More Oil Tax Changes? Alaska Public Radio News, Fairbanks Daily Miner, and Alaska Dispatch News covered a report released by the Senate Oil and Gas Tax Credit Working Group lead by Anchorage Republican Sen. Cathy Giessel. Senator Giessel had a key conclusion: "Without the tax credits…I'm concerned that these smaller companies will pull back." The report recommends that the state develop a "stronger path to repayment" for Alaskan contractors and vendors if a company receiving tax credits goes out of business. Though the report suggested some minor changes to the tax credits, the bottom line was clear: they have worked to bolster production in the Cook Inlet. Headlamp suspects this report will not be the end of discussions around oil tax changes…
Amid the state's projected fiscal deficit, a tax overhaul is expected. Governor Walker will likely reveal his fiscal plans in the coming weeks. With 47 days until the Regular Session, the debate around taxes looks likely to heat up. Stay tuned for a coming piece by Headlamp that looks back at the last time the state raised oil taxes – and how those moves impacted Alaska's economy.
New rules are needed. Covered by Alaska Dispatch News, Senator Lisa Murkowskiargued at a Senate hearing on Tuesday to reiterate her call for Arctic-specific terms that are longer than the standard 10-year duration that applies to federal offshore oil and gas leases. Longer lease terms are justified because of the seasonal nature of Arctic outer continental shelf drilling, Murkowski said. "What many people don't understand is the very, very, very limited season that we have within the Arctic," she said at the hearing. In her opening remarks at the hearing. "I believe that a new paradigm is in order, one that recognizes the federal offshore areas in the Arctic are a frontier play worthy of a modern, adaptable leasing structure designed to help rather than to block exploration."
Walker heads to Washington. Governor Bill Walker heads to Washington. Gov. Walker will join Senator Coghill to testify before Senator Lisa Murkowski's Senate Energy Committee on implementation of the Alaska National Interest Lands Conservation Act of 1980, including perspectives on the Act's impacts in Alaska and suggestions for improvements to the Act. The hearing is scheduled for 10:00 AM in Dirksen Room 336.
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