Quiet Week for the Alaska Gas Pipeline

There was no big news this week as the Alaska Gasline Inducement Act (AGIA) public comment period continued.

Here's a few stories and links of interest:

Alaska’s Economy Might Boom if Palin Goes to Washington by PAUL JENKINS - Paul Outlines the upside for the Alaska Gas Pipeline if Gov. Palin runs for Vice President.

Consultant Urges Tax Stability for Natural Gas line Companies By Stefan Milkowski. The discussion always comes back to fair taxes and tax stability. Without that the pipeline will not get built.

Alaska Fiscal Woes Give Oil Firms The Upper Hand By Robert Campbell - Analysis. A reality check for the Alaska State Budget without a Gas Pipeline.

ConocoPhillips' Exec Says it Will Move Forward with Gas Line By Chris Freiberg - ConocoPhillips is still moving forward. Good for them!

ConocoPhillips Steps Up the Pressure

Although Alaska Governor Sarah Palin recently declined to consider the ConocoPhillips proposal, ConocoPhillips has stepped the lobbying effort.

Today ConocoPhillips ask the Governor to take a second look at their proposal.

I give ConocoPhillips credit for persistence and consistency in their approach. They have consistently asked for fiscal certainty. It's not going to be easy or cheap to build that long pipeline. It's understandable that ConocoPhillips wants to know what tax structure, or royalty scheme they will be faced with for the life of the project. ConocoPhillips has a duty to their shareholders to make sure that the investment will generate a predictable rate of return over the years.

The Governor's AGIA team posted a note titled "QUESTIONS ALASKANS SHOULD ASK CONOCOPHILLIPS.

The Questions include "What fiscal terms does ConocoPhillips propose?" and "Why does ConocoPhillips continue to link changes in tax and royalty laws to this pipeline project?"

Maybe Question #10 should read "Whats the value of that gas sitting in the ground forever" The question should focus everyone's attention on hammering out an agreement. Neither side wins if the gas is not brought to market.

Even though the Governor has rejected the ConocoPhillips proposal it's good to see this public dialog taking place. The State of Alaska wants to maximize the benefit obtained from production of their natural resource and ConocoPhillips wants to add shareholder value. Eventually I hope both sides can find some common ground.