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SB 21 moves into House Finance

Resources gets an earful as Alaska speaks out

Members of House
                                                Resources
Members of House Resources, from left, Representatives Paul Seaton, Peggy Wilson, Eric Feige, Dan Saddler, Mike Hawker, Chris Tuck and Craig Johnson

A big shout-out to oil tax reform supporters who took the time to testify before the House Resources Committee Tuesday afternoon and Wednesday morning.

MACC was well-represented, with testimony from Bill Corbus, Tara Sweeney, Tom Maloney, Lynn Johnson, Gail Phillips and Joe Mathis.

While most of the testimony was serious and full of facts, John Dickens of Bethel brought smiles to the legislators’ faces when he asked, “Why on earth would anybody invest in Alaska right now … this is the land of the raw deal … the broken promise.”

Dickens works as the safety and security manager for Grant Aviation and serves on the Alaska Council on Emergency Medical Services.

Testimony came from many parts of the state, including Petersburg and Homer. Four testified from Fairbanks, including Karl Gohlke of Frontier Supply Co., who said Alaska has the highest taxes and costs in the nation.

Renee Schofield and Owen Graham testified from Ketchikan. Graham, who is executive director of the Alaska Forest Association, said it is important to use our resources to support our economy.

It was crowded in Anchorage, where Rachel Petro, executive director of the Alaska State Chamber of Commerce, told legislators that being in the middle of the pack isn’t enough. Being competitive means making Alaska stand out.

That message was echoed by Rick Rogers, executive director of the Resource Development Council of Alaska, who said our tax policy needs to be “sufficiently aggressive” to give us an edge.

Keith Silver, an Allstate Insurance agent, called SB 21 “a correction, not a giveaway.”

House Resources passes SB 21, lowers base tax rate

Source:KTOO
The House Resources Committee passed the governor’s oil tax break bill just after 2 a.m. Thursday morning after considering 34 amendments in a marathon meeting.

The most substantial amendment lowered the base tax rate oil producers would pay from 35 percent to 33 percent. State officials on hand to address committee questions said revised revenue estimates would be forthcoming. The total estimated revenue loss under the 33 percent base tax rate is likely to be between $500 million and $1 billion per year.

To view the full story – click here.

Here is a list of those who testified in support of SB 21:
Bill Corbus, Juneau
Roger Bergraff, Fairbanks
Karl Gohlke, Fairbanks
Rene Scofield, Ketchikan
Owen Graham, Ketchikan
Tara Sweeney, Anchorage
Sonya Funaro, Anchorage
Graham Green, Anchorage
Mary Barr, Anchorage
Tom Maloney, Anchorage
Rachael Petro, Anchorage
Mynard Tapp, Anchorage
Lynn Johnson, Anchorage
John Dickens, Bethel
Deantha Crockett, Anchorage
Rick Rogers, Anchorage
Carl Portman, Anchorage
Keith Silver, Anchorage
Scott Hawkins, Anchorage
Gail Phillips, Anchorage
Jeanine St. John, Anchorage
Joe Mathis, Anchorage
Maryann Pease, Anchorage
Andy Rogers, Anchorage
Michael Jesperson, Anchorage
Laurie Fagnani, Anchorage
Marleanna Hall, Anchorage
Kati Capozzi, Anchorage
John Sturgeon, Anchorage
Lisa Herbert, Fairbanks

Dick Sanches
The Arctic Roadrunner on the corner of Old Seward and International

Arctic Roadrunner owner supports tax reform

Dick Sanchis, who owns the two Arctic Roadrunners in Anchorage, decided to try to educate his customers on the importance of oil to Alaska’s economy.

"They just don’t get it," he said,
"particularly the young ones."

Be sure to thank Dick for his very public support the next time you order one of his tasty burgers.


Native leaders: Move tax reform forward

Jason
                                                        Metrokin
Jason Metrokin

The leaders of Alaska’s regional Native corporations asked the Legislature to continue moving oil tax reform forward.

“Tax reform for the oil and gas industry that truly results in increased production will give communities across the state access to important economic opportunities,” the ANCSA Regional Association stated in a press release issued last week.

“The final bill must benefit all Alaskans, including rural residents. Ultimately, sustainable rural economics are at the heart of this issue.”

Alaska needs a robust oil and gas industry and a stable tax regime that attracts new investment, noted Jason Metrokin, CEO of Bristol Bay Native Corp. and chair of the ANCSA Regional Association. “Without it, the entire state treasury is in jeopardy. Oil tax reform needs to be about sustainability,” he said. “We support new and increased resource production in Alaska, which will have tangible results for all Alaskans.”

