Funds Cut for Gasline Permitting Office

Three million dollars less in 2012 federal budget

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By CBS 11 News
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The federal office that oversees permits for a natural gas pipeline from the North Slope is now working with less money.

Funds for the Office of the Federal Coordinator for Alaska Natural Gas Transportation Projects were slashed from $4 million to $1 million in the recently approved federal budget.

The smaller budget comes as there is a new focus on exploring the possibilities of an in-state natural gas pipeline for domestic use and foreign export to Asia - and the apparent failure of a planned line to Canada and the Lower 48.

Back in October Governor Parnell said his administration would shift its focus from the big pipe to the smaller in-state line.

Officials with the office say the existing funds will prevent immediate cuts but with some reductions in staff.

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