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Politics : The Exxon Free Environmental Thread

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To: T L Comiskey who wrote (13274)	1/4/2013 12:16:06 AM
From: No Mo Mo	of 48988

Why was Shell moving an oil rig in a winter storm? -------------------------------------------------------- Shell hoped to save millions in taxes by moving now-grounded drill rig out of Alaska Jim Paulin , Carey Restino \| Jan 03, 2013 A move by Shell to avoid millions in Alaska state taxes may have backfired when the oil rig Kulluk ran aground Monday on Kodiak Island. The rig initially went adrift while it was being towed to a shipyard and tax shelter in Seattle. Instead, the vessel found itself literally stuck inside Alaska at the start of the new year. The Kulluk grounded off Kodiak Island Monday night, prompting a 500-plus person response. According to Shell Operations Manager Sean Churchfield, the grounding occurred during a fierce storm that produced near-hurricane-force seas with waves exceeding 40 feet at times and wind gusts of 50 knots and higher. “The conditions last night were very poor,” Churchfield said. “It was a really unpleasant night to be out on the sea.” A Shell spokesman last week confirmed an Unalaska elected official’s claim that the Dec. 21 departure of the Kulluk from Unalaska/Dutch Harbor involved taxation. City councilor David Gregory said Shell would pay between $6 million and $7 million in state taxes if the Kulluk was still in Alaska on Jan. 1. Shell’s Curtis Smith said in an email last week that the decision involved financial considerations. The rig had been moored in the Aleutian Islands port following several months on an oil exploration project in the Arctic Ocean. Renewed scrutiny for Royal Dutch Shell's Arctic drilling plans after Kulluk hits Alaska coast (+Photos) Jan 02, 2013 Shell Oil's drill rig Kulluk, grounded off Kodiak Island by an Arctic storm it was supposed to be built to withstand “We are now planning to sail both vessels to the west coast for seasonal maintenance and inspections. Having said that, it’s fair to say that the current tax structure related to vessels of the type influenced the timing of our departure,” Smith said. “It would have cost Shell multiple millions to keep the rigs here,” he added, though he didn’t have an exact amount. Gregory said the departure of the Kulluk took money away from local small businesses servicing the rig. He predicted the maritime mishap will prove very costly to the oil company. “It will cost them more than that $6 million in taxes. Maybe they should have just stayed here,” Gregory said. ctd... alaskadispatch.com

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