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Contact Information:
Toll Free:(800) 665-2689
In the Homer Area:(907) 235-2921
Via Mail or in Person: 345 W. Sterling Hwy., Suite 102B
Homer, Alaska 99603
Fax:(907) 235-4008
Website:
Email:
Greetings from Juneau during the longest legislative session in history. No one is pleased to be enjoying the summer and cruise ship crowds in the capitol. The governor has kept adding topics to the 'call' for this session, but other than the restraint and identification of potential witnesses to a crime, I do not think any will be considered.
Petroleum Production Tax
This past weekend the House continued the discussion on , the oil and gas production tax revision (PPT). Although there was bipartisan support in the House to pass PPT bills during regular session and the first special session, there was little bipartisan agreement on again passing PPT. Some House members wanted a gross based tax with high tax credits to mimic the profits based incentives in the PPT proposal. I could have supported a gross based tax but there were not enough votes to move such a bill. Attempts were made to craft both a tax-reducing incentive triggered by company production, and an incentive based on company investment. The latter was finally acceptable to enough to get the votes to move from the House to the Senate. This version sets the tax range between 25% and 20% and permits individual companies to reduce their tax rate from 25% incrementally to a minimum of 20% based on their level of investment. Under this proposal, the current average company investment of $3.50 per barrel would equal a tax rate of 22.5%. If a company invests $2.50 per barrel less, its tax will be 25%. If it invests $2.50 per barrel more, its tax rate will be 20%. This compromise was enough to get the votes to move the bill, though very few people were excited or satisfied. The bill does have a progressive tax of 2.5% per $10 price increase above net $40 per barrel– which roughly equals $55 per barrel gross. The bottom line was that since it was retroactive to April 1, 2006 the bill would be projected to raise about 1.6 billion dollars more than our current ELF-modified production tax. Most of the other provisions were the same as we have seen in the previous bills. I supported the final reconsideration vote that passed 29 to 10.
Prudhoe Bay Shut Down - What a Shock!
The operator of the largest oil field in the United States found excessive corrosion in the collector and feeder lines between the wells and the Trans Alaska Pipeline and has decided to shut down the field for repairs. This is half of the entire North Slope oil production. British Petroleum (BP) was ordered by the federal government to inspect all the pipelines after the large leak last year. The situation is such that they have determined to replace all the collector lines in the field. We will not know for several days if they can maintain any of the production by using alternative lines, how long it will take to do a total shut down, or how long the repair/replacements will take. We are all hoping that alternative lines and/or minor repairs can allow production to continue at a reduced rate while parallel pipelines are constructed.
Hoben Park in Seward added to National Register of Historic Places
The Keeper of the National Register of Historic Places added Hoben Park in Seward to the list June 21, 2006. The National Register is the nation’s catalog of over 83,000 historic properties worthy of preservation.
In 1923 Residents of the City of Seward, interested in promoting their town as the Gateway to Alaska completed a public park near the railroad depot and main dock in time for President Warren G. Harding's visit to Alaska. Harding was the first U.S. president to visit Alaska. He came to drive the golden spike signaling completion of the 470-mile, government built Alaska Railroad that connected the year-round port of Seward with the interior hub city of Fairbanks. Seward residents expected the railroad to bring more visitors to their town and wanted the park for the enjoyment of travelers arriving by train or by sea. A local businessman and former mayor, Hedley V. Harry Hoben, for whom the park is now named, had his office across the street and had his employees maintain the park until his death in 1948. Today, Seward residents are working with the city government to rehabilitate the park to its historic appearance.
Upcoming Events
Alaska Municipal League Meets in Homer
The Alaska Municipal League will be holding its annual Summer Legislative meeting in Homer on August 10-12 at the Best Western Bidarka Inn. Conference topics include borough formation, alternative energy, and current municipal energy needs, as well as municipal PERS liabilities, and Revenue Sharing. The conference is $50 for AML members and $75 for non-members. Go to for more information.
In conjunction with the AML meeting, the City of Homer will hold a reception and gubernatorial candidate forum at Lands End Resort on Friday, August 11th at 5:00 pm.
This is a good opportunity to meet and make your concerns known to the possible future Governor.
Office on Wheels, Staff in Seward
My staff will again be traveling to Seward by bicycle the week of August 14th. Katie Shows will be attending the Seward City Council Meeting, Lowell Point Community Council Meeting, and meeting with Moose Pass residents and the Seward Senior Center. Be sure to approach her with any questions or comments you have if you are at one of these events. She will also be holding office hours at the Legislative Information Office on Tuesday the 15th from 3pm to 7pm. Please stop by or call 399-1075 if you cannot make it on Tuesday and would like to schedule an appointment.
Pacific Fisheries Legislative Task Force
The Pacific Fisheries Legislative Task Force will meet in Seward on September 15-17 to discuss issues pertinent to West Coast fisheries. While the agenda is still being firmed up, tentative items for discussion include Pacific Salmon Treaty Funds, Ocean Monitoring, a status report on the North Pacific Fisheries Management Council, and an update on Bonneville Power and Snake River salmon recovery efforts. The Task Force is composed of legislators from states bordering, or with streams tributary to the Pacific Ocean. I joined the Task Force in 2004 representing the Alaska Legislature.
Following Bills
All bills can be accessed through the state’s Bill Action and Status Inquiry System (BASIS). You can see what committee a bill is in, when it will be heard, how committee members voted, and much more. You can view all bills relating to your specific areas of interest by selecting "Subject Summary" from the menu on the right. Access BASIS through the link below, or by doing a search for "BASIS Alaska".
http://www.legis.state.ak.us/basis/start.asp
Live on the Web
Most committee hearings can be seen and heard on Gavel-to-Gavel, which is broadcast on both local access TV and on the Internet. You can also access online archives from their website. .
Contact Us
If you would like to speak to me regarding a specific issue, it is helpful to first get in touch with the member of my staff handling related issues. You can click on their email addresses to send them a note, or just give us a call at the office. Please provide your full name, address and phone number on any correspondence with the office. Your time and effort are much appreciated.
Louie Flora
State Affairs, Resources, Fisheries, HB 328
(907) 465-4963
Katie Shows
Health Education and Social Services, PERS/TRS, Budget, HCR 5, HCR 28, HB 238
(907) 465-2028
Rep. Paul Seaton
House District 35
(800) 665-2689
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