During the week of May 1, the three major oil producers on the North Slope indicated they would not participate in Gov. Sarah Palin’s AGIA, Alaska Gas Inducement Act, as written.
It is my opinion that the state of Alaska can:
1. Construct the line from the North Slope gas fields to Southcentral Alaska, the Canadian border, or both without the participation of the big three oil producers;
2. Produce enough gas to fill the pipeline from our own supplies for at least 10 years;
3. Put the “big three” on notice that unless they profitably put their supplies on the market, the state will repossess the commodity in accordance with the lease terms;
4. Place the ‘big three” in the untenable position of justifying their losses to the stockholders; and
5. Successfully call the oil companies bluff and pass a legally defensible AGIA, with the confidence that there will be adequate supplies and markets.
While it is true the big oil companies have the resources and expertise to construct and utilize the gas line, that is only one-half of the story.
There are other petroleum organizations in the field that also have these same resources. Let’s give all the competitors a chance at the project. Let us all get behind Gov. Palin’s proposal and neutralize the big money effort to dash the principles of the AGIA.
Write or call your legislators and let them know how you feel. This issue is very important to all Alaskans.
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