Fully-funded PFDs, schools, roads ‑ motherhood and apple pie
Now that the question has been approved by Lt. Gov. Kevin Meyer, signature-gatherers are out in front of retail stores with petitions to place a proposition increasing oil taxes on the November, 2020 general election ballot. We asked several people gathering signatures how the $1 billion to $1.5-billion-per-year oil tax increase would be used. Most said for infrastructure, roads and education but all said to “fully-fund” the Permanent Fund Dividend, essentially meaning an increase in the PFD from $1,600 this year to $3,000. One signature gatherer told us the new tax enacted by the initiative would not increase the industry’s tax but would only “close loopholes,” a reference to an oil production tax credit now in the law.
Dunleavy goes after regulations but statute changes needed
Gov. Mike Dunleavy has vowed to revoke or neuter 100 “job killing” state regulations on business. One targeted rule is the state’s oil spill contingency and response program that in place since the 1989 Exxon Valdez spill in Prince William Sound. State Dept. of Environmental Conservation officials have put the spill rules out for public comment in a stakeholder “listening” process and said additional comments will be requested if specific changes are proposed. Statute changes may be needed if significant changes are requested, however. The spill rules link to a law passed by the Legislature in the wake of the Exxon Valdez grounding and spill.

The spill standards were originally set for large crude oil tankers and oil well drilling where blowouts are a concern but since 1989 have been broadened to include fuel barges, tank farms and other petroleum facilities. The changes could include consumer-protection rules as well as those affecting natural resource industries. DEC officials said about 50 of the 100 rules have been identified and said modifications can be made without jeopardizing public health or safety.
State doing adequate review of BP-Hilcorp deal? Some have questions
The Federal Trade Commission said it had no antitrust concerns with Hilcorp Energy’s purchase of BP’s Alaska assets, clearing a federal regulatory hurdle. BP is selling it shares of the Prudhoe Bay oil field, the Point Thomson gas and condensate field and Trans Alaska Pipeline System. State approvals, by the Regulatory Commission of Alaska and the Department of Natural Resources, are still needed for the purchase of the pipeline, which is regulated by the RCA, and BP’s state leases in Prudhoe and Point Thomson. DNR meanwhile appears to be conducting an internal review of the Hilcorp-BP deal and will brief state legislators on the review in mid-December. Some lawmakers are questioning whether the agency has marshaled sufficient resources for the review, which is complex because it involves multiple separate state royalty agreements.

The state regulatory commission now has hearings underway on the deal with one issue emerging on whether Hilcorp has adequate resources to handle its share of a major pipeline spill. Hilcorp refuses to release details of its financial capability to the public, arguing those are private.