Ulmer authorizes referendum

by The Associated Press

Voters may be deciding in November whether to authorize the state to build and operate a natural gas pipeline from the North Slope to Valdez. Lt. Gov. Fran Ulmer approved a ballot measure March 12 that calls for the state to create a public corporation that could issue bonds, contract with companies, and buy and sell natural gas.

The public corporation would not have to pay state or federal income taxes, a savings that proponents say could help what some believe is a financially marginal project.

Investors and state leaders have studied a gas pipeline from the Slope to Valdez since the 1970s. From Valdez, the gas would be shipped to Asia or possibly the Lower 48 as liquefied natural gas.

But many, including the major oil producers, view the Valdez project as too expensive to compete with other gas producers that supply Asia.

Proponents of a Valdez project argue it could be built in a spur off a Lower 48 pipeline, and that a public corporation with tax advantages could help make the project feasible.

Anchorage resident Scott Heyworth spearheaded the drive for a November vote.

A bill that would authorize a similar public corporation is circulating in the Alaska House. If that bill passes, it could pull Heyworth’s initiative from the Nov. 5 ballot.