According to some insiders in Alaskan politics, Gov. Sarah Palin has the votes in the Senate to back her picking of TransCanada to build a super gas pipeline that will stretch almost 1,700 miles from the North Slope to a hub near Alberta and eventually to U.S. markets. TransCanada was one of five companies that submitted bids for the pipeline project under the provisions of the Alaska Gasline Inducement Act. In early April, BP and ConocoPhillips lifted the curtain on their own plan to rival Palin's pick. But there is a hitch with the TransCanada plan. Even if it gets the nod from the state, that doesn't mean the pipeline will be built. If the company does get the bid, Alaska will fork over $500 million in seed money that will go toward a promise by TransCanada that it will actually take the steps necessary to get federal certification. That doesn't mean the first shovel of dirt will be turned or the first section of pipe welded. In making their bid, BP and ConocoPhillips with their Denali Project aren't asking for any seed money and have started some surveying work. Some legislators have said they are also aren't convinced that TransCanada can make a supply deal with the three North Slope producers. The debate is getting intense and will get even hotter and heavier before the Aug. 2 deadline. Expect a lot of news to come out of Alaska in the next few days and weeks. Stay tuned. There's a lot more to come on this deal.

–John A. Sullivan, News Editor, Oil and Gas Investor, www.OilandGasInvestor.com, jsullivan@hartenergy.com