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
PS
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
cyberclark@shaw.ca

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.

John Clarkcyberclark@shaw.ca

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)

Add
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
cyberclark@shaw.ca

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.

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.


cyberclark@shaw.ca

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

cyberclark@shaw.ca

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
cyberclark@shaw.ca

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.

cyberclark@shaw.ca

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
Cyberclark@shaw.ca

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
cyberclark@shaw.ca

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
cyberclark@shaw.ca.

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
cyberclark@shaw.ca

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
cyberclark@shaw.ca

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
cyberclark@shaw.ca

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
cyberclark@shaw.ca

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

cyberclark@shaw..ca

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
cyberclark@shaw.ca

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
cyberclark@shaw.ca

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.
jeremy.loome@sunmedia.com

The October Election; rednecks won't take it all!

The October election:

This will be a great shift away from the Conservative bandits. Remember they were elected this last time by just 23% of Alberta. That would be mostly the rural vote.

The multi thousands of people who have moved here from other provinces can vote and, most do not have the mentality of blindly voting as their fathers did. I predict the much celebrated Alberta bigoted, red neck, pee in the bush before your dog does; will be mellowed by more reasonable thinking.

For years, young people have been disgusted with the political system mostly because they have seen what this Government has done crooking the Rural Urban split in the vote in their favor and feel there is simply no use in voting. Instead they pull out a Green Party vote as a protest vote, not because of the platform. This plays into the hands of the Conservatives; fracturing the already delicate vote pool.

This time, one vote will make a very big difference!

If you have never voted in your life, now is the time. On the course Stelmach has outlined in the press no one except the very richest of families will be able to live in this province. Your utilities can run up to 200 percent of what you are now paying as you add in the now necessary air conditioning. It takes more electricity than does heating.

A change can be made in the direction of this province!

For those of you who live in Edmonton: The city of Edmonton owns EPCOR. Ask your councilors what they are going to do to protect you. Don’t accept the statements that they have no control over this, which is a lie.

VOTE!

John Clark
cyberclark@shaw.ca

Secret deal between Alta and BC guarantees profits for Companies.

MEDIA RELEASE
FOR IMMEDIATE RELEASE
August 2, 2007

Saskatchewan Says BC-Alberta Trade Deal is Flawed: Province Will Not Join TILMA
Vancouver - After months of debate, the Saskatchewan government decided yesterday that it would not join the Trade Investment and Labour Mobility Agreement (TILMA) with BC and Alberta. Citing the agreement's broad scope and unanswered questions, the government assessed that signing on had too many risks for the province.

TILMA was signed by the premiers of Alberta and BC, without public consultation or legislative debate, in April 2006.

The agreement allows corporations and individuals to sue provincial governments for any provincial or municipal government measure they feel "restricts or impairs" their investment. Under TILMA, even measures designed to protect the environment and public health are vulnerable to attack from corporate lawsuits with compensation penalties as high as $5 million.


Saskatchewan's announcement comes as Colin Hansen, BC's Minister of Economic Development attempts to justify TILMA's far-ranging implications to municipalities. The Ministry is scrambling to 'consult' with municipalities, dozens of whom have raised serious questions about the agreement's impacts on local autonomy and will vote on excluding municipalities from the agreement in early fall at the Union of BC Municipalities AGM.

"Once elected officials get the chance to read through TILMA, they realize that it is more like a corporate bill of rights than an agreement to enhance trade and labour mobility," says Carleen Pickard, BC/Yukon Regional Organizer for the Council of Canadians.

"Unlike in British Columbia and Alberta, the government of Saskatchewan actually consulted academics, experts and citizens and concluded that TILMA is a bad deal. It is time for Minister Hansen to accept that, stop forcing it on BC's municipalities, and withdraw from the Agreement."

For more information, contact:
Carleen Pickard, 604.340.2455; cpickard@canadians.org.
For more information about TILMA, visit Canadians.Org.

Conservative platform being leaked!

Conservative candidates are told to promise changes in the royalty number if they are elected again! In preparation for this Stelmach as dropped many of our royalties below 25%.

This leaves them room to increase 1 or 2 percentage points after being elected, leaving us below the 25%

This means personal income tax will go up, city and town utilities will go up. The costs will be about 200.00 per month to the average home owner.

Considering they have told us we will be paying California prices on our gas and power it means only the oil people can afford to live in this province. I have to believe it is a Conservative plan to run every body that is making less that 100,000 a year, out of the province leaving their life dreams behind to be picked up by people associated with the oil industry.

If that is not their plan; it will end up like that never the less!

The only way to stop this crew is at the ballet box!

John Clark
cyberclark@shaw.ca

Election call!

The Conservatives figure they have no opposition so, most are staying on to run, still again.

Points to remember:
Stelmach is making deals now to privatize our water system, still allowing obscene amounts of drinking water to go down hole to flush out oil and gas. All this use remains free.

They have shown how they plan on treating us when they do privatize the water. Same as they treat us on the oil and gas!

Moving utilities to “market value” as Stelmach has promised to do will leave us receiving the lowest royalty in the world for our resources while we as citizens of this province will pay the highest rates in the world for using gas, electricity and soon, water. The energy “market” in the west is California prices!

The Conservative organization declared their intention to export bulk water when they appeared before the Government committee on NAFTA. (Copies of that available upon request.)

Yes folks the Conservatives are facing the same game they faced in the last election over health care. Yet they quietly moved a large portion of the system into private hands under the guise of health regions. AON is still active, on Government payroll, doing what?

They have cured the tent cities by turning them into virtual prisons. This is a good thing to do in their political philosophy.

Remember that this Government as is Harpers are driven by the Fraser Institute an organization made up of retired Conservatives and Republicans who find Alberta a soft target as compared to other states in North America. Much of their membership is made up of company representatives from the USA, many who hold dual Canadian and US citizenships.

Don't forget his annoucement to turn the Heritage Savings and trust over to a private company by first turning it into a Crown Corporation then, selling the Corporation. If this was tried in most other countries they would be in Jail!

If you vote, you can change this course of events and may even be able to recover some of our losses.

John Clark
cyberclark@shaw.ca

Alberta -- Going for Broke!

Alberta rural roads are getting an unusual amount of attention; Stelmach has let paving contracts to every local construction type in the rural ridings. There is more fresh pavement laid on rural roads “to control dust” than any of the major centers!

Yet highways that are collecting bodies over the years such as highway 19 are on the back burner. More votes to be had by paving driveways than highways.

