Contact the Governor
Frank H. Murkowski
Juneau Office
P.O. Box 110001
Juneau, AK 99811
907-465-3500 phone
907-465-3532 fax
State info 907-465-2111
Anchorage Office
550 West 7th Avenue, Suite 1700
Anchorage, AK 99501
907-269-7450 phone
907-269-7461 fax
State info 907-269-5111
Kenai Office
11312 Kenai Spur Hwy, Suite 2
Kenai, AK 99611
907-283-2918 phone
907-283-3037 fax
Mat-Su Office
877 Commercial Drive
Wasilla, AK 99654
907-352-2585 phone
907-352-2526 fax
Fairbanks Office
675 7th Avenue, Suite H5
Fairbanks, AK 99701-4596
907-451-2920 phone
907-451-2858 fax
Washington DC Office
444 North Capitol NW, Suite 336
Washington, DC 20001-1512
202-624-5858 phone
202-624-5857 fax
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Volume 10April 21st, 2006
Fairbanks, Anchorage, Eagle River Chambers
weigh in on Governor's Petroleum Production Tax Legislation
As the Legislature continues its work on the Governor's petroleum production tax (PPT), members are taking a close
look at crafting the right balance between a tax rate that gives Alaska a fair share of revenue and a tax credit that
will further the life of oil and gas production on the North Slope. Meanwhile, several key organizations are weighing
in on the issue.
The Anchorage Chamber of Commerce, the Greater Fairbanks Chamber of Commerce and the Eagle River Chamber have each
issued resolutions or letter in support of the Governor's version of the bill that calls for a 20 percent tax rate
and 20 percent tax credit on capital expenditures. The Governor's proposal was specifically designed to strike a balance
between higher tax revenues at today's higher prices while encouraging future investment in Alaska's oil patch over the
long term. In addition, the Alaska State Chamber of Commerce and the Anchorage Assembly have passed a resolution in
support of the Governor's concept of balancing revenues and incentives. Copies of these documents can be viewed in
their entirely at the website: http://www.gov.state.ak.us/oiltax/ppt_press.php.
With Senate Finance poised to move a PPT committee substitute out as early as this weekend, the resolutions are timely in helping
legislators wrestle with tax rates and incentives that both work for Alaska's best interests.
Since introducing the legislation, Governor Murkowski has said that providing incentives for new exploration and development will
result in more petroleum production. Ultimately, more barrels in the pipeline translate into more revenue in the treasury.
Finally, as you may know, the Governor's PPT proposal was reluctantly accepted by the three major producers (BP, ExxonMobil
and ConocoPhillips) as the final piece in a deal with the State of Alaska to get a gas pipeline built. Once the PPT is passed,
the next step will be the release of the gas pipeline contract for a public review period, and ultimately a vote by the
Legislature on the contract.
Visit the oil tax website for information on the bill. And check back often, as new information is added daily:
http://www.gov.state.ak.us/oiltax/.
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