Democrats Want Oil Production Guarantees in New Tax Proposal

Presented as economically healthier alternative to governor’s bill

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By MJ Thim

Story Created: Feb 12, 2013 at 7:37 AM AKDT

Story Updated: Feb 12, 2013 at 7:37 AM AKDT

ANCHORAGE - If you are an oil producer in Alaska, produce new oil, send it down that pipeline and you'll get a tax break – that's according to the Democratic minority in Juneau.

Both the Senate and House Democrats unveiled bills today that would only give tax breaks if new oil is produced.

It's the latest chapter in the state's effort to revamp its oil tax system, which has put Republicans and Democrats at odds.

Other items in the bills would make state loans available to those producers running into problems getting their oil into our pipeline.

It would also require current and new oil leaseholders to come up with a plan to develop new oil instead of just being a landowner.

One Democratic lawmaker says we need to take a cue from Norway

"With less oil, less time, Norway’s permanent fund is over $600 billion vs. Alaska's permanent fund, which is $42 billion. They do it because they have a fair stream of returns they get. They partner with the industry. They do a lot of the things we are proposing in this bill,” said Senator Bill Wielechowski (D-Anchorage).

Wielechowski said Norway created its PFD system based on Alaska’s.

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Earl Richards said on Wednesday, Feb 13 at 8:45 AM

There is no need for tax breaks to produce new oil, because there are no oil markets for the oil. The lower 48 are saturated with oil from the Bakken and from the Eagle Ford, and it is against the law for Alaska to export its oil to China and the Far East. To increase oil production, Parnell has to change the oil export laws and seek new, oil markets. Alaska's oil tankers are returning full to Valdez, from the Cherry Point refinery in Washington, because the oil tanks are full. ACES is working perfectly well and should be left alone, until an audit is carried-out to see how well ACES is working. No tax changes until after the audit. Parnell's elimination of the progressive surcharge appears to be the new $2 billion per year tax giveaway for nothing.

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Earl Richards said on Wednesday, Feb 13 at 2:46 AM

Big Oil is a "pain in the neck" and should be kicked-out of Alaska. Tell Big Oil and the Houston oil crowd, "Don't mess with Alaska."

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raise em said on Tuesday, Feb 12 at 9:18 PM

Raise the taxes every year until we win, play their game on our terms.

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yep said on Tuesday, Feb 12 at 7:16 PM

needs to be based on production, go below a certain mark and we get 99 percent. Stop messing around. Also triple fines for spills and neglect.

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