50 or 70 cents. It is after all in line with the cost plus operation they put in on every one of their projects assuring their friends will walk away with the coin.

Another blind spot to be exploited is the taxation. 1.4 billion is only a very small percentage of the total amount of money in play in the tar sands. One could call it a miniscule amount. As such, it would be very easy to give back every cent of this money in tax breaks.

There is no mention of the oil companies paying the billions for the road upgrade into McMurray. At these rates it will take years to pay for while the rest of Alberta goes short in infrastructure. Infrastructure was deliberately short funded to open the door for 3PO schemes. Private companies build and maintain them leasing them back to the state. If it doesn't work the state is stuck with the bundle, in effect paying twice.

Remember, there is no accounting of what is an expense in the tar sands. What ever they put in for is okay and this Government steadfastly refuses to put in guidelines or do any expense audit.

Allowed to proceed on the track they have chosen there will be a huge amount of dollars bundling into the oil company coffers and, Ottawa will be reaching in to take up the slack.

Predictable the Alberta Conservatives will scream foul citing another NEP where in truth it will be a disaster of their own making, failing to take a reasonable cut from the resource.

I still think this has been one large dog and pony show brining us with much fan fair to a point where we get nothing.

I am so looking forward to the Parkland Institute analysis of the numbers.

John Clark

Wednesday, October 24, 2007

Alberta Premier speaks. Con Man robs Alberta.

Global 8 said it all last night. Sterling example of “Negative Journalism”

As the lead in to their 11 PM news we were told that Premier Stelmach spoke to the people of Alberta promptly followed by “A Con Man fleeces Alberta” or, similar. “More news at 11”

John Clark

Tuesday, October 23, 2007

Alberta Royality homework done by Parkland Institute!

Review panel actually plans sharp drop in royaltiesTo get its fair share, Alberta must heed Lougheed's advice:
'Think like an owner'By Gordon Laxer for The Edmonton JournalPublished October 22, 2007

Albertans have been led astray by the heated rhetoric around the recommendations of the royalty review panel's Our Fair Share. Rather than increasing royalties by 20 per cent as headlines tell the public, the panel's recommendations would, if fully implemented, reduce them by 20 per cent by 2016.

That's right. According to the review panel, its proposals would have Alberta collect $2 billion less per year nine years from now, even though oilsands production is projected to more than double.

Alberta would collect only $7.6 billion in 2016, compared to $9.5 billion in royalties in 2006. And that doesn't seem to take inflation into account, meaning that in real dollars the province's royalty revenues would fall more.

Where does the promised extra $2 billion from the review panel come from, then? Without the panel's recommendations, royalties would drop even further -- to $5.6 billion. The status quo would mean a drop of $4 billion or 42 per cent, whereas the panel's plan means a drop of 20 per cent.

The net drop in the review panel's royalty revenues can be partially explained by the forecast royalty cuts on conventional oil and gas. Natural gas revenues are projected to fall by over 50 per cent, or over $3 billion per year, even though production is projected to drop by only 14.5 per cent. A royalty shortfall is also projected in oilsands production, which is expected to rise by 111 per cent, while royalties rise by only 81 per cent.

These are hardly the increases that will drive the oil corporations out of Alberta. The forecast drop in Alberta's royalty take comes at a time when practically every other oil jurisdiction in the world is substantially jacking up its rates.

Why? Because they can. The world oil price quadrupled in the past five years, leaving so much more room for economic rent.

Rents or royalties are not taxes. They are the unearned profits due to owners, in our case, Albertans, not to the service contractors, the oil corporations. The latter have temporarily leased land from us, the owners. As Peter Lougheed wisely advised, "think like an owner."
As a homeowner, you hire a contractor to redecorate your kitchen. You pay the contractor enough, including the going profit rate, to entice him to do the work, but no more.

The value of your house goes up, partly because of the improved kitchen. But you, the owner, get all of the increased value of the house. The contractor gets none of it.

A royalty, or economic rent, is that increased value, the difference between the price and the costs; the costs already include a normal profit rate.

It's the same way with oil and gas. Oil corporations are the service contractors. We Albertans are the owners. Think like an owner.

