Word: transcanada
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...they were called, required the builder to allow other producers to use the pipe, even if that meant expanding it at the builder's expense. That was a nonstarter with the big producers, who didn't even put in bids. In the end, the only acceptable offer came from TransCanada, an independent Canadian pipeline builder...
Neither the plan nor its proponents were universally loved. Critics pointed out that gas-team member Rutherford had briefly been a lobbyist for a TransCanada subsidiary. And stiffer resistance came from economic conservatives. Representative Mike Hawker says that by cutting Big Oil out of the pipeline, Palin's team "endangered the state's economic future. It's a classic case of biting the hand that feeds...
Palin's pressure tactics prevailed. The Republican legislature passed a measure giving TransCanada up to $500 million in seed money. Alaskans had been talking about a gas pipeline for three decades, and in less than two years in office, Palin had made almost unbelievable headway. "I fought to bring about the largest private-sector infrastructure project in North American history," she told the convention audience in September. "And when that deal was struck, we began a nearly $40 billion natural-gas pipeline to help lead America to energy independence...
...began is the keyword. 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...