From Erika Bolstad in Washington D.C. --

UPDATED: Everyone seems to have a reaction to the Exxon-TransCanada announcement, so let's lead with the one from the Obama Administration, via Interior Secretary Ken Salazar:

"This is a significant step forward on a project very important to the president and the Department of the Interior as a way to get American energy to the lower 48," Salazar said in a statement. "We recognize there are two very strong project proposals, both aiming toward a 2010 open season and both now supported by major gas producers that control vast proven reserves of North Slope gas. We look forward to working with all stakeholders involved with this project."

From Gov. Sarah Palin, who on Wednesday in Dallas met with Hal Kvisle, the president of TransCanada, and Rich Kruger, the president of ExxonMobil Production Company.

"ExxonMobil recognizes that the State of Alaska has set a course for commercializing the North Slope’s trillions of cubic feet of known natural gas reserves," the governor said in a press release. "By recognizing the value of Alaska’s relationship with TransCanada, ExxonMobil has made a strategic decision that I believe makes good sense. Alaskans will also be pleased to know that TransCanada’s obligations to the state as the AGIA licensee are 100 percent intact and unaltered by this alignment with ExxonMobil."

More after the jump:

Drue Pearce, the Washington D.C.-based federal coordinator for the project, said "ExxonMobil’s active engagement as a full participant is a major development."

Pearce, who is in Ottawa meeting with Canadian officials, called the pipeline "a massively complex project of major importance to North America’s economy,"

"Both governments are actively engaged with the two project proponents," she said. "Yesterday, the Canadian government announced a jobs study to identify potential jobs coming out of this project and the OFC released the First Phase Consolidated Implementation Plan for the Denali project. Canada is our largest trading partner, a key ally, and essential to make this project a reality."

Sen. Lisa Murkowski, the top Republican on the Senate Energy and Natural Resources Committee, called it a "major sign of progress toward our shared goal of commercializing Alaska’s vast natural gas reserves." She vowed to continue to work at the federal level "to make the pipeline a reality," and added that although "a lot of work remains to be done, this brings us one step closer to bringing jobs and reliable energy to Alaskans and the nation."

And Rep. Don Young, R-Alaska, heaped praise on Gov. Sarah Palin, while taking a swipe at the White House and at his Democratic colleagues in the House of Representatives

"I congratulate the Governor for her hard work on this gasline project and I applaud ExxonMobil for joining in this partnership. Years from now many will try to claim credit for the pipeline, but this is not something that the White House got done or the anti-production House leadership got done; the credit lies in the hands of Alaskans."

(Young also pointed out that 30+ years ago, he began his career as a congressman by pushing for the original Trans-Alaska pipeline.)

Begich also seemed to make peace with Palin, after complaining recently that he had seen little progress on the project -- and had been asked by the White House about its status.

"ExxonMobil has always been considered the 'big gorilla' necessary for this project to succeed, so their willingness to get involved and make a substantial financial investment is warmly welcomed," Begich said. "Congratulations to the Palin administration for their persistence in helping get Exxon and TransCanada together in this partnership."

He added that it will be up to the state legislature to
"take the gas line project to the next steps. I believe any Alaska gas line project must provide gas to Alaskans and other benefits, such as jobs and a fair share of revenues, to our citizens."