House Finance members question gas line spending
Rena Delbridge |
Mar 04, 2010
Nobody said linking the North Slope's vast natural gas reserves with markets would come cheap, and Alaska's tab is adding up.
The state has directed an estimated $142 million toward gas line development in the past six or so years. Now Gov. Sean Parnell is asking the Legislature for another $167 million through June 2011 for more work linking North Slope gas with in-state and Outside markets. Some put the estimate of state pipeline spending even higher. Larry Persily, staff to Rep. Mike Hawker, figures the spending since the early 2000s could be at least $200 million if this year's request is funded. That's excluding $140 million of Parnell's request, which goes toward reimbursing a major pipeline project. But some members of the House Finance Committee are wary of making big investments without assurances that a large-diameter gas pipeline will actually be built. The committee could opt to hold some additional funds until members have a better idea of whether a state-sponsored pipeline will pan out. Officials have said Alaska won't know for sure whether a gas line will be built until the state's partner in AGIA, TransCanada, considers project sanctioning, currently scheduled for around 2015. "How much money do we continue to invest in the blind faith that this AGIA mechanism is actually going to deliver a pipeline?" asked committee chair Rep. Mike Hawker, R-Anchorage. "How much money do we really need, immediately, without the knowledge of the outcome of the open season?" During a Finance hearing, he asked for odds on a pipeline from Marty Rutherford, a key member of the state's gas line team and deputy commissioner at the Department of Natural Resources. Rutherford gave a 65 to 70 percent chance a line will be built under AGIA, which Hawker called a "far cry" from statements the administration made when the act was passed. "Personally, I think that it's still in relatively good shape," Rutherford said. "But I'd say (it's) no sure bet, and as an Alaskan ... that concerns me. That is one of the reasons I feel so strongly that moving the project forward, ensuing that they get to the benchmarks they've committed to, is so critical."
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