TransCanada's bid for Alaska pipeline debated

The natural gas fields, where the proposed multibillion dollar project would be anchored, are about 300 miles away.

Lawmakers chose Barrow for the hearing because for 30 years, the region has produced the oil flowing down the trans-Alaska pipeline system. That oil is currently responsible for about 90 percent of the state's treasury, but the fields are dwindling at about 6 percent production a year.

A natural gas pipeline is seen as a key component to keeping state coffers solvent, and a potential boost to this region's economic development.

Lawmakers have until Aug. 2 to either support or reject TransCanada Corp.'s bid for a state license, but a vote is expected much sooner.

TransCanada is proposing a line that would travel 1,715 miles from the North Slope southeast to a pipeline hub in Calgary, Alberta, that connects to all the major markets on the continent.

But ConocoPhillips and BP PLC said they are moving forward with a competing pipeline, called Denali, outside the state's bid-requirement law that would afford TransCanada up to $500 million in seed money.

For some folks in Barrow, the gas line debate was a secondary topic because North Slope gas isn't expected to be in any pipeline for at least 10 years.

Many residents and community leaders instead wanted to talk about more immediate issues: soaring energy costs; jobs; how offshore drilling will effect the whaling industry.

Property taxes from the trans-Alaska pipeline system have helped the North Slope Borough keep power costs down over the years, but it's still expensive compared the state's more urban areas.