\u201cI\u2019m not trying to buy love. I\u2019m trying to sell gas.\u201d<\/p>\n
So declared Gov. Bill Walker in a press conference Friday as he explained to the state\u2019s political reporters why his call for a special session next month includes a controversial tax plan.<\/p>\n
The third special session of the Alaska Legislature in 2015 will address the long-awaited trans-Alaska natural gas pipeline project known as AKLNG.<\/p>\n
To encourage the state\u2019s three big producers \u2014 ExxonMobil, ConocoPhillips and BP \u2014 to stay with the project until its completion, Walker has proposed the state tax gas not pledged to the pipeline.<\/p>\n
\u201cWhen gas is not produced, we receive nothing from that,\u201d Walker said. \u201cWe\u2019ve got to be in a situation where we cannot be blocked by somebody else.\u201d<\/p>\n
Details of the proposal have not been released. <\/p>\n
\u201cWhat I have in mind may need some legal review,\u201d the governor said, explaining that the proposed tax must be vetted by various state agencies before it is made public.<\/p>\n
Asked when the proposal will be released, Walker replied: \u201cWhen it\u2019s done.\u201d<\/p>\n
Walker repeatedly said he is seeking assurance and security for the state. He doesn\u2019t want AKLNG to be added to the state\u2019s history of failed gas pipeline efforts, but a tax would be a secure way to collect revenue if the pipeline does fail.<\/p>\n
\u201cWe have a gun to our own head with our fiscal situation,\u201d he said, referring to the state\u2019s multibillion-dollar gap between revenue and expenses.<\/p>\n
The tax idea will face a tough slog when the Alaska Legislature convenes in Juneau on Oct. 24. In 2006, Alaska voters turned down a ballot measure that would have enacted a similar tax.<\/p>\n
Walker\u2019s gas tax plan drew immediate criticism from majority caucus members in the House and Senate immediately after the special session was called.<\/p>\n
\u201cWhat\u2019s going so wrong in his negotiations that he has to take this unusual and confrontational step?\u201d House Speaker Mike Chenault, R-Nikiski, said in a statement late Thursday. \u201cI think the governor has some explaining to do. We have between now and the end of the special session to get answers to these critical questions, in order to protect the progress and efforts made to keep this vital pipeline project moving.\u201d<\/p>\n
While many lawmakers said they have plenty of questions, the oil companies themselves are generally opposed.<\/p>\n
\u201cIntroducing a gas reserves tax undermines the efforts of all parties to progress the Alaska LNG project and puts investment in Alaska\u2019s future at risk,\u201d wrote ExxonMobil spokeswoman Kimberly Jordan in an email.<\/p>\n
An emailed BP statement said: \u201cBP wants to be part of a successful Alaska LNG project that includes the State of Alaska as an equal participant and co-investor. A gas reserves tax complicates this process and results in unintended negative consequences, such as: distraction and delays to negotiations, impacts to investment, and Alaska jobs.\u201d<\/p>\n
A ConocoPhillips spokeswoman said she had no comment until the company sees the specific legislation. <\/p>\n
Walker, meanwhile, had an answer to questions about the companies\u2019 concerns. <\/p>\n
\u201cIf a producer found this objectionable, I\u2019d have to question their motives,\u201d he said. \u201cIt\u2019s not a penalty at all unless they fully intend to not do a project.\u201d<\/p>\n
\u2022 Contact assistant editor James Brooks at 523.2258 or at james.k.brooks@morris.com.<\/p>\n","protected":false},"excerpt":{"rendered":"
\u201cI\u2019m not trying to buy love. I\u2019m trying to sell gas.\u201d So declared Gov. Bill Walker in a press conference Friday as he explained to the state\u2019s political reporters why his call for a special session next month includes a controversial tax plan. The third special session of the Alaska Legislature in 2015 will address […]<\/p>\n","protected":false},"author":426,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_stopmodifiedupdate":false,"_modified_date":"","wds_primary_category":4,"footnotes":""},"categories":[4],"tags":[34,230],"yst_prominent_words":[],"class_list":["post-6634","post","type-post","status-publish","format-standard","hentry","category-news","tag-alaska-legislature","tag-state-news"],"_links":{"self":[{"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/posts\/6634","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/users\/426"}],"replies":[{"embeddable":true,"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/comments?post=6634"}],"version-history":[{"count":0,"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/posts\/6634\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/media?parent=6634"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/categories?post=6634"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/tags?post=6634"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/yst_prominent_words?post=6634"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}