By OGJ editors
HOUSTON, July 13 -- Alaska's legislature convened in special session in Juneau July 12 to discuss issues about partial state ownership of a proposed pipeline to carry gas from the North Slope to the Lower 48.
Gov. Frank H. Murkowski called the session to address a proposed 20% income tax on oil producers associated with a proposed gas pipeline contract agreement (OGJ, Mar. 6, 2006, p. 32).
The tax bill is intended to raise state revenue in times of high oil prices.
In a previous special session that ended last month, lawmakers could not agree on how much to tax oil company profits. "The first special session did not finish the job," Murkowski has said.
He also wants lawmakers to lock in a tax for 30 years as part of a gas contract under the state's Stranded Gas Development Act (SGDA).
On May 10, Murkowski made public for the first time a draft gas-pipeline agreement between the state and the three North Slope producers: BP PLC, ConocoPhillips, and ExxonMobil Corp.
Although the producers have accepted the contract, it remains subject to approval by state lawmakers.
The July special session, which could run 30 days, comes before an Aug. 22 primary election in which Murkowski is seeking reelection.