MYRL THOMPSON/Capitol Watch

March 4, 2007

After enough years in Juneau observing legislative action, I thought I had already seen about every possible twist, spin or ploy. However, experience will teach you that the possibilities are never-ending. Common-sense ideas are routinely shot down, killed or buried in some fashion or other that leaves you literally shaking your head. At other times, the most lame-brained schemes known to man soar through the legislative process with the greatest of ease.

It is often difficult to figure out what motive, hidden agenda or promise extended, led to any inaction or action taken on a particular bill. One thing is certain, there is usually more to any situation than meets the eye, and it's usually not something that has seen the light

of day.

Sometimes you have to believe that a general lack of backbone exists, when legislators, for one reason or another, just can't find the courage to do what is right for their constituents and their state.

We have too many of what Winston Churchill called, “sheep in sheep's clothing.” Trying to get supposed state leaders to do the simplest common-sense act, too often becomes a long and drawn-out fiasco.

Let's take Sen. Tom Wagoner's Senate Bill 80 as an example of what should be done. This bill closes a huge loophole and cleans up language in last year's Petroleum Production Tax (PPT) legislation.

The oil giant, BP, has already decided to take Alaskans to the bank on those corroded pipes that busted and caused a massive spill and protracted shutdown of production. Using a loophole big enough to steer a double-hauled oil tanker through, they intend to use the costs of repairs as deductions or credits against the PPT to the tune of possibly $40 million-plus.

When asked in committee about the maintenance of those then unregulated pipes, BP seemed to have developed corporate amnesia. They were supposed to dig up and supply that information to the committee, but that didn't seem to happen. It's quite possible those pipes were never pigged or maintained since the time they were taken over from ARCO.

It's not just BP, it could be any company. But BP was just the first to try to use the loophole.

I understand that companies - and especially big powerful companies - will do whatever it takes to support their bottom line. They are profit-driven, and everyone pretty much accepts that fact.

What I don't understand is why some Alaska legislators are not moving very fast on the fix for this unintended loophole. Sen. Wagoner, from Kenai, is certainly doing what is right for Alaskans.

I've heard all the testimony on this issue, read the various letters from the different agencies and heard the oil companies and their supporters testify. This is not rocket science, it's a fairly cut-and-dried issue. We have the right and the responsibility to fix this law.

Sen. Wagoner's bill has 16 co-sponsors in the Senate, including both Valley senators. So here's the part that leaves me bewildered: SB 80 is stuck in Mat-Su Sen. Charlie Huggins' Resource Committee.

I talked to him about this, and he seems reluctant to move the bill out for some reason. When 17 senators are a sponsor of a bill in a 20-member Senate, and a bill isn't moving, then something

is up.

Luckily for Alaskans, the House version of Wagoner's bill - HB 128 - passed out of the Oil and Gas Committee unanimously this week. Committee Chairman Vic Kohring, from Wasilla, was absent, and the vice chair and sponsor of the House version, Rep. Kurt Olson, of Soldotna, managed to get the bill moved on to House Resources.

Make no mistake, the Oil and Gas Committee, and especially Fairbanks Rep. Jay Ramras, stood up for Alaska on this issue.

Whether House Resources Chair Carl Gatto, of Palmer, schedules this bill remains to be seen. HB 128 has enough sponsors to easily pass the House, if it gets heard and moved. However, Gatto is not one of the co-sponsors. If he sits on this bill like Huggins is on the Senate side, then Alaskans may take a huge hit financially.

In testimony, it was stated that the longer we wait on closing this loophole, the more likely the chance that it will be litigated. We have a window of opportunity here, but that window will close if our leaders don't show some intestinal

fortitude.

In years past, there was always someone else to blame. But on this one, it is squarely on the shoulders of our Valley legislators.

I bring this up because Huggins and Gatto are both sitting on other good bills, and Alaskans can't afford that fate with this bill. Legislators have been wasting valuable committee time thus far, and there is no excuse for it.

Simply do what is right for Alaska. We don't need sheep right now.

Valley resident Myrl Thompson is a citizen lobbyist and former independent candidate for state House. He writes a twice-monthly “Capitol Watch” column for the Frontiersman. For information about receiving his weekly e-mailed Juneau Report, contact him at myrl@ak.net.