House Resources unveils a version of oil tax bill

Published on NewsOK Modified: March 29, 2013 at 8:28 pm •  Published: March 29, 2013
Advertisement
;

Sen. Bill Wielechowski, who voted against SB21, said the House Resources version of the bill makes some good changes from what narrowly passed the Senate. For example, he said it has clearer language for what would qualify for the gross value reduction, and he said it would be better for the state when oil prices are higher. Under the proposal, the gross value reduction would apply to new fields and new oil from legacy fields.

But Wielechowski said he is concerned about the exposure to the state at lower oil prices — when the per-barrel allowance would be higher — and doesn't think the existing participating areas in the legacy fields need any more help.

"I still think it has a long, long way to go," said the Anchorage Democrat, who was still analyzing the bill. "It's still a big giveaway, but it's mildly better than what the Senate version was, I would say."

Feige said having a "slightly lower" level of government take at lower oil prices "should greatly enhance" the economics for the companies. But he said there's a sense, too, that the state "should have a little bit more of a bite" when prices are higher.

"It's not an onerous extra bite, but we're trying to be fair to the people of Alaska," he said.

___

Follow Becky Bohrer at http://twitter.com/beckybohrerap .

___

Online:

SB21: http://bit.ly/155354v