HOME PAGE SUBSCRIPTIONS, Print Editions, Newsletter PRODUCTS READ THE PETROLEUM NEWS ARCHIVE! ADVERTISING INFORMATION EVENTS PAY HERE

Providing coverage of Alaska and northern Canada's oil and gas industry
July 2006

Vol. 11, No. 27 Week of July 02, 2006

Need for legislative OK of gas line debated

The Associated Press

Alaska Gov. Frank Murkowski may not need legislative approval to execute a contract to build a natural gas pipeline from the North Slope, according to lawyers for the Legislature.

Attorneys say the courts could strike down a provision in the Stranded Gas Development Act that requires legislative approval of the executive branch contract.

The counsel’s opinion was sought by Rep. Les Gara, D-Anchorage, a critic of the proposed fiscal contract between Murkowski and the three North Slope oil producers — ConocoPhillips, Exxon and BP.

Gara has asked the governor to pledge that he will not move forward on his own if the Legislature rejects the terms of the contract.

“I’m trying to put pressure on the governor to get an answer out of him,” Gara said.

At a June 27 press conference in Anchorage, Murkowski said that he needed to be briefed on the issue.

Murkowski spokesman John Manly said the governor’s legislative liaison, Kevin Jardell, is drafting a response.

“He (Murkowski) has said pretty consistently that he has no intention of ignoring or bypassing the will of the Legislature,” Manly said.

In a memo dated May 23, legislative attorney Theresa Bannister said requiring legislative approval of an executive branch contract appears to be an intrusion into executive branch powers.

The Legislature can pass standards that the governor must follow, but it may not reserve the power to approve or authorize the contract, Bannister said.

A memo dated June 22 from legal services director Tamara Brandt Cook said a court could find legislative ratification unconstitutional.

Gara said the governor could clear up any confusion by adding a provision to the contract that made its effectiveness contingent upon the majority of both legislative chambers supporting the deal.

“That should be an easy promise to make. Any other governor would do that,” he said.

Last week, the governor’s chief of staff and lead negotiator, Jim Clark, said the administration wanted to have a contract signed before the statewide November elections.

Lawmakers will return to Juneau for a second special session on July 12 to consider a new production tax on oil and amendments to the stranded gas act that gives the governor broader authority.

Once the oil tax and the amendments are passed, the governor will be free to renegotiate the contract with the producers and present a final draft to the Legislature.

Gara said passing the amendments would be like giving the governor a blank check. Instead, Gara said the Legislature should hold out for a draft that includes provisions with which lawmakers can agree.





Copyright 2003 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistrubuted.

Petroleum News - Phone: 1-907 522-9469
[email protected] --- https://www.petroleumnews.com ---
S U B S C R I B E

Copyright Petroleum Newspapers of Alaska, LLC (Petroleum News)(PNA)Š1999-2019 All rights reserved. The content of this article and website may not be copied, replaced, distributed, published, displayed or transferred in any form or by any means except with the prior written permission of Petroleum Newspapers of Alaska, LLC (Petroleum News)(PNA). Copyright infringement is a violation of federal law.