Alaska gov. may bypass lawmakers to OK gas pipeline

ANCHORAGE, Alaska, Oct 13 (Reuters) Outgoing Alaska Gov Frank Murkowski said he may sign a deal for a 20 billion dollars North Slope natural gas pipeline even if state lawmakers fail to approve the measure, which has been criticised as too generous to oil companies.

Murkowski leaves office on December. 4 after losing a reelection bid in August.

''We're looking at that as an alternative, but it's far too early to make a definitive determination,'' he said at a news conference yesterday.

''We're going to continue to work on it. We might have a surprise before we leave,'' he said.

Murkowski, who finished third in the Republican primary, told reporters quick action is needed to ensure that a deal to build the pipeline is secured.

The governor for two more months said falling natural gas prices and the prospect of new competition from imported liquefied natural gas make it imperative to sign the deal he negotiated with ConocoPhillips, Exxon Mobil and BP to build the pipeline project, estimated to cost more than 20 billion dollars.

''What I'm concerned about is losing the opportunity,'' he said.

''Most Alaskans assume that this is a slam dunk. It isn't by any means.'' Most Alaska lawmakers criticize Murkowski's proposed contract as too generous to oil companies and perhaps an unconstitutional giveaway of state powers. Lawmakers have resisted Murkowski's calls for a special session on the subject.

Lawmakers object to Murkowski's plan for freezing oil taxes for several decades, having the state pay 20 percent of pipeline construction costs, and allowing oil and gas companies to pay state taxes in the form of natural gas rather than cash. This would require the state to market the natural gas.

Also, Murkowski wants to protect energy companies from lawsuits.

Several points of the proposed contract are being renegotiated with the oil companies, Murkowski said.

The three major candidates vying to replace Murkowski have promised to secure legislative approval enacting any gas pipeline deal.

But Murkowski said that by signing a contract before December may be ''doing them a favor.'' REUTERS DH PM0416