A Citizen’s Guide

Gov. Frank Murkowski will respect the will of lawmakers and not push for legislative approval of his proposed natural gas pipeline contract before his term ends in December, the governor’s chief of staff and chief pipeline negotiator said Wednesday.

Jim Clark said the governor is standing by his decision not to call another special session to move forward on the contract unless lawmakers support the idea.

“At this point, they’re saying they don’t want to go forward,” he said.

Leaders of the state House detailed their opposition to holding another special session in a letter to the governor Tuesday. Senate leaders made their views clear during a meeting with administration officials Wednesday in Anchorage.

Sen. Ralph Seekins, R-Fairbanks, who attended the meeting, said the sentiment among senators was “pretty much the same” as that of House members. According to the letter from House leaders, House members opposed the session because of Murkowski’s loss in the Republican primary, lawmakers’ own races, an FBI investigation involving lawmakers and the short time frame.

More than anything, Seekins said, the contract and related parts of the deal were not yet ready for lawmakers to consider.

“The time isn’t right,” he said.

Sen. Gary Wilken, R-Fairbanks, who participated in the meeting by telephone, said there was little discussion of senators’ views on what would have been the year’s third special session. Instead, he said, the meeting focused on how best to transfer the knowledge gained by Murkowski’s administration to that of the new governor.

“It was really a positive meeting,” he said. “There was no sour grapes. There was no licking wounds.”

Murkowski and his administration spent more than two years negotiating the deal with BP, ConocoPhillips and Exxon Mobil, the three main oil companies operating in the state. The proposed contract, which required the approval of lawmakers, would have set the fiscal terms for development of a gas pipeline from the North Slope to Canada or the Lower 48.

Murkowski cited the gas pipeline as the main reason behind his decision to run for a second term as governor.

After the meeting Wednesday, Clark continued to argue that waiting was not good for the state because of harmful delays associated with a new administration, new lawmakers and a ballot initiative to tax undeveloped natural gas reserves.

“I feel very bad for Alaska,” he said. He argued the contract was a good one that could have moved forward with changes, and he left open the option of having another special session if lawmakers changed their minds.

He said the administration would continue to work on the pipeline contract and related documents and would try to bring the main gubernatorial candidates up to speed.

“We’ll have a package that the Legislature and the next administration can move forward with if they choose,” he said.

Senators defended their preference for waiting but expressed appreciation for the administration’s willingness to continue work on the gas pipeline.

“The result of the primary election was sort of a passage of judgment on the proposed contract,” said Sen. Gene Therriault, R-North Pole, “so to push forward, I think, was ill-advised at this point.”

Therriault said he saw the Senate’s wishes as both a lack of faith in the contract and a belief that the timing was bad.

Senate Majority Leader Gary Stevens, R-Kodiak, said upcoming elections, the uncertainty over the next governor, and the federal investigation all played into lawmakers’ lack of interest in moving forward.

“I don’t think that we could make progress because of all the things out there,” he said.

But senators didn’t dismiss the contract itself.

Seekins said the Legislature should not just walk away from the contract, which could serve as a basis for continuing negotiations with the oil companies.

“There are some good things in there,” he said. “First, getting gas to market.”

He said it was important for the Legislature to review public comments on the contract. He plans to call a meeting of the Senate Special Committee on Natural Gas Development, which he chairs, when the administration is finished responding to the comments.

Seekins also said he would be willing to participate as an observer to negotiations between the state and the oil companies.

Wilken called the elections, the investigation, and recent North Slope oil spills “distractions” that have nothing to do with the fact that the U.S. Midwest needs Alaska’s gas.

“That’s what we ought to be focused on,” he said.

According to Clark, Revenue Commissioner Bill Corbus invited the three main candidates–Andrew Halcro, Tony Knowles and Sarah Palin–to discuss the administration’s work on the gas line.

“We appreciate the invitation,” said Curtis Smith, spokesman for Republican candidate Palin. “We’re absolutely going to take advantage of that.”

Smith called the contract “broken” but said that didn’t mean that the work was wasted or that the contract couldn’t be used in some way. He confirmed that Palin intended to consider all pipeline proposals and preferred an “all-Alaska” pipeline, but didn’t give specifics for what she would do if elected.

“I’ll have more on that front shortly,” he said.

Patty Ginsburg, spokeswoman for Democratic candidate Knowles, said the former governor would not throw out the administration’s contract.

“What he wants to do is invite all proposals and ask them to address Alaska’s terms,” she said, including specific benchmarks, a separation of oil and gas fiscal terms, and Alaska hire.

“Stay tuned for details tomorrow (Thursday),” she said when asked for a detailed plan. Knowles will be in Fairbanks today and plans to discuss the gas line.

Clark said Independent candidate Halcro was also invited to discuss the gas line deal.

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