What is the downside? We are going broke. After the fall election Stelmach is going to put the brakes on spending and ask us by way of higher taxes or higher utilities to make up the debit he caused getting re elected. There are tough times ahead!

There will be no move on getting our rightful share of resource revenue!

These people are shameless.

John Clark
cyberclark@shaw.ca

Fall Election a sure thing!

Fall Election a sure thing!

My trip around Alberta this weekend showed me crops that are in abundance and well on their way to becoming full and ripe in most parts of the province.

Stelmach knows the farmers and farm communities will be politically docile when harvesting a promising crop!

They will not worry about these guys running off with the Heritage Trust fund or the continued turn over of our resource and infrastructure to private friends though the closed bidding process and the guise that it is best for Alberta to do this in secret.

The unsettled extreme weather of global warming could still put sand in his Vaseline! Wet fall weather could prevent the crops from coming off.

cyberclark@shaw.ca
John Clark

Some work for my journalistic freinds.

Some work for my journalistic friends:

Just how arms length is Mazankowski and Great West Life removed from the AON Corporation that Alberta though the health care package to?

Why will the Government not allow viewing of the agreement between the people of Alberta and AON.

The minister sites “information on revenues” as the reason.

Hummmmm.

John Clark
cyberclark@shaw.ca

Conservatives wasting Alberta away!

As citizens of Alberta trapped under this Conservative Government our chances of getting any meaningful changes to the royalty structures for natural resources in this province are next to nothing.

The oil companies keep raising the bar for what they will pay for the shrinking labour and professional market. They are estimating the costs to go as high as 50.00 per barrel US for oil sands projects!

That would mean on a 85.00 barrel of oil 35.00 would be considered clear after production costs and we would get 8.75 royalty for the dwindling resource.

Under the present scheme there is little or no audit of what they call expenses. There are absolutely no controls over what and how much money they spend on something. There is no consolation even though the money they spend comes direct out of Alberta’s royalty portion.

Or, could it be the costs are jacked up in order to capture more revenue for the oil companies? Even though they are essentially spending our money, they claim huge success for “all the good” they have done by spending our money.

John Clark
cyberclark@shaw.ca

Further electricity gouging-Pay market price by 2010

Alberta to pay “market price” by 2010.

Ed Stelmach has said Alberta Electricity consumers will pay full market price for their electricity by 2010. That is 2 years from now! Electricity cost will increase rapidly in that period.

“Market price” is the cost of electricity in California which, is the highest in the world!

This Government has taken the single advantage Alberta had and with a total disregard of what the voters in this province want, gave away out power lines which in turn will increase in proportion to the power.

Oil concerns need the power and, any power they use at any price at all adds to the price of construction or the price of producing. So, we take a hit on both ends! I call it padding the books!

This in turn firmly slams the door on any manufacturing opportunities opening in this province and you can expect still more companies to move east to a better business climate. High Electricity, High Heating Cost, the high cost of labor, the lack of skilled workers coupled with the improved highways east bound means the Calgary warehouses are becoming redundent. Property values will depreciate.

The population is also moving east. People born and raised in this province can no longer afford to live here thanks to the extreme policies of this Government. However this is all okay with Ed Stelmach and company, it saves putting people on busses.

Many pensioners are moving east to Saskatchewan and Manitoba. This does not bode well for these provinces as the people have very low spending power and will not be able to contribute a great deal to their economy.

Fat and fast union settlements to avoid pressure at the next election are burning dollars like nothing else and, further putting the heat onto the labor market.

This, as I said, makes Ed Stelmach a happy camper.

If a government could be labeled as social psychotic, this Government would be it.

John Clark
cyberclark@shaw.ca

Our rip off electricity options or lack of them.

An interesting call from Direct Energy

The price of electricity has gone up 32% since 2004.
Does it cost more to generate? NO!

An interesting call from EPCOR
If the price of electricity posted on the AESO web is .08 per kwh, EPCORE will figure the cost at .16 per kwh and, that is what they will charge you if you choose the “open market option”

As with most things with this Conservative Government the open market option is hype. The way it is administered leaves no choices for the consumer but to go to one of the “electrical supply companies” invented by the Conservatives.

A huge rip off and, with this Government in place there is nothing you can do about it.

John Clark
cyberclark@shaw.ca

New RCMP head-Shades of Mulroney

Shades of Mulroney!

Conservatives by their nature and conviction have an inherent mistrust of the Government Bureaucracy and feel a direct, hands on operation by the ruling (as opposed to elected) government is the cure all for everything. Fundamental to Conservatives is the mantra that Buisiness should run the country, Government should make rules to enable this.

Following the Conservative conviction he put his ADM’s (Assistant Deputy Ministers) directly in charge of the daily workings of various departments very often shorting and/or discarding input by seasoned bureaucrats putting the Conservative stamp on the program.

William Elliott is the named commissioner. In 1989, Elliott worked as an executive assistant to the office of the deputy prime minister. One year later, he became chief of staff in the same office.

Harper has gone one better. He has put his ADM type directly in charge of the RCMP. I suspect we can look forward to hearing the RCMP pension fund is privatized as a “step forward”

By extension Harper is setting himself up in the likeness of Bush, a dictator want to be.

A harsh thought is with the Government in charge of the national police, we are in a police state wheter or not it is intended that way.

John Clark
cyberclark@shaw.ca

Elecricity rebates come to an end.

The Conservatives are under the gun from the suits to speed up their privatization schemes and open up the free market doors. Chopping all power subsidies will be the next thing they will do.

In Alberta we pay for all the power lines on export and oil sands power line generation. This means that the consumers in this province pay unfairly for all aspects of their power.

The price of electricity the US is willing to pay has gone up and will continue to go up as they fall short on generation by 7000 mw over the next year or so. The Conservatives want to fill this need and have you pay for the overhead.

They have allowed the price of electricity to jump by 30% over the weekend. They have grouped the consumers of Alberta into the nebulous electrical market discounting the fact that we are paying unfairly for large portions of the costs.

Now, they are about the cancel or adjust to non existence the brief protection we had as the electrical industry strives for market prices.

Democracy Watch chided Alberta by saying at one point the province was the closest state in Canada to being free enterprise. That is they clarified the state in Canada that is most like the USA! But, they continued the rush to the US state was slowed down under the Ralph Kline era. Stelmach is after brownie points trying to pick up the pace.

Everything that is filth in politics can be found in Alberta’s Conservative Government.

John Clark
cyberclark@shaw.ca

Every body loves chocolate and its good for you?

