Alaska Governor Introduces Bill to Advance LNG Project
Alaska Governor Sean Parnell introduced legislation to advance the state’s participation in the Alaska LNG project, which would consist of an LNG Terminal and a pipeline to access North Slope gas supplies for in-state use and for export as LNG. The bill allows the commissioners of the Department of Natural Resources and the Department of Revenue to negotiate terms, subject to legislative approval, for project services and provides authority to modify certain lease terms on property that commits gas to a natural gas project in order to facilitate commercialization. The bill also includes provisions that relate to the oil and gas production tax that would change the tax from a net tax on production to a new lower rate applicable to gross production amounts. Read more in the press release and Anchorage Daily News article.
The bill has been criticized by some Alaska lawmakers for tax reasons and the potential for secret contract negotiations. Read more in the Anchorage Daily News article.