Glenfarne, Dunleavy secrets leave legislators flying blind
The Alaska Beacon has an important story today by reporter James Brooks about some of the secrets that Gov. Mike Dunleavy, the Alaska Gasline Development Corp. and Glenfarne have kept from legislators and the public.
There is no reason why a redacted version of this document was not released to lawmakers to show the overall terms of the deal the state cut with Glenfarne.
Instead, we’ve had the “Build the Line!” propaganda campaign to beat up the Legislature and attack anyone who has asked questions.
One key question is how the tax break legislation under review will be treated if and when Glenfarne and AGDC part ways.
The tax break will add value to the project by making it worth more. Any analysis will show that a lower tax will mean more money to the developer. Will Glenfarne be able to profit from that added value when an independent investment bank is brought in to determine how much value Glenfarne has added?
Alaskans deserve a straight answer from Dunleavy and AGDC on this before the Legislature acts.
Brooks writes:
If AGDC decides Glenfarne hasn’t met a milestone — such as signing a binding agreement to sell natural gas to a particular customer — it could seek to retake the project. That may require AGDC to pay.
If Glenfarne disputes AGDC’s assessment, the two parties would consult a third party.
AGDC isn’t required to repurchase Glenfarne’s part of the project, but if it does, Glenfarne would be the one proposing the price, “based on the value Glenfarne has added to the company.”
AGDC could dispute that price, and if it does, an “independent investment bank” would determine the final amount.