Every body loves chocolate. Now, the German studies have shown that 6 grams of dark chocolate per day will reduce blood pressure and is being touted as a good thing. This is a nice trick in allowing you to go crazy over chocolate, this time for your good health.

Dark chocolate contains large amounts of l’arginine a nitrate. This “smoothes” out the blood vessels, relaxing them somewhat in turn, the blood pressure drops.

They don’t talk of the dark side of l’arginine! If you have a herpes virus including a cold sore and you drink chocolate milk, you will find the infection spreads rapidly with no indication of clearing up. The l’arginine in the chocolate is exciting the herpes virus!

If you have a slightly cancerous spot in your body, the l’arginine will also excite that!

Do what ever you want to do, just take a moment to know what you are doing.

John Clark
cyberclark@shaw.ca

Why is the tar sands borrowing of interest?

All costs for the loan of the money will go in as an expence of the tar sand construction period. This in turn has to be paid from the royality structure before the tax payer sees any amount beyond the 1%

This is standard business practice, not a shady deal. The point here however is like the other direct expences we must pay for we have no say in what prices are being paid.

The door is open for the oil company to form and fund a new company to borrow money from at very high rates inflating the costs to the taxpayer.

This doesn't bother the Conservatives.

john clark
cyberclark@shaw.ca

Oil Companies borrow 3.2 billion on your behalf.

Oil Sands Companies borrow 3.2 billion dollars for oil sands projects. Why not use their money? They are sitting on many times that amount. It is less than a quarter’s profit.

If they use their own money they cannot deduct it from the cost of the Oil Sands. However they can collect interest on their own money and bank it while taxpayers pay for the loans they make for use in the tar sands.

Wonder why we are going broke in this province?
http://www.canada.com/edmontonjournal/news/business/story.html?id=05ce7596-7b4d-4c09-afa2-382e452ce44a

John Clark
cyberclark@shaw.ca

Why is 40% the minimum acceptable?

In answer to the many questions of “Why 40%”?

This is really a statement of how the Conservatives have ripped off this province.

40% would be an honest return if applied to all the natural resources.

40% would still be the lowest royalty charged in the world, bar none!

John Clark
cyberclark@shaw.ca

Alberta schools on the block!

The Government’s 3P plan for building schools has little or no chance of succeeding as favorable to the taxpayer. It does however bring us a step closer to totally privatizing the school buildings.

In most 3P projects to date, the cities and governments involved have had to buy back the project after a short period of time. It appears to me to be still another way of shuttling cash into buddies’ pockets by this Government.

What do you think the chances are for an open and public process? My guess is the deal has already been made.

Liepert said consolidating the design and bundling the construction will "definitely" cost less than building the schools as one-off projects.

One reason is that the final price will be locked in when the contract is signed, he said. That means the contractor, not the taxpayer, will assume the risk of cost escalations due to inflation, he said.

Royalties Energy-Recap

There has been volumes published by oil companies trying to defend the highest profit oil royalty regime in the world! In defending what is seemingly impossible to defend there is only a few key points they hit on.

1.
Natural Gas output has peaked as of 2001. It’s all downhill now. We are running out and the taps are still turned on full for export. Alberta Natural Gas was also given to the oil and gas companies at the lowest rates in the world. Now that it is running out, these same companies will move on to greener fields and, we in Alberta are left holding a very stinky bag of no natural gas and ruined water supplies.

Multi billions of dollars miss managed by this Government! They sill plan on accelerating the coal bed methane capture using more of our dwindling water supplies and returning the lowest royalties in the world.

2.
Conventional oil complains are saying they are not getting the profits they once did because it is more difficult to drill in part and the cost of labor has increased. They feel they should be compensated for this by the taxpayers who are in the same boat.

3.
The Association for Canadian Oil Producers have finally come out and their only addition to the arguments is the oil companies pay big bucks for the oil leases and this somehow entities them to the extreme high share of oil revenue while the Alberta Crown gets next to nothing; 20 to 25 percent.

The leases like every thing else the Conservative Government has done are sold off lower than leases elsewhere in the world leaving this organizations arguments empty.

4.
Tar sands organizations are saying their costs have gone up; they need still more profit if anything. Look here at the hundreds of billions of dollars profit declared by these same companies every quarter!

By over building and exploiting the resources they actually get for nothing they have put huge pressures on the supply structure as well as the labor market. In fact they pay some of the highest wages in the world to people working in the tar sands industry. Unfortunately they are paying this out of taxpayer money. The taxpayer does not get any part of their skinny royalty until the plant costs are totally paid for.

The same organizations are saying they add so much to the economy of this province they should not have to take a lower cut of the oil revenue. Considering most of what they have added is bought with our money its hard to think they are actually serious in this ploy.


5.
Stelmach’s Conservatives continue to say this “success” is because they created a climate conducive to business investment. What a snow job!

I say to the oil companies “Come to the table with a proposal of 40% royalty held over time” and then, you may just survive.

John Clark
cyberclark@shaw.ca

Bottom line: No choices on Electricity!

The Conservatives have crooked the books yet again on Electricity supply. Up front we are given the choice of signing up with 3 or 4 electricity resellers. Middlemen as the name implies, picking up the change between the supplier and the consumer. The latter being you and I.

There is also the choice of signing up for the direct rates. I looked into this and although the direct rates are much lower than are the “over time rates” charged by the resellers we cannot take advantage of them as promised by the Government.

If you rejected resellers and opted for EPCOR to bill you the direct charges as they change from month to month, EPCOR will charge you an undetermined amount making sure your charges are above those being pushed by the reseller.

As with most things the Conservatives come up with it is a deal that is no deal at all!

On top of this we hear horror stories of people who have had their power cut off because they neglected to sign up for a reseller to cover them when their existing contacts are finished.

Bureaucrats run amuck in Alberta.

Punitive Taxation in Alberta:

Alberta Health and Wellness decided we are all dumb and negligent and installed a costly process for getting a replacement health card. When interviewed they said the Health Care Card is important and this will encourage you not to loose it again.

The drill:
Copy your drivers licence or other, specific ID.
Fill out Statutory Declaration on Replacement of Alberta Personal Health Card
Have the Declaration signed by a public Notary or a commissioner of oaths.

This only applies if you have lost 5 cards over the course of your lifetime.
Beware of your wallet in a wash machine.

Cost to you will be half a day lost work and 15 bucks for the signature.

On the other hand when I lost my wallet on a plane I reported it immediately. They said thanks. Months later when I received by AHC expense statement it showed a series of large expences in Toronto. I reported this to AHC and they told me not to worry it was okay. No effort was made for a follow up!

