A Citizen’s Guide

Lawmakers reviewing oil taxes have heard from industry executives, state economists and legislative analysts with differing thoughts.

On Wednesday night they took comments from the public and ended up hearing a similar spectrum of opinions about how the state should collect revenue from its largest industry.

The testimony before the House Oil and Gas Committee ranged from angry to worried and from articulate to longwinded.

Mark Sharp of Fairbanks said he was “pretty damned steamed” about how legislators handled the Petroleum Production Tax last year.

Gov. Sarah Palin called a special session to review the tax after state forecasts suggested it wouldn’t work as intended, but Sharp said he thought it was flawed from the start and overly influenced by oil companies.

“Set the policy and tax structure in no nonsense terms and force the industry to adhere,” Sharp said.

Sharp also asked lawmakers to schedule future hearings so that the industry, and not the public, testified during the World Series, which began Wednesday night.

Jerry Walker of Fairbanks, who spoke for himself but is a board member of the Alaska Support Industry Alliance, said every Alaskan depends on a strong business environment.

“I encourage you: Don’t keep changing the rules,” Walker said.

Durainey Rawles of Nikiski, who owns Durainey’s Crane Service, said support services like hers depend on a healthy oil industry to stay afloat and asked legislators not to change taxes.

She pointed to the closing of the Agrium fertilizer plant in Kenai and the winter closing of a BP facility on the North Slope as examples of industry decisions that affect her business.

“Without the oil and gas industry, I’m out of business and I’m just a little too old to start over,” she said.

Merrick Peirce of Fairbanks said the state is not currently getting the maximum benefit of its resources.

“It’s very clear to me we’re not getting a reasonable rate of return,” Pierce said.

He asked legislators to reconsider a gross tax, challenge industry advertisements and change tariff structures on the trans-Alaska oil pipeline.

Chuck Logsdon of Palmer, who testified both for himself and for the Alaska Oil and Gas Association, told legislators that increased state revenue and increased industry investment over the past year meant the Petroleum Production Tax was working and should not be changed. He also asked legislators not to enact a floor tax on legacy fields like Prudhoe Bay and Kuparuk.

Contact staff writer Eric Lidji at 459-7504.