Payments to gas line company reach $32.4 million since July BIG JUMP: In the previous 12 months, the payments came to $4.4 million.

JUNEAU -- The Alaska government's reimbursements to a major Canadian pipeline company seeking to develop a North Slope gas line skyrocketed late last year.

Since July 1, the state's payments to TransCanada have totaled $32.4 million, with another $9 million in requests pending as of last week. The payments compare with $4.4 million in reimbursements to TransCanada in the previous 12 months.

TransCanada is eligible for up to $500 million from the state for its spending to develop the long-sought pipeline to link North Slope gas with Lower 48 markets.

The payments have since become controversial even though the Legislature nearly unanimously approved them as part of the Alaska Gasline Inducement Act in 2007.

Millions of dollars are also being spent on a competing North Slope gas line project led by BP and Conoco Phillips. These companies are not seeking reimbursements from the state and they reported spending $150 million as of last October.

Some leading Republican legislators in recent weeks have complained about continuing the reimbursements to TransCanada, even though they say an effort to repeal the act is unlikely this year. The act's proponents say reneging on the payments would be a contract violation that could involve many more millions of dollars in financial penalties for the state.

Since last summer, work on TransCanada's project has sped up as the company, and Exxon Mobil, its partner, took on major projects, including a three-month "open season" during which it sought oil company commitments to ship their North Slope gas production through the pipe. TransCanada is still trying to finalize agreements with the potential shippers.

The pipeline company also is conducting engineering and environmental work required before it applies in October 2012 for a federal license to build the pipeline, according to the Alaska Department of Revenue.

Another reason payments jumped: In the fall, the department cleared a 15-month backlog of invoices that had not been processed yet, it said.

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