Very selective. Some one had what seemed a good idea once and it is in for all time.

This is a bureaucracy run amuck!!!!!

John Clark
cyberclark@shaw.ca

Conservatives sell of the last of Alberta!

Alberta will get no part of the secondary manufacture of its natural resources. It appears every mover and shaker in the world is after our crude to send it south to the US for refining.

We give away all the up grade revenues and facilities.

We give away all the huge amount of water it takes to produce this crude.

We get the lowest prices in the world for our resource.

Stelmach and the Conservatives consider this to be good business.

I wonder how one gets on their “Buddy” list?

John Clark
cyberclark@shaw.ca

Stage is set to do away with electricity cost protection!

Further subsidies in the form of electricty for the oil industry!

Electricity article shows the shape and size of the electrical supply problem facing this province.

Not explained in the article is who pays and what is the power needed for.

The Atomic plant in the birthing stages in Whitecourt is needed to supply the oil up-graders and tar sands with electrical power. It is not needed for general population use in that area but the general population, you and I will be expected to pay for the generation and the transmission on our utility bills.

No plans for “user pays” for the Conservative friends.

The same article explains the dilemma of wind generation. Only dependable when the wind blows and we need the power. Otherwise the power is wasted to earth.

There is an on going plan for a power plant at Blue River Alberta. This is large enough to double the power supply of Alberta and the design is chiefly for export of power to the US while the home owners pay for them on their utility bills.

The power upgrades to Genesee and the subsequent up grade of the power grid is very expensive. The expense is needed, again to supply the new oil up grader plants with electrical power.

You and I pay for these costs on our utility bills.

The conservative “equalization” program for electrical power serves the oil industry more than it does the home owners in this province.

Presently home owners are protected from higher costs of electricity by Government rebates. Such “protection” is paid for by the tax base and as such maintains the subsidy for the power companies.

This article sets the stage for Stelmach’s Conservatives to very seriously mess with this limited protection and to essentially do away with it.

John Clark
cyberclark@shaw.ca

New Driver Culture in full play.

Even though the “enlightened driver culture” is taking shape across the country an example of what happens was demonstrated in Edmonton on the 5 of June.

Around the city truck two-way radios or “CB” radios heard the story of a man who had been kept on the road for 9 weeks and had constantly been refused time off at home. In this case, back in Edmonton, his home town, he was being asked to go to Toronto immediately. The trucking company is not an Edmonton based company.

He put the word out on his “CB” he was looking for a new job which would guarantee him reasonable time off. In the course of an hour he had 3 job offers.

He was driving a company truck which he had fixed up to make his life a little more livable. He put these accessories up for sale on the “CB”

Within an hour he had a new job, stripped his stuff out of his truck and parked it in a Safeway parking lot. The company will find it sooner or later.

This happened with a tractor only situation. It is happening across Canada and the US with tractors hooked to trailers with various loads on them. Just in time? Any company who says "We force them to go" is just not in charge of the facts.

John Clark
cyberclark@shaw.ca

Driver culture-Just in time not what is used to be!

A year ago the hours that truck drivers can drive was changed so that 10 hours per day working is what they are allowed. This includes waiting time loading and unloading; delays in traffic meals and bathroom breaks.

Prior to this time they were allowed 13 hours driving exclusive of all other details.

This means a trip from Edmonton or Calgary to Winnipeg which for years was a next day delivery has been changed to a 2 nd day delivery from Edmonton and a 3 day delivery from Calgary. Other points are in proportion the shorter hours allowed being recognized.

Another nuance evolved. If the drivers were cut down to a days work as are most people, why do they have to spend their work time driving at night? Yes, this evolution moved forward slowly. Because the loads were needed in he mornings to start unloading, The bulk of trucks just arriving would be looking for loads back out in effect turning the industry into a daylight driving only. If loads are ready at 6 PM which, under old rules would be okay, they are simply too late,

A 6PM load out would mean a driver, now attuned to daylight driving would only get a short distance down the highway and he or she would have to shut it down for sleep because they are tired or because their hours have run out.

The “enlightened driver culture” is now in place.

Along with this culture of real people working in daylight came the thought that it would be nice to take a summer holiday. Now, across Canada as never before drivers are booking off for a week or two holidays in the busiest part of the year instead of waiting for slack time.

Loads are not delivered or delayed greatly.

Some companies have taken a very hard line with their drivers trying to keep them behind the wheel. By coaxing or threatening they attempt to keep the driver moving there-by shelving their holiday wants. Many of these situations are resolved very badly with the truck abandoned at a far off point and the driver is flying home to keep his holiday wishes.

Yes, times just got a whole lot better for drivers and, that is not a bad thing. On the other hand industries depending on the just in time inventories delivered by trucks are going to have to re think their plans. That means more inventories and less just in time demands.

The 'get it there overnight' scenario offered over the years is no longer valid.

These laws do not cover trucks that do not cross a provincial boundary. Hence trucks in the oil service-supply business can pretty well run a driver 24 hours a day and, they do. Big bucks in the pockets of those drivers which is not in it self a bad thing . They often have to travel at night when there is frost in the ground. In their world delivery time and condition is everything!

John Clark
cyberclark@shaw.ca

Bush sets himself up as would be dictator!

George Bush has set himself up as a dictator by subverting all rules and restraints that may affect a president! As with most things the US do, the key is not restricted to events in the USA!

cyberclark@shaw.ca

Hearings over and we loose again!

Well, the hearings on royalties are all over and, as you would expect the ministers are thanking the oil companies for their contributions to the hearings in Calgary. Who would have guessed?

The story is being peddled the royalties must stay the same as they are because of the higher costs involved. Also, the Minister is saying there must be a grand father clause to make sure any that are producing are not caught in any hike.

Liars, cheats and thieves; all of them.

The cost of oil sands plants to build are carried entirely by the taxpayers of this province! Until they are paid for through a royalty hold back scheme, no revenue is taken by the taxpayer. All costs are paid!

The oil sands companies, Syncrude and Suncore in particular have said within the last year that the costs of production has dropped to a point where they can make a profit on 17.00 a barrel sell price. What does that tell you?

There are a bunch of adventurers who have their names in for new production plants. And, that is all; only put their names in!

This leaves room for them to pull their names off the table and we can count on this Government telling us what a bad deal that is and all because we wanted something close to a fair share. In truth it is a act of many plays and players; A theatre for the general public.

