Supreme Court refuses to reconsider Alaska gas line contract case

The Associated Press

The Alaska Supreme Court has put an end to the lawsuit filed against Gov. Frank Murkowski by state lawmakers concerning his proposed gas pipeline fiscal contract with North Slope producers BP, ExxonMobil and ConocoPhillips.

The court on Nov. 29 turned down a request by the governor to reconsider a lower court decision that blocked him from signing the contract without approval from the state Legislature.

Eight lawmakers sued the governor on behalf of the Legislature in October. They said the governor might go ahead and sign the contract on his own, despite a requirement in state law that he get authorization from the Legislature.

A Superior Court judge from Fairbanks ruled in favor of the lawmakers in early November, but the governor kept fighting, filing a petition for review by the Supreme Court on Nov. 14.

Department of Law attorney Larry Ostrovsky argued unsuccessfully in the petition that the Superior Court was wrong to consider whether the governor had the authority to sign the contract and that it should not have interfered in what was a “political” issue involving the governor and the Legislature.

State lawmakers sued the governor on behalf of the Legislature on Oct. 31 to stop him from signing the proposed contract between the state and the three producers to develop North Slope gas reserves.

The Alaska Stranded Gas Development Act, the law Murkowski used to negotiate the contract, requires approval by the Legislature, but the legality of that requirement has been questioned and Murkowski has declined to promise that he would not sign the contract on his own.

Lawmakers have largely been critical of the proposed contract, and Gov.-elect Sarah Palin has promised to consider proposals from other companies.