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Officials help owners to free trapped pets
Prognosticators make their final pick
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CLARION
Mostly sunny 32/18 More weather on Page A-2
P E N I N S U L A
Vol. 44, Issue 104
Friday-Saturday, January 31-february 1 Soldotna-Kenai, Alaska
50 cents newsstands daily/$1.00 Sunday
State LNG costs: $up to $11.4 billion
Question What do you think of the current weather pattern? n I’m enjoying the mild temperatures; n This is miserable, please bring winter back. To place your vote and comment, visit our Web site at www. peninsulaclarion. com. Results and selected comments will be posted each Tuesday in the Clarion, and a new question will be asked.
In the news Nikiski man hospitalized after crash
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A Nikiski man involved in a single vehicle accident Wednesday night is recovering at Providence Medical Center in Anchorage where he is being treated for serious injuries, according to Alaska State Troopers. Christopher Overhuls, 30, was driving a maroon 2000 Ford Mustang at a high rate of speed when he lost control and crashed through a fence near the Agrium plant at the 21-mile mark of the Kenai Spur Highway just before 10 p.m., according to troopers. An eyewitness called 911 and within minutes Troopers and Nikiski Emergency Medical Services arrived on the scene. According to the troopers report, Overhuls’ vehicle rolled over several times, indicating he was traveling at a high rate of speed. The speed limit posted is 55 mph. Overhuls was flown by Life Med helicopter to Providence for treatment. Overhuls was wearing a seat belt at the time of the crash. Trooper spokesperson Megan Peters said alcohol is suspected as a factor in the accident, but the investigation is ongoing. The Bureau of Highway Patrol took over case responsibility. — Staff report
Correction A story on the H1N1 flu in Thursday’s Clarion contained incorrect information. Dana McDonald is an Infection Prevention Nurse at Central Peninsula Hospital. In noting that it is not too late to get a flu shot, it was the 2011-2012 flu season that saw a spike in cases in the spring. The Clarion regrets the errors.
Index Opinion.................. A-4 Nation.................... A-6 World..................... A-8 Religion................ A-10 Police, courts....... A-11 Sports.....................B-1 Recreation............ C-1 Classifieds............ C-3 Comics.................. C-7 Check us out online at www.peninsulaclarion.com To subscribe, call 283-3584.
JUNEAU (AP) — Alaska’s contribution toward building a liquefied natural gas project could range from $4.6 billion to $11.4 billion, depending on the state’s equity stake and whether it has a partner. An agreement to advance the project, contingent upon legislation authorizing it, anticipates a state stake of about 20 to 25 Photo by Rashah McChesney/Peninsula Clarion percent. Alaska’s participation rate would be established Matt Martinelli, left, Alexander Locke, and Austin Spurgeon hang out for high-fives from Brown Bears players during a game through taxes and royalties, Thursday at the Soldotna Regional Sports Complex in Soldotna. For more on the game, see Page B-1. and the state would be responsible for a commensurate level of construction costs. So if the state has a 25 percent stake, it would be responsible for 25 percent of costs. That agreement includes the state, TransCanada Corp., the A drilling rig By Dan Balmer said. Alaska Gasline Development operating for Peninsula Clarion Porter said the city has exCorp., or AGDC, and the North Buccaneer perienced rapid growth in sales Slope’s three major players: BP, Energy stands ConocoPhillips and ExxonMoThe overall theme from lo- tax revenue since 2007. During in the spruce bil Corp. Current cost estimates, cal mayors to oil and gas com- the last six years, sales tax revforest alongexpected to be refined as the panies Thursday: the economic enues have increased 45 perside Marathon project advances, are from $45 outlook on the Kenai Peninsula cent from $155 million to $220 Road in 2011. billion to more than $65 billion. is strong and welcomes new million with the city receiving During a a big boost when the Wal-Mart On Wednesday, administrabusiness. presentation tion officials gave the House and Seven community represen- Supercenter opened in 2010, Thursday, area Senate Resources committees tatives from an area spanning she said. leaders told Kenai property values have overviews of a memorandum of from Homer to Seward spoke industry repre- understanding between the state on the economic future at the also increased by 75 percent, a sentatives that and TransCanada detailing the Industry Forum hosted by the large portion of which can be the Kenai Pen- terms of service for transportKenai Peninsula Economic attributed to the addition of the insula is open ing Alaska’s