Off topic and in answer to many questions. Yes this crew plans on stealing the hertitage saving and trust fund. First, capture it into a crown corporation then, privatize the crown corporation. If Maz doesn’t get it then Aon will to be handed off later. The Heritage trust fund will be mixed with any other revenues.

We will likely be asked to buy shares in this new outfit. The Heritage Trust fund will disappear as did the parks and the telephone lines.

John Clark
cyberclark@shaw.ca

Haper setting up to export our water!

Harper and the US dominated Fraser institute have made their declaration to include bulk water export into the NAFTA agreement!

39th Parliament, 1st Session

The Standing Committee on International Trade has the honour to present its

NINTH REPORT

All aspects of bulk water export are not included in the NAFTA agreement by either Canada, US or Mexico!

Dissenting opinion from the Conservative Party

The Government members of the Standing Committee on International Trade, for reasons previously stated by our members which appear in the evidence, along with the documents provided by the Library of Parliament entitled 'Bulk Water Removals: Water Exports and the NAFTA' and 'Bulk Water Removals: Canadian Legislation' appended to the Evidence of the meeting on May 15, 2007, choose to dissent respectfully from the Ninth Report.

Comment by J Clark.
The Alberta Conservatives are on side with this view. I suspect they are leading the parade.
If Albertans would get out and vote this crew out of office we could change the political map of Canada and probably the USA. I for one am sick of the rule by corporation we now experience.

The pertinent documents and decision are absent from Meetings 63 and 64. However, copies of original document available by email upon request.

John Clark
cyberclark@shaw.ca

Oil royality hearings (1)

The hearings have brought forward the magic 5% number to play with; more of that later.

The royalty hearings have been attended by a number of citizens. Mostly they have shown the absolute shambles the mismanagement of this government has left this province in. As usual the seniors long term care facilities are at the brunt of it, one person citing residents forced to sit in their own filth and squalor for over eight hours at a time because the homes cannot get help to do the job properly.

It is also pointed out that the majority of this province is not touched by the oil wealth and are living pay cheque to pay cheque and not making it meet as cost spiral out of control.

The young people who came to this province in an attempt to get one of the fat jobs offered by the oil companies find themselves mired down in poverty.

They arrive in Alberta and need a place to live and food to eat. They must come up with a months rent in advance and a damage deposit for the place to live. To do this they take “temporary” employment with agencies. Being paid every day allows them to eat while they sleep in parks or ditches someplace. Meanwhile the prices spiral and they cannot break out of this mold! All bright, many young and well motivated trapped into an exploitive poverty cycle by the mismanagement of this government.

Chevron did an outstanding presentation in Calgary at the meetings. Their representative dropped the 5% carrot as far as what would be in their mind, a good increase in royalties.

It is worth while to note that Mr. Stelmach recently told the Journal the conventional crude oil is dropping from 25% to 20 % royalty and much has all ready be reduced to 20%. Because this government hides its dealing with the oil companies and guards them as official secrets it is hard to say how many companies have been reduced to 20%.

The reductions have been far reaching; this we know.

If Stelmach accepts the Chevron 5% increase suggested, it means only that Stelmach has given the oil companies further windfall profits of 5% while he sets up the hearings game. It will mean he cut the royality rates ahead of time so as there would be no change when he "put them up"

Also at the hearings one lady asked what happened to the Syncrude Firestorm project!

She points out Syncrude were going to sue the Government to get their additional Firestorm plant at the 1% royalty rate. The Government let it be known this was not a good thing as other companies may want to do the same thing. At the crux of this is the project a continuance of the original 1% deal or is it a new process not so covered by the 1%.

While this was going on Mr. Klein went fishing with the boys who were going to sue the Government and all the conversation of Firestorm dropped from the papers. The taxpayer has never been told what has happened. This deal is much bigger stinks worse than anything you have heard about the Liberals in Ottawa and yet, we do nothing.

The royalty regime is set up based on the B.T.U. capability of the fuel being sold. All the oil products are treated the same. It follows the oil royalties are the lowest in the world and they are the same basis as all the other royalties then the royalties are all low balled to a point we are being robbed, even while the supplies run out.

A 40% royalty is the bottom line for fair and at 40% it is still the lowest in the world.

John Clark
cyberclark@shaw.ca

Energy spin Doctors hard at work.

There is a steady run of print ink all having to do with the dwindling resources and the hardship of the oil companies. There is even a story about how good we are for allowing Encana to export our high paying jobs to Texas. In fact this devastation is spun off as being an American demand for product. All this, in advance of the Government saying they will not increase the royalties taken by Alberta.

This Government is in the business of guaranteeing profits for the energy sector. This energy sector is still turning out record breaking profits while Alberta’s cut on the royalties becomes less and less; in a constant state of reduction.

At any price, our royalties remain the lowest in the world at 20 and 25%. If we took what we are entitled to, 40% we would still the be lowest in the world and the oil stocks would still perform better than any other stock in the market.

Don’t allow these guys to BS you into thinking the Energy Companies are doing you a favor.

John Clark
cyberclark@shaw.ca

Alberta 2007 Budget

This isn’t a simple provincial budget. It is however one of the best laid out defensive propaganda papers this crew has ever come up with at the centre of which is the infamous “Debt Reduction Program”

This crew has only one objective and that is to privatize everything that wiggles in this province and, to hell with the expense. Look to their record, you cannot possibly believe otherwise. They will sell this province out from under you to achieve just that.

To set the stage for the rip off of resource this Government deliberately ran up debt on doubtful capital costs and investments part of which was selling off provincial properties at fire sale prices. Warehouses and hospitals included in this.

This same party time group all but emptied the Heritage Savings and Trust fund. By sapping off any loose cash or short term investment it was set up for privatization..

At this point they were able to site debt as a problem and put their large scale privatization plans into effect. Seize control of the Power lines under the guise of equally funding all schools for computers and tech supplies. You know what happened to the power lines.

Parks and camping sites are now too expensive to maintain. Sell them off to friends under a great fan fair of these same properties being private as they should be. Gone were the millions of dollars of improvements that went into these same facilities. Up went the debt. I say friends, buddies because there was no public opening of bids and no publication of bids in these sales.

With the resource figures of 25% for Alberta 75% for the oil companies now public this Government wants to set the stage for a public hearing into royalties on oil where the problem is all the resources.

They are spinning a down side story about reduced oil revenues because of lower energy prices. There is absolutely no evidence this is going to happen and, all evidence would lead one to believe just the opposite is going to come about. High prices as far as the mind can take you. This is what the oil companies are telling their stock holders.

