A Citizen’s Guide

To the editor:

Thursday evening June 8, my wife, Diana, and I attended former Gov. Steve Cowper’s interesting and informative lecture on the proposed Alaska gas pipeline. Afterward, we spoke briefly with him. The conversation went like this.

Me: “Under the proposed contract Alaska will pay 20 percent of the construction costs, so our share will be $4 billion to $8 billion or more, apparently, depending on the cost overruns. But I don’t hear anyone talking about where this money will come from. What is your understanding of where this money will come from?”

Cowper: “I hear they’re eyeballing the permanent fund, for sure. That’s one big pile of money.”

Me: “Then, if it turns out to be necessary to operate the gas pipeline at a loss, Alaska will be financially responsible for 20 percent of the annual loss, in perpetuity?”

Cowper: “That’s right. Sounds risky to me.”

I suggest that when a former governor of Alaska, who earns his living as an international consultant on energy issues (in Austin, Texas), describes the current governor’s proposed gas line contract as “risky,” that it is a red flag. Obviously, the oil companies are not confident the gas line will earn a profit, because they require Alaska to agree, in this proposed contract, to pay 20 percent of the costs and assume 20 percent of the risks. That’s big money.

On the whole, this looks to me like a plan to give the permanent fund, Alaska’s largest resource by far, back to the oil companies: $4 billion to $8 billion (or more) initially, then the rest of it gradually, year-by-year, to cover the losses until it’s gone. If it looks that way to you, I suggest submitting your comments in writing to the state at http://commador.ursokr.com. This Web page includes a hard-copy mailing address.

I also suggest writing to your representative and senator in the Legislature, and/or calling them, and telling them what you think of this ill-considered scheme. Now is the time.

Craig Lingle

Fairbanks