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Tuesday, March 22, 2011

Parnell's Own Advisor Refuses To Endorse HB 110

This is an excerpt from the Teamster's Legislative Newsletter:

"The Governor has said the state would continue to receive its fair share of revenue, while establishing a secure investment climate for our industry. A consultant hired by the Administration, Rich Ruggiero, stated in his testimony last week to the House Resource committee that he was not endorsing the Governor’s bill, but did give an up and down scenario. If the legislature passes HB 110 the upside could result in companies redoubling investment on the North Slope and the Trans-Alaska Pipeline System (TAPS) and they will continue to operate through 2050. His downside scenario is the legislators cut taxes and the companies don’t invest, and TAPS stops flowing sometime before 2030. If TAPS last longer, the state could receive $210 billion dollars in tax revenues or lose $20 billion dollars over the next 15 to 20 years by reducing taxes without an effect. According to Ruggiero, if companies want to take Alaska oil and reinvest somewhere else, then the state should get its share, if they want to develop the North Slope then the state should encourage the companies to do so. The bill, with a few amendments, moved out of House Resources on February 28th."

Richard Ruggiero LNG Manager
Gaffney , Cline & Associates
1360 Post Oak Blvd # 2500
Houston, Texas 77056

713 850 9955
United States
GCA is an international advisory firm focused on the provision of integrated technical and managerial services and independent advice to all sectors of the oil and Gas Industry.

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