Parnell signs oil tax, in-state gas bills

Alaska Gov. Sean Parnell signed his oil tax change into law at a meeting of the Anchorage Chamber of Commerce May 21. In addition to Senate Bill 21, the oil tax change, the governor also signed House Bill 4, authorizing the in-state gas pipeline project to move forward, and two bills making changes in permitting.

SB 21, which removes progressivity from the state’s production tax system, replacing it with a flat tax and credits for increased production, was hotly contested in the Legislature and signatures are being gathered for a referendum to repeal it.

HB 4 establishes the Alaska Gasline Development Corp. as an independent state agency and empowers it to move forward with plans for an in-state gas pipeline and a 2014 open season.

The governor also signed the capital and operating budgets. The capital budget includes funding for the in-state gas pipeline project, the Susitna-Watana hydroelectric project and a liquefied natural gas system to deliver LNG to Fairbanks via truck.

—Petroleum News