Pipe Dreams to Nowhere: Another Palin Lie

This past Friday, Governor Sarah Palin made her way to Fairbanks, in the subarctic interior of Alaska, where she participated in a glorified photo-op at which the Alaska Gasline Inducement Act (AGIA) license was signed by Alaska state officials. "This is a significant step as we march forward toward Alaska's next economic lifeline," Palin declared, stringing together as many political catch phrases as she could. "It's our next economic engine."

That license allows the gas line builder, TransCanada Corp, and its subsidiary, Foothills Pipe Lines Ltd., to "move forward" on the controversial 1,715-mile pipeline linking Alaska's resource rich North Slope with energy distribution hubs in Alberta, Canada.

That's right--move forward. In her debate with Joe Biden during the 2008 presidential campaign, Palin boldly claimed, "We're building a nearly $40-billion natural gas pipeline --which is North America's largest and most expensive infrastructure project ever." And in her address before the Republican National Convention, Palin also claimed "we began" to build that very same pipeline "to help lead America to energy independence."

Note the use of both the present and past tense with the verb "to build." One would have assumed from Palin's declarations that construction of the pipeline was already well underway.

Not even close.

Palin has always been fast and loose with the truth (and her capacity for self-promotion would seem to know no bounds), but her duplicity about the pipeline extends far beyond whether it is currently being built or not --it is not--but whether or not it ever will be built. "That pipeline," she declared at the GOP convention, "when the last section is laid and its valves are opened, will lead America one step farther away from dependence on dangerous foreign powers that do not have our interests at heart."

Well the first section is at least six years away, and many contend that it will never be built at all. As one Alaskan state legislator grumbled at the license signing, "This AGIA license is not a commitment to do anything other than process a whole lot of paper."

Palin has repeatedly trumpeted the pipeline as an example of her energy know-how and pragmatic politics. She also has claimed, as she did at the convention, that she has single-handedly imposed "competition and basic fairness" to oil and gas production in the Last Frontier.

In fact, as is often the case with Palin, it's all hat and no saddle.

Zane Henning, a longtime critic of Palin and an oilfield worker on the North Slope, says "I can guarantee that the AGIA pipeline will not be built unless the State of Alaska passes a long-term tax policy that the oil companies agree with."

Still others have argued that without the gas-rich Point Thomson region included in the pipeline agreement, there won't be enough economic inducement to generate production of the gas line.

In an interview with the Fairbanks News Miner, Palin acknowledged as much. "That is what it will take," Palin declared in her peculiar syntax, "of course, to get the project actually built, is for all parties to be in this as one."

But Alaska's so-called Big Three--ExxonMobil, ConocoPhillips and British Petroleum--are not in; far from it.

Palin says she is developing incentives to bring the Big Three into the pipeline equation, but there's certainly no evidence of that on the table. So far, Palin has put the cart before the horse every step of the way.

In fact, Palin rigged the bidding process for the pipeline so that it favored TransCanada and so that the Big Three were effectively shut out of the bidding process. In the end, of the five bids that were submitted, four were disqualified, leaving only one bidder in line to get the contract, you guessed it, TransCanada.

Moreover, TransCanada has strong political and economic links to Palin's administration. Palin's AGIA negotiation team was headed up by Marty Rutherford, an oil industry lobbyist who had previously done lobbying work for TransCanada, through its subsidiary Foothills Pipe Line. Rutherford was paid $40,200 as recently as 2003 for legislative work in Juneau on behalf of TransCanada.

Palin's own phone logs indicate that she had direct contact with TransCanada during the bidding process, contrary to the guidelines established by her own administration. To make the whole arrangement even slimier, Palin offered TransCanada a $500 million subsidy.

So much for Palin's assertion of promoting economic "competition and basic fairness."

