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Weekly Updates[ACT II, SCENE 1]
High drama brought down the curtain on the Second Act of legislative theatre that played for two Special Sessions before intermission in Juneau on Aug. 10.
The old ELF expired pathetically on its humble death bed as the savior PPT heroically took the limelight, but not before a Sir Gallahad was rushed on from stage right direct from Anchorage to cast the tie-breaking vote which, just in the nick of time, miraculously reversed a 20-19 defeat and carried the day to a 20-20 tie. (in melodrama as in parliamentary procedure, the affirmative side of the question takes a tie vote.) In the present instance, the question was HB3001, the oil and gas net profits tax bill. As ELF exhaled its final breath, joiners-on quickly switched their votes to rally a tally of 26 for and 14 otherwise.
As written and passed, the bill levies a 22.5 percent tax on net profits from oil and gas production. (Note that gas net profits are also included in the bill.) Although he wanted only a 20 percent tax figure, hearing the roar of the crowd, the governor is expected to quickly sign the HB 3001 at 22.5.
His willingness to sign a bill was forecast in his recent address to a joint session of the Special Session wherein he enunciated: "We have held public meetings around the state and we are prepared to make changes to the contract based on those comments. And more: "I can negotiate changes to the contract with the producers in time to obtain ratification before November."
The governor has made a major concession and should be given a tip of the hat for doing so. Likewise, to the Legislature for finding a compromise PPT that nearly everybody can support. (Applause.)
[ACT II, SCENE 2]
A REASONABLY LONG WINDOW
Enter John Browne.
When BP Plc Chief Executive Lord John Browne crossed down stage center in Anchorage Aug. 3, he took the wind out of the Murkowski administration sails that had been pressuring for immediate approval of its "contract," before time ran out and Alaska was left gasless. The Lord of Madingly said that while "he hoped a final agreement on a pipeline accord could be reached over the next few months, there was no need to rush because this project, (like most projects of its scope), had a reasonably long window of opportunity."
Lord Brown still further: We seek an agreement that is beneficial to all parties.
The PPT is a separate thing, but a final pipeline agreement is much more treacherous. However, those who cry that all must be restarted anew are just flat wrong. Most of the present contract (not a contract at all but rather more of a Memorandum of Understanding), is more like "boiler plate language," with only certain particulars left to be resolved. Whether those particulars can be resolved between the primary and general elections in Alaska is considerably speculative. Even if the governor, through a masterful re-write of the Third Act script (think Third Special Session), can stay on to star in the negotiations of another term, it is simply not necessary to re-invent the "contract!" And those who would have us believe differently are only politicking, plain and simple.
First up will be HB 3002, amendments to the Knowles' administration's Stranded Gas Act amendments. (It is often true that what goes around comes around, eh Tony?) Get your popcorn and take your seats for Act III.
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