Egan wants to up gas tax

Petroleum News Alaska

Gov. William A. Egan today asked the legislature to more than double production tax on natural gas in the state.

Boosting the wellhead levy from four percent to 10 percent, Egan said, would raise an estimated $57 million in additional revenue during the next decade.

The governor proposed setting a floor on natural gas wellhead prices of 30 cents per thousand cubic feet, a system adopted by the legislature for taxing crude oil production. Under the bill, if wellhead prices dipped below 30 cents, a flat tax of three cents per thousand cubic feet would apply.

It was referred to the Senate natural resources and finance committees.

Looking back