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Gov. Sean Parnell defended the state's natural gas pipeline efforts at a news conference Thursday, rebutting critics of the Alaska Gasline Inducement Act.

"When you consider that we've been trying to get a gasline for 32 years, and now two open seasons are scheduled and the world's largest company (Exxon) is working with TransCanada," significant progress is being made, Parnell told reporters from Anchorage in a news conference teleconferenced around the state.

Things are moving along in a positive direction, he said, in contrast with AGIA critics' assertions. The Alaska Legislature passed AGIA, which has a goal of enticing private industry to build a pipeline to carry Alaska's vast reserves of North Slope natural gas to market in the Lower 48, under Gov. Sarah Palin's administration with Parnell as lieutenant governor.

Under that act, TransCanada Corp. and Exxon Mobil Corp. are developing a gas pipeline with state backing, while ConocoPhillips Co. and BP PLC are developing their own plan. Both hope to see customers at an "open season" next year.

Among AGIA's critics who have spoken out lately are former Gov. Frank Murkowski, former state oil and gas economist Roger Marks and Rep. Jay Ramras, R-Fairbanks.

Parnell said he discounted the critics who hadn't studied the issue as much as the state had.

"It's easy to throw out sound bites about how this isn't going to work," he said.

Unless they've worked with the experts to study it like he has, "it's hard to give that line any credence," Parnell said.

Parnell said cost estimates are being developed now that will enable potential gas shippers to make informed decisions about how to commit their gas to the pipeline at an open season.

The open seasons will likely attract bids with conditions attached, but Parnell said that was typical and to be expected.

"Would the state like to see an open season with no conditions? Of course, but that doesn't happen in the real world," Parnell said.

In any event, Parnell said, the open seasons are an important mile marker, but the most important date is when a corporate board votes to "sanction" a project, and commit themselves to building it.

Parnell acknowledged that some companies have sought changes to Alaska's natural gas taxes before they commit to a pipeline, but it was too soon to have those discussions before the pipeline cost estimates are developed.

Changes to tax rates would have to be justified, which he said couldn't be done until there are firm cost estimates.

"There's lots of people running around saying we need tax changes," he said. "Until they have cost estimates, they won't be able to testify to the need for any tax changes."

Parnell also said a desire among some companies for "fiscal certainty" - a commitment that taxes not be raised for a long time - might not be possible because of the Alaska Constitution.

Under AGIA, there is a promise of 10 years of tax certainty, but the 35 years some companies seek is clearly unconstitutional, he said.

While calling such discussions premature, he said there might be discussions of tax certainty for the time between 10 years and 35 years.

"Anything in between, you get closer to unconstitutional," he said.

• Contact reporter Pat Forgey at 523-2250 or patrick.forgey@juneauempire.com.