Governor Sarah Palin Stands by AGIA Process

January 26, 2008

Alaska governor Sarah Palin released a statement Saturday expressing her belief that AGIA is on track and that she has spoken to Conoco about their alternate (and unqualified) proposal - despite president Jim Bowles' inference that she hasn't.

Bowles accused Palin in a written letter that she seemed to have "an apparent misunderstanding" of what it takes to complete the multibillion-dollar project.

Jim Bowles has been a controversial figure in Alaska's oil politics.

Bowles' name came up on June 6, 2006 during the Pete Kott corruption trial. With the state House of Representatives on the verge of adopting a new 23.5-percent tax on oil production, convicted oil company bagman Bill Allen placed a phone call to Bowles. The FBI recorded every word.

AUDIO: FBI recording of Bill Allen in a conspiracy with Conoco/Phillips Alaska president Jim Bowles to stop a new 23.5-percent tax on oil production- June 6, 2006
Allen tells Bowles "just between me and you, I've got Pete Kott...and Ben doing it." Bowles tells Allen the best possible outcome will be to "get this thing stopped."

From governor Palin's press release: Governor Sarah Palin today responded to claims made by ConocoPhillips regarding the State's rejection of the company's natural gas pipeline proposal, which was submitted outside the AGIA process.

"AGIA sets forth a vehicle that delivers North Slope gas to market with certification and construction benchmarks, expansion provisions, tariff terms, and other protections the state, and the nation, need. It is unfortunate that ConocoPhillips elected not to participate in this sensible competitive process as did other fine companies."

The Governor also clarified that the state has never refused to work with ConocoPhillips on a mutually beneficial plan to get the producers' gas into a pipeline to market.

Governor Palin on Wednesday spoke with ConocoPhillips president Jim Bowles about this issue.

"While the ConocoPhillips' alternative obviously falls outside of AGIA's terms, we have long sought a way for ConocoPhillips to work with the state and the AGIA licensee toward a mutual goal of getting ConocoPhillips' gas into a line to market. We have had several discussions along these lines, and will continue to do so. Statements to the contrary are simply untrue, and only serve to confuse Alaskans."

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