Palin puts Alaska in the pipeline for success

Is it not amusing to hear talking heads tell us how indignant they are to have TransCanada meet the requirements for the next phase of a state gas line license under Alaska Gas Inducement Act?

Governor Palin approved a principle, but critics spend more time criticizing and passing negative articles among one another than supporting the ultimate goal of shipping Alaska's natural gas.

Under AGIA, the governor offers a $500 million inducement from the state to get the project rolling — Alaska’s investment in the project. The critics cry that “the governor hates the oil companies” (radio host Dan Fagan) and, my favorite, "Death by AGIA” (radio host Rick Rydell). But the public applauded the plan, as did the Legislature, and AGIA passed into law.

The next step was to get prospective pipeline builders to the table to fairly compete and apply. Accomplished, and though a finalist was named (the preliminary mark of a successful process), critics don't let up.

Listening to them you'd think TransCanada was a young and inexperienced company. They say TransCanada has big problems: It’s a foreign company, has no gas reserves of its own and even if it satisfied AGIA, can’t do the project. So what is TransCanada?

First of all, TransCanada is a company that builds pipelines. It doesn’t explore for oil or gas and doesn’t own gas stations or compete with explorers. What it does, and does well, is build pipelines. Conversely, Conoco, BP and Exxon explore for gas and oil, and they do that very well, but except for a few miles here and there, they do not build pipelines.

TransCanada is a world leader with a network of more than 36,500 miles of pipeline in North America alone. It is one of the continent’s largest providers of gas storage and related services with about 360 billion cubic feet of storage capacity.

Interested?

TransCanada tells us it has all the permits required to build in Canada. This is invaluable. The pipeline route goes through First Nations property. Without current permits, it would take some time (if not forever) to obtain them. I recall the lengthy legal process to build the Alaska pipeline across Alaska Native lands. Likewise, in Canada it’s nearly impossible to cross First Nations unless you already have the permits. TransCanada has legal access.

Canadian petroleum production is regulated by the NEB (National Energy Board) while in the USA it is the FERC (Federal Energy Regulatory Commission). Both governments eagerly await a pipeline. Canada needs Alaska gas in Alberta to produce its oil from the Alberta Tar Sands. The tar sands hold more oil than Saudi Arabia. Alaska needs a pipeline for scores of reasons known for years: regional economies, local/national market demands, contribution to U.S. energy independence and contending with the exorbitant cost of energy in Alaska. For both Alaska and Canada, the Alaska-Canada gas pipeline is a natural marriage.

Governor Palin had the guts to stand up with a new plan. When you appoint the right team and allow it to focus and develop a plan, the rewards are extraordinary. There's a process in place with the right leader, the right goals and the right team. We need to see it through to its end.

Rep. Carl Gatto, R-Wasilla, represents House District 13 in the Alaska Legislature.