"AGIA" PASSES: FIRST STEP TO GAS PIPELINE

Today Governor Palin's approach to obtain a pipeline to take Alaska's north slope gas to market passed the legislature. It's called "AGIA," which stands for the Alaska Gas Pipeline Inducement Act."

I voted "Yes" on AGIA - to date the most important vote of my legislative career.

The legislation features a number of "Must Haves," that a successful bid must have to be included in the selection process. The Alaska's major oil producers are not happy with the "must haves." In fact, they are threatening not to submit a bid. Worse, there are implied threats they won't put "their" gas in the pipeline if some other entity wins the bid.

News flash. Alaska's gas and oil does not belong to the producers. Alaska's gas and oil is held in common by the people of Alaska. As former Governor Hickel puts it, "Alaska is an 'owner state.'" The fact is, the major producers only lease the oil and gas. If they refuse to put gas in an Alaska gas pipeline, they would be breaking the lease, and the State of Alaska would need to take appropriate action - and I think Governor Palin wouldn't hesitate a moment. Obviously, AGIA poses a risk to bidders, the current major producers, and the State of Alaska but, as the maxim goes, "With risk comes reward."

Could the AGIA legislation be improved? Probably. Would some flexability in the "must haves" been OK? Maybe. But perfection can be the enemy of progress. It's long past time to press ahead.

Governor Sarah Palin is a tough little lady who has demonstrated she has the political backbone to stand up to the "big guys" - and I'm proud of her. I'm also proud of the bipartisan support the governor's AGIA bill received in the legislature, both House and Senate.