By KYLE HOPKINS, TOM KIZZIA and KATIE PESZNECKER
Anchorage Daily News
August 22, 2006
Tony Knowles and Sarah Palin celebrate their victories in the 2006 primaries.
Former Wasilla mayor Sarah Palin knocked embattled incumbent Gov. Frank Murkowski out of office in the Republican primary race for governor Tuesday, setting the stage for a general election showdown with former two-term Democratic Gov. Tony Knowles and for a potential shake-up in her own party.
Palin’s advantage looked insurmountable while Knowles walloped lesser-known challenger Eric Croft, an Anchorage state representative, after a wild election day marked by flooding in the soggy Mat-Su Valley, downpours in Anchorage and a Murkowski campaign volunteer falling victim to stray gunfire.
Throughout the primary, candidates for governor told voters why they’d do a better job than Murkowski, but with the incumbent out of the race, the contest changes. Now they must sell Alaskans on the way they’ll launch a much-anticipated natural gas pipeline and how they plan to steer the state from here.
Knowles and Palin offered a similar message Tuesday night. With her supporters sensing victory at her campaign party in the Hotel Captain Cook, Palin talked about the problem with “politics as usual.” Someone in the crowd shouted “Let’s take Alaska back!” to roaring applause. Former Alaska Gov. Wally Hickel, a Palin supporter, smiled and raised his fist.
Maybe half an hour later, Knowles and his running mate, Anchorage Rep. Ethan Berkowitz, addressed the Democratic faithful. “This is our state and we’re taking it back,” Berkowitz said, drawing cheers. Knowles said it was time to reclaim the state from cronyism and favoritism.
The Republican contest emerged as election day’s main event, because it could — and did — guarantee a new governor at a time when Alaska politicans are trying to spark the next economic boom with a natural gas pipeline. John Binkley, a former state senator and Fairbanks businessman, was in second place — well ahead of Murkowski but with no chance of catching Palin.
Palin presented herself as a straight-talking, anti-politician throughout the campaign, clobbering Murkowski who has been struggling with low approval ratings for months despite the promise that he was the only candidate who could deliver the pipeline.
For some voters, casting a ballot wasn’t easy Tuesday. Parents found themselves juggling voter’s guilt — I’ve got to cast a ballot today! — with getting kids to and from the first day of school in a punishing downpour.
Valley families struggled to rebound from the week’s flooding as rains returned in the Mat-Su, but Lt. Gov. Loren Leman, who oversees the Division of Elections, said late Tuesday that no polling places actually closed and turnout didn’t appear to be significantly down statewide.
Tuesday was the first time the state used new touch-screen voting machines, but the Alaska Democratic Party urged voters avoid them, saying the kiosks weren’t reliable. The Division of Elections said the new technology is secure, but when Leman visited a Turnagain polling place, volunteers told him only one of the more than 400 voters had actually used the new technology.
In the 2002 primary, Murkowski won 70 percent of his party’s vote . But a lot has changed in the past four years since Murkowski left the U.S. Senate to become governor.
A series of unpopular decisions — cutting the Longevity Bonus, a cash payment to seniors, appointing his daughter to his old U.S. Senate job, pursuing the lease of a state jet — eroded Murkowski’s support early in his tenure.
Even when his administration increased state education spending — usually a safe political move — Murkowski came under fire as opponents said he wasn’t saving enough money from soaring oil revenues.
“He didn’t have a plan when he came in and he’s proved that. I don’t think he’s done the state any good at all,” said Dano Bollman, after voting against Murkowski — he wouldn’t say who he did choose — at the baby-blue North Slope Borough administrative in Barrow. “Get him out.”
When the governor looked to pitch new oil taxes and terms for a natural gas pipeline to the state after two years of negotiations with oil companies, many of his critics — and many voters — were no longer listening. A new oil tax package recently passed the Legislature, and Murkowski plans to ask lawmakers to tackle the gas pipeline terms in September, but the governor found himself practically apologizing to voters in a recent campaign ad while Palin appeared to weather a battery of last-minute jabs from opponents.
With his defeat looking likely Tuesday night, Murkowski said from his campaign headquarters that he will forge ahead with plans to get the Legislature to pass terms for a natural gas line contract.
Murkowski said he would support Palin in the general election.
Binkley seemed surprised when Murkowski announced he would run for re-election right before a filing deadline and has said he started the contest looking to gain ground on the well-known incumbent and the rising star, Palin.
He wasn’t well known outside his base of Fairbanks, where he lives, and Bethel — where he served in the Legislature — but raised the most money of any candidate and built name recognition with campaign stops and frequent television commercials.
Two days before the polls opened, Binkley launched a nonstop tour of the Railbelt. While he’d slept maybe five hours of the previous 60, he looked surprisingly crisp as he met well-wishers in a campaign office Tuesday night.
“I feel as though we did everything possible,” he said as his supporters waited for ballot results. Earlier in the week, Binkley’s wife, Judy, had said that the couple wasn’t campaigning in hopes of building name recognition for a future run at the governor’s office. As far as she knew, this was it, she said.
