ADN Editorial: Gas tax on the ballot --
Hear that train a comin'? Better get a gas pipeline deal
adn.com
Published: March 11, 2006
Last Modified: March 11, 2006 at 01:36 AM
Whether good policy or bad policy, punishment or incentive, it doesn't much matter any more. It's all over but the vote counting.
The smart political money says the natural gas reserves tax initiative is going to pass with ease on the November statewide ballot -- unless the public sees a deal to build a North Slope gas pipeline.
The initiative will mean a big change in the ongoing negotiations to get Alaska's gas to market. It could mean almost $1 billion a year in new taxes for the state treasury, charged to North Slope oil and gas leaseholders as the price they must pay for not moving Alaska's natural gas to market fast enough to satisfy the public.
The tax initiative, sponsored by Anchorage Rep. Eric Croft, a Democratic candidate for governor, and Democratic Reps. Harry Crawford of Anchorage and David Guttenberg of Fairbanks, aims to prompt the major North Slope producers into building the gas line or selling the gas to someone who will. The reserves tax would go away after the line is built and gas is flowing, and producers could recoup part of the tax in credits against other taxes.
North Slope producers and the governor adamantly oppose the initiative and also similar legislation, House Bill 223, sponsored by Reps. Croft and Crawford. If the Legislature were to pass the bill, or something similar, it could knock the initiative off the ballot. But winning legislative approval for the hefty new tax is about as likely as the Republican-dominated Legislature passing a citation to honor the work of former Democratic Gov. Tony Knowles -- it isn't going to happen.
That means the initiative will go before voters this November.
Meanwhile, Gov. Frank Murkowski says he has reached agreement with the producers on gas line terms, although those terms are not yet public and the governor says the deal is contingent on legislative approval of a new oil tax regime. Alaskans have more questions than answers about the oil tax overhaul and the governor's gas line deal. Unless those questions are answered to their satisfaction, the only election question will be the gas tax margin of victory.
So what's the message for the governor and the companies? Get a deal on the gas line, make it public, and be prepared to defend it with real facts. It's the only way you're going to stop the reserves tax.
BOTTOM LINE: Gas reserves tax is a sure bet without a good gas line deal. That's all the more reason to do the deal right, and soon. |