We should not accept that Alberta must compete only by offering big oil lower royalties than elsewhere. The panel report admits that if its recommendations are accepted, Albertans will still get less than American states.

Why? It's totally unnecessary. Alberta does not need to be in the bottom half of oil and gas jurisdictions in royalty takes. Eighty per cent of the world's oil is in government hands and off limits to private investors. According to Jeff Rubin, chief economist for CIBC, the oilsands represent over half of all oil reserves in the world that are open to private investment. Alberta is in a very strong bargaining position.

Alberta has lots of advantages: political stability, First World infrastructure, proximity to oil markets. We do not need low royalties to compete. That would offer an unfair share to Albertans.

Promoters of big oil present two faces, one to the public and another to oil corporations. The scary face tells the public, "Don't raise royalties or you will kill the golden goose." The happy face tells a different story to select audiences.

Last October, Murray Smith, Alberta's representative to the U.S., told a prestigious oil executive audience in the States, "the royalty structure for oilsands is we 'give it away' at a one-per-cent royalty structure."

Roland Priddle, former head of the National Energy Board, based in Calgary, pitched Alberta to Texas oil executives as a place to invest last year by asking "where else can you purchase in-place oil (well, bitumen) for one cent a barrel?"

Big oil portrays the review panel as radical. The language of Bill Hunter, the panel's chair, sounds like he took a tough position: "As Albertans, we own 100 per cent of the resource, and we should expect nothing less than 100 per cent of the rent. It's up to industry to convince us that we should take a decrease." Exactly right.

But unfortunately, the review panel failed to take up those noble ideas in its very timid report.
It was in the spirit of Hunter's remarks, and the shortcomings of the panel's report, that Parkland Institute issued its report Selling Albertans Short, by Diana Gibson.

The review panel's recommendations are far too timid. The oil corporations don't like the review panel's report because royalties would fall by another $2 billion, if the status quo prevailed. Are there any limits to how much unearned profits big oil corporations are prepared to fight for, even if they are not the owners?

Parkland Institute was the first voice to say that Alberta's royalty rate was way too low. Our 1999 report, Giving Away the Alberta Advantage, was the first to compare Alberta's take with Norway's and with U.S. states such as Alaska.

Parkland recommended a yearly review of royalty rates and comparisons with other countries. We applaud the review panel for taking up this cause. Albertans deserve full disclosure.
Parkland's 1999 report showed that Alberta was receiving half the royalty rate in the 1990s that it did under Peter Lougheed's regime.
Premier Lougheed was courageous enough to double royalty rates in 1972, when prices were low, not to lower them by 20 per cent as the panel is recommending.

The oil corporations were outraged and carried out a scare campaign, much like we see today. In fact, many of the leaders of today's scare campaigns are the same ones who threatened to leave in 1972 if royalties were increased. But the Lougheed Conservatives toughed it out, and farsightedly used higher royalties to set up the Heritage Fund.

Don't sell Albertans short. Where is today's Peter Lougheed when we need him or her?
Gordon Laxer is the director and co-founder of Parkland Institute and a professor of political economy at the University of Alberta.
********************************************************************PARKLAND INSTITUTE - website Edmonton Office: 11045 Saskatchewan Drive, T6G 2E1Phone: (780) 492-8558 Fax:(780) 492-8738 email: Calgary Office: 2919 - 8 Avenue NW, T2N 1C8 Phone: (403) 270-9669 Fax (403) 283-6480 email: Parkland's 11th Annual Fall ConferenceFrom Crisis to Hope: Building Just and Sustainable Communities November 16-18, 2007University of Alberta Campus, in EdmontonDetails will be posted on our website when available.

Sunday, October 21, 2007

Alberta gauges for Slippery Eddies speach

It is time to put out some gauges for Slippery Eddies coming address to Albertans.

Alberta royalties for tar sands were set up as 25% of profits on completed oil projects.
Slipper Eddie has reduced these to just 19% over the past year.

In order to get back to the incredibly low rate of 25%, Slippery Eddie would say in his coming speech “We will increase our royalties by 30%” Such a deal!

If on the other hand, the recommended increase of 20% was applied to the take on the 25% it would increase Alberta Royalty to 30% for the final figure.

