45°

Gov. Sarah Palin on Friday called a special session of the Alaska Legislature for June, leading observers to believe her administration will approve TransCanada's application to build the state's long-awaited North Slope natural gas pipeline.

She said a formal decision will not be made until the week of May 19 on whether TransCanada will win the license to build a pipeline bringing Alaska's gas to U.S. markets.

Some legislators say they expected the decision will be to approve TransCanada, based in Calgary, Alberta.

"I thought, quite frankly, it was a foregone conclusion from day one," said Rep. Ralph Samuels, R-Anchorage, and majority leader in the House of Representatives.

"This to me says it's TransCanada for certain," said Rep. Beth Kerttula, D-Juneau. "I don't see how it can mean anything else."

TransCanada was among five companies submitting proposals under the Alaska Gasline Inducement Act, vying for state approval to build a pipeline. Only TransCanada met the state's minimum qualifications.

Winners of the license would get the state's backing on a pipeline, including $500 million in state support early in the process, and an initial, temporary tax freeze.

At the same time, ConocoPhillips Co., Alaska's top oil producer, has been urging the state to instead select its proposal, made outside the requirements of the gasline act.

House Speaker John Harris, R-Valdez, said he remains skeptical of Palin's proposal, and supports an all-Alaska gas pipeline that would follow the route of the trans-Alaska oil pipeline and export liquefied natural gas from a terminal in Prince William Sound.

The all-Alaska line proposed by the Alaska Gasline Port Authority failed to meet the requirements of AGIA, but supporters say they are continuing to pursue their options.

Palin said the administration is continuing to review all-Alaska LNG options, comparing them with the TransCanada proposal, to ensure the project supported by the state is a good deal for Alaska.

Under the rules set up by AGIA, the decision on whether to forward the TransCanada proposal to the Legislature for approval will be made by two top state officials.

Both Pat Galvin, commissioner of the Department of Revenue, and Tom Irwin, commissioner of the Department of Natural Resources, are charged with making that decision.

During the week of May 19, the Palin administration will submit its findings to the Legislature, said Joe Balash, Palin's natural resources adviser.

Findings will be issued whether or not the governor recommends TransCanada.

If TransCanada is selected, the Legislature will have 60 days from that point in which to approve or reject the application.

Samuels questioned why, if the Legislature has just 60 days to review the applications, the administration would wait a couple of weeks before beginning the special session.

"Why would you burn that first two weeks," he said. "You've only got 60 days."

Samuels and Senate President Lyda Green, R-Wasilla, said the Legislature may call itself into special session prior to Palin's call. Palin said she wouldn't oppose that, but that her time line was "more sensible" because it gives legislators time to absorb the massive amount of information about the gas pipeline.

"It would be something that we would work with," she said.