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First, there was AGIA. Then came the short-term energy rebate plan. Now Gov. Palin says she has another solution — an intermediate plan — to offset the state's energy crisis: an in-state gasline separate from AGIA.

Palin wants the state to team up with Enstar and the Alaska Natural Gas Development Authority for the project, which could deliver gas to Alaskans in as early as 2013.

The line, which would be more than 690 miles, would begin in Anchorage and wind into Fairbanks and the North Slope Foothills, carrying 460 million cubic feet of gas per day — twice the amount Alaskans are using today.

"Instead of waiting 10 years for a large volume of gas to flow through our hungry markets here in Alaska, within five years

we want to make sure that the energy crisis is addressed with our own resource being used in-state," Palin said.

Over the next five years, the state is hoping to make new discoveries of natural gas in the Cook Inlet. If not, the line will go north to tap into the North Slope foothills.

The instate line will augment the governor's short-term energy rebate plan and AGIA, the long-term plan.

"One of the legitimate concerns of the Legislature is: Does AGIA in any way facilitate or stifle in-state use?" said Marty Rutherford, deputy commissioner of the state's natural resources department. "Here's a perfect example of it could facilitate but it's certainly not in competition with it."

Work on the more than $3.3 billion project could begin as soon as next spring.

Scott Heyworth, ANGDA acting chair, is optimistic the project will have no problem getting funding.

"Two years ago, when we were in New York talking to financiers, they said, 'Put a project together. We have tons of money to loan you,'" Heyworth said. "I have no doubt that this could go very big, very fast. People love energy projects right now."

To contact Grace, call 907-273-3186.