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FERC clears way for Denali open season

June 08, 2010

by The Associated Press
Monday, June 7, 2010

JUNEAU, Alaska -- Federal regulators have approved plans allowing a second natural gas pipeline project in Alaska to begin seeking shipping commitments.

Monday's decision by the Federal Energy Regulatory Commission sets the stage for overlapping open seasons by competing projects.

TransCanada began its 90-day open season April 30; it holds an exclusive license with the state that provides up to $500 million to advance a project.

Denali, which got the go-ahead Monday and is proceeding without the special state incentives, plans to begin its open season July 6.

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The agency did require some changes, including deletion of a provision requiring bidders to resubmit bids and signed agreements if a revised open season is called.

Denali spokesman Dave MacDowell says none of the issues raised caused Denali any concern.

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