Oil companies BP and Conoco Phillips have made the first move toward getting federal permission to build a natural gas pipeline.
Their joint venture company, called Denali -- The Alaska Gas Pipeline LLC, submitted a letter dated Sunday to the Federal Energy Regulatory Commission seeking permission to use the agency's "pre-filing procedures."
Pre-filing status, if granted, would kick off at least 18 months of engineering and other planning work for the multibillion-dollar pipeline from the North Slope gas fields to Alberta, Canada.
FERC officials told state lawmakers meeting in Anchorage today that pre-filing is a crucial first step for a pipeline project, no matter who builds it.
BP and Conoco apparently have beaten rival TransCanada Corp. to the pre-filing stage.
Legislators are considering whether to award TransCanada, a Calgary-based energy company, $500 million in state incentive money to pursue a similar pipeline.
BP and Conoco are not seeking the state subsidy.
Mark Robinson, director of the FERC's Office of Energy Projects, said the agency will consider applications from both TransCanada and Denali and might even give permission for both.
But ultimately, only one project will be able to win the financing for construction, Robinson said.
At least 35 of the state's 60 senators and representatives are meeting this week at the downtown Howard Johnson hotel to hear from regulators and others on TransCanada's bid for the state subsidy.
Gov. Sarah Palin supports TransCanada's project, saying it offers a better deal for the state than the Denali pipeline.
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