HJR 35: Encouraging federal legislation to improve federal fiscal terms for a trans-Alaska gas pipeline.
00HOUSE JOINT RESOLUTION NO. 35 01 Encouraging federal legislation to improve federal fiscal terms for a trans-Alaska 02 gas pipeline. 03 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 WHEREAS Alaska's North Slope, including the Prudhoe Bay and Point Thomson oil 05 and gas fields, hold at least 35 trillion cubic feet of proven natural gas reserves, an amount 06 sufficient to supply a large natural gas export project in the state; and 07 WHEREAS companies operating in the state, including permit holders, oil and gas 08 leaseholders, and other parties, have indicated an interest in investing in a trans-Alaska gas 09 pipeline if it is economically feasible; and 10 WHEREAS a study recently commissioned by the State of Alaska prepared by Dr. 11 Pedro Van Meurs indicates that the project economics could be substantially improved through 12 changes in federal tax laws related to this project; and 13 WHEREAS the United States Congress recently passed similar tax changes to 14 facilitate development of frontier deep water oil and gas development in the Gulf of Mexico;
01 and 02 WHEREAS Dr. Van Meurs' report estimated federal tax revenues under the current 03 structure to be $26,000,000,000, none of which will be realized if the project is not completed; 04 and 05 WHEREAS there would be substantial additional benefits to the United States from 06 the project, including increased employment opportunities across the nation and an improved 07 trade balance with Asian countries; and 08 WHEREAS liquefied natural gas projects proposed for other countries are competing 09 to meet the Asian market demand for liquefied natural gas in the 2005 to 2010 market window 10 and could displace the Alaska project; 11 BE IT RESOLVED that the Alaska State Legislature respectfully requests the United 12 States Congress to enact tax legislation that would improve the economics and likelihood of 13 an Alaska liquefied natural gas export project; and be it 14 FURTHER RESOLVED that the Alaska State Legislature respectfully requests the 15 Governor to use his best efforts to support passage of this federal legislation. 16 COPIES of this resolution shall be sent to the Honorable Ted Stevens and the 17 Honorable Frank Murkowski, U.S. Senators, and the Honorable Don Young, U.S. 18 Representative, members of the Alaska delegation in Congress.