Legislative Approval of a Gas Fiscal Contract which:

• encourages the earliest possible construction of a gas pipeline;
• promotes the use of Alaskan contractors and suppliers in pipeline engineering, construction, operations & maintenance;
• provides for in-state access to gas supplies with strategic “take-off” points;
• provides for 3rd party access and expansion capability to incentivize gas exploration.

Competitive Investment Climate for Oil and Gas
Alaska’s economic future depends on tens of billions of dollars in new oil and gas investments. To compete successfully for those investments, Alaska must provide a stable business climate that includes a fair and predictable state fiscal system that encourages long-term investments in oil and gas exploration, development and production. The Alliance opposes any tax increase on oil and gas, such as a gas reserves tax, and supports a fiscal system that is fair and predictable for current and prospective oil and gas investors.

Extend and Expand Exploration Incentive Program
The current 5-year exploration incentive program, providing severance tax discounts based on the distance of exploration drilling and seismic activity from current unit boundaries and existing wells, is due to expire in July 2007.

The program has worked in attracting new interest and exploratory activity, and it’s critical that the credits be extended another five years during this session in order to promote exploratory drilling and seismic in 2008 due to planning cycles for these activities.

The Alliance also endorses enhancements to the program in order to make it more effective and attractive to prospective explorers. The current system dilutes the incentive for explorers with no production by forcing them to sell their credits at a discount and has no provisions incentivizing exploration for large reservoirs that are greater distances from existing infrastructure. Among the possible enhancements are making the credits applicable toward corporate tax, lease bonus and rental obligations; increasing credits in proportion to distances from existing units and wells, and modifying or eliminating distance requirements for wells targeting new horizons.

Fiscal Responsibility
The Alliance supports legislative and administrative efforts to develop a long-range fiscal plan, including use of Permanent Fund earnings, a “percentage of market value” management structure for the Permanent Fund and, as a last resort, broad-based statewide taxes. The Alliance opposes depositing budget surpluses into the Permanent Fund.

Legislation Promoting Workforce Development
The Alliance supports legislation that promotes the development of a highly-skilled and globally competitive resident Alaskan workforce that will meet current and future needs.

Additional Issues Critical to Alliance Members' Success:

  • Highway Maintenance
  • National Petroleum Reserve-Alaska
  • Areawide Lease Sale: Cook Inlet
  • Hiring Alaskans
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