Gov. Sarah Palin of Alaska sent a letter to ConocoPhillips (COP.N: Quote, Profile, Research) this week calling the company's proposal to build a long-sought natural gas pipeline "critically short of meeting the state's objectives."
The apparent rejection of ConocoPhillips' bid came as a boost for TransCanada Corp (TRP.TO: Quote, Profile, Research), which was named the sole finalist this month for state sponsorship of the project under the Alaska Gasline Inducement Act.
Alaska's main criticism of ConocoPhillips' proposal, which was submitted outside of the AGIA process, was a request that state taxes be fixed on the project for decades.
"That approach is no more acceptable now than it was before AGIA," Palin wrote in the letter to ConocoPhillips' CEO James Mulva, dated Jan. 9. A copy of the letter was provided to Reuters late Thursday.
"Your alternative does not give the state a reason to deviate from the AGIA process," Palin added.
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