Peninsula Clarion, January 05, 2014

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No space Wondering what to do with a sinking project Community/C-1

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Sunday

Hoops ‘Dawgs host Grizzlies in conference action Sports/B-1

CLARION P E N I N S U L A

JANUARY 5, 2014 Soldotna-Kenai, Alaska

Vol. 44, Issue 81

50 cents newsstands daily/$1.00 Sunday

Buccaneer sells drill rig, Cosmo share Proceeds to finance other Cook Inlet work By TIM BRADNER Morris News Service-Alaska Alaska Journal of Commerce

Clearing the way C

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Project aimed at reducing moose-vehicle collisions

Above and left, an Alaska Land Clearing employee clears a portion of the Sterling Highway Alaska Department of Transportation right-ofway Thursday near Clam Gulch. Company representatives said they were clearing an average of 200 feet from the highway to open the area up for drivers to better see moose.

By RASHAH McCHESNEY Peninsula Clarion

An Alaska Department of Transportation tree-cutting program alongside the Sterling Highway has started up again despite mixed reactions on the technique’s effectiveness at reducing collisions between vehicles and moose. DOT project managers say the program is meant to be on a three-year cycle that would cover about 70 miles of highway between Homer and Soldotna. However, the initial tree-cutting phase of the project is entering its fourth year and managers anticipate making it to the south end of Cohoe Loop, leaving about 20 more miles of highway to cover. Meanwhile, several miles of highway that were cleared years ago have been untouched since the initial pass, leaving them open to regrowth of the brush that critics say draw moose toward the side of the highway in search of food.

Photos by Rashah McChesney/ Peninsula Clarion

See CLEAR, page A-2

Inside today Overcast 37/31 For complete weather, see page A-10

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Buccaneer Energy, the Australia-based independent, has sold off some of its Alaska assets to finance its further work in Cook Inlet, the company announced in a press release Jan. 2. The company will sell its 25 percent share in the offshore Cosmopolitan oil and gas project in Cook Inlet to Texasbased independent BlueCrest Energy Inc., Buccaneer said in the press release. BlueCrest will own 100 percent of Cosmopolitan after the sale closes. Buccaneer, as operator at Cosmopolitan, drilled an exploration well at Cosmopolitan in 2013 and made a natural gas discovery. Pioneer Natural Resources, which previously owned the asset, had also confirmed an oil discovery at deeper reservoir intervals, and

Buccaneer’s plan was to follow up on tests of the deeper oil formations. BlueCrest will pay $41.25 million for Buccaneer’s 25 percent interest. Buccaneer has invested $9 million as its share of costs at Cosmopolitan. “The sale gives the company as opportunity to monetize an asset in which it holds a minority interest at a significant premium to its sunk costs. The sale price is within acceptable market parameters for undeveloped projects of this type in Alaska,” said Curtis Burton, Buccaneer’s Managing Director, in the press release. The sale is expected to close in mid-January. Buccaneer also said it will sell its 50 percent share in Kenai Offshore Ventures, owner of the Endeavour jack-up rig now in Cook Inlet, to Teras Investments Pte. Ltd. of Singapore, for $23.95 million. See SALE, page A-2

Kenai council back to work By DAN BALMER Peninsula Clarion

The Kenai City Council passed one city ordinance and three resolutions at their first meeting of 2014 Thursday night. The council approved a travel grant for the sum of $3,000 to the Institute of Museum and Library services for two staff members to attend a training conference through the Alaska State Library. The council also passed one resolution to allocate $8,000 from the city budget for the purchase of email archiving software, and another resolution awarding the lowest bid of

$29,990 to Westside Flooring to replace the carpet in City Hall. A resolution supporting an Alaska Board of Fish proposal that requested a prohibition of 24-hour operations at the personal-use salmon fishery, was voted on and approved with councilman Mike Boyle voting nay. The resolution was postponed at the Dec. 18, 2013 meeting so city administrators could make proposal revisions. Boyle said his only issue with the resolution was the city taking a stand on what hours the fishery would be open. “I’m all about fish protection and somebody needs to make See KENAI, page A-2

Conserving the Kenai king a mandate for board, ADFG By WILLIAM S. MORRIS III President/CEO, Morris Communications Co.

Editor’s note: This is the 10th and final part of the Morris Communications series “The case for conserving the Kenai king salmon.” The entire series may be found online at www.peninsulaclarion.com. King salmon are the lynchpin of the Cook Inlet fishery. Other runs of other salmon species are far more abundant, but the health of king salmon affects all users. Alaska is currently experiencing historic low runs of king salmon returning to major systems throughout the state. It affects Alaskans who have fished for kings for years in these rivers and creeks, and the visitors thousands of businesses depend on every summer. Soldotna businesses sales are off 10 percent to 20 percent. There are more than 100

CONSERVING the

KENAI KING

fewer guide licenses on the Kenai River now compared to 2007, a 28 percent decrease, and “For Sale” William S. signs adorn Morris III many lodges. Further, the sale prices of these are going down. Many attribute this to the lack of kings. The assessed values of river front homes have been a great help to the area, producing tax revenues that translate into jobs, goods and services. This reduction of value and the number of people wanting to sell is occurring during a downtrend in sports and guided sports harvests of kings. At

File photo/Peninsula Clarion

In this July 21, 2006 photo anglers work the Kenai River for king salmon near the Warren Ames Memorial Bridge in Kenai. Conserving the Kenai River king salmon is a must for all users and represents a significant challenge for the Alaska Department of Fish and Game and the Board of Fisheries. The board meets to consider Cook Inlet salmon management beginning Jan. 31.

the same time sports and dipnet harvests of sockeye are remaining robust. What does that say about the value of the king salmon? C

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What must also be recognized is that in the last 30 to 40 years there has been a tremendous increase in demand for these resources caused by

a large population increase in the greater Anchorage-Kenai Peninsula area. Also in the last few years, major road improvements have made access to the Kenai River quick and easy. The population of the greater Southcentral area, which uses the fisheries of the Upper Cook Inlet for putting fish in their freezers and for recreational purposes, was just more than 100,000 about 40 years ago. Today it is nearly 400,000. The Greater Cook Inlet-Anchorage Metro Area is home to more than 70 percent of the state’s population. The management of the fisheries has not changed sufficiently to reflect the demands of an ever-increasing population who have come to Alaska to enjoy its natural resources in one way or another. Low abundance of king salmon also restricts commercial fishermen, particularly setnetters targeting Kenai and See KINGS, page A-5


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