KTUU.com | Alaska's news and information source | Palin has signing ceremony for gas line act
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by Bill McAllister
Wednesday, June 6, 2007
FAIRBANKS, Alaska -- Gov. Sarah Palin held a ceremonial bill signing for her Alaska Gasline Inducement Act, or AGIA, today.
It's not quite a done deal yet. While one formality remains, Palin's approach for a gas line competition is now state policy. Due to a logistical mix up involving the governor, Senate President Lyda Green and legislative staff, the governor was not able to officially sign AGIA into law today. The signing will probably happen tomorrow in Anchorage.
An event held today by a section of the Trans-Alaska Oil Pipeline drew a couple of hundred people, who nonetheless celebrated the beginning of the era of AGIA.
"This legislation is open to all comers, all viable, responsible, reasonable entities wishing to compete for the right to tap Alaska's resources," Palin said. "AGIA excludes no one; it's open, transparent, competitive."
Federal Pipeline Coordinator Drue Pearce said the signing was monumental.
"It's a great day for Alaska, but I have to say it's also a great day for the United States. Because not only are you consumers of this gas, particularly here in Fairbanks, but the primary consumers are in the Lower 48," Pearce said.
Tomorrow AGIA should become law. That will set in motion a process for competitive bids to build a pipeline to commercialize North Slope natural gas.
The state will offer incentives, including a cash subsidy of up to $500 million.
The only oil executive who attended today's ceremony was Mark Hanley of Anadarko. Hanley said he is glad the governor is looking out for the smaller players who don't want to be shut out of the gas project.
"We appreciate the fact that the governor listened to explorers' concerns and included provisions in the bill that ensure we get access at a reasonable rate," Hanley said.
Rep. Jay Ramras, a legislator who supported AGIA, said there's a real problem with the major North Slope producers.
"It's a profound moment for Alaska, but it's also an issue of the irresistible force meets the unmovable object. And we all better bear in mind that Rex Tillerson, the CEO of Exxon, at an annual shareholders' meeting just last week said there's not going to be a gas line to Alaska," said Ramras, R-Fairbanks.
Palin remarked the other day that she's never sure how to interpret Exxon. All three major producers opposed AGIA nonstop during the legislative session, but they didn't stop the act from advancing.
Rep. Ralph Samuels, the only lawmaker to vote against AGIA, said recently that he hasn't changed his mind and is getting a lot of support for his position that the act won't attract multiple bidders.
"I thought I was just throwing myself to the wolves. Maybe that will come to pass, but so far it has not," said Samuels, R-Anchorage.
But Palin said there are options for Alaskans under AGIA if the majors don't want to participate.
"It lets us consider doing it ourselves," Palin said.
For the governor, the notion that AGIA is the way to go is the Palin truth.
Rep. David Guttenberg of Fairbanks attended the event today, and it turns out that in the winter of 1974-75 he worked on the very section of the oil pipeline that the governor stood next to today.
Contact Bill McAllister at bmcallister@ktuu.com
