By OGJ editors
HOUSTON, Mar. 5 -- Alaska Gov. Sarah Palin has introduced legislation intended to induce construction of a multibillion-dollar pipeline that would deliver North Slope natural gas to the Lower 48 states.
On Mar. 2 Palin outlined elements of the proposed Alaska Gasline Inducement Act, or AGIA. The legislation sets aside previous effort by former Gov. Frank Murkowski. It's unknown when the legislature will begin public hearings on AGIA.
Murkowski had negotiated a draft contract with Alaska North Slope producers ExxonMobil Corp., ConocoPhillips, and BP PLC. The first draft was released in May (OGJ, June 5, 2006, Newsletter).
Despite changes to the draft and special legislative sessions, state lawmakers never approved the proposed plan from Murkowski, who lost a reelection campaign in November.
Palin's bill initiates an application process open to any project sponsor, meaning that ExxonMobil, ConocoPhillips, and BP must start their negotiations over again. At least 12 companies or groups of companies have expressed an interest in building the pipeline.
The bill contains numerous specific mandates for any company or coalition. Applicants must commit to expanding the pipeline project when justified. They also must commit to propose and support tariff rates aimed at the lowest reasonable costs and the highest wellhead price, Palin said.
The state is offering inducement incentives, including measures to help offset startup costs for the company or coalition selected to build the pipeline.