Senate President Gary Stevens, R-Kodiak, listed off a long list of past transgressions by Alaska’s oil and gas industry to the Chamber of Commerce on Thursday. From the Exxon Valdez oil spill to the Corrupt Bastards Club to what Stevens said was past “deliberate falsifications” by the oil and gas industry.
He said Alaskans were “abused” and found to have practiced “inexcusable trustfulness” of oil companies in the court case Alaska v. Amerada Hess. In that case, the state accused several oil producers of deliberate fraud in paying fewer royalties than they were obligated to do, according to an abstract of an academic paper written on the subject by Willam Johnson at Washington state University. The state eventually settled the case, and received $600 million to do so.
“The wise person learns from history,” Stevens said. “We don’t want to be accused again.”
Alaskans have a wariness of the oil industry, Stevens said.
“A basic mistrust due to an abusive relationship,” Stevens said.
And oil industry corruption is not just a historical issue, Stevens said.
Stevens said former Gov. Walter Hickel told him the oil industry is pumping money into the campaigns of industry-friendly candidates to grease the Legislature for its preferred tax laws.
“See what happens next year with a friendly Senate,” Stevens said. “Watch out, pay attention.”
“I have heard some folks say they are not concerned if this Legislature does not amend ACES,” Stevens said, “because next year they plan on having a much friendlier Senate more likely to do their bidding.”
Stevens said Alaska’s law-makers should keep in mind this past as they craft new oil and gas tax legislation. Like good educators who want more resources for their classrooms, the oil industry never would turn down more money. Gov. Sean Parnell’s tax bill, House Bill 110, gives too much to the oil industry, Stevens said.
The oil industry called it “a good start” Stevens said.
Stevens said the governor’s bill is a $2 billion giveaway with no guarantee of return and a “$2 billion historic gamble,” with taxpayer money, Stevens said.
“Is that reasonable?” he asked.
Stevens said he was skeptical of claim by the Parnell administration that HB 110 would result in tens of billions of dollars in investments by three oil producers, BP, ConocoPhillips and Armstrong.
“Alaskans have been deceived so often by the industry that we have a right to say ‘prove it,’” Stevens said.
The Senate’s tax bill, Senate Bill 192, offers a more modest hundreds of millions of dollars in tax breaks geared toward incentivizing oil and gas exploration. The bill tweaks progressivity to share more revenue with oil companies when per barrel prices rise.
Parnell has made a commitment to return the trans-Alaska pipeline to 1 million barrels per day of production.
Stevens said the discourse about tax reform has gone from honest disagreement to character attacks.
He called for greater civility among legislators, the governor and industry insiders.
Stevens referenced Parnell’s “Choose Respect” domestic violence campaign when he said “we need to show respect across the board.”
Stevens said the late Gov. Jay Hammond wouldn’t like Parnell’s tax plan. He said Hammond created his philosophy around Article 9 of Alaska’s Constitution, which states Alaska’s resources are developed or conserved “for the maximum benefit of its people.”
“It seems a little disingenuous for the governor to say his bill is superior because the industry supports his bill,” Stevens said.
That the oil industry prefers the governor’s bill is natural, he said. It gives oil companies billions of dollars in tax breaks instead of hundreds of millions of dollars.
“Does this surprise anyone?” Stevens said.
Stevens said far from being on its last leg, the pipeline is expect to be around for 50 to 100 years, according to the oil companies. It is normal for mature fields like Prudhoe Bay to face decline, he said.
Stevens told a story about Al Gore requesting two pats of butter from his waiter. The waiter repeatedly returned with one pat. Gore asked “Do you know who I am?” The waiter said “Yes I do, but I’m the guy who passes out the butter.”
“We are Alaskans,” Stevens said. “We are the ones passing out the butter.”
• Contact reporter Russell Stigall at 523-2276 or at russell.stigall@juneauempire.com.





Comments (21)
Add commentMakes you wonder if Gary
Makes you wonder if Gary didnt get his bonus from the oil companies so he's spilling his guts about their evil nature...
What he is saying though is completely true. The oil company could care less if we have operating schools or not. They want as much money as they can get and will buy as many polititions as it takes to get what they want.
Straight shooter
Gary Stevens is a good man to have on our side. I'd like to see him run for Governor.
I agree Orion. He does seem
I agree Orion. He does seem to be a fairly straight shooter. I shouldn't say he's on the oil company dole. I really don't know but it sure seems the majority are...
We have...
...the best governor and House that money can buy. Apparently the Senate is up for sale now.
