JUNEAU -- Gov. Sarah Palin plans to ask lawmakers for $6 million to $8 million to study the economic prospects of an in-state natural gas pipeline.

This means reviewing the feasibility of a small-diameter pipeline -- also known as a bullet line -- that lawmakers say is sorely needed to address soaring energy prices.

At a news conference Friday in Anchorage, Palin said her proposed capital request was prompted in part by legislators' calls to expand the scope of an upcoming special session on her Alaska Gasline Inducement Act, or AGIA.

Palin, who initially described the resolutions as a "distraction" from the Senate capital budget, said she wanted to reassure lawmakers that AGIA "does have a role in finding ways to link Alaskans with their natural gas on the North Slope."

RESOLUTIONS INTRODUCED

But she said the special session has a specific focus -- to review the natural resources and revenue commissioner's findings on TransCanada's application. She said discussion of an in-state line should be part of a broader energy plan.

The House and Senate introduced resolutions Wednesday asking that the June session include discussions of an intrastate line in addition to the main intercontinental line proposal that would ship North Slope gas to a pipeline hub in Alberta.

Palin's capital request would update and refine an existing in-state bullet line study. That pipeline project could cost up to $5 billion and would serve energy needs in the Railbelt area from Fairbanks to Southcentral Alaska.

Palin said the study would assist the state's energy coordinator, Steve Haagenson, who is studying various proposals for lowering energy costs in communities around the state, not just the Railbelt.

Marty Rutherford, deputy commissioner of the Department of Natural Resources, said it is critical to keep the focus on developing the main line, which in turn will ensure the economics of the alternatives.

"What we really need is to begin moving that natural gas to market and ensure that the vast quantities of gas that exist in Alaska are facilitated for exploration and development and eventually monetizing," she said.