A Citizen’s Guide

MidAmerican Energy Holdings Co., the Midwestern energy company and subsidiary of Warren Buffet’s Berkshire Hathaway, didn’t apply under AGIA, as many had expected and they themselves had suggested.

On Friday, company CEO David Sokol cited the ongoing corruption scandal in the state and sticky points with some of the major producers in explaining why his company stayed home.

“Given the extensive nature of the ongoing criminal investigations, recent related performance issues in Alaska and elsewhere by one of your major producers, ongoing litigation regarding natural gas leases with the producers and the current and projected complications in the heavy industrial construction industry we respectfully suggest that an alternative way forward be considered,” he wrote.

The BG Group, which was thought likely to apply, said in its own letter that there was simply too much “economic uncertainty” in the project for them.

Both letters are available on Palin’s AGIA Web site.

Both companies stressed that they still thought the project was viable and still wanted to play a role in developing Alaska’s gas. BG said it would be “keen to participate as the picture firms up.” Sokol said he thought the state and the feds needed to team up with a “proven and nonconflicted project development partner” to move the project forward.

According to BG’s letter, company representatives will meet with members of Palin’s gas line team Dec. 12 to share their insight on the project.