April 21 RDC Luncheon: Featuring Congressman Don Young

April 21 RDC Luncheon: Featuring Congressman Don Young from Resource Development Council on Vimeo.

Free the Juneau 60

Brad Keithley

Free the Juneau 60! My suggestion on the means for releasing the Juneau 60. The Governor asks the AG to issue a formal AG's opinion on whether the Senate's bundling approach is legal. Everyone agrees to be bound by the AG's (whom the Governor appointed and the Legislature just confirmed) decision. If the AG opines that its legal, the Senate passes whatever the body agrees, the House makes whatever changes it wants to the package (but retains the bundling approach), a Conference Committee resolves the differences (but retains the bundling approach) and the Governor vetos the bundle or not. If the AG opines that the bundling approach violates the Constitution (which it likely does), the Senate advances the bill (by approving a discharge petition if necessary), removes the bundling provision, passes the bill to the House, resolves any differences and sends it to the Governor. Game over and the Juneau 60 come home.

Attorney General Burns' memorandum - April 26, 2011
John Burn's, Attorney General's decision regarding in the capital budget, and the contingency language inserted by the Senate

Alaska Attorney General Press Conference regarding the contingency language (on Line Item Veto)

Attorney General holds Press Conference from Office of Governor Sean Parnell on Vimeo.

The Governor's Oil Tax Reform Legislation; a timeline

Senators Stedman & Stevens have stated that the Senate did not have enough time to take up SB 49 the Governor's oil tax reform bill. Here is a combined timeline from both HB 110 & SB 49:

Click on spreadsheets (.jpg) to view in full screen

ARCO Alaska Inc., Commercial (1986)

Barrels per day (BPD) required to maintain TAPS at 640,000 BPD

Click graph and spreadsheet to enlarge

A Competitive Review - What is it

by Deborah Brollini

Sen. Lesil McGuire’s SCR 4 (now incorporated into Section 4 of Draft CS SB 85 version E 3-24-11), establishes an Oil and Gas Competitiveness Review (OGCR) Board. The purpose of the Board is to review and provide recommendations to the Legislature each December 1 on steps to encourage on-going long term investment in the development of the state’s oil and gas resources. In many respects, the purpose of the Board is much the same as the Permanent Fund Corporation Board. The PFC Board is designed to oversee and maximize the investment of Alaska’s Permanent Fund. The OGCR Board is designed to monitor and offer recommendations to the Legislature on steps designed to maximize the investment made in Alaska’s oil and gas resources.

The OGCR Board is proposed to be composed of selected Legislators, Commissioners and members of the public. As with a similar effort in Alberta that resulted in restoring oil and gas investment to the Province after a substantial downturn, the purpose of the OGCR Board is to create an ongoing body whose job it is to monitor Alaska’s position in the world oil and gas industry, and provide useful and, most importantly, ongoing insight to the Legislature on that subject. One of the anticipated results would be to lessen Alaska’s dependence on “Outside consultants” to help identify the state’s position in the oil and gas industry, and to significantly increase Alaska’s – and the Legislature’s – home grown ability to provide the same insight.

Senator McGuire spoke at a luncheon on March 30, 2011 about how Alberta reviewed their oil and gas tax policy and its global competitiveness which resulted in their reducing of their oil taxes. Alberta raised their oil taxes the same time Alaska did in 2007, and the industry and jobs flooded out of Alberta. Alberta was able to turn their investment climate around in just a few short years, and Alberta is now booming with capital investment and jobs. Here is the audio from Senator McGuire's speech on March 30th, 2011.



Your Oil and Gas Energy Dude Brad Keithley discusses and states in his Alaska Dispatch article Alaska's Future: Sen. McGuire's proposed competitiveness review is important which was published on February 11, 2011, that "Alaska increasingly is trending toward the most bleak of the possible futures." Although, we cannot fill up the Trans Alaska Pipeline, we can stem the oil production decline to 3% in the near term while we wait on future projects to come online in NPRA, ANWR, and Beaufort and Chukchi seas.

Sen. McGuire's proposed competitive review legislation is not the "studies" which Senators Stedman and Stevens have been quoting in the media this session. Rep. Mike Hawker, who chairs Legislative, Budget and Audit stated yesterday in a press release. (Rep. Hawker Clarifies Expectations for LB&A Studies in Oil Tax Debate)

The "two studies will not offer Alaska-specific recommendations and were not commissioned to deliver answers in the debate on amending the state's oil production tax, but will help educate policy makers on international competitiveness.

To suggest the Legislature must hold off action on these critical, time-sensitive amendments to the state's oil tax system is a misrepresentation of the substance of these two products.

Moving on a competitive review will send a strong signal to the oil industry that Alaska is serious about providing predictability in the state's tax structure, and will provide a positive investment and regulatory climate for the industry to thrive, and where the citizens of Alaska benefit. Alberta's competitive review was completed in six months, and their government was able to act quickly to reduced their taxes which incentivized the industry to return. Resulting in billions of dollars of investment that moved through their entire economy. A competitive review is a long-term solution for Alaska.

