Natural gas reserves tax debate heats up election season __________________________________________
ktuu.com
Tuesday, October 10, 2006 - by Bill McAllister
Anchorage, Alaska - It is an issue rivaling the gubernatorial election in its potential impact on Alaska. Ballot Measure 2 is a tax on natural gas reserves that is seen by proponents as a way to force a gas line project and by opponents as a way to stop the project, perhaps permanently.
“This is very significant and would rank up near the top of all the questions Alaskans have been asked to vote on,” said Cliff Groh Jr. of Alaska Common Ground.
The citizens’ initiative to place a $1 billion tax on North Slope producers is attracting big money aimed at defeating it. The new political group Alaska First has received $250,000 from ConocoPhillips, $400,000 from Exxon Mobil Corp. and $200 from political consultants Hackney and Hackney, totaling more than $650,000.
Meanwhile, the Alaska Oil and Gas Association has received $500,000 from Chevron, $55,000 each from Exxon and BP Exploration, and just over $15,000 from other industry entities, amassing more than $625,000 to combat the initiative.
So far, however, the $1-million-plus ad campaign has not yet won over voters. A poll taken last weekend shows 46.6 percent of the electorate in favor of the initiative, while 39.4 percent oppose it and 13.9 percent are still unsure.
Ballot Measure 2 co-sponsor Rep. Harry Crawford, D-Anchorage, believes the gas reserves tax is key to realizing a gas line and is the only reason the producers have been negotiating with the state.
“It's a real boot in the bottom to get them moving. And I believe we will win. And I don't believe that they'll sit back and wait because if they get moving on the gas line, the tax will go away. They'll get their money back,” said Crawford (below left).
“This initiative is either going to slow it down dramatically, or perhaps in the end, cost us the gas pipeline altogether. It would be a tragedy,” said Alaska Oil and Gas Association executive director Judy Brady (right).
The outcome of the initiative could hinge on whether voters think the producers have been serious about the gas line or would be, if the reserves tax passes.
The public affairs group Alaska Common Ground will hold a forum on Ballot Measure 1 -- the 90-day legislative session initiative -- and Ballot Measure 2 on Oct. 25 at the Z.J. Loussac Public Library.
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