If, however the 20% was added to the present 25% that would give Alberta Treasury 45% for the royalty collected on the tar sands.

It is my bet that Slippery Eddie will not give you a final figure and will lowball the application of the numbers. IF HE HAS NO FINAL FIGURE YOU KNOW HE IS LYING THROUGH HIS TEETH!

This is a provincial resource. When it is gone, there is no more! It is not renewable!

Here is a Government map on tar sands projects. What is notable is the amount of area dependent on so very little water. What is not shown is the huge amount of free natural gas burned up in the process.

“My decision will be in the interests of Albertans as it always is”

When has this Government ever had the interests of Albertans at heart?

Why is it that this Government asks for closed bids then, never publishes who bid or who the bids were awarded to? I call it theft!

Otherwise why do they have to seal court documents to cover their tracks?

Where was the interest in our well being when they legislated we should pay for all the power lines used to supply the oil sands and all the power lines which sole purpose is to export electricity to the USA?

Where was the interest when the Federal and Provincial Governments put millions into up grading camp grounds then sold them to their short list of friends for hundreds or thousands of dollars?

Where was the interest of Albertans when the state owned power lines were ripped away for us returning 1 cent on a dollar of value or less?

This crew has something on their minds but it is not to the benefit of this province!
John Clark

Monday, October 15, 2007

Higher royalties will not hurt profit picture.

Financial report outlines the very high profitability of the oil sands, not to be deterred by higher royalties.

Saturday, October 13, 2007

Conservatives are covering their tracks!

Today a headline reads “Czar of Alberta Electrical Deregulation resigns” along with “conflict of interest cited” and “Minister can not make any other comments”

Also in another paper is an add for still another Conservative agency. This one is being called the AUC or Alberta Utility Commission which is to do away with the Alberta Energy Board.

A corner stone of the privatization plan of the above Czar was top break up Alberta’s generation capacity into blocks to be sold individually. These were known as “Power Purchase Agreements or, PPAs.

The power very much ended up with the two cities, Calgary and Edmonton. Enmax and Epcor. But, there as a number of less profitable generation facilities that were not picked up in the “public” auction. These I was advised were picked up by “The Power Corp” which you are more familiar with as being the group Mazankowsky belongs to.

This group is not known for bad decisions or welfare payouts to Government. One has to ask how much did the taxpayers pay them to pick up these worse than useless options?

Much troubling to me is the flipping or quick buys and sells of PPA for the sole purpose of pocketing a bunch of money. (Multi millions thought to have been absconded)

This was advertised as being “public” but like the park hand offs the opening of any such tenders was done behind closed doors and no word was given as to who all bid and what were the prices bid.

Once the initial sale was made by the Government it was out of their hands and the paper could be sold for what ever; gouging the electrical system. Money that should have been in the public tax fund was swiftly channeled into “friends” pockets.

There has been no public accounting of who bid and who got what.

What we do know is the majority of the electricity ended up with the cities which I think is what was planned from the onset.

So, if it was planned to end up like this, why were intermediate bids was needed for purposes other than lining some ones pockets?

Now it is a time for restructure, burn the evidence and, pull the resignation of the author of this scam.

Only the Attorney General can ask the RCMP to investigate.

One has to wonder what Conservatives in Alberta are proud of!

John Clark

Thursday, October 11, 2007

The Energy Market Alberta is trying for

The US Federal Government is borrowing about $2 billions each day; North America, according to the ERO of the US Department of Energy, needs 141 gigawatts of new generation by 2016. That generation alone will cost between $310 billions and $395 billions. When you consider the need for corresponding transmission and corresponding distribution the totals are likely to range from $931 billions to $1.18 trillions.

There is critical shortage of materials to construct new generation, transmission, and distribution systems. Consequently the estimates of cost, given above, must be regarded as optimistic

This short fall of electricity is roughly 1000 times greater than the total present production of Alberta. My question is, why do the rate payers of this province have to pay for it on our utility bills? This industry can be self supporting.

John Clark

Alberta - Stelmach to give away the royality-again.

There is a huge amount of BS hitting the streets and news regarding Royalties.

Simple truths:

40.00 % per BBL US is lower than the lowest price in the word.