gas through a gasDevelopment District at the Cook Inlet natural gas storage for business. treatment plant and pipeline. Challenger Learning Center in facility, she said. Peninsula Clarion With the increase of propThe agreement also represents Kenai. file photo a move away from the terms of City of Kenai Mayor Pat erty values up to $700 milthe Alaska Gasline Inducement Porter highlighted capital proj- lion last year, Porter said since Act (AGIA), which Gov. Sean ects like the Municipal Airport 2007 the city has lowered its Parnell has said do not fit well and a new Industrial Park as mill rate from 4.5 to 3.85 one of the lowest tax rates in the with the current project. boons for new industry. TransCanada had won an ex“With all the new interest in state. Porter said the oil and gas clusive license to pursue a maoil and gas development in Kejor gas line under AGIA. But nai the rumor mill is swirling property values have grown with new development,” she See COST, page A-14 See OPEN, page A-14
Bear paws
Peninsula open for business
Democrats pitch Medicaid expansion plan JUNEAU (AP) — House and Senate Democrats on Thursday proposed legislation that would expand Medicaid coverage in Alaska after Gov. Sean Parnell last year refused calls to do so. The proposal would extend eligibility to those up to 138 percent of the federal poverty line. State participation would be contingent upon the federal government paying at least 90 percent of costs, the lowest lev-
2014 20
28th LEGISLATURE
2nd SESSION
el to which they are currently expected to fall. The proposal was introduced in the House as HB290. Companion legislation is expected to be introduced in the Senate on Friday.
Sen. Bill Wielechowski, DAnchorage, said expanded coverage makes sense morally and financially. He called the proposal “commonsense, no-brainer” legislation that he hopes will attract Republican support. Democrats said the proposal would extend coverage to about 40,000 Alaskans. The U.S. Supreme Court, in upholding most of the federal health care law in 2012, also
held that states cannot lose existing Medicaid funding if they don’t expand Medicaid coverage levels. In states that have opted for expansion, the federal government is expected to cover the cost for the first three years, through 2016, and the bulk of the cost indefinitely, with the states contributing. Parnell last year faced pressure from health, advocacy and business organizations to
expand coverage. He cited financial concerns in his decision, saying a “costly Medicaid expansion, especially on top of the broken ‘Obamacare’ system, is a hot mess.” Medicaid is a major driver of the state’s budget, and there are concerns with health care costs and access in Alaska. Parnell proposed creating an advisory group to make recommendations See PLAN, page A-14
Shell suspends Arctic drilling operations for 2014 By TOBY STERLING AP Business Writer
AMSTERDAM — Oil companies’ rush to find reserves off Alaska’s Arctic shores suffered a setback on Thursday after Shell said it would suspend its operations in the region — and possibly withdraw for good. Royal Dutch Shell PLC is the main company to have purchased leases for oilfields off Alaska’s Arctic shores, but its attempts to drill have been halt-
ing due to technical and legal hurdles. While other companies are still seeking to exploit deepwater Arctic fields nearby in Canada, Shell’s troubles may indicate that the difficulties outweigh the potential economic benefits. “We will not drill in Alaska in 2014, and we are reviewing our options there,” Shell CEO Ben van Beurden told reporters in London. Shell received a negative
Federal court decision last week. Environmentalists are still challenging whether the government’s 2008 decision to open the area to exploration was correctly granted in the first place: it is covered by sea ice for much of the year. Asked whether Thursday’s retreat means the project is finished, Van Beurden said that depends in part on how the ongoing lawsuit proceeds. Environmental activists cried victory. C
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“Shell’s Arctic failure is being watched closely by other oil companies, who must now conclude that this region is too remote, too hostile and too iconic to be worth exploring,” Greenpeace International Arctic oil campaigner Charlie Kronick said in a reaction. Jacqueline Savitz, the U.S. chief of the Oceana conservationist group, said Shell’s retreat shows that offshore drilling in the Arctic is “simply not a good bet from a business per-
spective.” Shell’s troubles in Alaska are only the most visible in a series of setbacks for the company in the U.S., and Van Beurden hinted he won’t prioritize investments there in the future. While oil prices remain high globally, “North America natural gas prices and associated crude markers remain low, and industry refining margins are under pressure” Van Beurden said. See SHELL, page A-5