Refreshing to see a politician lay the cards out so clearly on the table. Have to agree with Orion, he would make a good governor. But the oily's would pump in the money for his defeat.
Rough Cut - really?
I say Stevens is right.
Look, if your cousin - every single time he is invited to your home - puts out cigarette butts all over your couch, steals your grandmother's sliver, and buys beer for your underage kids - - - He simply isn't going to be invited back (at least not to MY house) - regardless of whether his granddaddy's fortune paid for part of the house.
Enough is enough. Let's have thanksgiving with just immediate family from now on.
Thank you Alaska Senate
Thank you Senator Gary Stevens and the rest of the Senate majority coalition. Thank you for standing up for the best interests of Alaskans. I do not blame the oil companies for lobbying for lower taxes. That is their right. It is refreshing to have Senators who refuse to sell out the State for peanuts in campaign contributions. After Bill Allen was finally busted for illegal pay offs, I proudly wore a bumper sticker saying, "Thank you FBI". I am going to have to commission a new one saying, "Thank you Alaska Senate".
Alaskans are the ones with
Alaskans are the ones with the power to choose our next Governor.
Lets kick out Big Oil's lobbyist Sean Parnell
Lobbyists do not belong in our Government.
We will never get good public policy from a lobbyist.
gary stevens for governor!
I'd vote for him.
Thanks Senator Stevens for
This old Alaskan thanks Senator Stevens profusely, for having the courage to call a spade a spade, for laying out the position of many Alaskans who have not yet heard THEIR voices defended as loudly as the producer`s "voices" as evidenced by the lock-step vote recently on SEVENTEEN worthwhile amendments to HB9, the "phantom" gasline proposal. This article in the Empire spells it out pretty clearly to this point folks, and lays the facts out as clearly as they appear to myself as well as many hard working Alaskans. They are going to attack Stevens. Already have first thing this morning in house session. Kyle did not attack the message or it`s voracity as far as the influence of the oil lobby on Alaska tax policy, because they CAN`T! They will however attack Steven`s morality. All I have to say to Rep. Johannson is, simply, look who`s talking... You are a poor representative of your own moral argument Representative. "Thou dost` protest too much"..as old William the Shakespeare once noted.
Thank you, Senator
It's wonderful to see someone with common sense in politics.
Thank you.
Attaboy Senator!
Keep up the good work Senator Stevens!
Everything you said is true.
One thing people forget is, Parnell's tax giveaway proposes $2 billion PER YEAR!
How about this scenario? How about NO tax/royalty cuts for oil.
Leave ACES alone! It's working!
It doesn't matter what the oil companies' tax rates are, they will always argue for lower. What they are paying right now is fair.
It's all about greed, from a greedy institution with bought-and-paid-fer politicians.
Keep their feet to the fire, Senators! Alaskans are watching.
Stevens for governor
I haven't voted for republican for a while but I'd vote for Stevens. He tells the truth.
ACES works just fine the way it is.
homie legit
homie stevens always reminded me of a cat dat would be a good santa claus. ya know, kickin it at the mall with all the chillin'. and if homie stevens wanna be a santa claus, make dat senate minority pull yo' jolly cheeks around. put dyson in a lil raindeer outfit and I call dis life a success no doubt as gwen stefani y'all.
anyway, treyshawn don't get down wif many pubkins, but in da five years i known stevens, homie ain't 2shabby.
leadership
We are so starved for good political leaders in the state that when one tells the truth it is a news item.
It seems that the majority
It seems that the majority leader actuall holds power to stop stupid things the gov feeds the house. I'd rather have him where he is, he's doing good.
treyshawan Da Sheed
I think I might enjoy or even agree with your comments at times. But I grew up learning to read and write the English language as spoken in the United States. I have even studied several other languages.
If your comments were written in good, modern English, with correct spelling, punctuation I might appreciate them much more.
Until then, I and perhaps many others, will disregard any comment you make. I don't think it will be our fault to do so.
Have you ever thought, it may be your lack of ability to communicate well your thoughts???????
@wmolson - no dice homie.
@wmolson -
no dice homie.
@Stu
You make a good point, but I think he's in damage control mode, trying to counteract what the idiots in the House are doing (Cathy Munoz being part of that pack), while also trying to rein in our lobbyist-in-chief. Imagine an honest, sensible guy like him in the Guv's Mansion - how refreshing would THAT be?
And I have faith that the good people of Kodiak would elect another quality senator to replace him. Not sure who would take the Senate leadership role...
Which senators are up for reelection this fall?
Crooked Pols
If I didn't know that I was reading an article about oil companies I would have sworn that it was about politicians!