Legislators want sense of urgency on gas pipeline CUSTOMERS: With no committed users, line proposal questionable.

JUNEAU -- Alaska Republican lawmakers who support ditching state-sanctioned efforts to build a natural gas pipeline if the project can't get commitments from customers said Monday that they want to create a sense of urgency about building a line.

Bill sponsors told reporters they do not want to kill efforts to bring a long-hoped-for line to fruition. But they said they want to know if this is the best course to take, given that bills from Alberta-based TransCanada Corp. are mounting with no agreements in place yet to ship gas.

If this isn't the best course, they said, both sides have the option of walking away.

Rep. Mike Hawker, R-Anchorage, said the state needs to get some "closure" on the issue. Gov. Sean Parnell told The Associated Press he shares lawmakers' urgent desire to build a line but said the legislation could "ultimately end our opportunity to build this pipeline."

For years, the state has looked at a major gas line as a way to help shore up revenues as oil production declines, create jobs and provide more reliable, affordable energy for Alaskans.

Under the Alaska Gasline Inducement Act, championed by former Gov. Sarah Palin, TransCanada received an exclusive license to advance a line. It is doing so with a pledge of up to $500 million in cost reimbursements from the state.

The company missed a self-imposed target for securing agreements with shippers at the end of last year. But a TransCanada official, Tony Palmer, has said that negotiations are continuing and that work -- on environmental, regulatory and other aspects -- also is moving forward.

But House Speaker Mike Chenault, one of at least seven Republicans signed on as sponsors to the legislation, said the Legislature is in the dark on whether the state is any closer to getting a line built.

"If we continue on, not knowing if this is an economical project or not, are we just building paperwork or are we actually going to build a project?" he said. "I think the state of Alaska has got many, many rooms filled with paper on gas pipeline projects over the years.

"Our concern is, Are we spending our money wisely? And if we are, we need to know that there's the hope that there's a project there," he said. "If the project is uneconomical, and that's from all sides of the issue -- whether that's TransCanada, the producers or just the market -- then we need to know that whenever that happens. And we need to have, in our opinion, a way to get out of that contract."

The legislative proposal sets up a potential political showdown with House Democrats and Parnell, both of whom have expressed support for seeing the current process through, at least until summer. House Majority Leader Alan Austerman, a Republican, also indicated Monday that the proposal, in his opinion, will need more fleshing out.

Parnell, in a statement to The Associated Press Monday, said "moving the goal posts and changing the game on a process established by law will lead to delays and ultimately end our opportunity to build this pipeline.

"This bill will have a chilling effect on businesses looking to invest in Alaska," he said. "Legislators ought to focus on creating opportunities rather than killing them off."

Supporters insist they're not trying to change any rules -- that they're merely trying find out where the state stands.

The bill would presume the project is uneconomic for purposes of triggering an abandonment clause in the law if TransCanada cannot show proof to Parnell's administration before July 15 that it has received firm shipping commitments.

That clause allows for the project to be abandoned if both parties agree it is not economical. If there's disagreement between the administration and TransCanada on the economic viability, the issue would go to arbitration.

The bill puts pressure on the administration to refute the presumption the project has failed. It sets an Aug. 15 deadline for a report.

"I think if the administration were to come out and say, 'This is an economical project,' I think we'd all be OK," said Rep. Craig Johnson, adding: "We all want to move forward with a project."

While there are other proposals for commercializing Alaska's North Slope gas, including a large-diameter pipeline to Alberta competing with TransCanada, Chenault said he's not sure what Plan B is if a major line fails.


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