Click on "full" on the bottom of each document to view in full screen mode.

Alberta Slides - Competitive Review

Sb 85 Alberta's Competitive Review Presentation

View more presentations from Alaska Energy Dudes and Divas

Alberta Briefing

Alberta briefing

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Alaska Native Claims Settlement Act and the Trans Alaska Pipeline

The Trans Alaska Pipeline would never have happened without the passage of the Alaska Native Claims Settlement Act. (ANCSA) The pipeline and the oil wealth it brought laid the foundation for Alaska’s modern economy, and ANCSA today is laying the foundation for Alaska’s future.

Former US Senator Mike Gravel, North Slope Mayor Edward Itta, oil historian Jack Roderick, and natural resources writer Tim Bradner discussed ANCSA and our pipeline at a forum held at the University of Alaska Anchorage on April 8, 2011.

Audio Part 1


Audio Part 2

HB 110 Call to Action - Alaska State Senate

Your Alaska Energy Dudes and Divas team is united in support of HB 110, the Governor's oil tax reform bill. Please take the time to email state senators, and let your voice be heard. Senators already know the statistics, and data regarding ACES, and the potential shutdown of the Trans Alaska Pipeline (TAPS). As always be respectful, and no rhetoric

Highlight, cut and paste into your email:

Sen.John.Coghill@legis.state.ak.us Sen.Bettye.Davis@legis.state.ak.us; Sen.Fred.Dyson@legis.state.ak.us Sen.Dennis.Egan@legis.state.ak.us; Sen.Johnny.Ellis@legis.state.ak.us; Sen.Hollis.French@legis.state.ak.us Sen.Cathy.Giessel@legis.state.ak.us; Sen.Lyman.Hoffman@legis.state.ak.us; Sen.Charlie.Huggins@legis.state.ak.us; Sen.Albert.Kookesh@legis.state.ak.us; Sen.Lesil.McGuire@legis.state.ak.us; Sen.Linda.Menard@legis.state.ak.us; Sen.Kevin.Meyer@legis.state.ak.us; Sen.Donny.Olson@legis.state.ak.us; Sen.Joe.Paskvan@legis.state.ak.us; Sen.Bert.Stedman@legis.state.ak.us; Sen.Gary.Stevens@legis.state.ak.us; Sen.Joe.Thomas@legis.state.ak.us; Sen.Tom.Wagoner@legis.state.ak.us; Sen.Bill.Wielechowski@legis.state.ak.us

Commonwealth North's ACES Study Report & Audio

Commonwealth North released its final report "Alaska’s Oil Investment Tax Structure Establishing a Competitive Alaska" at a luncheon held on March 23, 2011. Here is the final report. (click on "full" at the bottom of the report to view in full screen mode). Audio of the luncheon follows the report. Deborah Brollini, Steve Pratt, Ann Lovejoy, and Brad Keithley of your Alaska Energy Dudes and Divas team participated in the 20-week study.

Alaska’s Oil Investment Tax Structure Establishing a Competitive Alaska

View more documents from Alaska Energy Dudes and Divas.

Audio from the luncheon



The purpose of Commonwealth North is to educate its members and others on significant public policy issues affecting Alaska and its future, and to assist in their resolution.

Commonwealth North leads Alaskans to adopt enlightened policies that enhance Alaskans' quality of life and that improve the State's ability to effectively manage its resources.

Commonwealth North's Core Values:

1. Recognize the State's unique obligation to manage the common wealth of Alaska
2. Commit to the future of Alaska
3. Put Alaska's interests before special interests
4. Exercise intellectual integrity and rigor
5. Respect all peoples and cultures

RIP Trans Alaska Pipeline

Tom Barrett, President of Alyeska Pipeline Service company presented and testified to House Finance on March 18, 2011 regarding the state and fate of the Trans Alaska Pipeline (TAPS).

Based on Mr. Barrett’s testimony of 640,000 barrels per day, Alaska Energy Dudes and Divas prepared the following projections using a 6% decline rate through 2025.

Tom Barrett closed his testimony with the following remarks:

"We need more oil in our pipeline. And as the TAPS operator, I would hope the Legislature would attach the same urgency to this issue that Alyeska and contract employees attached to restoring service in January. We need your help. TAPS viability depends on political will for Alaska oil development.

We need your support for increasing safe and responsible production in Alaska. It is urgent and it is critical.” The backbone of our economy is jeopardy and we have senators who are bound and determined to let the pipeline dry up and therefore throwing Alaskans and our economy under the bus."

Oil tax reform must be addressed this legislative session. Your Alaska Energy Dudes and Diva's team is united in support of HB 110, the Governor's oil tax reform bill. We urge you to contact your senators and convey your support for HB 110.