News updates of particular interest to our energy readers, courtesy of the Alaska State Senate Majority:
Walker faces recall effort in response to budget vetoes
Governor Bill Walker faces a potential campaign to recall him from office. Joe Miller backs the effort. He was the runner-up in the 2010 U.S. Senate campaign and 2014 Senate Republican primary.
Sullivan on Trump VP vetting; ‘I was probably as surprised as you’
Is Donald Trump considering Alaska Senator Dan Sullivan for Vice President? A piece by People magazine speculating the Senator may be on the list of potential VP picks was ricocheting around social media yesterday. So, what does the Senator say?
Alaska House spokesman charged with assault; now unemployed
An Alaska legislative official says the Alaska House majority spokesman facing assault charges is no longer employed by the state.
Obama Administration announces new Arctic drilling rules
The Obama Administration on Thursday issued new regulations covering offshore drilling in the Arctic.
Coast Guard to reconsider “common-sense” guide regs for Western Alaska
A petition from Bristol Bay-area sport fishing lodges has reached the top desk of the U.S. Coast Guard. At issue in the petition are new rules that Western Alaska lodge owners say will make it nearly impossible for them to hire local guides.
Mat-Su reacts to Walker’s budget vetoes
Fallout from Governor Walker’s veto pen is hitting the Matanuska Susitna Borough hard. Borough officials are now grappling with a budget shortfall caused by millions of dollars in reduced state funding.
Alaska oil production is up 3 percent, but are production taxes the reason?
Alaska North Slope oil production rose an estimated 3.2 percent this fiscal year, an unusual increase following more than a decade of decline that is drawing praise from both sides in the state’s oil-tax debate – and starkly different opinions over the cause.
Anchorage to host Senate special session hearings, while House finance meetings remain in Juneau
The Alaska Senate will bring its committee hearings to Anchorage after convening its upcoming special session Monday in Juneau, while the House will keep finance committee meetings in Juneau, lawmakers and legislative staff said Thursday.
Legislative finance chief calls Gov. Walker’s $6.3M education veto ‘ineffective’
The Alaska Legislature’s chief budget official has called into question Gov. Bill Walker’s veto of $6.35 million in per-student education funding, describing it as
New Interior regulations raise bar for future oil explorers in Arctic Ocean
If or when oil explorers return to the U.S. Arctic Ocean, they’ll face tough, new safety standards that could cost industry around $2 billion, according to rules issued by the Interior Department on Thursday.
Campaign opposing commercial marijuana ban in Mat-Su kicks off
A new group has popped up in opposition to a ballot measure that would ban commercial cannabis in Alaska’s Matanuska-Susitna Borough if approved by voters in October.
U.S. employment rebounds strongly in June, calming fears of economic slowdown
WASHINGTON – The U.S. job market picked up speed in June, new government data showedFriday, allaying fears that the economy was headed for a sustained slowdown after a weak start to this year.
Dipnetting nirvana: Kasilof and Kenai rivers looking good
Judging from the nonexistent crowds at the mouth of the Kenai River this week, it’s still early July — days before the personal-use dipnet fishery begins Sunday. But beneath the waves is a time travel portal to the future, with sockeye salmon streaming into the fresh water in numbers more akin to mid-month.
NTSB: Alaska Dispatch News owner’s plane crashed near tour boat in Halibut Cove
A small plane flown by the owner and publisher of Alaska Dispatch News plunged into the waters of Halibut Cove near a tour boat after striking trees following an “aborted landing”Sunday evening, according to investigators.
Ending state’s gas line partnership with producers would be a mistake
It’s official: Gov. Bill Walker is again pursuing a state-led natural gas pipeline as an alternative to the Alaska LNG Project, the partnership of the three major North Slope producers as well as the state.
Gov. Walker, Alaska can’t tax itself into prosperity
Alaska is facing an unprecedented budget crisis. This is largely due to a continuing decline of oil production, a precipitous drop in oil prices, and an unwillingness by some to make the necessary changes in state government to save money.
Dividend debate needs financial facts, not just emotion
FAIRBANKS — A couple of dozen young and old protesters gathered outside the Carlson Center at noon Wednesday, carrying signs saying such things as “GOV. WALKER YOUR FIRED” and “TRAITOR KELLY COGHILL.”
Free pass for Hillary
FBI Director James Comey has given Hillary Clinton something better than a get-out-of-jail-free card. He’s protected her from indictment by recommending to the Department of Justice.
Comey’s abuse of power
When FBI Director James Comey stepped to the lectern to deliver his remarks about Hillary Clinton on Tuesday, he violated time-honored Justice Department
The FBI should release the memo
In his news briefing, FBI Director James Comey said he was going to provide more detail about Hillary Clinton’s “extremely careless . . . handling of very sensitive, highly classified information” than he normally would “because I think the American people deserve those details in a case of intense public interest.”
