Lawmakers ask Parnell to review '07 oil tax increase

STATE REPS: Group says evidence shows state may suffer.

Published: December 5th, 2009 01:39 AM
Last Modified: December 5th, 2009 01:40 AM

Fifteen state representatives wrote Gov. Sean Parnell on Friday to say they were "troubled by the mounting evidence that (Alaska's 2007 oil tax increase) may wind up doing more harm than good to future oil development."

The representatives, including state House Speaker Mike Chenault and other top leaders of the Republican-led majority, said recent developments have them worried. They cited the recent announcement by Conoco Phillips that it would not drill an exploration well on the North Slope next year for the first time in 45 years, and will instead pursue offshore development that doesn't result in state tax dollars.

The lawmakers noted that BP Exploration (Alaska) Inc. has said it will cut its Alaska spending by 15 percent next year. The companies have said the 2007 increase are harmful for investment and jobs.

The state representative posed nine questions to Parnell, including asking for statistics on oil and gas activity and how the industry has responded to tax credits meant to spur exploration. They asked Parnell what recommendations he has for changing the oil tax system that would "encourage exploration and development."

Parnell supported the oil tax increase in 2007 and said in October that's still the case. He said the oil companies have taken roughly $20 billion in profits in the last three years under the system, and "frankly my pitch has been stability of a tax regime is more important to job creation and investment by these companies over the long term."

The governor's office said Friday that Parnell has sent the representatives' letter to his commissioners of Revenue and Natural Resources, and has asked them to provide the information they requested.

The 15 representatives who signed the letter are all part of the Republican-led House majority, which has 25 members of the 40-member House. Many, but not all, of the legislators who signed Friday's letter opposed the oil tax increase when it was enacted in 2007.

The representatives who signed the letter are Jay Ramras, Craig Johnson, Kyle Johansen, Mike Hawker, Charisse Millett, Mike Chenault, Alan Austerman, Bill Stoltze, Nancy Dahlstrom, Bryce Edgmon, Bob Herron, Paul Seaton, Peggy Wilson, Cathy Munoz and John Harris.

http://www.adn.com/parnell/story/1041681.html

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