By OGJ editors
HOUSTON, Apr. 20 -- TransCanada Corp., which has had a long-pending application before Alaska for right-of-way permits to construct a natural gas pipeline from North Slope fields through Alaska and Canada, has signed a memorandum of understanding (MOU) with the state, which now will resume processing TransCanada's ROW application.
TransCanada already holds federal authorizations, including ROW, to construct the line through Alaska, as well as through Canada, said Alaska Gov. Frank H. Murkowski Tuesday.
Once the state issues an ROW lease and commercial arrangements support project financing, TransCanada indicated it would convey the ROW lease to the entity that would develop the project in Alaska and sign exclusive agreements for connecting the Alaska segment to TransCanada's system at the Alaska-Yukon border.
TransCanada also has indicated its willingness to assume leadership of the Alaska segment as an independent pipeline sponsor. In the MOU, Alaska and TransCanada recognize the critical importance of the state and North Slope producers' timely resolution of upstream issues related to the project.
TransCanada, which said it was willing to accept Alaska partners in the pipeline development project, will reimburse the state for right-of-way processing costs and as much as $1.5 million for stranded gas act application processing costs.
