Palin rejects Conoco Phillips proposal

Governor Sarah Palin rejected anthe proposal, from Conoco Phillips for building a North Slope natural gas pipeline, in a three-page letter to CP’s chief executive James Mulva. The governor believes that approving the company’s proposal will force the state into certain tax terms for a prolonged period, causing the state to lose valuable revenue.

Palin said state will continue the competition it began last year under the Alaska Gasline Inducement Act,. She states it attracted “several good-faith proposals to build a pipeline.”

Palin also wrote, the state will focus on AGIA and “does not need to backtrack” to tax negotiations with Conoco and other major North Slope gas owners, as it had in the past under the Stranded Gas Development Act. Palin suggests that a pipeline owned by oil companies will lead to higher shipping rates and tactics to keep other, smaller producers from using the line.

Download Governor Palin’s rejection letter PDF

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