From Sean Cockerham in Juneau –

Last night's blowup in the state House was followed by closed door wrangling at the Capitol today on what to do about the $9 million the governor wants for an in-state natural gas pipeline.

Senate Finance Co-chairman Bert Stedman said legislators were “shell shocked” when House leaders last night put the money in the capital budget for infrastructure projects. Several House Finance Committee members complained the governor's office had never told them what the money was for.

There was particular alarm by Anchorage Democratic Rep. Les Gara. He said the description in the budget of what the money would go for sounded exactly like the proposed Enstar “bullet line” from the North Slope that would follow the Parks Highway south.

He complained it was to benefit a single company, which other legislators said wasn’t so. The governor’s office said it never wanted any budget language that limited the money to one project, and it looks like this end-of-session tempest is blowing over.

Palin is likely to end up with at least some money to help pursue an in-state gas pipeline. The money was taken out of the capital budget but would come in a different bill, said Sitka Sen. Bert Stedman, which would be written to make it clear the funds could go to help in-state gas pipeline ideas other than Enstar’s.