Oil Tax Structure Fight Continues in Juneau

Thursday, former Alaska Governor Tony Knowles and a top executive at ConocoPhillips pushed for lower tax rates for oil producers.

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By KTVA CBS 11
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Story Created: Apr 8, 2011 at 11:42 AM AKDT

Story Updated: Apr 8, 2011 at 11:42 AM AKDT

The fight over Alaska's oil tax structure continued in Juneau this week.

Thursday, former Alaska Governor Tony Knowles and a top executive at ConocoPhillips pushed for lower tax rates for oil producers.

Current Alaska Governor Sean Parnell has proposed a series of cuts to Alaska's Clear and Equitable Share, ACES, the tax scheme passed under former Governor Sarah Palin.

ACES rates increase as oil taxes rise bringing in billions of dollars each year to state coffers.

But it is that progressivity that the governor and oil companies want to eliminate.

They claim ACES is hurting the state's economy and keeps oil companies from exploring and producing new oil fields.

Backing up Parnell's position, the CEO of ConocoPhillips announced the company would commit to spending billions of dollars in Alaska if the state improved its business climate.

The governor's tax plan has passed the State House but remains mired in the State Senate where leaders say they don't believe the proposal has the support to pass this session.

House Democrats who oppose the tax changes say they have come up with a different plan that would only give incentives and money back to oil companies working on new finds or are trying to find ways to re-energize old fields.

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