As joint House-Senate energy bill conference committee members close up shop until after the November elections, state of Alaska officials in Washington, D.C., continue to work on gasline and other issues with conference members who have not left the capital city.
One such issue deals with the gasline incentive package BP put together at the request of the Bush administration.
John Katz, director of state-federal relations and special counsel to the governor in Washington, D.C., told PNA Oct. 17 that state officials want to be sure that the proposed incentive package authored by BP for inclusion in the U.S. House-Senate energy bill extends production tax credits to buyers of state royalty gas.
The state strongly supports the overall BP proposal, Katz said, but it wants to clarify the tax incentive language to ensure the incentive applies to state royalty gas whether sold in value or in kind.
He said application of the tax credit is tricky when state gas is sold in value because the state is not a federal taxpayer. The state wants to shift the tax incentive to buyers of its gas.
Language in the Senate version of the energy bill proposed by Phillips Petroleum Co., now ConocoPhillips, is not viable, Katz said, so the BP alternative is now under consideration by the joint House-Senate energy bill conference committee. The state sent a memorandum about its tax credit concerns to committee staff working on gas pipeline issues.
In addition to production tax credits, the BP proposal includes a U.S. government loan guarantee, accelerated depreciation and oil recovery tax credits for an Alaska pipeline gas treatment plant.