Murkowski Loses in AK Primary; Gasline Changes Ahead

[MarvB]

The trio of producers hoping to develop a pipeline to deliver Alaska natural gas to Canada and the Lower 48 could very well be negotiating the deal with a new governor as Frank Murkowski was soundly defeated in the state's Republican primary Tuesday.

Unless Murkowski can nail down a final deal with producers and the legislature before he leaves office Dec. 4 his successor will pick up the gasline torch. And that could mean big changes in the way producers and their gasline plans are handled by the state.

BP, ExxonMobil and ConocoPhillips, which had negotiated a controversial draft contract dictating financial and ownership terms of the gasline with Murkowski, would be sitting across the table from either Republican Sarah Palin or Democrat Tony Knowles if they want to continue negotiating with the state. Other producers could join negotiations and other options could be considered as well.

Murkowski said Monday he will call lawmakers back for another special session for gasline contract-related legislation. Whether the departing governor is able to preserve at least something of his gas pipeline work will depend on his statesmanship. Harold Heinze, a former oil company executive and head of a state agency to promote gasline development, told the Anchorage Daily News: "If he becomes a statesman, backs the nominee and finds some common ground, the odds would greatly increase that they could work something out with the [oil] companies. If that doesn't happen, then it's a big mess."

Palin, former mayor of Wasilla, defeated Murkowski in a three-way race with Fairbanks businessman John Binkley. Murkowski came in last and said he is endorsing Wasilla in the general election. Earlier in her career, Murkowski appointed Wasilla to the Alaska Oil and Gas Conservation Commission.

Knowles has served as Alaska's governor for two terms and is eligible to serve again because of the break following his second term. In the primary, he handily beat Rep. Eric Croft (D-Anchorage). Croft has been a strong critic of Murkowski and his dealings with producers and was behind a failed attempt to tax producers on reserves that remain undeveloped.

Palin and Knowles both hold commercialization of Alaska's vast natural gas reserves as a priority. But producers can look forward to an attitude different from Murkowski's from the next governor.

"It'll [the gas pipeline will] be a matter of working with the legislature to get the best project now," Reuters quoted Palin saying. "Not just allowing Exxon, British Petroleum and ConocoPhillips to tell us how our resources will be developed."

Knowles also has strongly criticized Murkowski and his draft gasline contract for being soft on producers. He told reporters that a change in the governor's office will help to get the pipeline unstuck.

The general election is Nov. 7.

 

[Oak]

Palin, former mayor of Wasilla, defeated Murkowski in a three-way race with Fairbanks businessman John Binkley. Murkowski came in last and said he is endorsing Wasilla in the general election. Earlier in her career, Murkowski appointed Wasilla to the Alaska Oil and Gas Conservation Commission.

Hmm, I suspect it wasn't a local reporter that wrote this.

 

[MarvB]

Oak are you implying a little back scratching may have taken place??

 

[Oak]

No, just a typo. Re-read the quote again. Pay close attention to the names.

 

[MarvB]

Got it that time...funny how the eyes put in the words they want to see eh? ...kid of like how the wife balances her checkbook!

 

[noharleyyet]

Good eye Oak...I missed it the first time...guess I'm getting too used to Moosie's posts.

 

[lilbiggun]

Frank burned his own bridges. He didnt do anything illegal persay, but he coulda done things a little different. I just hope Sarah has what it takes to beat Knowles.

 

[Erik in AK]

Sarah will kill the gasline deal. The All-Alaska plan is not viable. Our economy is in deep doo-doo if she wins.

What a choice...Barbie, the Weasel or some guy who looks like a chick

 

[guppie9]

Hey Eric, who's the AIP putting up this year!!!

 

[Erik in AK]

I don't know....whoever it is I'm sure he's your standard issue tinfoil hat wearin, basement full of MRE's and ammo, "the gummint took out Joe Vogler" conspiracy freaks.

Long Live the AIP...Alaska Insurrectionist Party, Anyone Insane or Paranoid