Lawmakers ask Parnell to review Alaska oil tax

ANCHORAGE - Fifteen state representatives have asked Gov. Sean Parnell to take another look at a 2007 increase in Alaska's oil tax.

The lawmakers said in a letter Friday they are worried the tax increase may wind up doing more harm than good, given news of oil exploration cutbacks.

The legislators include House Speaker Mike Chenault and others in the Republican-led majority. Many of the 15, though not all, opposed the tax when it was passed, the Anchorage Daily News reported.

The lawmakers cited two developments:

- Conoco Phillips announcing that it would not drill an exploration well on the North Slope next year - for the first time in 45 years - and will instead pursue offshore development that doesn't result in state tax dollars.

- BP Exploration (Alaska) Inc. has said it will cut its Alaska spending by 15 percent next year.

Parnell supported the tax and repeated his support this fall, saying the oil companies have taken about $20 billion in profits in the last three years under the system. "Frankly my pitch has been stability of a tax regime is more important to job creation and investment by these companies over the long term." he said.

On Friday, his office said Parnell asked his commissioners of Revenue and Natural Resources to provide the information the lawmakers requested.

The representative posed nine questions about statistics on oil and gas activity and how the industry has responded to tax credits meant to spur exploration. They asked Parnell what recommendations he has for changing the oil tax system that would "encourage exploration and development."

Besides Chenault, the representatives who signed the letter are Jay Ramras, Craig Johnson, Kyle Johansen, Mike Hawker, Charisse Millett, Alan Austerman, Bill Stoltze, Nancy Dahlstrom, Bryce Edgmon, Bob Herron, Paul Seaton, Peggy Wilson, Cathy Munoz and John Harris.