Gov. Sean Parnell welcomed the association’s support. “I appreciate ANCSA Regional Association’s statement of support on our oil tax reform legislation, which will increase North Slope production and grow opportunities for Alaskans,” the governor said.

The ANCSA Regional Association is an organization composed of the CEOs of the 13 regional Native corporations and the president of the Alaska Federation of Natives. Its mission is to promote the understanding and intent of the Alaska Native Claims Settlement Act and the role of the regional corporations in creating a sustainable economic future for Alaska Native people.

  Memorable quotes
 

“A healthy oil industry is good for the mining industry, which needs political stability. We’re not all that stable right now.”

- Deantha Crockett,
Executive Director,
Alaska Miners Association

Deantha
                                                          Crockett

"As an employer, service provider, resource owner, explorer, producer and developer … ASRC strategically plans for a sustainable future in Alaska and we support a healthy and robust oil industry here."

- Richard K. Glenn,
Executive Vice President, Lands and Natural Resources, ASRC

Richard
                                                          K. Glenn

 
“This isn’t an industry where we have to look for out-of-state personnel to meet the industry needs. We have a homegrown workforce, a workforce from all parts of the state - rural and urban.”

- Joe Mathis,
Vice President of External Affairs,
NANA Development Corporation

Joe Mathis
 

Change in
                                average daily oil production

Corbus takes speech on the road

Bill Corbus
Bill Corbus waits for his turn to testify
 

MACC’s own Bill Corbus made headlines again as he traveled to Sitka to talk oil taxes.

Speaking to the Sitka Chamber of Commerce, Corbus told the group that ACES has made Alaska uncompetitive with other places, including Canada, North Dakota and the Gulf of Mexico. The progressive nature of the tax is a disincentive for investment in new oil, leading to declining production. “That’s a disturbing trend,” he said.

The Juneau businessman said Alaska will have to tighten its belt in the short term and dip into savings.

“Tough times are coming. The state and federal money will be tough to come by.”

Corbus was commissioner of revenue under Gov. Frank Murkowski and long-time CEO of Alaska Electric Light and Power.


Oil helps fuel permanent fund to new high

Gov. Keith Miller
Alaska Gov. Keith Miller holds a microphone as the State concludes its historic 1969 North Slope lease sale that netted the State almost $1 billion in bonus bids
 

Last Friday, the Alaska Permanent Fund topped $45.5 billion, a new high.

Seeded with oil money, the fund is invested in stocks, bonds and real estate – and one of its strongest performing sectors is oil and gas, including most of the North Slope players.

The fund has holdings worth $1.5 billion in 324 oil and gas companies, including Pioneer, Repsol, Eni, ConocoPhillips, ExxonMobil and BP.

Seven of its top 50 stock holdings are oil and gas companies, led by ExxonMobil. The fund paid $82 million for 4.8 million shares of ExxonMobil that are now valued at $117 million.

It pays to invest in your future.


MACC provides speakers to meet your needs

MACC can dispatch speakers to all parts of Alaska to talk to groups and employees about the need to meaningfully reform Alaska's oil taxes. To schedule a presentation, contact Julianne at MSI Communications.

 

This week's calendar - Week of 4/4/13 – 4/12/13

Friday, Apr. 5
9 a.m. – House Finance Committee, SB21, Gavel-to-Gavel or alaskalegislature.tv
1 p.m. – House Resources Committee, SB21, Gavel-to-Gavel or alaskalegislature.tv

Monday, Apr. 8
9 a.m. – House Finance Committee, SB21, Gavel-to-Gavel or alaskalegislature.tv
1:30 p.m. – House Finance Committee, SB21, Gavel-to-Gavel or alaskalegislature.tv

Tuesday, Apr. 9
9 a.m. – House Finance Committee, SB21, Gavel-to-Gavel or alaskalegislature.tv
1:30 p.m. – House Finance Committee, SB21, Gavel-to-Gavel or alaskalegislature.tv

Wednesday, Apr. 10
9 a.m. – House Finance Committee, SB21, Gavel-to-Gavel or alaskalegislature.tv
1:30 p.m. – House Finance Committee, SB21, Gavel-to-Gavel or alaskalegislature.tv

Thursday, Apr. 11
9 a.m. – House Finance Committee, SB21, Gavel-to-Gavel or alaskalegislature.tv
1:30 p.m. – House Finance Committee, SB21, Gavel-to-Gavel or alaskalegislature.tv

Friday, Apr. 12
9 a.m. – House Finance Committee, SB21, Gavel-to-Gavel or alaskalegislature.tv
1:30 p.m. – House Finance Committee, SB21, Gavel-to-Gavel or alaskalegislature.tv

 

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