25% for the Alberta share should be 40% at any price per joule. All Alberta energy is priced on the BTU capability of the fuel. It is not a mind stretch to see how low the royalties on other utilities are!

You can catch a glimpse here of what is going to happen to your water and can see the very dark future here with Harper dealing away your rights to the US.

Cause the problem so you can have something to fix at an opportune time.

These saboteurs have killed people on the highways and in our hospitals in order to play their privatizing games. I don’t see heroes in this budget. Their present infrastructure plans and the grossly overheated economy leave the stage set for 3 rd party investment.

We can’t find workers so turn the schools roads etc. over to a Bechtel or Slumberger to build and rent back to us forever.

John Clark
cyberclark@shaw.ca

Do you trust Harper and his crew?

Water is on the trade table with the US and Mexico. Who trusts Harper and the Fraser Institute to deal water for Canada?

Something to consider when you vote.

John Clark
cyberclark@shaw.ca

Alberta's private health care system crashes!

Yes, its a private system folks. The Government has done its best to divest itself of all responsibility. Who do you sue?

John Clark
cyberclark@shaw.ca

Alberta Royalties 75% for Oil, only 25% for Alberta!

An examination of Alberta’s oil royalties and revenues under the Conservative Regime:

All royalties must be examined, not just oil and not just tar sands!

This Government is in the business of guaranteeing profits for the oil companies while ensuring Alberta only takes the bare minimum of royalty tax.

This province is being managed for the energy companies, not for the population Conservative fall out at work.

Preamble:

The price of production in conventional oil is paid by the oil companies. This aggregated cost is estimated at about 17.00 per bbl Canadian. You may recall the tar sands consortiums saying two years ago they could produce a barrel of oil below the 17.50 threshold of conventional oil.

The Tar Sands are covered for all exploration and construction expenses up front. Their costs are deducted from the sale of product until all costs are paid for. Only 1% is returned to Alberta in this period. Hardly and investment! More like a float.

The CAPP records 10 billion in investment in infrastructure and technology in 2005. If this is the case, the 10 billion dollars adventure will be paid for by the taxpayer out of the taxpayer share of oil revenues. Taxpayers pay for it; Oil Companies own it. We get no favors here!

One has to wonder where all the so called risk is the tar sands companies refer to.

Also noteworthy is these same tar sands groups and now NWT pipeline groups have shifted their conversation to “we would expect greater returns on an investment of this size”. Spin Doctors run the show.

My question to them is “How much do you get in the Philippians’; In China? In Russia? In India?

Alberta Royalties are the lowest in the world, bar none. A 15% increase in royalty would still leave us at the bottom!

We will not deal with the lease price in this document only to mention the lease prices appear to be at par with other jurisdictions. Don't confuse this revenue with royalty.

Conventional Oil:
80% of Alberta conventional royalty comes from conventional, down-hole drilling by oil companies on leases that have been purchased from the crown in Alberta.

20% of Alberta conventional royalty comes from “freehold” oil, that oil which is drilled and recovered from “private” lands that still retain their own mineral rights. The royalty rates collected from both tar sands and conventional oil and freehold are similar, 25%

Conventional Revenue distribution:
2003/2004 year Oil averaged 43.916 dollars US per bbl.

80% Conventional oil Royalty .981 billion dollarsCanadian
20% Freehold Oil ------------.288 billion dollars Canadian
Total Conventional --------$1.269 billion for Alberta
----------------------------$2.96 Billion taken by Big Oil.

2004/2005 year Oil averaged 45.05 dollars US per bbl

80% Conventional oil Royalty 1.273 billion dollars Canadian
20% Freehold Oil -------------.306 billion dollars Canadian
Total Conventional ---------$1.579 billion dollars for Alberta
----------------------------$4.737 Billion taken by Big Oil.

2006/2006 year Oil Averaged 59.6 dollars US per bbl

80% Conventional oil Royalty 1.463 billion
20% Freehold Oil -------------. 344 billionTotal Conventional
-----------------------------$1.807 billion dollars for Alberta
-----------------------------$5.421 Billion Dollars taken by Big Oil

Totals for Conventional Oil this period:
Alberta $4.655 Billion
Big Oil $13.118 Billion Dollars

Tar Sands Royalties (All expenses paid before royalty is taken)

2003/04 Alberta $.197 billion dollars Oil averaged 43.916 dollars US per bbl.
Big Oil $.591 Billion Dollars

2004/05 Alberta $.718 billion Dollars
Big oil $2.154 Billion Dollars.

Low royalities here but remember you spent 10 billion in infrastructure out of your 25%

Using Government figures, production should increase by 5 times by the year 2020 under this Government.

2020 will produce the following tar sands revenue:
2020 Alberta Revenue $3.59 billion dollars
Big Oil Profits after expenses will be $10.77 Billion dollars.

Natural gas royalty programs produce a similar figure of sell off of resources!

30% of sale to Alberta and 70% to the Resource companies.

Like the oil, this Government has decided to reduce the royalty taken by 5%.

Not to be left out of our Energy picture is the Electricity where Alberta’s advantage (lowest power in North America or Europe) was given away by this Government leaving us with the highest Utility in North America. The kicker here is the companies who are in the electrical distribution and generation businesses seem to be guaranteed a profit under the veil of the EUB.

This deal is so good American companies who sold off their holdings in the US to move to Alberta! Give away the resource that is what this Government calls making it worth while.

Creating a climate for companies to invest in Alberta means simply we guarantee them we take the lowest royalties in the world and now, guarantee those profits. Meanwhile all the costs and inflation burden falls on us, the citizens.

The short verison is: We are being governed by the energy companies.

I say, time for a change in Government!

John Clark
cyberclark@shaw.ca

Alberta Energy Savings LP

I am in receipt of your letter of March 21 where you offer me 10.97 per kWh.

Looking back over the contracts since the switch from EPCOR it appears I have paid on average almost .03 cents per KWh above market for the electricity you supplied and you are asking for an additional .03 cents!.

Before we go any further I would appreciated it you could review and explain why such a markup (Above 30% and climbing is needed?)

Regards,
John Clark
cyberclark@shaw.ca

Heritage Trust Fund? Good-By!

This tired old Government is up to the same old tricks, the same old game plan; forever deadly!

Alberta eyes big earning gains up to 500 million a year reads the half story headline.

Create a new crown corporation to take care of all the revenue invested pockets in our cupboard. Namely the Alberta Heritage and Trust Fund.

The crown corporation is the first step to turning the control and management of these funds over to private industry. Look what happened to the Crown Corporation Encana.

Here’s how it will shake down.