20.00 % per BBL US is a huge give away to the oil industry. Some call it compromise.

Huge expenses cited by the oil companies are in reality paid for, dollar for dollar by the Alberta Taxpayer and, they are not audited. For this reason the oil industry has no regard on what they spend or where.

Most of the “new tar sands programs” are going to export their product out of province for upgrading. No profits for the taxpayer here. Why proceed?

If you want to get rid of this Government you have to vote!

John Clark

Wednesday, October 10, 2007

Alberta--Power Bills confuse consumers

There is some really fine investigative journalism coming out of Alberta these days!

Power Bills confuse consumers reads the Sun headlines. This and the associated articles by Graham Hicks are to the point and very well balanced. Worth the read!

John Clark

Tuesday, October 09, 2007

Alberta Power utility rip off- DetailsThursday.

Research coming in faster than I anticipated. Unreasonable profits in Alberta as compared to other jurisditions an eye opener.

Will be ready to post in time for the election.

Friday, October 05, 2007

Alberta's consequence for in-action.

One person said "I want to see a strong Alberta; strong as in facing up to Ottawa when they try to take over our stuff"

I said “There is a great deal of cash moving to the oil companies that should be in tax coffers.
If Alberta does not step up to the plate and collect the Royalties that belong to us, Ottawa will most certainly step in and take up the slack."

This will leave Alberta in a most familiar place of bad mouthing other jurisdictions because they failed to look after their own interests properly.

The NEP is dead; Never to rise again. Move on.

Stelmach driving get away car

Stelmach driving the get-away car!

Canada AM produced this catching one liner. I share.

The talk program centered on a speaking engagement Ed Stelmach made in Grande Prairie Alberta. He is telling rural Alberta to accept a lot less than 20% while side stepping and avoiding any reference to the billions a year lost to Albertans in royalties as pointed out by the Auditor General.

This guy was very much involved in the decisions not to increase the oil royalties as were the rest of the Conservative caucus. Fritting away multi billions of revenue cannot be forgiven!

At a recent meeting I heard one conservative say “perhaps we should stop privatizing everything” (to capture a vote). My comment to him was “that would make you a small L Liberal.

John Clark
cyerclark @

Power rip off explained (somewhat)

Conversations with help lines can really be a very major help!

“The Electrical Company” pay between 4 and 6 cents per kwh for the electricity they sell you. “As a rule of thumb they double this price when talking to you on the phone because, that would be our overhead” they say.

Their buying price today is under 05 cents kwh.

That brings the conversation price of electricity up to between .08 and .12 cents per kwh.

“The Electrical Company” feel they are giving every one a break when they charge us at 10 or 11 cents per kwh.

The point here is the base rate charged on electricity to the consumer is entirely arbitrary and supported by the EUB! When is 100% profit not enough? That is when the EUB allows increases in power costs based on “lost profits” Dam, I want one of those!

The power line companies running their various power lines base the price of the transmission on the “conversation” price of electricity.

As your power price increases so does your transmission costs. Money must weigh heavily on the lines.

Running a cost plus operation is hard. They have to figure out how they can add a billion dollars profit, or more in services charges. (Thanks to Edmonton Sun- Too bad they don't archive)

John Clark

Alberta oil a major rip off - Big oil Accountant

Alberta royalties on the tar sands are the lowest in the world at 1% until costs are recovered. They are far less than the inflation rate in this province. Total increase over the past 5 years has been 36.3% or average over 7% per year higher than the rate for all Canada.

This is the paltry sum that Albertans are getting for the big black holes in the northern forest and tailings ponds that are growing around the exploitation that can be seen from space. That is what the province got for this resource for 40 years of production.

A post graduate aboriginal told me that those ponds overflow in a heavy rain and are already polluting the rivers. They are concerned about the long term effects on the environment. Sycrude is dishonest when they claim to have restored 30% of the damage.

Canadian Oil Sands Trust Unit, the largest owner of Syncrude, paid an effective income tax rate of under 5% for each of the last seven years according to the Financial Post Survey of firms.

