A Citizen’s Guide

To the editor:

A basic premise for dealing with producers involved in developing Alaska natural gas should include, but not be limited to, the following considerations:

Taxes and royalties should be based on gross figures in any negotiated contract. The negotiated price on the level of taxes may include variable amounts to adjust for variations of the gross value of the contract.

The state of Alaska should not be a working interest partner with anyone other than the citizens of Alaska.

The decision to develop the gas in Alaska should be based on the profitability as determined by the producers, whoever they may be, and the assumptions are these people are industry experts and are well equipped to analyze the cost benefit of the deal they propose.

The state, when not burdened by the ownership position, will be free to negotiate with any pre-qualified producers.

The state of Alaska should only be required to provide a level playing field and a reasonable and fair permitting and infrastructure to facilitate the success of this venture.

If this project is deemed to be fiscally viable, considering market conditions, the gas is not stranded and no legislation is required in that direction.

Taking gas by the state must be carefully considered as this may involve the state in the gas business, which I do not think they are trained to deal with. We do not need more empire building.

In conclusion, I am in favor of the development of all Alaska’s resources when done by private enterprise while creating an atmosphere that will enable capitalists to thrive and Alaska to profit without undue risk.

Bill Pryor

Fairbanks