Lawmakers: September session on gas deal unlikely

By Stefan Milkowski, Fairbanks Daily News-Miner
Published 6:03 am, September 1, 2006
Archived under News, Gas line

House Majority Leader John Coghill, R-North Pole, said Thursday he didn’t expect another special legislative session to work on the proposed natural gas pipeline contract.

“I don’t think there’s enough support at this point,” he said.

According to other Interior representatives, Thursday’s federal investigation of numerous lawmakers only lessens the chances.

Gov. Frank Murkowski said at a press conference Wednesday that he would call lawmakers back to Juneau on Sept. 19 as long as House and Senate leaders thought the session would be productive.

Coghill was one of those polling House members on their willingness to act on the contract in what would be the year’s third special session. He said he spoke with Republicans Jim Holm, Jay Ramras, and Mike Kelly of Fairbanks and with Democrat David Guttenberg, also of Fairbanks.

“I’d say it’s unanimous,” he said. “No.”

Kelly said he thought a special session would have “virtually no chance” of resulting in an acceptable contract between now and December, when Murkowski’s term ends. To go to Juneau and rush would be a waste of time and money, he said.

Kelly said he was not convinced by the governor’s arguments that the state needed to act now because of competing projects worldwide and a ballot initiative to tax natural gas reserves.

“This governor had until Aug. 22 to get it done,” he said, referring to the primary election that Murkowski lost, “and he wasn’t able to do it.”

Guttenberg said he was not opposed to going back to work on a revised contract but did not think the administration would be able to present a contract that lawmakers would support and the public would have confidence in.

“I don’t think this contract at this point is ready to go before the Legislature,” he said.

Coghill noted the tight schedule and stressed the effects of the primary and general election.

“The people of Alaska lost faith in this governor and rejected him” he said, “and I think the contract is a huge part of that.”

Coghill said he didn’t want the Legislature to also lose the public’s trust and claimed that even a good contract would be clouded by the “no-confidence vote” in Murkowski. A special session would also unduly burden lawmakers running for re-election, he said.

Coghill said he and House Speaker John Harris, R-Valdez, were ready to oppose a special session outright but were convinced by other lawmakers to see if BP, ConocoPhillips, and Exxon Mobil–the oil companies with which the state negotiated–were willing to budge on the contentious issues.

On Tuesday, he and other House members met with administration officials and oil company representatives to discuss moving forward, he said. The meeting convinced him that the oil companies were willing to give on those issues only if they got something in return.

Coghill also criticized the governor’s suggestion that lawmakers take on a negotiating role, noting that such a role was not outlined in the Stranded Gas Development Act, the law used to negotiate the contract.

Murkowski spokesman John Manly said Thursday the administration was talking with House and Senate leaders. He said he couldn’t speak to House members’ willingness to act but noted that the process could not move forward without their support.

“You’ve got to have both houses,” he said.

Lawmakers said the raid of legislative offices Thursday by federal officials and the ensuing investigation would only lessen support for a special session.

Ramras claimed the investigation would make it impossible to have a serious dialogue about the gas contract.

Kelly said his mind was already made up about the special session but granted that the investigation could have an effect on the gas contract.

“What happened today certainly doesn’t help matters,” he said.

Staff writer Stefan Milkowski can be reached at smilkowski@newsminer.com or 459-7577.

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