Peninsula Lawmakers Continuing to Back SB21

Speaker Chenault(R-Nikiski): “Our hope right now is that we’re going to see companies like Conoco, BP, Exxon, and a number of smaller guys coming and start making those investments. Because that’s what we were lacking under the ACES program, is we were lacking the investment into new oil and to bring up existing oils. You know, I think in the long haul, Alaskans will see more of a result from the passage of Senate Bill 21.”

 

State House Speaker Mike Chenault discussing Senate Bill 21, Governor Sean Parnell’s oil tax reform, as members of the Kenai Peninsula Legislative Delegation are continuing to support the change, amid repeal efforts continuing throughout the state. State Senator Peter Micciche of Soldotna…

 

Sen. Micciche(R-Soldotna): “The best guarantee is being competitive, it’s how every business operates. If you sell the most expensive item in a class, you don’t sell many of those items, you have to compete. The most important thing for folks to realize, we hear the $2 billion giveaway thing, and the reality of it is, they’re going to need to buy new bumper stickers. ’cause we’re looking at about a $500 million a year reduction in taxes, which means we have to produce about 50,000 barrels a day of an increase, which is very doable as a break even. We’re hoping that some of that Great Bear source rock is very productive, we’re hoping that some of these new areas are very productive, we think we can turn it around fairly dramatically,  and again, leaving oil in the ground that belongs to Alaskans does not do anyone any good, we expect to produce far more than we would have ever produced under ACES.”

 

Representative Kurt Olson told that there examples of tax policies like ACES just not working

 

Rep. Olson(R-Soldotna): “Shortly after ACES was implemented, Alberta followed our lead and put in a similar program covering their production facilities. Low and behold, it took them about a year and a half to figure out what was going on. It took them much less time because they’re on the road system. They saw people leaving, companies leaving and pulling out because of the taxes, they went back and found a happy medium between ACES and what they had put into affect, they’re doing much better right now than we are.”

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