A Citizen’s Guide

JUNEAU—House Democrats complicated Gov. Frank Murkowski’s plan for a natural gas pipeline agreement Thursday by defeating a bill that would have given the administration more time to summarize public comments, suggest revisions to the contract, and complete supporting documents.

The House quickly adjourned following the bill’s defeat, putting an end to the second special session, which was to expire at midnight after 30 days. The Senate adjourned not long before the House.

The bill’s defeat puts the future of Murkowski’s natural gas agreement with the state’s three major oil companies in doubt. Murkowski’s spokesman said the governor had no plans to call legislators back into session until after the Aug. 22 primary election.

Kevin Jardell, the governor’s legislative liaison, said after the session that the administration was disappointed with the vote. He said more time would have helped, but was not strictly necessary.

“We think we can get there,” he said. Read the rest of this entry »

House Democrats, with the help of some Republicans, turned down the Senate version of the oil tax rewrite this afternoon after nearly an hour of arguments. The tax bill failed 20-19, falling one vote short of approval.

House Democrats also threw a wrench in the spokes of the proposed gas pipeline contract by blocking an amendment that would have given the administration additional time to revise the contract and complete a fiscal interest finding. The administration will have only 30 days from the end of the public comment period July 24, instead of the 120 days proposed in the amendment to the stranded gas act.

While the House effectively killed the amendment, the oil tax rewrite could yet be resurrected.

The House has adjourned till 8 p.m.

Sen. Gene Therriault of North Pole said he voted against the Senate version of the oil tax bill because the bill had technical issues he thought still needed to be ironed out.

“It was a very close vote for me,” he said.

Therriault said he supports a tax based on gross production rather than on net profits but didn’t vote for an amendment this morning that would have changed the tax to a gross because, he said, the proposal hadn’t been properly vetted. A fiscal analysis of the proposal only arrived last night.

It looks like the last day of the special session won’t be uneventful.

Democratic Rep. Ethan Berkowitz, the House minority leader, is planning to introduce an amendment to the bill changing the Stranded Gas Development Act that would delay consideration of the gas contract for months.

The current bill would extend—from 30 days to 120—the time the administration has to respond to public comments and come back with a revised contract and fiscal interest finding. Read the rest of this entry »

An executive proclamation from Gov. Frank H. Murkowski appeared this morning at the 7 a.m. Senate floor session as senators prepared to approve the oil tax bill.

The proclamation was signed and dated Wednesday and calls the Legislature back into special session starting at 10 a.m. Friday. That would make special session No. 3 for the summer and would be the fourth for the 24th Legislature.

The only item on the order is the oil tax. Word is that if lawmakers come to agreement on a net profits tax today, they won’t need to be in Juneau tomorrow, assuming the governor finds their bill acceptable.

The Senate this morning passed the oil tax bill 14-5 as amended yesterday by the Senate special committee hearing oil and gas issues. The bill was sent on to the House, which is scheduled to meet at 10 a.m.

Two amendments were introduced this morning. The first would have changed the tax from one based on net profits to one based on gross production. The second would have removed from the tax incentives for natural gas development costs. Both failed.

Sen. Gene Therriault was the only Republican who voted against the bill when the roll was called just after 8 a.m.