Palin's Pipeline Corruption

Soon to be defeated VP candidate Sara Palin has constantly touted the supposed natural gas pipeline that is to be built in Alaska has an example of her "maverick" ways and as a blueprint for energy independence. Turns out the thing might never be built and the process for the bidding was rigged for one company that had substantial ties to her administration. To wit:

Instead of creating a process that would attract many potential builders, 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 not to talk directly with potential bidders, Palin had meetings or phone calls with nearly every major candidate, including TransCanada.
The leader of 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, interacting with legislators in the weeks before the vote to grant TransCanada the contract. Plus, a former TransCanada executive served as an outside consultant to Palin's pipeline team.
Under a different set of rules four years earlier, TransCanada had offered to build the pipeline without a state subsidy; under Palin, the company could receive a maximum $500 million.
[no1: BS ALERT] "Gov. Palin held firmly to her fundamental belief that Alaska could best serve Alaskans and the nation's interests by pursuing a competitive approach to building a natural gas pipeline," said McCain-Palin spokesman Taylor Griffin. "There was an open and transparent process that subjected the decision to extensive public scrutiny and due diligence."

http://www.msnbc.msn.com/id/27374946


Plus the whole project needs approval from the Feds. If it gets it:

Should TransCanada win federal permission to start digging, U.S. taxpayers could be on the hook, big time. Included in the company's bid is a proposal for the federal government to absorb up to $75 billion in liability over a 25-year period if the major natural gas suppliers refuse to ship their gas through the line, the CRS report said. Such a measure would require congressional approval.

http://www.msnbc.msn.com/id/27374950/

So the builder of this pipeline wants you and me to pay them if they can't get the actual owners of the gas to use their pipeline. That eventuality is highly probable given that:

Meanwhile, ConocoPhillips and BP have launched a competing project completely outside the state's process — Denali-The Alaska Gas Pipeline — that promises to get the job done more quickly.

So:

Clearly, two pipelines won't be built, and already state officials acknowledge that the winners in Palin's process may end up being absorbed into a consortium with the multinational energy giants. After all, with no guaranteed gas supply, there's little need for a pipeline.


Thus, what will in all likelihood happen is that TransCanada will get state money for doing virtually nothing and then get paid off by the big guys who will build a real pipeline. A nice deal for the politically connected owners of TransCanada, but a ripoff for Alaskans (and us IF they get Fed approval which they will never use but still get paid for).

Originally posted by no1marauder
Soon to be defeated VP candidate Sara Palin has constantly touted the supposed natural gas pipeline that is to be built in Alaska has an example of her "maverick" ways and as a blueprint for energy independence. Turns out the thing might never be built and the process for the bidding was rigged for one company that had substantial ties to her administrat ...[text shortened]... us IF they get Fed approval which they will never use but still get paid for).