“We should bring this field into production,” said Rep. Gara. “However, we need to make sure we are not giving away unjustified levels of state revenue. That requires a fresh look by the new Administration.”
On Monday, Rep. Les Gara (D-Anchorage) filed detailed public comments showing the Nuna oilfield will receive significant, and possibly excessive, tax breaks under little-known provisions in S.B. 21. The Parnell Administration, in its waning two weeks, proposed a roughly $40 million reduction in the royalties Nuna’s current owner, Caelus Energy, would owe Alaskans. The Parnell Administration proposed to change the field’s existing lease terms to include additional revenue reductions at a time Alaska is facing a $3 billion budget deficit.
Rep. Gara wants the new Administration of Governor Bill Walker, which is in the middle of a busy transition period, to have the time to fully review the matter in light of potentially meager oil revenues in coming years.
image credit Juneau Empire