Alaska Sen Sullivan: No interest in vice presidential slot
JUNEAU, Alaska (AP) – U.S. Sen. Dan Sullivan says he has not been contacted by Donald Trump’s presidential campaign about being a possible running mate and would have no interest in that position if offered.
Alaska Marijuana Control Board passes on-site pot use amendment
FAIRBANKS — The Alaska Marijuana Control Board passed a substantive amendment to the draft of regulations for on-site consumption at marijuana retail stores during a Thursdayboard meeting in Fairbanks.
By-mail voting available; deadline approaching
Alaskans interested in casting an absentee ballot by mail in the Aug. 16 statewide primary election must apply for a ballot by Aug. 6. Absentee in-person voting will open Aug. 1.
Legislative budget official calls out Walker veto mistake
The head of the Legislative Finance Division has called out a mistake by Gov. Bill Walker in his attempt to veto $6.3 million in state education spending.
State to consider unified health care authority
The state of Alaska is about to begin considering whether to buy health insurance in bulk for state employees, municipal government employees, and the general public.
Alaska Airlines awarded daily service to Cuba
The U.S. Department of Transportation has tentatively approved an application from Alaska Airlines for daily service between Los Angeles and Havana.
Alaska House majority spokesman fired after domestic violence charges filed
A former spokesman for the Alaska House of Representatives facing assault charges after he allegedly hit his girlfriend has been terminated.
Board considers ‘marijuana doggie bag’
Alaska’s Marijuana Control Board has turned down a proposal to allow the equivalent of a ‘marijuana bar’ in Alaska, but the idea isn’t dead yet.
My Turn: Special session should include oil tax reform
Today oil companies are getting a sweetheart deal, at the same time Gov. Bill Walker has used his veto pen to cut public education funds, funds for foster youth, and educational opportunities that can’t just be re-captured in some future school year.
Empire Editorial: Clinton guilty of hubris, negligence – if not more
Calling her “Crooked Hillary” is sounding more and more accurate as of late, but “Teflon Clinton” rings even truer. Nothing ever seems to stick to Hillary Clinton.
INTERVIEW: Gov. Walker on vetoes, dividends and gas line
Watch and read Gov. Walker’s conversation today with KTUU on budget vetoes, his cut to the dividend, threat of a recall effort and pursuit of a natural gas pipeline.
Governor’s PFD veto prompts recall effort & possible lawsuit.
Governor Bill Walker’s decision to veto $666,350,000 from funds destined to Alaskans in the form of a Permanent Fund Dividend check has prompted both a recall effort and a…
Mat-Su Borough halts capital projects for now following veto impacts
The Mat-Su Borough Assembly held a special meeting Wednesday night to discuss possible local impacts to Governor Walker’s vetoes…
Alaska House spokesman charged now unemployed
An Alaska legislative official says the Alaska House majority spokesman facing assault charges is no longer employed by the state.
Alaska tweaks draft rules for use of pot at licensed stores
Alaska marijuana regulators aren’t ready to buy into Amsterdam-style cannabis cafes just yet and are going back to the public for more feedback.
Sullivan says Trump has not recruited him as VP candidate
“I’m not sure how the Trump campaign does their vetting, but I have not been contacted by the campaign,” Alaska Sen. Dan Sullivan told KTUU in a phone interview…
Borough freezes hiring in wake of Walker vetoes
PALMER — Fire trucks and ambulances will have to last longer in the Mat-Su borough, overtime for borough employees is suspended, and no new personnel will be brought on board.
Heating assistance cut from state budget
One casualty of this year’s state budget cuts is an aid program that assists low-income households with their winter heating bills.
Despite better early king numbers, Kenai fishermen head for sockeye
Every square inch of shelf space is occupied in Ken’s Alaskan Tackle, and much of the walls, too.
Obama administration sets rules for future Arctic drilling
With no new drilling planned in the Arctic waters off Alaska, the Obama administration is setting rules to ensure that any future energy exploration in the Arctic meets safety and environmental standards.
US says oil inventories declined but not as much expected
Oil prices are falling on a government report that crude inventories are declining less than expected.
Increase in 911 calls leaves AFD in need of more dispatchers
A big jump in 911 calls has the Anchorage Fire Department (AFD) asking for help.
Reality Check w/ John Tracy: Walker isn’t playing games with second special session
You can’t say Gov. Bill Walker is being wishy-washy about the state’s fiscal dilemma. By calling a second special session he’s sending a strong signal to lawmakers that he expects them to finish their current job before asking for voters to give them another turn.
