Dear Neighbors,

Thanks to all of you who shared your advice on the Citizen Advisory Vote on the gas line contract. I received a greater response on this issue than any other when I've asked your advice in the past. Your response was overwhelmingly opposed to a Citizen Advisory Vote and in support of the Legislature wisely using the time we have invested in studying this issue to make the right decision for Alaska.

I am pleased that we agreed on this issue. Other legislators came to the same conclusion and the amendment providing for the Citizen Advisory Vote was voted down in committee.

As you are undoubtedly aware by now, the Legislature did approve a change in our oil tax structure. This change was a necessary first step in our work toward a gas line contract. The new oil tax regime is a combination of a gross tax and a net tax. Depending on the price of oil, this tax will provide Alaska with over $1 billion in new revenue while simultaneously encouraging the oil industry via tax incentives to expand their investments in Alaska.

Many of you expressed concerns about a net tax structure; however, I am confident that Alaska will have adequate information from required reports to the Stock Exchange Commission, IRS and Alaska corporate tax records to successfully monitor the new PPT. The final tax rate we voted on was not significantly different from a compromise I attempted to broker in the first Special Session. However, with sixty legislators from across a state as diverse as Alaska, each seeking to represent what they believe is best for Alaska, the final compromise took a great deal of work and time.

As always, I appreciate your input and would like to encourage you to be sure and vote on Tuesday, August 22nd.

Sincerely

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