Boat Fire
Dear Editor: Over the course of the last week the tugboat Adak, in Eliason Harbor, has experienced flood and fire.
I give heartfelt thanks to the men and women of the fire department, as well as to the harbor department – specifically Thomas Climo and Dave Mochak, and commissioner Stan Eliason – for the hard work, and commitment to keeping boats safe and afloat. I also want to thank people on the docks for the helping hand – especially Thom Nelson, whose devotion to Eliason Harbor is on display daily.
Negotiating disaster is awful; having a supportive community at your back makes hard times much easier to weather. I feel lucky to live in a town with such committed volunteers, and public works department.
Brendan Jones, Sitka
SB-21 Petition
Dear Editor: Have you signed the petition to repeal the oil tax giveaway? There are many good reasons to sign it. The petition would give Alaska voters a chance to say yes or no to a law pushed by Governor Parnell, and passed by the state Legislature this year, known as SB-21. SB-21 is a disastrous law, which cuts the amount the oil companies pay the State for our oil, with no strings attached.
Parnell claims that its purpose is to increase oil production, yet there are no provisions in the law to accomplish this. It is simply a giveaway. SB-21 removed incentives to increase production that were in place in the previous oil tax program, “ACES.”
By Parnell’s own numbers, it will cost Alaska $4.5 billion in the next five years alone, and much more in the future. It violates the Alaska Constitution, Article VIII, Section 2 which states:
“The Legislature shall provide for the utilization, development, and conservation of all natural resources belonging to the state, including land and waters, for the maximum benefit of its people.”
Unless you consider oil corporations as people.
SB-21 is the kind of law that could only be written by an oil company executive or lobbyist – no surprise there, since that’s what Sean Parnell was before he became governor. In fact, SB-21 passed the state Senate 11 to 9, with the deciding two votes being cast by Senators who are also ConocoPhillips employees – a clear conflict of interest. On the other hand, both our state Sen. Bert Stedman and our Rep. Jonathan Kreiss-Tomkins voted against it, and are in favor of the petition to repeal it.
The odd thing is that the bill seems to address a problem that doesn’t exist. Yes, oil production has dropped off, as it will in any oil field over time, as it is depleted. But it’s not for lack of investment, which is at an all-time high in Alaska. There is no lack of industry interest in our oil. And the tax rate in Alaska before SB-21 was about average with our competitors. The oil business in the state was extremely profitable for the oil companies under ACES – more so than in Norway, Canada, or North Dakota for example.
In 2012 Alaskan oil and gas supplied 13 percent of ConocoPhillips’ production – but it earned 34 percent of its income in Alaska. An internal BP memo from 2004 stated: “Alaska role in BP’s portfolio is to provide a stable production base and cash flow to fuel growth elsewhere in the business while improving margins and returns.” That’s a reason for giving them more of our share of the oil wealth?
For these and many other reasons I hope the initiative effort succeeds and goes to a vote of the people. However, the first step is to get the petition passed, and put the question on the ballot. So, please sign it if you are registered in Alaska – and keep your wits about you – somebody is trying to pick your pocket!
There is a lot more information about this issue online – at www.repealtheoilgiveaway.org for example. I recommend you watch the slide show there.
Michael Litman, Sitka
