TransCanada's bid for Alaska pipeline debated

Alaskan lawmakers on Tuesday resumed the debate on whether TransCanada Corp. should be issued an exclusive state license to build a pipeline to carry natural gas from the nearby North Slope to Midwestern markets.

The natural gas fields, where the proposed multibillion dollar project would be anchored, are about 300 miles 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 percent of the state's treasury, but the fields are dwindling at about 6 percent 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 license, but a vote is expected much sooner.

TransCanada is proposing a line that would travel 1,715 miles from the North Slope southeast to a pipeline hub in Calgary, Alberta, 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."

Lawmakers traveled to Barrow from as far away as Ketchikan, the Aleutian Islands region and from within the North Slope Borough.

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.

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 license to proceed with a gas line project.