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State Made Poor Deal on Point Thomson, Witness Tells Senate

April 27, 2012|By Dan Fiorucci, Matthew Simon and Chris Klint | Channel 2 News

ANCHORAGE, Alaska — The State of Alaska made a poor deal with the oil industry on Point Thomson natural gas in an agreement announced by Gov. Sean Parnell earlier last month,a former head of the state Division of Oil and Gas told lawmakers Friday afternoon.

Mark Myers delivered his testimony before the Senate Judiciary Committee, saying that the state’s agreement with Point Thomson operators ceded too much control over development to industry interests.

“If I were commissioner, I would not have signed this deal,” Myers told lawmakers.

The revelation is the third major announcement to rock Juneau in three days, after Parnell announced Wednesday night that he was removing oil and gas taxes from his special-session agenda, causing senators to gavel out of the special session Thursday afternoon. Some Senate committees were continuing to meet for business at the Capitol Friday, as the House caucused to decide whether it should call the Senate back into session.

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Parnell and the Republican House majority have differed sharply with the Senate’s bipartisan majority over the extent of a proposed 30 percent tax break on oil production. While the Senate is willing to offer that rate to oil from new discoveries as an incentive for exploration, the governor and the House believe it should also be extended to existing oil fields in an effort to stop a steady decline in North Slope oil production.

This is a developing story. Please check KTUU.com and the Channel 2 newscasts for updates.

Email Dan Fiorucci and Matthew Simon

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