Notice to Alaska’s Governor, Legislature and 49th State Thought Leaders
Respectfully:
1. Repeal the cruise line head tax law. This may seem unrelated to Northern Gas Pipelines, but if Alaska doesn’t rid itself of its current, pirate mentality, we have no meaningful economic future…only government control. At the very least, repeal all of the illogical statutory and regulatory requirements accompanying the tax. Kudos to Steve Hites, Skagway Street Car Company, Inc. -dh
2. Repeal the misnamed, confiscatory, predatory and suicidal "Alaska’s Clear and Equitable Share" production tax; or, at least, remove the ‘progressive’ elements along with many of the 11th hour amendments that received insufficient analysis and hearing. Or, do nothing during the 2010 Legislative Session and see Alaska’s 90%-oil-and-gas-dependent-economy deterioriate at an increasingly faster pace! Correcting the onerous tax structure is the first step toward providing fiscal certainty for potential gas pipeline investors. -dh
Our Message Above To the Governor and Legislature Rises in Urgency as the 2010 Legislative Session Approaches: "The Investment Climate Requires Significant Attention…Now!"
1. Cruise Ship Tax Effect. ADN by Elizabeth Bluemink. With Alaska already facing big cuts in cruise-ship visits next summer, the state’s two largest operators announced plans Wednesday to remove even more ships in 2011.
2. Governor Considers Oil Tax Effect. ADN by Sean Cockerham. Gov. Sean Parnell is reviewing whether to change state oil tax laws implemented under Sarah Palin, as oil companies blame the taxes for driving investment dollars from Alaska to other parts of the world. The governor said Wednesday that he has asked the state Department of Revenue to evaluate whether any "tweaks" should be made to the tax system that could lead directly to more jobs for Alaskans. He said he’s also spoken with oil companies.
3. FNM. More and more it seems there’s concern about whether Alaska will truly see construction of the North Slope natural gas pipeline this time around. We all want it to happen, but the outlook seems uncertain at best. And that’s reason No. 1 that Alaska’s leaders must be doing all they can to ensure that oil — the financial lifeblood of this state so far — continues to flow down the trans-Alaska oil pipeline. And not only flow but at increased levels. That means making sure the state has a tax environment that isn’t hindering industry exploration for new sources of oil. Fifteen members of the state House have enough concerns about an oil tax increase approved during the Palin administration that they want the tax system reviewed.
4. FNM. The effects of the laying off of hundreds of employees at Alyeska, a huge number of them live here in our community and have families, pay taxes, have homes, buy locally, support and volunteer services to those in need is sad.
5. EIA projects slower growth in demand for petroleum.
6. FNM. Oil companies trying to act on their legal rights to explore waters offshore of Alaska’s North Slope are struggling upwind in a ground blizzard of lawsuits and lobbying efforts. Fortunately, the latest ruling from the Interior Department indicates the agency is still braced against the storm.
7. ADN by Rachel D’Oro. Revenue Commissioner Pat Galvin says oil prices are expected to be in the $67-per-barrel range in the fiscal year that ends June 30. He predicts $4.8 billion in unrestricted revenue, the money pool that generates most of the legislative and public debate.
UPDATES:
12-14-09. Is Alaska losing ground in the world competition for oil and gas investment? Of course she is. Poor, foolish Alaska…thinking everyone would always come to her court no matter how high her taxes, how burdensome her regulations, how remote and hard to access her resources from the markets. link to this stunning story reflecting the British Columbia-Alberta competition which our government has virtually ignored, until recently.
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