A Citizen’s Guide

Asking hard questions about Gov. Frank Murkowski’s natural gas pipeline agreement and insisting upon answers to them doesn’t necessarily mean the person asking the questions opposes the agreement. Not at all. What it might mean is that the person asking the questions doesn’t intend to accept the agreement on someone’s word. That’s the way it should be on a subject as important to Alaska’s future as the pipeline agreement and the accompanying changes to the state’s system of taxing the oil industry.

Many questions have arisen about the pipeline agreement with Exxon Mobil, ConocoPhillips and BP since the governor made it public two weeks ago today. But even the governor should expect a significant level of questioning given the document’s size—352 pages of the agreement itself, accompanied by a 260-page fiscal interest finding and 11 appendices of a similar number of pages.

With formal hearings scheduled for today in Delta Junction and Thursday in Fairbanks, those questions might come front and center from the public.

Let them, and the answers, come.

A Daily News-Miner story from earlier this week listed several areas of concern held by consultants hired by the Legislature. Here they are, directly from that story and shared by some Alaskans, as well:

• The lack of firm commitments for building the pipeline and penalties when companies fall behind.

• The burden of proof to show the producers have not worked diligently to advance the project is shifted to the state.

• The state surrenders its right to go to court, agreeing instead to arbitration to settle disputes.

• Taking royalty and taxes in gas instead of receiving their value in cash.

• Weak provisions for expanding capacity in the pipe in the future.

Some legislators—most have been attending the administration’s daily presentations in Juneau—have listed other concerns.

But, again, questions and concerns are to be expected and are necessary.

The governor’s gas agreement may be a good one. It may be the right one. It may do what it’s advertised to do.

But a public policy choice as significant as this one shouldn’t be left to a series of “mays.”

Members of the Legislature need to feel comfortable with this agreement if they are to sanction it, and Alaskans must feel confident in the agreement if they are to support it. The best way to achieve both is for the administration to make a convincing case in favor of the agreement, to answer questions forthrightly, and to be open to any modifications that prove necessary.

Today: Formal hearing on gas agreement at Delta Junction City Council chambers, 2 p.m. to 8 p.m.

Thursday: Formal hearing at the Carlson Center, Fairbanks, beginning at 11 a.m. Public comment will be taken from about noon to 1:30 p.m. and again from 6 p.m. to 8 p.m. Each comment period will be preceded by an hourlong presentation and each period will run longer if necessary.

See the Daily News-Miner’s oil and gas publication in today’s editions for more information. Further information is available at the newspaper’s oil and gas Web site (www.newsminer.com/oilandgas).