Alaska’s co-chair of Senate Finance wants to pull the plug on state funding of TransCanada gas pipeline proposal if no progress by summer

JUNEAU, Alaska - The state should cut its losses on a major natural gas pipeline if, by summer, it doesn't look like a project will be viable, a leader of a powerful state Senate committee said.

Sen. Bert Stedman, co-chairman of Alaska’s Senate Finance Committee, told The Associated Press that he doesn't want the state spending much more money on a "dead project."

Under an exclusive license issued in 2008, the state committed to pay Alberta, Canada-based TransCanada Corp. up to $500 million to advance a major line to carry gas from Alaska's North Slope to market.

Reimbursements so far have topped $36 million. More than $100 million remains set aside, and Gov. Sean Parnell has requested $160 million more for next fiscal year.