Alaska State Legislature
News from the Senate and House Majorities

Wendy Lindskoog, (907) 465-4582
Jerry Ritter, (907) 465-3804
State Capitol
Juneau, AK 99801
web site: http://www.akrepublicans.org
Actuality line: 1-800-478-6540

Legislature Protects Alaska Jobs and Families

Override of Knowles' Veto Supports Cook Inlet Oil and Gas Industry

For Immediate Release May 7, 1998 Contact: Rep. Mark Hodgins at (907) 465-2283.

Juneau – On Thursday, the Alaska Legislature, met in joint session to override Governor Tony Knowles' veto of House Bill 380. This measure is intended to stimulate the safe and rapid development of old oil & gas reserves in and around Cook Inlet. The bill contains strong local hire and local manufacturing provisions.

"House Bill 380 will provide jobs for Alaskans and will result in deposits into the Permanent Fund and General Fund" said Rep. Hodgins. "To date, these six fields have not produced one nickel for Alaska. Not one nickel for the Permanent Fund and not one nickel for the General Fund. For 30 years these fields have sat idle; hopefully House Bill 380 will be the incentive needed to jump start them into development," stated Rep. Hodgins.

The fields that qualify under HB 380 were all discovered more than 30 years ago and have remained undeveloped due to poor economics.

"I'm really surprised that the governor turned his back on the small independent oil companies and the individual Alaskans who own leases in Cook Inlet," said Senator Drue Pearce (R-Anchorage), who sponsored companion legislation in the Senate. "The governor was quick to go to the major oil companies, including the foreign company that is the state's biggest producer, to ask them what he might do for them when he was first elected. The Badami Bill and the Northstar Royalty Reduction were passed at his instigation. His attitude today toward the oldest production area in the state, which is in serious decline, is exactly the opposite of his attitude toward the big companies.

"I think the Legislature did the right thing for the people of Southcentral Alaska, who depend on Cook Inlet for jobs and for our cheap electricity rates," Pearce said.

"Two years ago Governor Knowles signed a similar royalty reduction bill on all new oil & gas discoveries in Cook Inlet," Hodgins said. "The Discovery Royalty bill grants the same reduction as HB 380, 5% for ten years, and contains no upper limit on quantity or price cap. It also requires no economic analysis. It appears that Governor Knowles is open and ready for business, but only if he sponsors the bill," Hodgins said.

"This bill will provide good jobs for Alaskans," Hodgins said. "Apparently, the governor thinks this is a bad idea," Hodgins said, "but today, the Legislature stood-up and told Governor Knowles that jobs for Alaskans is a good idea, "Hodgins said.

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Broadcasters note: Comments are available on the House and Senate Majority Line at (800) 478-6540.
= Mark Hodgins, 34 K = Drue Pearce, 32 K