In his campaign, Binkley often talked about trust and presented himself as a thoughtful alternative to Murkowski’s sometimes gruff style. Palin painted Binkley as part of the same Republican party machinery that she defied as a member of a state oil and gas commission when she told the state that party chairman and fellow commissioner Randy Ruedrich was mixing his political and state jobs.
Will the party rally in support of Palin now that she’s the nominee? “That’s a good question,” she said. “I never had help from the party from the beginning, it’s been an independent run.”
Later, Palin suggested Ruedrich should resign.
Ruedrich said he doesn’t intend to step down as head of the party. “I was elected for four years through a normal process and I look forward to working with her (Palin).”
On the Democratic side, a Knowles victory was never really in doubt and while other campaigns were sprinting to the primary election, the Knowles camp was preparing for a marathon in the general. Croft is well-known for his role representing Anchorage in the House of Representatives and for, among other causes, championing a ballot initiative that he says would force oil companies to build a pipeline soon but that Murkowski calls a deal-breaker.
But Knowles enjoys nearly absolute name recognition across the state from his roles as Anchorage mayor and then governor from 1994 to 2002. While talking about education and putting other gas pipeline proposal on the bargaining table, Knowles kept a relatively low-profile during the primary — quietly amassing money and support for his battle against the Republican nominee.
As it became clear the Palin would win the Republican primary, people began to hand out “Goodbye Frank” stickers at the Knowles victory party at Snow City café in downtown Anchorage.
Daily News reporter Alex deMarban in Barrow contributed to this story.
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WASHINGTON - Alaska could scrap the proposed US$25-billion natural gas pipeline and bypass Canada completely, sending liquefied gas to California if the Republican front-runner wins the race to be the new governor this November.
The outgoing Governor, Frank Murkowski, was defeated by 42-year-old Sarah Palin, the former mayor of Wasilla, in the Republican primary race last week.
Mr. Murkowski has championed the pipeline proposal and plans to call an 11th-hour session for late next month to try to get legislation for it approved before he leaves office.
The two leading candidates for governor -- Ms. Palin and Democrat Tony Knowles, a former state governor -- say they want to re-examine the contract with major gas producers BP PLC, ConocoPhillips and Exxon Mobil Corp. to build and operate the pipeline.
The proposal calls for a 5,700-kilometre pipeline through the Yukon to Alberta to connect with existing pipelines to carry the gas to the Chicago area.
Ms. Palin is known to favour an all-Alaskan route that would see the gas shipped to Valdez, liquefied and sent by ship to the U.S. West Coast.
"I interpret the vote of the people to say we want a more sensible project to be considered," Ms. Palin said after her primary win, adding she wants Mr. Murkowski to include her in any pipeline negotiations while he is still in office.
Canadian industry sources close to the Alaska project say the future of the pipeline is now completely up in the air with Alaska going into an intense political debate over the benefits of the pipeline to state residents.
"Politics is playing huge up there so I would, at best, give the pipeline contract approval (during the special session) a 50-50 chance," one Canadian pipeline executive said yesterday. "In fact, I would put it at much less."
Ottawa is not commenting on the dramatic shift in the political landscape after Ms. Palin soundly defeated Mr. Murkowski, Governor for the past four years and a former senator.
TransCanada Corp. of Calgary, considered one of the leading candidates to build the Canadian portion, said yesterday it would not be commenting directly on the shifting politics in Juneau.
"We're watching this pretty closely to see if the existing contract will be ratified," said Jennifer Varey, a spokeswoman for TransCanada.
The company maintains it has the rights to build and operate the Canadian leg under the 30-year-old Northern Pipeline Act. Others, including rival Enbridge Inc., want to see an open competition before Canada's National Energy Board.
Mr. Murkowski lost support of state Republicans, partially because of the secrecy surrounding pipeline negotiations with the energy companies. He also fell out of favour when he went ahead with a purchase of a government-owned jet despite huge opposition and managed to put his daughter, Lisa, into his Senate seat in Washington.
Mr. Knowles said yesterday that while Mr. Murkowski has the right to call a special session, the Governor should make the contract public before the session begins.
"This is clearly the 11th hour for his administration and the 11th hour for many people in the Legislature."
Mr. Knowles said. "I think Alaskans will universally say: 'Show me the contract.' "
Mr. Murkowski's proposed contract sets detail royalty provisions for developing the 35 trillion cubic feet of gas. The state would own about 20% of the pipeline under the current plan.
However, the Alaska legislature balked at some of the terms, including the level of unrelated oil royalties and the depth of the commitment by the three companies to build the pipeline.
Bill Corbus, Alaska's Revenue Commissioner, said he expects a revised contract, the final fiscal interest findings and the pipeline ownership agreement will be completed by the time the governor calls lawmakers into session.
BP and ConocoPhillips said they are prepared to work with the next administration, even if it means a delay in the launch of construction.
The pipeline is expected to take at least a decade to build and would deliver gas ultimately to the key U.S. Midwest market.