Pipeline? What Pipeline?
In spite of trying to run for VP as a “reformer” who secured a $40 billion pipeline, Alaska Governor Sarah Palin conducted a questionable bidding process for the much-bragged-about pipeline, one that might not ever be built, and is not a $40 billion project. The AP did an investigation that discovered that only a few companies could bid, and the winner, TransCanada, has murky ties to her administration.
Palin appointed Marty Rutherford to head the team to handle the process. But Rutherford, in 2003, was a lobbyist for Foothill Pipe Lines, Alaska, Inc. a subsidiary of TransCanada. Here are some other problems:
- Despite promises and legal guidance not to talk directly with potential bidders, Palin had meetings or phone calls with nearly every major candidate, including TransCanada.
- [Rutherford's] former business partner at the lobbying firm was TransCanada’s lead private lobbyist on the pipeline deal, interacting with legislators in the weeks before the vote to grant TransCanada the contract. Plus, a former TransCanada executive served as an outside consultant to Palin’s pipeline team.
- Under a different set of rules four years earlier, TransCanada had offered to build the pipeline without a state subsidy; under Palin, the company could receive a maximum $500 million.
While Palin insists this is a $40 billion project, TransCanada puts the cost at $26 billion. And even not every member of Palin’s own party think the deal is kosher.
“Most definitely TransCanada got a sweetheart deal this time,” said Republican Sen. Bert Stedman, who voted against the TransCanada license. “Where else could you get a $500 million reimbursement when you don’t even have the financing to build the pipeline?”
And the fact is, even though Palin used this issue to glide into the governor’s office and is now heralding the pipeline as a major accomplishment of her administration, it may be years away, if it’s ever built at all. As of now, there is no $40 billion pipeline, and there many never be.
To obtain financing, TransCanada will need commitments from producers to use the pipeline. But the majors aren’t likely to agree to pay someone else tariffs for pipe they could lay themselves, and this they have steadfastly refused to do without long-term tax breaks from the state. Palin’s initiative was “bold but unworkable, a big splash with little payoff,” says University of Alaska energy economist Doug Reynolds. He predicts no movement on a pipeline until Palin agrees to negotiate with the producers.
What’s unfolding now is a game of high-stakes chicken. In response to Palin’s TransCanada plan, BP and ConocoPhillips started plans to build their own pipeline into Canada–and nobody thinks there will be two pipes. Palin’s critics say that the gas team’s inability to find a way to include the producers from the start could delay the project indefinitely.
Whew, I’m glad it was the trustworthy AP who did the investigation, and not the mainstream media…oh, wait…
October 25th, 2008 at 2:47 pm
Flap flapped:
I know, I know… You are waiting to hear what Jesus (or Rush) tells you before you know what to think about it.
October 25th, 2008 at 3:09 pm
I’ll have to say, Alan, the picture is breathtaking. Did you choose it? It’s absolutely beautiful.
October 25th, 2008 at 3:31 pm
Palin’s got some real hard-nosed business savvy. ExonMobil’s gas leases were revoked for not taking any action to start production. The oil companies refused to bid on the pipeline because they couldn’t get a sweetheart deal. Now to counter Palin’s proposed pipeline project, they are making plans to build their own pipeline after dragging their feet for decades trying to extort concessions from the State. LOL! I like her style! True – Palin’s pipeline is not a done deal, but as long as she doesn’t cave in, big oil has no choice but to cooperate more effectively with the State. She’s got guts…
October 25th, 2008 at 3:59 pm
You drive into town. The sheriff spots your out-of-state registration plates. He gives you a ticket. You go to the local justice of the peace. He bangs a hammer on a can of beans. Five hundred bucks or 90 days.
The Palin administration.
October 25th, 2008 at 4:30 pm
You drive into town. The sheriff spots your out-of-state registration plates. He gives you a ticket. You go to the local justice of the peace. He bangs a hammer on a can of beans. Five Billion bucks or 90 Years.
The Barack HUSSEIN Obama administration.
October 25th, 2008 at 5:39 pm
By the way, the AP lost all credibility as an unbiased news organization years ago. They are now simply a propaganda machine for the left-wing lunatics in the Democrat party.
October 25th, 2008 at 5:48 pm
Uh Alan….. the pipeline is going to cost 40 BILLION, not 40 million. There were CURRENT rules to play by, and TransCanada was the ONLY one that played by them, and thus got the approval for the project – from the State Legislature – not Palin. Palin could not play by the old rules you describe. The people of Alaska approved the $500 million, not Palin. And enough about the banned books already – she NEVER banned any books. It seems like the only person I can trust these days is myself, and I’m even starting to doubt that.
October 25th, 2008 at 6:04 pm
Um Cara, no, I like to think for myself, not get my sustenance from the media as you apparently do.
October 25th, 2008 at 7:32 pm
No Flap. I am like you. I never rely upon the media. While it is pretty expensive to travel to every newsworthy event personally in order to get an eye witness view, I think it is worth it in order to not have to rely upon the evil media for information, don’t you?
