By OGJ editors
HOUSTON, Nov. 8 -- Alaska voters overwhelmingly rejected Ballot Measure 2, a proposal to tax North Slope natural gas reserves until an Alaska gas pipeline is built to deliver gas to the Lower 48.
With votes from more than three fourths of the state's precincts tallied late on Nov. 7, the measure was losing by a 2-1 margin, state officials reported.
Ballot Measure 2, also known as the Alaska Gasline Now initiative, sought to provide an incentive for gas production. Leaseholders on the North Slope would have had to pay an annual reserves tax of 3¢/Mcf for undeveloped gas reserves.
The payments would have been repealed upon pipeline construction. The proposal said leaseholders would get their money back as a deduction from other state gas taxes.
Supporters suggested that the tax would spur North Slope oil and gas producers ExxonMobil Corp., BP PLC, and ConocoPhillips to build a gas pipeline. The tax would have made it costly to not build a pipeline, tax proponents said.
The oil companies said the tax would delay rather than accelerate pipeline construction by adding cost and risk to the $20 billion pipeline project.
The pipeline remains uncertain because the Alaska Legislature in special sessions repeatedly refused to approve a pipeline contract that Gov. Frank Murkowski negotiated with North Slope producers.
