Administration notches victory in AGIA debate

July 22, 2008

Gov. Sarah Palin (Courtesy Office of the Governor)

by Mike Ross
Monday, July 21, 2008

ANCHORAGE, Alaska -- The governor's gas line plans came under attack Monday at the state Capitol.

Some lawmakers say Alaska needs more protection but the governor says they are trying to derail the gas line at the last minute.

Gov. Sarah Palin, in her weekly gas line briefing, said last-minute changes in the Alaska Gasline Inducement Act, AGIA, legislation being brought up now in Juneau would set a horrible precedent and could force the state to start the gas line bid process all over again.

"I remind Alaskans that an effort to derail this process continues, tirelessly," she said. "This administration believes that it would be incredibly dangerous to change the ground rules or the commissioner's license as proposed. Dangerous and unfair."

House Majority Leader Ralph Samuels and other lawmakers argue that Alaska needs more protection in the deal.

"With all due respect to the administration they've put a lot of work into this. We're a separate and equal branch of government," he said. "It is our duty. We do not work for the executive branch. Period."

One legislative proposal would have taken out the provision that would force the state to pay TransCanada hundreds of millions of dollars in penalties if a competing in-state gas line is built.

"I think everywhere we've gone we've heard that gas for Alaskans is the top issue in front of people," said Rep. Craig Johnson, R-Anchorage.

Another proposed change would have made TransCanada promise to protect the state financially if the company's partners in a failed gas line project 20 years ago try to collect billions of dollars in damages.

"Sixteen billion dollars is the number that will floated around and I guarantee there's going to be nine lawyers somewhere that are gonna look at a way to $50,000, $50 million, $500 million something with that many zeros after it, this issue is not going to disappear," Samuels said.

Ultimately the Palin administration won the first round. All of the proposed changes were rejected in the House Rules Committee.

But more attempts to change the gas line deal are expected when AGIA reaches the House floor for a make-or-break vote.

Speaker John Harris says a vote on the gas line bill is expected Tuesday on the House floor. The measure would then move to the state Senate, where it's expected to face tougher debate.

Contact Mike Ross at mross@ktuu.com

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