Poliza Idioti

February 24, 2012: Ask long time politicos and most will tell you that at least one candidate questionnaire during their career posed the question; what is your favorite movie? Historically, many list The Godfather as their favorite film.

There is no question that Francis Ford Coppala's epic film about an Italian crime family is one of the cinematic master pieces of all time. Fans of the film should take particular note of one scene that accurately depicts the plot line over oil tax reform in the Alaska State Senate.

In the scene that follows Sonny's death, Robert Duvall is sitting alone in Marlin Brando's darkened den having a drink. 

Brando walks in wearing a bathrobe with his throat bandaged. He sits on the couch and says, "there are cars coming to my house at all hours of the night, my wife is upstairs crying, and I'm beginning to think there is something the don is not being told."

Duvall looks down at his whiskey and replies, "I was going to come up and tell you but I needed a drink first."

Brando slowly lifts the drink from Duvall's hands and says, "And now you've had your drink." 

For Alaska's State Senators, the line from Alaskans should be "And now you've had your drink."

Less than ten days after International Oil & Gas Expert Pedro van Muers told state senators, including Hollis French (D-Anchorage) and Bill Wielechowski (D-Anchorage), that Alaska's current tax regime was not competitive and needed serious overhaul, the state senators seemed poised to ignore the advice they paid thousands to hear.

Van Muers' report was supposed to be the "needed information" that state senators told us they were waiting for. Van Meurs' report was supposed to be the definitive work on how Alaska's five year old tax structure was faring against the rest of the world. Van Meurs' report proved a little too sobering for State Senate Democrats French and Wielechowski.

At a recent press event, Sen. French crowed to reporters that thankfully the senate didn't pass Governor Sean Parnell's oil tax reform proposal. The governor's HB110 was panned by van Meurs who said it wouldn't move the needle on investments.

But French stopped short of crowing about the rest of van Meurs report. In fact he failed to even mention the rest of van Meurs report. This is because van Meurs suggested major changes in ACES to make Alaska competitive in the global marketplace. The exact changes that French has been fighting against.

Here is what van Meurs wrote yesterday in the Alaska Dispatch:

"Since 2006, the world oil and gas industry has moved on and left Alaska to its internal politicking. The higher oil prices, high gas prices in Asia and massive introduction of non-conventional oil and gas resources have created countless new and attractive opportunities for major oil companies outside Alaska.

Unless substantial policy and fiscal changes are introduced that encourage large scale investment in heavy oil, shale oil and natural gas in Alaska, as is being done in competing jurisdictions, the future of oil and gas production in Alaska is bleak."

But all French could offer in the wake of hours worth of testimony from van Meurs was that the governor's bill wouldn't work. The wait of a year "was very, very wise," French said. "I'm just thankful we haven't made a final decision."

However there was no recognition by French that van Meurs described the North Slope situation as "bleak" unless "substantial policy and fiscal changes," were made to ACES. 

There was no recognition by French that the tax policy he led the charge on in 2007, was uncompetitive before he even passed the damn thing.

And there was no admission that van Muers basically prescribed an entire rewrite of the current ACES tax regime.

Detail, details I guess. 

This guy seriously needs a Dale Carnagie couse.

The entire concept of duty to produce as it would apply to the North Slope producers, is a legal myth. 

Taxes and permitting dude, taxes and permitting.