Palin was able to get away with many of her claims during the campaign because of the isolation of Alaska from the Lower 48. It took almost a month for her Bridge-to-Nowhere lie to catch up with her, and the pipeline fabrications got lost amidst the daily grind of 24-hour news cycles and following less substantive tales about her clothes and makeovers.

But for most Alaskans, the gasline has been a huge issue for more than a decade and just about everyone in the Last Frontier knows that it will never be built unless the Big Three has a strong economic incentive to develop their gas leases and that there must be a negotiated tax-structure in effect before they make any agreement with TransCanada.

And therein lies the rub. Palin has said that TransCanada has made "commitments to build this pipeline"--but in fact, TransCanada has made no formal commitment to build anything. They have simply moved the process along to the next photo-op.

Palin can take her bows for the pipeline, as she did throughout the campaign and among the suits up in Fairbanks last week, but Alaskans across the political spectrum are growing tied of her dog and pony shows when it comes to resource management and energy production.

One of Palin's most vocal critics, Tony Hopfinger of The Alaska Dispatch, argued that the license signing this past week in Fairbanks raises more questions than it answers. "Why didn't the administration sit down with the oil companies and try to negotiate tax terms for the pipeline before embarking on the AGIA?" Hopfinger wondered. "And tell us again why we're giving a half-billion dollars to TransCanada--especially now that oil prices have crashed?"

Palin and her minions have consistently skirted the tough questions on AGIA. Right now, the Alaska Gasline project is yet another one of Sarah Palin's political pipe dreams to nowhere.

Comments

[Mnemanth]

FYI-
Just a little further reading regarding this $500 million dollar "subsidy". Actually, if the AGIA's stipulations to the agreement aren't followed to the "t" it could be a whole heck of a lot more!!

"Treble damages was main concern for legislators at June 25 meeting...­"

http://www.akrdc.org/issues/oilgas/specialsessionagia/bradner/062708.html

[Jigglypuff]

Mr. Dunn wrote:
"Palin's own phone logs indicate that she had direct contact with TransCanada during the bidding process, contrary to the guidelines established by her own administration. To make the whole arrangement even slimier, Palin offered TransCanada a $500 million subsidy."
Is anyone in Alaska asking the FBI to look into this?

[fishgirl26]

She and Blago see things the same way in life. If I want it, I take it. If you can't give me something for it then I will keep it for myself. There's a place for these two and it's where most sociopaths live and it's called denial. A piece of work that one in AK!

BTW, don't belittle the native tribes in AK or Canada Sarah...th­ey have been around a long time and actually care for the land that they live on, the ocean that the fish in, and the air that they breathe!

[NoMoreFreepers]

Great post!!

[Copperhead]

Keep reminding people of that!

[MsCanadian]

Yep. Palin and Blago are soulmates.

[jp5472]

HuffPost article by Shannyn Moore:

http://www.huffingtonpost.com/shannyn-moore/sarah-palin-the-gift-that_b_149164.html

[PackyJ]

Thank you, Mr. Dunn, for writing a coherent piece that even we often fact-challenged Alaskans can comprehend.

[mcantwell]

Mr. Dunn: You forgot to mention another major obstacle to building the pipeline, the canadian indian tribes, known as First Nations. (link provided)

A natural-gas pipeline might never be built unless Canadian authorities can strike a deal with some of the country's angry Indian tribes. Approximately half of the proposed pipeline would run through Canada. The tribes' lawyers warn that the courts are on their side and say the Indians have the power to delay the pipeline for years—or even kill it entirely by filing endless lawsuits.

http://www.newsweek.com/id/160088

[MsCanadian]

The First Nations are very much against the pipeline.

[Mnemanth]

As long as we (Alaska) are giving out hundreds of millions of dollars to competing big oil interests to "research" the feasibility of the line, it'll never be built. If we (yep, Alaska) had invested all the money spent thus far into building the thing ourselves, it'd have been done 10 years ago.
But, it's not about a gas line- it's about our "leaders" getting their own pockets lined.
Wanna see corruption? Book yourself a vacation in Juneau and see how government corruption is REALLY done!