The international president of Exxon Mobil, the operator through its 70% owned Imperial Oil, was the first to threaten Alberta over an increase in royalties. It is the world’s largest listed oil firm reporting profits over 18% of revenue after tax last year. Imperial it self had net income about 1% higher.

Exxon Mobil, Imperial Oil and Suncor are “private Canadians” as suggested in a recent article by Diane Frances in the National Post. They are public traded corporations. As the former head of Shell said as a member of the provincial commission, they can afford to pay more. Exxon Mobil agreed to give Newfoundland and Labrador a 5% interest in its offshore oil. That field took even more years to reach production than does a tar sands operation now.

Why are the Canadian governments giving this resource away so cheap?

Authored by former big oil accountant
I checked Imperial Oil earnings.That Exxon Mobil subsidiary alone earned $3 billionin Canada alone in the 12 months ended June 30.Like Former CEO of Shell said, they can afford it.

John Clark

Wednesday, October 03, 2007

Alberta Oil moving to Saskatchwan? Not!!

Lies and misdirection are the tools of power for the oil companies and the Conservative Government. We have lived through the last 15 years of wall to wall lies and misdirection so, why should we think differently now??

If the royalty guidelines of the committee are accepted the oil companies will still be paying the lowest royalties in the world. Are they going to move? Not a chance!

Crescent Point Energy has joined the ENRON choir in saber rattling and more overt threats by saying they are moving to Saskatchewan.

Both of these companies have been working in Saskatchewan over the past many years with an increasing involvement as time moves on.

Two things come into play. The first being there is a shortage of skilled labor in Saskatchewan as there is in Albert and the housing situation in Saskatchewan is only marginally better than it is in Alberta.

These companies will move forward on an increased involvement as has been their plans for years.

Saskatchewan royalties are higher than Alberta’s. This didn’t stop the companies from opening that area up. If Alberta accepts the 20% increase as the bottom line as any responsible Government would do, Saskatchewan would have to follow suite or, face an angry populace in an election.


Monday, October 01, 2007

Electricty rides free from the critical eye!

Electrical energy as administered by this Government is not the free for all it appears to be. It is a practiced and deliberate rip off. The electricity companies and the Government are plying to the massive ignorance of Albertans when it comes to the complicated issues of Electricity supply and transmission.

AESO have said recently they are opening up the Wind Power generation in this province moving the generation threshold up to 900 mw (megawatts). The lines that are in place now are a 300 kv (kilovolt) line into BC that was put in place to export power to BC but, finds that it is moving power from BC to Alberta. It is possible to move 800 mw of power over a 900 kv line but, not with the existing power already on the grid!

Questions beg to be asked, where are the new power lines being planned for the wind farms?

Fording, of the Sherritt Fording (Ontario Teachers Pension Fund) group is courting the sale of its last remaining metallurgical coal to a US company. That would leave Fording in the power generation business. (They have already divested themselves of the heating coal by turning it over to the Sherritt part of the organization)

Fording is working through a professional Environmental company on the Environmental approval package now.

How soon is the Fording Company going to be before the power generated at Brooks Alberta is going to be available for the grid? And, what of the power lines to hook it up, north and south. It will be 90% for export and the price of the electricity will be dependent on how much Sherritt charges Fording for the coal it will use.

When that generation comes on line, the new 500 kv line will be in place from Genesse to Calgary. Because of the new southern generation the new lines will be under utilized and it will be said that that is the reason Albertans have to pay for the use of lines for export of electricity.

What is really needed is a Government who will look out for the interests of the population of Alberta. Not just the oil and energy companies.

Where are the explanations from ENMAX and EPCOR on why on top of their billions in profits do they need extra percentages on rate increases. If we have leaned anything in this past couple weeks is the EUB cannot be trusted to do other than what the Government tells them to do.

Bottom line is Alberta is short of transmission lines to export electricity and is adequate for supplies of our present needs. While weighing this, consider many US power suppliers and power line companies are in trouble financially because of bad policy and inflation. Outages shorts and meyham are ever present.

