To no one’s surprise, Alaska Gov. Sarah Palin has formally rejected the proposal ConocoPhillips made to build a natural gas pipeline from the North Slope to the Lower 48.
Essentially, Palin tells the Houston company its proposal is too much like the deal former Gov. Murkowski reached with the state’s major oil producers in 2006, which was rejected by the legislature. Palin told ConocoPhillips CEO Jim Mulva the proposal…
” … would have deprived the state of its ability to regulate its oil and gas activities, including taxation, for 30 to 40 years and would have cost at least $10 billion in revenues over its term in exchange for a conditional, unenforceable promise that the producers might build a pipeline.”
Here’s Palin’s letter.
The ConocoPhillips proposal wasn’t made under the open bidding process the state launched in 2007 (which only TransCanada has made it through so far). We wrote on this last week, and week’s past.