[fishgirl26]

Thank you for the comment. I thouroughly believe that you are probably correct. Sarah may say she's going to take on big oil but the only thing I think she's taking on is extra cash.

[justobserve]

She got her house built for free from the company that got the contract for the ice hockey center in Wasilla. We'll probably find out what Todd and Sarah got for this TransCanada's contract! FBI should get into the Palins' affairs soon.

[aloha43]

Correction­....spelli­ng: liar

[aloha43]

As much as I can't stand to hear about her, I'm glad that Huff continues to expose her for the lear that she is.

[Diplomacy]

To listen to Sarah Palin during the campaign you would have thought the pipeline was already a 'done deal'. Signing agreements now? Sarah Palin stretches the truth to the limits. This pipeline is years off in even beginning the construction phase. STOP misleading Americans.

Also, she's offering Obama advice on forging better ties with Canada like she is.

I am certain, Ms. Palin, that Barack Obama does not need your advice particularly when it comes to foreign affairs.

And, Ms. Palin, don't use CANADA to score cheap political points, it's not appreciated.

See Canada AM interview on CTV.

http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20081208/obama_palin_081208/20081209/

[MsCanadian]

Yes, sane Canadians thoroughly dislike Ms. Palin, and request that she stay in Alaska!

[epitomized]

In an earlier comment I questioned how a pipeline can cost over $23 million per mile.

Then I re-read the article and the part about Palin's friends getting the contract sunk in. That's why it's going to cost $23 million per mile. It's a lot like that hockey rink that Wasilla so desperately needed -- we all know there isn't much ice in Alaska!

[epitomized]

Here's a valid question:

Why in the world is the pipeline going to cost over $23 million per mile? Surely laying pipe is cheaper than that?

[Stephanie71]

Apparently laying pipe with Sarah is pretty expensive. Just ask the RNC.

[dagnome27]

Seriously - would anyone have ANY expectation of the truth actually being spoken by this woman?

[GeorgiaOrwell]

Who cares about the pipeline - maybe she's going to move to Canada and run for their head of government, sharing her political expertise with the Canadians.

I'm just waiting for her to gut a moose in a video clip for the holidays while she grins insanely while blabbing on and on about ...nothing - then its frozen parts will be sold on ebay.

[MJCole]

What's up with the whole Canada connection lately? Okay the pipeline is a TransCan thing and it feeds into the Alberta distribution network (where a lot of it will end up being used to convert tar sands into syncrude for the mid western states). But I thought SP's claim to foreign policy fame was that she could see Russia. I guess not?

Anway the head of government in Canada is a short lady of German descent who wears big hats, she was born to the name Elizebeth Mountbatten but should be addressed as, "Her Royal Highness". It's not an elected position, rather herditary, next in line is a fellow by the name of Charles, heard of him? The leader of the government of Canada is typically referred to by his (or her) job title, specifically The Prime Minister, and yes we had a woman PM already, back in '93, named Kim. Something tells me though, Sarah's pro guns, ignorance of The Universe stand would not sell in Canada, we seem to like our pols to be policy wonks.

[kareemachan]

Well, at least she's back in Alaska.

[jazzpotato]

Now she needs Pastor Muthee to come and cast the witches out of the pipeline right of way.

PS: I think it's "All hat, and no CATTLE" ;)

[mdlw]

Yes, you're right...ch­eck out this site


http://www.talk2action.org/story/2008/11/5/13585/8320/

[PS4OBAMA]

I doubt the repub party would even let her run in 2012, thus the preening of Romney....­another rich guy...It's always fun watching Sarah talk like she knows everything, but actually know nothing...­....does she know what she didn't know what she didn't know? Has she actually done anyything at all or does she need to go out and "find us some" and get back to us. She's an embarrasment to the intelligent women in the political arena. Is she now a working govenor or just waiting for her next photo op?