NEWS: Rep. Gara Responds to the Nuna Royalty Modification Approved by the Alaska Department of Natural Resources

FOR IMMEDIATE RELEASE
January 21, 2015

JUNEAU – On Tuesday, the Alaska Department of Natural Resources approved a revised royalty modification for the proposed Nuna development on the North Slope. Late last year Rep. Les Gara (D-Anchorage) submitted detailed public comments about the proposed modification and asked for a review of the royalty modification by the administration of Governor Walker.

“In public comments I asked that the new administration evaluate the royalty modification proposal for this field to make sure it was proper,” said Rep. Gara. “I’m satisfied that it has been reviewed by a new set of more objective eyes with the current administration in place.”

The Nuna royalty modification was approved Tuesday by Acting DNR Commissioner Marty Rutherford. To qualify for the reduced royalty rate, Caelus Natural Resources Alaska must sanction the project by the end of March. 

“Alaskans need to be reminded that fields like Nuna will generate relatively little revenue under poorly crated provisions in SB 21,” said Rep. Gara. “Nuna already receives tax breaks under S.B. 21 that produce a near zero or negative net worth for the state at current prices.”

Even at high prices the tax rate on post-2002 fields produce what economist Scott Goldsmith with ISER estimates is likely a near zero or negative net present value in production taxes for Alaska.

“These provisions in S.B. 21 need to be fixed, so we get a fair share for our resources and protect working families, education, and the public safety of Alaskans,” said Rep. Gara.

For more information contact Rep. Gara at 907-465-2647.

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