Alaska Wendy’s locations among 1,000 restaurants targeted by hackers
Wendy’s locations around Alaska were among the mass of the franchised U.S. restaurants where customers’ payment card data may have been stolen, according to a Thursday release from the company.
Alaska House Majority press secretary ‘laid off’ following assault charges
House Majority press secretary Will Vandergriff, 37, is no longer employed by the Alaska State Legislature following charges of assault to his girlfriend
- Crude Oil (Brent) USD/bbl $45.22
- Crude Oil (WTI) USD/bbl $46.54
- Natural Gas (NYMEX) $2.79
- Japan LNG (JLNGIP) $6.25 MMbtu
COMMENTARY: Governor’s stance is wrong on PFD, tax credits and AK LNG
By: Rep. Lynn Gattis
Guest commentary
Alaska Journal of Commerce
Wed, 07/06/2016 – 3:56pm
Lynn Gattis, NGP file photo by Dave Harbour
Alaska is facing an unprecedented budget crisis. This is largely due to a continuing decline of oil production, a precipitous drop in oil prices, and an unwillingness by some to make the necessary changes in state government to save money. How we respond to this crisis will define what Alaska and our economy will look like over the next decade and beyond.
Alaska Governor Bill Walker. NGP File Photo by Dave Harbour
Gov. Bill Walker’s vision for dealing with this crisis is extremely different from mine. The governor wants to impose an income tax and a sales tax on hard working Alaskans. He also wants to raise taxes on the fishing, oil, and mining industries, as well as products like motor fuels, tobacco, and alcohol. On top of all that, he wants to restructure the Permanent Fund Dividend program, taking the majority of Alaskans’ dividend to spend on government.
Likewise, because of his antagonistic behavior towards the oil industry, these extra costs to Alaskans will likely continue to increase well past his time as governor. His recent attacks could decimate resource development in Alaska and jeopardize the only economic development he seems interested in — the gas pipeline — which has very questionable economics in the world market already.
All of these actions are contrary to my point of view. I don’t believe that we can tax ourselves into prosperity, or that the Alaska should pursue projects when private industry is skeptical of whether or not they will even pencil out.
I am simply not willing to vote for any new taxes or reductions to your Permanent Fund Dividend until Alaska makes significant structural changes to Alaska government and further reduces spending. More government has never been the solution in Alaska, and it certainly won’t be this time.
Additionally, I’m extremely troubled by Gov. Walker’s recent attacks on our oil industry. Alaska’s North Slope is still a world-class, resource-rich basin. The best way to solve the Alaska’s financial problems is to stop the decline of our oil production. With the right tax and regulatory policies, the North Slope can and will be the answer to Alaska’s financial woes. However, Gov. Walker’s recent maneuvers, first on newer independent companies and now the major producers, are putting that in jeopardy.
Senate Bill 21, which was passed just a few years ago, provided incentives for companies willing to invest and explore for oil and gas. New companies came to Alaska, drilled, made discoveries, and are putting new fields into production. Several very promising discoveries have been made.
Even in the face of cratering oil prices and shrinking exploration budgets, Alaska has continued to attract new players who are investing in exploration and development that will lead to more production, more jobs, and more revenue Alaska.
These companies invested on the North Slope based in part on the Alaska’s promise to partner with them through the credit program, which was broadly supported.
Unfortunately, all of this momentum is now in jeopardy because of Gov. Walker’s reckless decision to veto money to pay for previously earned tax credits for the second year in a row. After this devastating action against the independents, Gov. Walker is now threatening the majors by claiming they are in default on their Plan of Development for Prudhoe Bay.
A lot of companies are now wondering if Alaska is a place that can be trusted. I fear the governor’s actions will ensure that oil production in Alaska declines. Some of the smaller independent companies doing business here will likely be driven into bankruptcy.
Alaskan vendors will be unpaid and Alaskans will lose jobs. Many promising drilling projects will be postponed or cancelled. And Alaska will be known around the world as an unstable sovereign that does not keep its word.
Meanwhile, Gov. Walker only seems to care about one thing: building the AK LNG Project as fast as humanly possible. But the governor cannot connect the dots. The AK LNG Project has little chance of success because nobody will partner with a state that can’t be trusted and refuses to honor its commitments.
Further, his ranting desires for the Alaska to “go it alone” simply are too costly, complex, and mostly importantly — too risky for Alaska.
My perspective is very different than Gov. Walker’s. Talking with more and more Alaskans, it is appearing that the governor insistence on stubbornly pulling against the will of Alaskans, will get us nowhere. Alaska’s economic future is not a piece of rope we can play tug of war with.
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