A STEP FORWARD FOR THE GAS PIPELINE

I attended the news conference in the Governor’s Conference Room in Anchorage today. Big news! It appears a giant step forward has been made on the Alaska gas pipeline project. Exxon Mobile, the largest holder of North Slope natural gas (and one of the largest companies on the planet) announced it will be a minority partner with TransCanada to build a gas pipeline to the Lower 48. Congratulations to the hard working folks on our Alaska gas pipeline team!

Understandably, Governor Palin said the agreement is “very encouraging and exciting . . . “ I agree. U.S. Senator Lisa Murkowski called the deal a “major sign of progress. . . “ U.S. Congressman Don Young said, “I congratulate the Governor for her hard work on this gas pipeline project, and I applaud Exxon Mobile for joining in this partnership.” U.S. Senator Mark Begich commented, “Congratulations to the Palin administration for their persistence in getting Exxon and TransCanada together in this partnership.”

From what I can tell from other news quotes, most state legislators were positive or negative on today’s big announcement - depending on where they were with the governor, AGIA, and the TransCanada deal to begin with. One legislator said, "The devil may be in the details."

Whatever, the legislature is going to take a look and listen. A combined hearing of the House Resource and Energy Committees will happen on Monday, June 15th, to hear testimony from all the major players - the Palin administration, TransCanada, Exxon, as well as representatives of BP and Conoco-Phillips for the Denali Pipeline competitor. It should be an interesting meeting - and useful if participants are positive rather than negative.

From a perusal of public comments on the Internet, there’s lingering anger toward Exxon because of the oil spill from their Exxon Valdez tanker, Exxon’s resistance to reimbursing Alaskans for their losses from the spill, and tardiness in drilling at Point Thompson. Understood. But that was then, and this is now. We fought two wars with Great Britain. Now they’re our ally. Same with Germany. Thirty-six years ago I was rocketed in Vietnam, but this is 2009 and time moves on. Same same with Exxon. If Alaska can work constructively with Exxon, as well as TransCanada, to help bring the gas pipeline to fruition, we should look to the future - not in the rear view mirror and the past.

There will be only one gas pipeline built, and that's no sure thing. Hopefully, at some point all the players will come together, for the good of their business and our nation.