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

Vol. 11, No. 52 Week of December 24, 2006

Issues in two Alaska stranded gas act suits resolved, says Gov. Sarah Palin

Alaska Gov. Sarah Palin said Dec. 19 that two lawsuits pertaining to the Alaska Stranded Gas Development Act have been resolved. This paves the way, the governor said in a statement, for new and constructive efforts to develop a natural gas pipeline. Palin has said that she plans to introduce a law of general application for development of a gas pipeline when the Legislature convenes in January.

“Our bill will provide for all proposals to be considered in a more open, competitive manner,” Palin said in a Dec. 6 statement. “That’s the process Alaskans have asked for and one I believe will deliver the very best gas pipeline proposal for Alaska.”

In May 2006, in French v. Murkowski, Sen. Hollis French, D-Anchorage, filed a lawsuit seeking immediate release of the stranded gas contract. Juneau Superior Court Judge Larry Weeks issued an order on May 5 for the contract to be released.

Because of confidentiality concerns, the contract was not released until May 10, but, the governor’s office said in a statement, production of the contract substantially resolved this lawsuit.

Legislature filed suit in November

In early November the Alaska Legislature filed a lawsuit to enjoin former Gov. Frank Murkowski from signing a fiscal contract based on the stranded gas act without approval by the Legislature. The Superior Court granted the Legislature’s request Nov. 9; a petition for review before the Alaska Supreme Court, filed Nov. 14, was denied.

After discussions with French and the Alaska Legislature, Palin said Dec. 19 that agreements to dismiss both lawsuits were reached, effectively ending the November litigation.

“I am pleased that we are able to put these legal challenges behind us,” Palin said in a statement. “The secrecy of the previous administration’s efforts to negotiate a fiscal contract and the concern that the former governor would unilaterally sign a proposed agreement resulted in two lawsuits that should never have needed to be filed. This important project cannot succeed if our elected officials are mired in litigation. The actions announced today are symbolic of a new cooperative approach as we move forward together toward a gas line agreement that will benefit all Alaskans.”

—Kristen Nelson






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