Pipeline terms of Palin curbed bids

By JUSTIN PRITCHARD and GARANCE BURKE

ANCHORAGE, ALASKA

Oct. 26: Gov. Sarah Palin’s signature accomplishment — a contract to build a 1,715-mile pipeline to bring natural gas from Alaska to the Lower 48 — emerged from a flawed bidding process that narrowed the field to a company with ties to her administration, an Associated Press investigation shows.

Beginning at the Republican National Convention in August, the McCain-Palin ticket has touted the pipeline as an example of how it would help America achieve energy independence. "We’re building a nearly $40 billion natural gas pipeline, which is North America’s largest and most expensive infrastructure project ever, to flow those sources of energy into hungry markets," Ms Palin said during the Oct. 2 vice-presidential debate.

Despite Ms Palin’s boast of a fair bidding process, the AP found that her team crafted terms that favoured only a few independent pipeline companies and ultimately benefited the winner, TransCanada Corp.

There’s also no guarantee the pipeline will ever be built; at a minimum, any project is years away, as TransCanada must first overcome major financial and regulatory hurdles.

In interviews and a review of records, it was found: — Instead of creating a process that would attract many potential builders, Ms Palin slanted the terms away from an important group — the global energy giants that own the rights to the gas. Despite promises and legal guidance Ms Palin had meetings with nearly every major candidate, including TransCanada.

The leader of Ms Palin’s pipeline team had been a partner at a lobbying firm where she worked on behalf of a TransCanada subsidiary.

Also, that woman’s former business partner at the lobbying firm was TransCanada’s lead private lobbyist on the pipeline deal. —AP