Let’s trade tips on how we get passes for closed events sometime, what do you say? One problem I have not yet been able to surmount is when there is more than one important event occurring in different parts of the world, at the same time. How have you managed to overcome that difficulty?
October 25th, 2008 at 7:40 pm
>>No Flap. I am like you. I never rely upon the media. While it is pretty expensive to travel to every newsworthy event personally in order to get an eye witness view, I think it is worth it in order to not have to rely upon the evil media for information, don’t you?
Let’s trade tips on how we get passes for closed events sometime, what do you say? One problem I have not yet been able to surmount is when there is more than one important event occurring in different parts of the world, at the same time. How have you managed to overcome that difficulty?
Posted by Um Cara<<
No WONDER the Secret Service has “Stalker files” on you!
;-)
October 25th, 2008 at 8:02 pm
Jones, I don ‘t disagree with you. But sarah should also tell exxon-mobile that they don’t do ANYTHING in alaska till they pay their court ordered settlement to the state and the people, Fisherman, ect. She has no respect from me if she let’s exxon mobil off the hook. They lost the case. Pay the Fine.
October 25th, 2008 at 8:13 pm
You drive into town. The sheriff spots your out-of-state registration plates. He gives you a ticket. You look for the local justice of the peace but there is none, because we threw out the Rule of Law with the Bush regime, and now they just line you up in front of a wall and shoot you.
The McCain Regime: coming soon to a neoNazi camp near you.
October 26th, 2008 at 1:23 am
You said:
I know, I know… You are waiting to hear what Jesus (or Rush) tells you before you know what to think about it.
The Creator of the Universe as well as my personal Lord and Savior Jesus Christ doesn’t verbally debrief me on how I should interpret an event or news story, nor does Rush. My initial comment was that the AP and the potential spin associated with their “investigation” is not necessarily reliable. Just as Rush’s reporting of facts is not necessarily reliable. I don’t buy into spin from either side.
Is your snarky response implying that a healthy dose of skepticism is not needed when reading a news story from the media that has clearly been in the tank for Obama?
October 26th, 2008 at 1:46 am
A federal judge in Philadelphia last night threw out a complaint by a Montgomery County lawyer who claimed that Democratic presidential candidate Barack Obama was not qualified to be president and that his name should be removed from the Nov. 4 ballot.
Philip J. Berg alleged in a complaint filed in federal district court on Aug. 21 against Obama, the Democratic National Committee and the Federal Election Commission, that Obama was born in Mombasa, Kenya.
Berg claimed that the Democratic presidential standardbearer is not even an American citizen but a citizen of Indonesia and therefore ineligible to be president.
He alleged that if Obama was permitted to run for president and subsequently found to be ineligible, he and other voters would be disenfranchised.
U.S. District Judge R. Barclay Surrick had denied Berg’s request for a temporary restraining order on Aug. 22 but had not ruled on the merits of the suit until yesterday. [...]
In a 34-page memorandum and opinion, the judge said Berg’s allegations of harm were “too vague and too attenuated” to confer standing on him or any other voters.
Surrick ruled that Berg’s attempts to use certain laws to gain standing to pursue his claim that Obama was not a natural-born citizen were “frivolous and not worthy of discussion.”
The judge also said the harm Berg alleged did “not constitute an injury in fact” and Berg’s arguments to the contrary “ventured into the unreasonable.”
October 26th, 2008 at 2:32 am
I’m perpetually amazed that Palin calls herself a Republican. She increased taxes, which caused cancellation of delays of major projects, which of course reduced or deferred jobs, reduced and deferred tax income.
The Alaska Gas Inducement Act is really a $500Million corporate welfare program that will go to foreign company if she has her way (Country First – which Country?)
Palin’s entire gasline project was totally anti-free market. And yet she’s called a Republican?
http://alaska-gas-pipeline.blogspot.com/
October 26th, 2008 at 6:28 am
Alan, how dare you accuse a Republican of incompetence of misjudgement?
Please remove this thread immediately.
Thank you.
October 26th, 2008 at 1:16 pm
Seems pretty typical to me – it’s what most of the people I know have come to expect from Republicans in a position of power. It’s absolutely a conflict of interest, and the insider deals are becoming more and more flagrant.
How did this ‘democracy’ ever succumb to the elitist “kick them while they’re down’ politics of the current GOP?
October 26th, 2008 at 7:20 pm
As a side note – how likely will it be that McCain actually calls and concedes if he’s getting trounced on election night – or are we going to have yet another election month.
I’m betting on the latter – It takes a modicum of honor to step aside gracefully – something McCain doesn’t have anymore. He’s been caught in way too many lies for me to ever trust him.
If he manages to win, I’m moving to Canada, because this country is screwed.
October 26th, 2008 at 7:24 pm
I’ll pay your expenses if you leave today.
October 27th, 2008 at 7:45 am