Alaska oil bill draws early fire

April 1, 2011 at 9:29 AM

JUNEAU, Alaska, April 1 (UPI) -- An Alaska lawmaker introduced an amendment Friday that would give oil companies a tax break provided they pledged to increase production.

Alaska Gov. Sean Parnell, a Republican, unveiled plans for 1 million barrels of oil production per day through the Trans-Alaska pipeline system within the next decade.

Parnell said he was proposing a tax break for oil companies to encourage investments and to erase declines in state oil production.

"The time to reduce oil taxes is now and I am asking all Alaskans to send a clear message to legislators in Juneau that a 'do-nothing' strategy is unacceptable because Alaska's future is at stake," he said in a statement.

But state Rep. Bob Miller, D-Fairbanks, introduced an amendment that would put certain restrictions on oil companies.

Under Miller's plan, companies would get a tax break until January 2017. After that, they would need to have increased production by 10 percent of current levels to continue getting a break and increase production by another 2 percent each year beyond 2017.

"We want to be sure that they are earning the breaks that we are giving," Miller said in a statement. "This amendment says here's the benefit. If you do not make certain metrics for the benefit of Alaska, we withdraw those benefits."

Like Us on Facebook for more stories from UPI.com  
Related UPI Stories
Topics: Sean Parnell
Latest Headlines
Top Stories
JetBlue first major airline to offer direct New York to Cuba flights
BBC to lay off 1,000 people to make up for $234M in lost revenue