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Murkowski asks faster track to gas line In her annual speech to the Alaska Legislature the U.S. senator noted steel and construction prices were increasing each year The Associated Press
U.S. Sen. Lisa Murkowski said March 18 that time is running short to get a natural gas pipeline project from Alaska’s North Slope moving — that competing gas projects are gaining ground.
She wouldn’t criticize Gov. Sarah Palin’s Alaska Gasline Inducement Act, but the tone of urgency in her annual speech to the Alaska Legislature was clear.
“We are slipping and cannot afford to slip any further,” she told members of the House and the Senate. “Our competitors are moving ahead. Our oil production is dropping. Steel and construction prices just climb higher every year.”
A gas line topped Murkowski’s list, and will likely be addressed in a special session after the Legislature adjourns from a 90-day session April 13.
So far, the state believes it may have found the company that can build a pipeline to ship 35 trillion cubic feet of North Slope reserves into Midwest markets.
TransCanada was the only application the state says has complied to date with the regulations set forth under AGIA. The Legislature continues to wait to see whether the Palin administration will recommend the company for a state license.
If the Legislature gets Palin’s proposal — she’s not offered any timeline — it has 60 days to approve or reject it.
Houston-based Conoco Phillips, however, says it’s got a plan outside the state’s bid requirements if the state would just negotiate what it calls fiscal certainty, setting long-term tax and royalty terms for the North Slope leaseholders.
ConocoPhillips still has plans to begin more than $40 million worth of field work this summer for its plan.
Murkowski: competition strong Murkowski told lawmakers the competition is strong and in varied locations, stretching from projects in Texas and Appalachian states to those close to U.S. borders in Mexico and Canada.
She placed equal onus on the state; North Slope leaseholders ConocoPhillips, ExxonMobil and BP; pipeline companies; and the federal government to keep things moving.
After her address, Murkowski said she believes progress is being made, even as competing projects seem to be emerging, but still wants to see substantive work being done this summer.
“I think we clearly have a track that is moving forward,” Murkowski said. “I appreciate that. I recognize the value of the AGIA process.
“But, clearly Conoco is on its own track. Is it wrong to have a duel track? In my opinion, anything that will get us a gas line sooner is worthwhile.”
Arctic important Murkowski implored lawmakers to keep an eye on Arctic development, whether it’s environmental protection or resource development.
“The United States is an Arctic nation because of Alaska,” she said. “We shouldn’t let the federal government even think about Arctic issues without consulting Alaska.”
Murkowski said the state has to do its part if it’s to be a key player nationally, whether it’s funding education or forcing its way to the table of global and national debates.
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