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 5March 9th, 2006
Where are we now?
Hearings continue on the petroleum production tax, the state's annual spring forecast announced early, and more.
Since the Governor's petroleum production tax legislation was introduced, the Legislature has been working hard on the
proposal to modernize Alaska's oil production tax. Their review has continued this week, with a committee substitute in
the works.
It has been 17 years since the state last made updates to the way it taxes petroleum production. The Governor's proposal
will ensure Alaska gets its fair share of revenue and provides incentives to encourage investment in oil exploration and
development. The incentives are extremely important to ensure that we arrest the decline in oil production on the North
Slope, which currently is 44 percent of what it was at the oil pipeline's peak.
So, where are we now?
The House and Senate Resources Committees over the past two weeks have been listening to testimony from the public,
tax experts, the major North Slope oil producers, and independent oil companies. This week, they are drafting a
committee substitute that would incorporate legislative changes to the Governor's bill. The Governor welcomes this
close look at his proposal and any improvements to his bill but is concerned that increases to the tax rate could
have a negative impact on investment -- and jeopardize a gas pipeline.
The Governor believes filling both the existing TAPS oil pipeline and a future gas pipeline can be achieved by providing
incentives for exploration and development.
The public was invited to testify on the bill once, and the committees are expected to schedule additional public
testimony that may occur as early as this weekend. Please stay tuned for that announcement of an opportunity for
more public comment. Call your Legislator or local Legislative Information Office for information on the schedule
and to learn how you can testify on this important proposal.
The state is also happy to report that spring came early this year! Earlier this week, the State Department of
Revenue released a preview of its spring forecast for oil prices and production. The good news is that with these
continued projected high oil prices, our revenue picture looks even better, and the Governor has proposed that an
additional $460 million be saved for the gas pipeline or other future priorities.
To help you stay informed on the Governor's proposed production tax, please visit the web page for information, graphs, charts and past issues of the Insider.
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