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Voice your opinions!
Here are some ways to let your voice be heard regarding issues important to you.

Write a Letter to the Editor –
submit your 225 word letter to the Anchorage Daily News via e-mail letter@adn.com, or fax them to 258-2157, attn: letters to the editor. A tool is available to help at http://akdemocrats.org/editor.

Contact the Governor –
Governor Murkowski’s Anchorage office may be reached at 269-7450, or e-mail him at frank_murkowski@gov.state.ak.us You can also visit the state website at www.state.ak.us

Contact your
Congressional Delegation – Congressman Don Young,
Anchorage Office:
907-271-5978
don.young@mail.house.gov

Senator Lisa Murkowski,
Anchorage Office:
907-271-3735,
EMAIL: Sen. Lisa Murkowski

Senator Ted Stevens,
Anchorage Office:
907-271-5915
EMAIL: Sen. Ted Stevens

 May 24, 2004

Dear Friend,

Special Session Update

     The sun is finally shining in Juneau as we pass day 15 of the Special Session. 

     Several days worth of presentations on the gasline contract and its specifics are keeping us occupied, as well as movement on the PPT oil tax bill.   As you recall, the PPT bill overhauling the state’s oil taxation system died in the last hour of the regular session, and was put on the schedule of items to be taken up during the special session. 

The current PPT Bill (Senate Bill 2001) passed out of the Senate Monday night on a vote of 15 to 4.  Some specifics of the current version of the bill are:

-    22.5 % tax on producer’s net profits

-    20% investment credit

-    Surtax rate increases 0.1 percent for every dollar (per  barrel price) above $35, though the tax rate cannot exceed 50%

-    An April 1, 2006 effective date (3 months earlier that the Governor’s proposal)

-    All producers receive a $12 million credit per annum

       On the Senate Floor, I proposed amendments that would do the following: 1) move the effective date to January 1^st, 2006; 2) raise the tax rate to 25%; 3) put a “floor” in the bill so that taxes would still be paid at lower - but still profitable - oil prices ($20-28/barrel); 4) require that expenditures be made in Alaska in order to be deductible; and 5) remove Point Thomson from the bill altogether, so Exxon would not get a 42.5% reduction in the cost of developing this high volume field. 

      When those amendments failed, I voted against the bill.   I would not support a tax rate lower than the one suggested by our independent experts.

The Gasline Contract

       Formal presentations by the Administration on the proposed gasline contract concluded Tuesday, May 23rd.   This exercise, though lengthy, was the Legislators’ chance to ask questions regarding the 300+ page document, and to hear about correlating projects such as road system upgrades that will be necessary during construction.

      Here are some concerns I have with the contract:

1) No firm work commitments.
2) The "Project Plan" can be amended without input from the state.
3) Taking both our royalty gas and our production tax gas in kind - as gas - and not in value exposes the state to great risk.
4) Locking in oil and gas tax rates for 30 years and 45 years respectively is questionable from a policy standpoint and is likely to be ruled unconstitutional by our Supreme Court.

      The Governor has also begun public hearings on the Contract.  In Anchorage, there will be 2 hearings held at the Egan Convention Center at 11am on both Friday June 2, and Saturday June 3.  I encourage anyone interested to attend the meetings and make their voices heard.  If you would like to familiarize yourself with the contract itself and supporting materials, you can get that information on the State of Alaska Website: http://www.gov.state.ak.us/gasline/

      For a full schedule of statewide hearings, including teleconference opportunities, you can visit this website: http://www.gov.state.ak.us/gasline/pdf/WP_PublicCalendar_v7.pdf