Alaska Republic Oil & Gas Co-op

The Heikes Initiative

Formation of Alaska Republic Oil and Gas Cooperative

1. Two pipelines are to be built; One for oil, and one for Natural Gas
2. The pipelines are to be built and run along the corridor from Prudhoe Bay to Valdez with a spur gas and oil line going to the Kenai terminals.
3. Two new state of the art refineries will be built in or near Fairbanks, one for oil, and one for gas
4. This project will be financed by the Permanent Fund and will be completely owned by Alaskans
5. The new refineries, pump stations, and supportive maintenance will be let out to private companies at cost plus 10%
6. Alaska Republic Oil and Gas will retain 15% of all oil and gas passed through the lines. All excess not used by Alaska's needs will be sold at market value. These funds will be used to support the maintenance of the lines. Any extra money will go into an interest bearing account to handle unforeseen maintenance or repair, or future lines.
7. All royalties, taxes, etc. paid by the oil producing companies using the new line will be based on the original agreements from the first line.
8. Royalties, taxes, etc. from the new oil and gas lines will create a new and separate permanent fund called "The Alaska Republic Royalty Fund".
9. "The Alaska Republic Royalty Fund" will be operated on the same basis as the original Permanent Fund with the following exceptions;
   
   
   1. Only US Citizens who are Alaskan residents on or by June 30, 2006 will be eligible.
   2. Any woman, who is pregnant, a US citizen naturalized or by birth that is residing in Alaska June 30, 2006, and is not a resident, the child will be eligible.
   3. There will be no new members added to this account.
   4. All members will receive their dividends for life no matter where they reside.
   5. 25% of all earnings in a one-year time frame will be divested to shareholders. The rest is kept for growth and investment.
   6. Upon the death of a member, through a "Will", will dedicate his or her dividend to a charity or an Alaskan college.

Alaskans,

Idea

This initiative is to create a free and independent state from market forces in oil and gas.

Set up a structure with guidelines where our generation and future generations will have lifetimes of benefits.

Benefits Example

Heating, Electric, and Gasoline costs would never fluctuate after the first two years of operation.

1. A 2,500 sq. ft. home in Fairbanks would cost approx. $300.00 a year for gas heating.
2. Gasoline and diesel prices between $.75 and$1.00 per gallon.
3. Electric prices would never vary.
4. The cost of goods would come down because transportation costs would be less

Rough Draft

Estimated cost - between 17-20 billion dollars.

Estimated construction time - 3 1/2 years.

Source of funds - Permanent Fund Dividend, not to be taken out all at once, but to be drawn on as project proceeds; approximately 6.5 billion dollars a year.

Yes, qualified Alaskans will still receive their yearly Permanent Fund Dividends during the construction of the pipeline.

Vision

To have an Alaska where all of its people have a chance to prosper.

Make no mistakes, there will be a fight. You have to be willing to sacrifice the present for your future, as any parent knows.

There will be those that oppose this, especially oil companies and the Federal Government.

Reality

A truly free and independent state where its people and generations following will benefit and prosper.

There was an idea once that became a rough draft, which became a vision. After a fight, and a lot of sacrifice, it became a reality. It was called "The Declaration of Independence."

Sincerely,