Recently, I agreed to write a bi-monthly column on oil & gas issues for the Alaska Business Monthly. This is the first column, originally published in the July 2012 print edition and available online here.
Alaska’s approach to oil and gas taxes has taken a number of twists and turns over the last several years. The latest twist may largely be the result of ships passing in the night.
Background
Shortly following her election in 2006, Gov. Sarah Palin proposed a set of changes to the then-existing tax structure. She termed the package “Alaska’s Clear and Equitable Share,” or “ACES.”ACES changed a previous package of modifications which had been enacted in 2006.
Although he supported ACES at the time it was passed, late in his campaign for his own term in 2010 Gov. Parnell began generally to talk about what he then termed as the need for “tweaks” in ACES. Following his election, Parnell proposed a set of changes, which was introduced in the Alaska House of Representatives and subsequently referred to as “HB 110.” Continue reading
Thoughts on Alaska Oil & Gas 
The Next in the Alaska Business Monthly series: “Oil Reform Requires Fiscal Reform” (from the September 2012 Alaska Business Monthly)
Most Alaskans are familiar with efforts by Governor Parnell the last two years to reform Alaska’s current oil tax structure. The most recent effort ended earlier this year, when the Governor withdrew the revised oil tax reform bill that he had submitted at the beginning of the special legislative session.
What many are not aware of is something that happened at the end of the special session, immediately before the Governor withdrew the bill.
The Office of Management and Budget is the state agency responsible for preparing and administering the state budget. In an appearance before the House Resources Committee, the head of OMB, Karen Rehfeld, testified that if the Governor’s tax reform bill passed, the reduction in revenues could cause the state budget, which otherwise was projected by OMB to run a surplus for several more years, to turn to a deficit virtually immediately. Continue reading →
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Posted in Published Commentaries, The Monthly Lead/Alaska Business Monthly, Thought Pieces