John Clark

Alberta not alone in trying to get more revenue

Miguel Roda, the President of Bolivia took to the US airways this weekend. He is known for his move to increase Bolivia’s royalty rates. He defended his decision by saying he increased Bolivia's take on the gas royalties from 300 million dollars to over 2 billion dollars a year. There has to be a lot of happier people in Bolivia, not necessarily in Santa Cruz

The US oil companies are re doing their revenue outlooks in anticipation of a Democrat Majority this election. I haven’t heard of any of the Oil companies saying they are going to pull up stakes and move out of Texas.

ENCANA on the other hand is still in the position of threatening Alberta and Stelmach is going along with them. I suggest to both parties they examine their positions and consider the alternatives. I believe very sincerely this whole show is nothing but a show to appear as a hard fight to do nothing or too little.

The number put forward by the committee on Royalty rip off produced the absolute lowest possible figures that could be considered even remotely reasonable.

Friday, September 28, 2007

Former Crown Corporation threatens Alberta. So much for Privitzation!

Stelmach and crew have joined with the oil companies in a theatrical production about royalties for which there will be no change when the wash is out. The responses from all concerned can be nothing other than staged performances.

Alberta: One time Alberta Crown Corporation Encana is making a lot of threats against Alberta. Going to totally trash us they say.

Well, this is the same company, once and Alberta Crown Corporation, that was privatized by this Government. Says a lot about the conservatives plans.

This is the same company who wants to build additional pipelines and ship our product to Chicago dodging all conversations that would have them say why and, being totally supported by Stelmach and crew.

Meanwhile Stelmach has cut royalties through tax brakes amounting to billions of dollars over the last few years. In brief he has determined Alberta is making enough. All increases in oil prices go to the oil companies.

Apart from this the cost of living has increased so high in this province people are leaving in droves. Soon enough it will all be owned by the oil and power companies.

I am writing this at a heated moment.

The History Channel pointed out last night that Hitler took over Germany when the NATZI
Party of the day took 25 percent vote. Once he had power he took Germany down the dark path we are all familiar with.

The Alberta Conservatives took over the Alberta Government last election with 22 percent of the eligible vote.

As in no other time in our history, Alberta has to get out and vote. We can make a difference.

Wednesday, September 26, 2007

Alberta Oil companies reduced to fear mongering.

Alberta oil reduced to fear mongering.

The conservatives are saying constantly to let market values shake out the problems but, when it comes to their buddies in the oil board rooms this overly simplistic rhetoric we are accustomed to hearing goes out the window. It is used only when they want you to pay more.

Subsidies of low royalties, free potable water, free natural gas and the more than favorable tax regime are side stepped in this fear mongering article.

Don’t expect this Government to do anything for the citizens of this province. If you don’t like it, catch a bus. That much, they will support you in.

Here is the golden goose the oil companies are trying to protect. Future oil up above 82.00 a bbl USD

Wednesday, September 19, 2007

Alberta Royalties - A matter of trust.

This Government has been sand bagging information and has continually put forward a program of lies misdirection and total deceit! How can we possibly believe them now?

The recommended royalty rate was accepted by the oil industry who satisfy us by saying more or less that "we will make do". Stelmach has put on his theatre face telling us he will do what is best for Albertans. The latter should make us suspicious as they have been saying the same thing for the last dozen years!

The numbers presented are apparently 20 percent above the 25 percent presently being charged as royalty. With only 19 of this 25 being collected just what in hell does that mean? What is in place to recover the other 6 percent of the present deal that was dealt away in back rooms?

The 20% figure is till 25 points below the lowest number elsewhere in the world.

The 20% figure could be dealt back to the oil companies through tax deductions or additional allowed expenses; a dozen different ways. The 20% figure is not as much cash as the oil companies make in one month!

This is a Stelmach orcastrated parade and, I agree with Taft saying we should have a public audit. After the light show Stelmach puts up you will find we have been shafted yet again.

John Clark

Alberta Royality Report is in!

I’m not one to say “I told you so!” but it is worth while to note the Royalty report has taken the absolute minimum amount of increase that would be reasonable. This would have the resource companies still paying much below any one in this world. Any technical differences have been paid for on startup by the Alberta Taxpayer.

It is reported to me that Ed Stelmach is taking council from the Fraser Institute on how to best avoid a resolve in the royalties. The idea has been put forward to do away with the 10 % tax credit on dividends paid by the oil sector in Alberta. This, they have counseled will allow him to tell Albertan’s he has met the Royalty Report half way.

