FERC ruling refunds $440 million to state
An April 16 ruling by the Federal Energy Regulatory Commission will result in an estimated $440 million in additional oil production tax and royalty payments flowing to the State of Alaska later this year, according to state officials.
This is in addition to about $200 million in refunds awarded to the state under a previous commission ruling on protests of tariffs for 2005 and 2006, the officials said. They also noted that future trans-Alaska oil pipeline rates will have to comply with the FERC precedent.
Gov. Sarah Palin and Acting Atty. Gen. Rick Svobodny applauded the ruling.
“This is good news for Alaskans,” said Palin.“Pursuing TAPS tariff rate cases is not only important for the state treasury, but it also encourages new exploration in our oil and gas resources. Explorers consider fair and stable tariff rates a key factor in favor of investing time and effort. One of my most important promises to Alaskans is getting fair value for our resources, while also encouraging new resource development.”
Meanwhile, the carriers are appealing the FERC rulings to the United States Circuit Court of Appeals for the District of Columbia. Both the state and shipper Anadarko Petroleum Corp. are filing points on appeal that could result in even greater refunds, the state said.
—Rose Ragsdale
|