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Lawmakers Fuel Oil Tax Debate With Rig Pictures

July 28, 2011|Rebecca Palsha | Channel 2 News

Two lawmakers are calling Governor Sean Parnell's proposed oil tax plan corporate giveaways.

Rep. Les Gara and Sen. Hollis French held a press conference Thursday.

French told reporters that while he was in Oregon he saw two oil rigs bound for Alaska, and he took photos of them. French says the photos demonstrate that exploration is underway in Alaska, even without the tax breaks the governor wants to give the industry.

French and Gara said Parnell's tax plans offer no guarantees that if taxes go down production and hiring of alaskans will go up.

"If you want to put more oil in the pipe there are smart ways to do it," said Gara, "if you just want to give away money that's what the Governor is doing. Eight billion dollars over the next five years. These two new oil rigs show there is investment in Alaska."

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Garasaid he would rather have tax credits for exploration in new fieldsand for new production facilities.

But Dan Sullivan, the Commissioner of the Department of Natural Resources, pointed out Alaska only has 7 rigs, while state's like Texas have 860.

 

He says the status quo isn't working.

"You point to a picture of two rigs," Sullivan told Channel 2, "there's not a picture of rigs that aren't coming to Alaska, and we think there should be a lot more rigs coming to Alaska."

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