Barrow new site for TransCanada Corp. pipeline hearings in Alaska

By Steve Quinn, The Associated Press

BARROW, Alaska - Legislators in Alaska resumed debate Tuesday on whether TransCanada Corp. should be issued an exclusive state licence to build a pipeline which would carry natural gas from the nearby North Slope to Midwestern markets.

Half of the legislature is in this Arctic community for hearings on Gov. Sarah Palin's gas pipeline proposal.

The natural gas fields, where the proposed multibillion dollar project would be anchored, are about 480 kilometres away.

Lawmakers chose Barrow for the hearing because for 30 years, the region has produced the oil flowing down the trans-Alaska pipeline system. That oil is currently responsible for about 90 per cent of the state's treasury, but the fields are dwindling at about six per cent production a year.

A natural gas pipeline is seen as a key component to keeping state coffers solvent, and a potential boost to this region's economic development.

Lawmakers have until Aug. 2 to either support or reject TransCanada Corp.'s bid for a state licence, but a vote is expected much sooner.

TransCanada is proposing a line that would travel 2,760 kilometres from the North Slope southeast to a pipeline hub in Calgary that connects to all the major markets on the continent.

But ConocoPhillips and BP PLC said they are moving forward with a competing pipeline, called Denali, outside the state's bid-requirement law that would afford TransCanada up to $500 million in seed money.

For some folks in Barrow, the gas line debate was a secondary topic because North Slope gas isn't expected to be in any pipeline for at least 10 years.

Many residents and community leaders instead wanted to talk about more immediate issues: soaring energy costs; jobs; how offshore drilling will effect the whaling industry.

Property taxes from the trans-Alaska pipeline system have helped the North Slope Borough keep power costs down over the years, but it's still expensive compared the state's more urban areas.

Visitors are getting a taste of that sticker shock this week, especially when perusing local stores for perishable and dry goods. The costs are more than twice what people in other regions of Alaska pay, like shelling out $10 for a gallon of milk.

"Every time something costs a dollar in Anchorage, it costs a $1.89 in Barrow," said Debby Edwardson, who chairs the North Slope Borough school board.

"It's good they are here; this is where the resources come from. It's not often we are at the discussion table."

This week's session in Barrow is the fifth round of hearings outside of Juneau, and the first to be held off the state's road system.

Lawmakers travelled from as far away as Ketchikan (Republican Rep. Kyle Johansen), the Aleutian Islands region (Democratic Rep. Bryce Edgmon) and from within the North Slope Borough itself, (Democratic Rep. Reggie Joule).

Getting here took as many as three flights for some lawmakers. Some arrived Sunday, when they began mingling with 4,000 plus residents, most of whom are of Inupiat Eskimo descent. Part of the local festivities this week included a whaling festival.

Some lawmakers have questioned the costs of taking the hearings on the road to Barrow, estimating that it could push the cost of special sessions past $2 million.

The argument is that the legislature could make better use of its time and money by taking a vote on the TransCanada's prospective licence sooner rather than later, and not drag out the debate.

But as the upcoming vote is deemed one of the most important to be cast by a state lawmaker in decades and as concerns over energy costs are boiling over, others countered getting lawmakers out of Juneau and to far flung regions was essential.

"Yes, it's expensive, but sometimes ignorance is more expensive than knowing something about the people in your state," said Joule, who represents Barrow residents. "What we need to see are both ends of the spectrum.

"We need to see where the resource comes from, but we also have a responsible to go to those places that aren't as fortunate, where they need different kinds of resources and different kinds of help."

Majority Leader Rep. Ralph Samuels, an Anchorage Republican making his first trip to Barrow, said such travel is simply "good government."

"The reality is when you make these policy decisions, you need to walk a mile in their shoes," Samuels said. "I think they should do this more often.

"If you can get 30 people to come up here, you've done something important. The problems up here are nothing like the problems of my constituents."

Lawmakers will return to Juneau for a second special session July 9 and are expected to quickly take a vote on Palin's recommendation to award TransCanada a licence to proceed with a gas line project.