JUNEAU — Several measures intended to address a looming shortfall of Cook Inlet gas are being rushed through committees as the end of the Alaska Legislature’s regular session fast approaches.
“I think the House majority considers the governor — as a Republican — part of the caucus. So he carries a lot of weight, as far as the way we perceive things,” Rauscher said.last year to cut royalties paid to the state on new gas production. Department of Natural Resources Commissioner John Boylein April that could help “squeeze out” more gas from Cook Inlet to help avoid or delay importing natural gas.
A second set of proposals from Dunleavy would allow the state to lease depleted gas reservoirs in Cook Inlet for carbon sequestration. Once pitched as a revenue raising tool for the state,The carbon storage bill was amended in the Senate Resources Committee on Friday, with the intention of preventing oil and gas companies from deducting carbon sequestration expenses from their oil production tax obligations. Sen.
“What we would really like to have is some modeling,” said Anchorage Republican Sen. Cathy Giessel, chair of the Senate Resource Committee, on Tuesday. “It has economic implications. And normally we have consultants on board.”The Legislature usually hires GaffneyCline to work as its oil and gas consultant. The firm provides modeling about the financial impacts of amending the state’s oil and gas tax statutes.
“I need to be sensitive to that. I don’t think she is, but I’m going to be sensitive to that,” he said in an interview Thursday. There are few consultants available who are as well-versed in Alaska’s oil and gas structure as GaffneyCline, said Sitka Republican Sen. Bert Stedman. In retrospect, he said, “It would have been nice to have the contract extended.”Sen. Cathy Giessel said she filed a request with GaffneyCline for modeling on the impacts of reducing royalties earlier in the week. But it’s unclear if that modeling will be available before the end of the legislative session.
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