ANCHORAGE, Alaska - Gov. Sarah Palin's signature accomplishment — a contract to build a 1,715-mile pipeline to bring natural gas from Alaska to the Lower 48 — emerged from a flawed bidding process that narrowed the field to a company with ties to her administration, an Associated Press investigation shows.

Beginning at the Republican National Convention, the McCain-Palin ticket has touted the pipeline as an example of how it would help America achieve energy independence.

"We're building a nearly $40 billion natural gas pipeline, which is North America's largest and most expensive infrastructure project ever, to flow those sources of energy into hungry markets," Palin said during the Oct. 2 vice presidential debate

Despite Palin's boast of a smart and fair bidding process, the AP found that her team crafted terms that favored only a few independent pipeline companies and ultimately benefited the winner, TransCanada Corp.

And contrary to the ballyhoo, there's no guarantee the pipeline will ever be built; at a minimum, any project is years away, as TransCanada must first overcome major financial and regulatory hurdles.

In interviews and a review of records, the AP found:

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.
"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."

Only one viable bidder


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

Interesting.

I don't know about all the Political and Favorism Stuff.

I can say that I do think that she did take the lowest bid. I rather doubt that there is a Reputable Established Pipeline Company in the US that would give a Bid on a 1700 Mile Pipeline for "Nearly 40 Billion Dollars".

The question here is can TransCan bring the project in for that Price and more so, on time. What if they can't? Any Penalties? Really need to see the Bidding Sheet on this deal. We all know that's never going to happen...

Looks to me that they are about 12 Billion short by US Pipeline Company Standards.

The Government Bidding System is screwed to the max! Its not really "Est-i-mate " its "Guess-ti-mate"!