An agreement last month between ConocoPhillips and the state of Alaska signals substantial progress for a long-proposed pipeline to transport natural gas from Alaska’s North Slope to the contiguous 48 states. But while the state negotiates with two other producers that are developing the line with ConocoPhillips, dissent within Alaska’s government has broken into the open. Seven senior officials have resigned, but the governor is continuing his efforts to complete agreements aimed at building the gas pipeline.

Gov. Frank H. Murkowski (R) announced the ConocoPhillips deal Oct. 21. But on Oct. 20, Commissioner of Natural Resources Thomas E. Irwin had asked Attorney General David W. Marquez for advice on the agreement’s legality under the state’s Stranded Gas Development Act. When Marquez replied a week later that Irwin’s objections had no merit, Irwin resigned. Six other senior DNR officials, including four with more than 20 years of service, also resigned, citing Irwin’s "dismissal."

A 2001 study by the producers estimated the line’s cost at $20 billion, plus or minus 20%, says a spokesman for one producer. The state will take a "roughly 20% interest in the pipeline," and will take the royalty and gas tax in kind, says Chuck Logsdon, Murkowski spokesman. But Murkowski would not discuss details of the ConocoPhillips agreement, citing the confidentiality of the negotiations with the remaining producers, BP and ExxonMobil.

BP is expected to be the next party to reach agreement. "The governor wants a four-party deal," including the state, before starting the clock on the statutory 30-day public comment period, says Logsdon.