Alaska Dispatch

The White House announced Wednesday that President Barack Obama has appointed Larry Persily the federal coordinator for Alaska Natural Gas Transportation Projects.

Persily, an Alaskan with natural gas expertise and a long history of service to the state, will facilitate federal activities with a role in advancing a natural gas pipeline. Widely regarded as one of the most knowledgeable people in Alaska on oil and natural gas issues and on fiscal policy, Persily has a strong reputation as a facilitator who works well with Republicans and Democrats on complex issues.

"Larry has a long and distinguished career in state government, and he has earned the universal respect of Alaska policy makers," said Republican Rep. Mike Hawker, for whom Persily currently works. "He is clearly qualified to take on that role with the federal government and to continue to serve with distinction. While I'm obviously very, very sorry to see him leave my office, it is definitely for the best interests of the state."

The federal post was previously held by Drue Pearce, a former Alaska Senate president appointed by President George W. Bush in 2006. She resigned recently at Obama's request.

Persily said he hasn't had detailed discussions with the administration on how he'll be expected to move forward, and whether his role will shift from that developed by Pearce.

"The administration, like everyone else, would like to see this project get built -- for the gas, for the jobs, for the tax revenues," he said.

The federal coordinator job was created by the 2004 Alaska Natural Gas Pipeline Act, which granted special federal terms and conditions to a pipeline project delivering North Slope gas to North American markets. Those terms included $18 billion in federal loan guarantees, and the federal coordinator's office to keep an alphabet soup of about 20 agencies with a role in permitting the massive project on the same page.

Persily will likely also serve as a liaison with the Canadian government. About two-thirds of the proposed 2,000-mile pipe would run from Alaska's eastern border to a natural gas hub in Alberta.

Persily worked for the state's Department of Revenue for several years under governors of both political parties, and spent a year as a special assistant to Gov. Sarah Palin in her Washington, D.C. office.

Often outspoken in his criticism of Palin's policy positions and experience during her national campaign, Persily has also publicly questioned the odds of Palin's Alaska Gasline Inducement Act resulting in a pipeline. But that's not the only project on the table, and as federal coordinator, he'll be charged with facilitating any pipeline linking Alaska's resource with markets.

"We found oil and gas more than 40 years ago ... we've been waiting all that time on gas," Persily said. But for years, a natural gas pipeline "wasn't even remotely economic."

That's changed, he said. Producers would like to get gas to market, Alaska needs the royalty and tax revenue, and the nation will need the gas into the future.

The pipeline project is plagued by inflated world supplies and dwindling demand, and with North American prices hovering at record lows. But pending climate change legislation in Congress could drive power plants to shift from coal to cleaner-burning gas for power generation, which could in turn plump up the potential market for Alaska's resource.

"America could use the gas long-term," Persily said. "Everyone is for it, but there are still a lot of problems to work out. Hopefully in this office I can help resolve a lot of those problems and have a positive effect on the outcome."

Persily will step into an office with a $5 million to $8 million annual budget, and staff in Alaska and Washington, D.C. Until the Senate's Energy and Natural Resources Committee, holds confirmation hearings and the full body takes a vote approving the appointment, he'll continue working for the state Legislature on oil and gas and fiscal issues. The senate committee is chaired by New Mexico Sen. Jeff Bingaman, a Democrat. Alaska Sen. Lisa Murkowski is the ranking Republican.

State lawmakers convene Jan. 19 for a 90-day session. Hawker is petitioning Alaska's delegation to stall confirmation until the state session ends in mid-April.

"I certainly hope it takes about three months so Larry can stay in my office and help work out all of the energy-related bills and issues that are in the process," Hawker said. "He brings a nonpartisan credibility to those issues. His being able to stay in the Legislature the next three months will be as much service to the state as his moving on to the Washington appointment."

State lawmakers are expected to address major issues this session, including Alaska's oil and gas taxes, the state's commitment to a pipeline being planned by TransCanada, and expected shortages of natural gas in the state's major population center around Anchorage.

Persily's appointment is subject to Senate confirmation, which could take months.

Contact Rena Delbridge at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

UPDATED: Alaska Sen. Lisa Murkowski is the ranking Republican on the U.S. Senate Energy and Natural Resources Committee.