Monday, September 17, 2007

Blair comes to Alberta - is the taxpayer footing the bill?

Tony Blaire, George Bushe's right hand man is on his way to Calgary on the for hire lecture circuit. This guy will cost big bucks!

john Clark

Mulroney checked the wind and feels he can go public.

Brian Bulroney has not endorsed anything publicly since he went out to capture headlines on Ben Johnson's win and ended up with egg on his face.

I guess he figures there is enough press support climate change it is safe to try for headlines in this area.

John Clark

Thursday, August 30, 2007

EPCOR to sell grey water to upgraders?

We have heard city council members say they have misgivings about EPCOR selling waste (grey) water to the oil up graders who will use billions of gallons of water in the process.

Grey water can be returned back to the river with minimum treatment.

There are different kinds of water use.

If the water is used as a cooler or a heat medium any steam produced would at some point escape back into the atmosphere. Because of this it will remain part of the water resource and be returned to earth as rain, snow etc.

If on the other hand it is being pumped down hole or used to flood coal methane wells it is lost for ever. There is nothing coming back from this. I have enquiries out to the upgrader companies asking for specifics on their water use. No replies yet.

John Clark

Why I am excited about the power rate increases.

In answer to enquiries on Electricity rates:

The point of the increases is to ramp up charges so we will be used to paying California prices (highest in the world) for the electricity for our homes by the time the new generation comes on by Fording for Brooks Alberta and the Peace River power generation are ready to deliver.

The increases taken between now and completion of these plants will go to corporate profits; part of the exercise.

Lots of reasons for you to vote in the next election!

John Clark

Urban living pays for the power in this province.

Alberta is ramping up for massive export of Electricity. You will be expected to pay for this in the most part by increased charges to your power bills for electricity and transmission, the latter being hooked to electricity cost.

What is not covered by you directly will be covered out of the general revenues of this province.

There is a generating plant planned for Brooks Alberta to serve Calgary and Southern Alberta. Now, there is a facility being built in Peace River to Service northern Alberta. In addition to this the companies in the oil sands build their own generation facilities and have in the past, exported their power to California.

The costs of the plant generation go into start up costs and are paid for by the tax payer.

Because of Alberta’s rules that all transmission lines are paid for equally by all Albertans, the cost of oil sands and up grader power lines (specific for their use) will be paid for in the urban utility bills.

The Conservatives have allowed the cost of electricity to be increased, having nothing to do with generation or transmission charges. This does however have a lot to do with increasing the cost of electricity so that the new plants can remain profitable and be in a position to export some of the 7000 megawatts of power the US is going to be short.

Over the next couple of years the Enmax and Epcor people will pocket unusually huge profits. This keeps the City of Edmonton happy. They like windfalls when they happen.

A week after this post:
John Clark

Sunday, August 26, 2007

Is there an alternative?

One question in the survey that tanked the Conservatives in the polls was “Do you think there is a viable alternative to the Conservatives?” My answer was “YES”!

Albertan’s all know the Conservatives are socially deficient, self serving and as close to organized crime as any elected body on the planet. However, it is not enough to complain. For that army of people who are ashamed by the Conservative it is time to think of the only alternative; The Liberals.

This is a group of well motivated, honest and serving people who don’t think they were born to the job.

It is time to vote for a group of people who will take the province interests to heart and look after this province as opposed to the present group who think it is their right to rip off this province at every occasion.

I will be personally attending a good number of election question and answer sessions this time.

If we don’t make the change now, there will be no recovery.

John Clark

Thursday, August 23, 2007

Stelmach to copy Ottawa success in selling public buildings.

As usual the Consevatives will pour billions into an upgrade and then, sell the property for 2 cents on the dollar to one of their "inside" friends.
Like the parks and camp grounds; Like the power lines; Like Calgary Hospital; Like the electricity and not to be left out like our drinking water!

From Alberta Short News:
Alberta to Spend 350 Million Dollars Upgrading Public Buildings

The government of Albert, Canada unveiled plans to $350 million to upgrade more than 100 facilities. The spending comes in light of a surplus to the province.