The Edmonton based power house investment crown corporation will be set up.

Running it will be good old Mazankowski (Great West Live, Lifeco and the Power Corporation) After this crew decides a decent mount of time has passed to allow people to go back to sleep they will offer public shares that cover a portion of the new corporation. At this point it becomes partially or all private.

In the meantime the funds become an experimental slush fund for GWL and Lifeco.

What happens when this new company does not perform?

That will work the same way as the electrical network. The taxpayer will make up the profits lost.

One third of this province voted in this batch of politicians.

If you want to change anything you must get out and vote!

cyberclark@shaw.ca
John Clark

Cost plus not good enough any more!

Old Ma ESSO is flipping her skirts again in regards to the Mackenzie Valley gas pipeline. ESSO, with the Harper Government in its pocket is after more money before starting the MacKenzie valley pipeline. Learning from the Alberta experience ESSO says "We expect double-digit returns on this kind of investment. We're not anywhere near that now." No risk, cost plus profit just isn’t good enough any more.

Gone is the plan that optimizes resources. In is the guaranteed profit for industry that is practiced in Alberta. The tar sands, the electrical generation, the electrical transmission lines and the pipelines all have profit guarantees in place, these same guarantees are guarded by the Energy Utilities Board of Alberta.

It doesn’t matter what the economy is; it doesn’t matter what you can afford to pay and it doesn’t matter what the price of that utility or service is worth elsewhere. The guarantees are in under this Government.

Many will view this item as support for the Conservatives.

John Clarkcyberclark@shaw.ca

Politican view of teachers strike.

Quote from Tom Thurber MLA Drayton Valley, Rtd.

“Teacher strikes are the most difficult of strikes for us in Government to deal with! The teachers time the strikes’ to hit during full school days. The Parents are left trying to hire help to look after their kids, effectively hire baby sitters.

These same parents push on Government for a quick resolve, pay anything with no regards at all for what is fair or market. To them, the parents, the cost does not matter. A very larger increase will affect their taxes by a dollar a month.

Where can they hire a sitter for a dollar a month? So, the Government capitulates and pays.”

I would like to see something fresh here. The Government stands for what is right for a change and stands for the taxpayer. Leave the teachers on strike as long as it takes.

John Clark
cyberclark@shaw.ca

Great power exports planned!

The AESO 10 year plan is interesting.

It shows 240 KV lines though out Alberta and a 500 KV line from Langdon (Calgary) to BC. It appears this province is planning for more export of power than we have need for our local and current use.

When new power is applied for we should be asking how much is for our use? How much of that power will be exported? Who is paying line fees on exported power?

The same plan calls for a major increase in the amount of wind power generated. Again who pays to service the export?

EPCOR tell me that a .06 kwh charge to you for power use on your utility bill will ultimately mean an additional .06 for power lines and “other costs” In other words, the cost of power is only 50% of your power bill.


John Clark

CO2 Pipline; for who?

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!

Misc link:

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. 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. And, these same older oil fields will not be able to deduct pipeline construction from royalities so, the conservatives have found a way to pad their pockets otherwise.

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.

John Clark
cyberclark@shaw.ca

McMurray expenditures out of line

The recent spending plumb for Fort McMurray highlights more than most tings exactly what is wrong with this Government. They are laying the path of paying more on our end of things to allow a token increase in royalties later on.

There was a time when a business starting up in a remote area would build a company town complete with commissary and nursing station. One example of this would be the Town of Devon, home of Leduc #1. Although, Devon’s growth, such as it was, was enhanced because the City of Leduc did not want all those foreign people living in their town. Foreign being people from other places in Canada.

The money being put into McMurray because of a totally mismanaged resource and a totally mismanaged expansion plan as in no plan at all is nothing short of a direct subsidy to the oil companies.

Next, you will find this Government adding public transportation, free to and from McMurray, a further relief of operational costs for the oil companies.

We are collecting 1% in royalties on all this new growth and putting 10% back into the project because “We are the United States only secure supply of oil” according to Mr. Stelmach.

New construction:
1 % in royalties
Components being built and transported from the Pacific Rim
Huge costs in Dredging Rivers and blowing up and removing rapids to allow transport by marine.
Mined Oil being shipping to the US for processing
A billion dollars infrastructure improvements ongoing to support the Oil companies.

It is my thought, if we pay for enough of the oil companies investment costs we will be able to get another one-half percent royalty. Rob Peter to pay Paul.

Stelmach and company do not plan on doing a dam thing with the oil royalty picture in this province.

John Clark
cyberclark@shaw.ca

Some web changes

Due to some serious limitations on the "new blogger" I will be setting up a seperate web site which will be able to handle the posting of spread sheets and .pdf forms.

The new blog only allows the up load of .gif or .jpg files which is simply not adequate.

Links from this site will be provided when I'm set up.


cyberclark@shaw.ca

Offer to buy!

This Blog is more popular than I thought. Had an attractive offer to sell the site but, taxes considered it just didn't make a proper offer.

Thanks for you help folks, will keep plugging.

John Clark
cyberclark@shaw.ca

Price of Oil 2004 to Present: Pelude

Privitizing the tax system-time to lawyer up!

The Federal Conservatives have forever had a mistrust even a disdain for the Bureaucrats that work in our Federal institutions.

Mulroney went into office on a claim he would clean up the Bureaucracy. His cure was to put people, his brand, into a position in the Department Agency and no decisions could be taken without having the head of the Department check with the ADM designated to check every thing they did.

It seems that Harper has done one better, putting a company in charge of a Ministry.

This really sucks! What is going to happen if he gets a Majority?

John Clark
cyberclark@shaw.ca

Here is a breath of fresh air!

February 7, 2007

Alberta Liberal Leader Kevin Taft Unveils Democracy Action Plan

For Albertans to capitalize on their province’s astonishing opportunities they need to regain a voice, says Kevin Taft, Leader of Alberta’s Official Opposition in his new book, Democracy Derailed - The Breakdown of Government Accountability in Alberta – and How to Get it Back on Track.

Taft lays out over 35 ways an Alberta Liberal government would achieve this. Below are five highlights of this action plan:

1. The legislation creating the position of the auditor general, the Auditor General Act, should be reviewed to ensure that the powers of Alberta’s auditor general are at least equivalent to those of the federal auditor general.

· “It’s hard to imagine the work of an Alberta auditor general helping to bring down a government, even though the office is empowered by powerful legislation. Fred Dunn is our strongest auditor general in years, but he’s no Sheila Fraser. Instead of forcing complete accountability, he offers gentle, carefully worded criticisms of government failings. In Alberta, the auditor general sometimes walks loudly, but he always carries a small stick. (p. 55/56).

