ADN, by Lisa Demer. Sen. Lisa Murkowski (NGP Photo), R-Alaska, on Monday wrapped up an "energy tour" of Alaska with Democratic colleague Ron Wyden (NGP Photo) of Oregon that included a renewable energy fair, a geothermal plant at Chena Hot Springs, and an offshore oil platform in Cook Inlet. ... "You're looking at the chairman of the energy committee here. And we're not sure if I'm looking at him or he's looking at me." Depending on how the November elections go, either she or Wyden is poised to become chair of the Senate Energy and Natural Resources Committee, and the other will be the ranking minority member, a position Murkowski already holds.
Doyon President Aaron Schutt (NGP Photo), in a press conference and press release, said his company sees a lot of promise in its land and lease holdings in "frontier basins" covered in a bill sponsored by Thompson,HB 276. The bill, which was folded into another tax incentive bill during the end o
|The Arctic Imperative Summit wrapped up in Girdwood Monday..., by Craig Medred, Alaska Dispatch|
f the second legislative session, provides tax incentives and credits for oil and gas in new areas of the state that are brought into production.
"President Schutt validated our office's hard work and efforts to make sure the frontier basin bill became law; that's fantastic," Representative Steve Thompson said. "Doyon is the Interior's biggest player in oil and gas today, and when they talk, we listen. The potential for jobs, lower energy costs and a more positive future outlook is amazing. I'm grateful to Doyon for the recognition, and optimistic for Interior energy rate-payers and workers. Lord knows our families and businesses face tough enough decisions, so having something like this on the horizon 7-10 years out is a welcome development."
Key sections of the bill were folded into SB 23. Those were:
Identifying six specific geologic areas that qualify for exploration: Kotzebue and Selawik Basins; Nenana and Yukon Flats; Emmonak; Glennallen and Cooper River area; Egegik; and, Port Moller.
Limiting the number of credits awarded to minimize the cost to the state for four wells in the areas identified with no more than two wells in any one area. The maximum credit would be 80 percent of total exploration expenditures or $25 million, whichever is less.
Providing seismic credits to attract new geophysical analysis, limited to four total projects with one per designated areas. The credit for exploration would be $7.5 million or 75 percent of total costs, whichever is less.
Requiring that all exploration drilling and seismic data collected must be turned over to the state and made available for public release within two years of receiving credit. All credits created in the bill would apply to work performed after June 1, 2012 and before 2016.
Allowing explorers a four percent tax rate for new production, applicable for seven years after production starts.
"Here's an idea we turned into a bill that actually works," Thompson said. "We see the results today. We wanted to stimulate involvement in our remote and truly frontier plays and Doyon stepped up today to do so. Thank you to Doyon, and thank you to my colleagues in the House and Senate for passing this bill."