About $200 million will be spent on Education; more than $100 million of which will go to post-secondary education another $97 million will be alotted to elementary and secondary education.
Another $87 million will be pumped into health-care facilities and hospitals. The remainder of which will go towards buildings in other government departments.

John Clark

Tuesday, August 21, 2007

As predicted Conservatives sell off the country!

a giveaway of colossal proportions:

Like Alberta the Feds sell stuff off with no regard to values their eyes only on brownie points for privitizing what ever moves.

Dig in for more if you elect these clowns again!

John Clark

Monday, August 20, 2007

Alberta courts offer major free rides!

The Conservative driven courts in Alberta are leading the province to Anarchy. Use what ever means is available to you to protect yourself and your property!

The Alberta courts are bundling 6, 8 and more offences for various thefts and break and enter cases. Once bundled, the courts will judge the lesser offences (2 or 3), dismissing the remained in order to get a quick guilty plea. This is driven by the crown prosecutors.

Big bucks are being spent on video cameras but the Conservative courts are asking for family members to identify the people caught in the videos before they, the court, will allow them entered as evidence. By this action courts have relegated surveillance video to an expensive hobby.

The Attorney General of this province would like to make it all Ottawa’s problem but, it is strictly the interest level of this government.

This Government is so busy trying to privitize absoluly everything they do not have the time or the will to enforce the laws unless of course, there is some coin for them involved.

John Clark

Thursday, August 16, 2007

Conservatives set up to privitize (give away) Alberta Heritage Trust fund.

Conservatives start their program to privatize Alberta Heritage Trust Fund. This article sites poor performance of the fund which in truth is the draw down of earned profits by the Conservatives. They take any profits from the fund and use them in General Revenues. This keeps the picture poor.

As usual they destabilize a working unit then, reach for privatization to fix the problem where in truth, all it takes is a change in Government.

John Clark

Alberta Ropyalities will drop.

Excellent article in the Edmonton Sun.

Alberta's oil royalties could drop: report
Critic says government full of 'suckers'

By JEREMY LOOME, Legislature Bureau

Alberta’s share of oil royalties could decline while the federal government’s take increases under a new royalty option for the oil sands proposed by the provincial government, says one of the world’s top oil consultants.

It’s more evidence the Alberta government is full of “suckers,” said NDP Leader Brian Mason.
He said the same report shows Alberta is losing potentially hundreds of millions of dollars annually in revenues it should collect. “They have lost sight of the interests of the people of this province,” he said.

In his study for Alberta Energy, Calgary-based consultant Pedro van Meurs said the proposal – which would allow companies to calculate royalty payments on a choice of either the finished synthetic crude product or the tar-sands bitumen from which it is extracted – could lead to two significantly different outcomes.

The companies being offered the new plans, Suncor and Syncrude, have until this year to decide which to opt into.

If the companies opt for royalties based on synthetic crude, Alberta’s royalty rates will be 8% higher than if it opts for a rate based on unprocessed bitumen, says Van Meurs.
If Alberta allows them to choose the latter, recent changes to federal tax laws mean the federal take will increase while Alberta’s take decreases, he indicates.

“It is very obvious that Alberta is faced with a very high level of royalty reduction, when under the Suncor and Syncrude terms companies opt for a switch to bitumen values from SCO values,” he notes.

He said the switch “will result in a drop of about 8% in the overall government take. However, that drop is only experienced by Alberta, the federal share actually goes up, since royalties are now deductible for tax purposes.”

The government isn’t commenting on the report, over concerns it might bias the ongoing review of royalty rates.

But Liberal opposition critic Hugh MacDonald said Albertans don’t want to hear that their own government is allowing more revenue from Alberta oil to head to Ottawa.
“The results of this study are damning with respect to this government’s handling of a resource that belongs to the people of Alberta,” he said.

“Under an Alberta plan, we could actually get less. It’s astonishing, and it’s more clear evidence this government has been operating without any real plan for the last 10 years.”

The study, first reported in yesterday’s Sun, also suggests Alberta is being taken to the cleaners compared to other jurisdictions, receiving between 15% and 30% less overall revenue from companies here, or as much as $2 billion since the rates were set in 1996.
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