2. The legislation that governs FOIP, the Freedom of Information and Protection of Privacy Act, must be thoroughly reviewed and revamped. The public interest in obtaining information must prevail over the government’s interest in concealing it.

· “In Alberta, freedom of information is a contradiction in terms. For one thing once you start scouting around for government information, you quickly discover that it’s anything but free.” (p .71)

· “Freedom of information in Alberta is heavily weighted in favor of the government, effectively providing it with the means, within the law, to keep from the public any information it deems sensitive.” (p. 72)

. The $14.4 million Public Affairs Bureau should be disbanded.

· "It's the largest public relations operation in western Canada…. that in 2006-07 employed the equivalent of 117 full time staff." (p.106)

· "They manipulate our perception of Alberta's government and then charge taxpayers millions for the service. The Public Affairs Bureau is in effect a public relations agency for the Progressive Conservative Party of Alberta." (p. 104)

· "More and more I hear from people who are cynical, frustrated and skeptical in dealing with their own provincial government. They know they are being manipulated and they resent having to pay for it." (p. 108)

4. Strike a citizen’s assembly on electoral reform similar to the one in British Columbia with a commitment to put its recommendations to a province-wide vote during the next general election.

· “… massive landslides often effectively stifle the political voice of at least half of the electorate. No wonder voter turnout has dwindled over the years.” (p. 42)

· “There is almost no chance the Tories will bring a new electoral system to Alberta because they’ve got nothing to gain from it.” (p. 41)

5. Enact whistle-blower legislation based on best practices elsewhere.

· “When people witness wrongs, they must feel safe to express their concerns, no matter whom they might offend in the process.” (p. 34)

-30-

For more information, contact:

Yolande Cole, Media Liaison
(780) 446-6868

More pension raids-it's going to be ugly!

The Federal Conservatives are still hitting our pensions and all to our detriment.

The income tax department tells me the Honourable James M. Flaherty hired an accounting firm from the private sector (a friend of a friend probably) to look into the pension deductions taken on past income taxes.

The figures they are coming up with are totally ridiculous and the income tax people are bound to collect taxes on these artificial numbers.

When the income tax people were asked for a list of their findings on the account they told they did not have them; the figures are held by the out side, private company. It is up to the account owner to go over the last 15 years of income tax filings and prove to the income tax department the figures put forward are wrong. This will prove to be expensive for the account owner.

Why can they not give you a statement of their findings and allow you to dispute it?

Guilty, until proven innocent. Don’t you love Conservatives?

cyberclark@shaw.ca
John Clark

What is wrong with the power picture?

An energy company posts profits of multi billions of dollars. This same energy company goes to the E.U.B asks for an increase in consumer rates and gets it. This increase covers a cost of generation not recovered at some point.

In another scenario the same Energy company under a similar circumstance asks the EUB for an increase and, the EUB says no; a cut in rates is in order.

The EUB explain to me the rate increase didn’t effect consumers as the money came from the tax general revenues by way of a rebate on consumer power bills.

As I see it there is an agreement in place with the power companies which guarantees them a profit margin.

I would love to own a business where the Government guarantees me a profit margin.

cyberclark@shaw.ca
John Clark

14 years of mis management

14 years of mismanagement, misappropriations and a genuine lack of interest for the well being of this province by this government has prompted Mr. Stelmach to face the news.

Over these years we seen this Government walk away from and ignore any chances of investment in new business not oil oriented. Their simplistic, some say stupid views have all but killed any chance of other than oil and power industries establishing in this province.

This government has cemented this economy into energy industries and us into the re-supply business for that industry. Their short sited views of exploiting natural resources as the only thing they are comfortable with.

Any struggling new industries and, there were a few, were closed down with this Government privatized the electrical power moving us from the lowest power rates in north America, putting us into the highest power rates in north America.

The Conservatives are more intent on protecting the obscene profit levels of the oil companies and the power generation and distribution people than they are of returning a fair and equitable value to the provincial coffers.

Had they operated like a government over these past 14 years rather than a private club, Mr. Stelmach could have had some choices in intelligent conversation rather than stand there riling against the rest of Canada; trying to make it their fault.

John Clark
cyberclark@shaw.ca

A lot to do about nothing!

On one end of the spectrum you see the Conservatives saying they will look to Ottawa for money to combat the spread of the pine beetle. This same Government had a chance to seriously curtail the spread of the pine beetle 3 or 4 years ago when it was manageable. They did nothing.

Now, the infestation is so extensive there is no chemical or biological fix for the problem and they are trying to deflect the blame into a financial argument.

On the other hand, you see the NDP with their popular forum of “sterilize the land” with their ubiquitous simplicity of cures. Shut it all down. It was this same short sited and uninformed view that allowed the pine beetle infestations to spread from a foot ball sized field in the middle of nowhere in BC to the point it is now.

When the infestation was first sited in BC the NDP Government would not allow roads to be built into the site. The proposal was to completely sterilize the ground by chemical means. It would have worked had it been allowed to proceed.

Where to go for the middle road? For responsible, managed growth? For proper returns to the tax base for non renewable resources that are being sold off and exploited by industry with absolutely no return to the province at all.

Keep your eye on the ball don’t be distracted by beetle problems we can do nothing about. We have more oil than we have water! Mr. Morton is quick to seize on this moving to shift the flow of the Red River to suit his personal goals.

John Clark
cyberclark@shaw.ca

Election budget in the making- Spring Election

Recently the Mayors of the major cities and members of the Municipal Districts met with the Provincial Government to seek funding for infrastructure which has been badly shorted to this point.

They were told there was cash coming down the chute; it will be in the spring budget.

This sets the stage is now set for a spring election.

A big spending budget will be presented in the legislature immediately followed by an election call.

The reason for the election call is Mr. Stelmach and Mr. Oberg have decided they will not hold public hearings and give a decision on royalty increases for this province in the face of royalty disclosures and provincial coffer/oil company profits being published.

If they were to go ahead with these hearings and a decision they would without doubt be defeated soundly at an election. Now, they have determined it would be better to pump up a big spending budget call an election and then if elected, go ahead with the royalty hearings and offer Albertan’s a token and marginal increase in royalty rates.

This worked well for them in their treatment of private health care. All the pieces remain in place to go that way. They must surly think it will work on the royalty debate.

This Government has been a one trick dog up to this point and it seems a certainty that will not change.

John Clark
cyberclark@shaw.ca