ANCHORAGE, Alaska (KTVA-CBS 11 News) - If Alaska wants to have an economic future in less than a decade, former Gov. Frank Murkowski, R-AK, says the state must plan without a natural gas pipeline.

Murkowski told the Anchorage Chamber of Commerce Monday, Nov. 16, " I believe AGIA has set back any prospect for a commercial contract. And after three and a half years where are we?"

Murkowski feels the project is dead because of no contract alignment. Even though all three major oil and natural gas producers, ExxonMobil, BP and ConocoPhillips, are working on respective gasline projects.

"It may go down in Alaska history as one of our greatest missed opportunities for a continuous revenue stream for at least the next three decades," Murkowski says.

The former governor says the state must now focus on pouring more oil into the dwindling Trans-Alaska pipeline through measures like off shore drilling. That includes convincing Alaska natives their traditional subsistence lifestyles will be protected.

"Saying we have the technology to safeguard your indigenous dependence on the whale," Murkowski told the Anchorage Chamber.

A big first step, according to Murkowski, would be rescinding the current ACES tax structure to encourage investment.

"And ACES gave Alaska the highest marginal tax, the highest marginal tax rate in the world, at roughly 25 percent," Murkowski says. "I think this decision made Alaska uncompetitive."

State Sen. Bill Wielechowski,

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D-Anchorage, who voted against Murkowski's gasline plan, says the former governor is wrong.

"If you look at countries like Norway, Russia, Venezuela, Kuwait, they have tax rates 90 to 98 percent," Wielechowski says. "We're not the highest tax rate in the world. I have no idea where that number comes from."

Murkowski, however, says if lawmakers like Wielechowski stick with that tone Alaska's economic future could be in jeopardy.

"For the sake of the state of Alaska, and for the future of Alaska jobs, we simply have to get this state back on track in a timely manor," Murkowski says.

Murkowski also says critics should not stand in the way of developing a bullet line, or instate gasline, because the former governor says it could get the state over a financial hurdle.

Current state gasline team members Kurt Gibson tells CBS 11 News he does not understand Murkowski's claims, since Gibson says the state is moving toward the 2010 producer open season commitments to put gas in a pipeline.

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