Ballot Measure 2 bad for Alaska

Bill Sheffield, John T. Shively and Edward B. Rasumson/Spectrum

This statement of opposition to Ballot Measure 2, which would implement a gas reserves tax, was co-written by Bill Sheffield, former governor, John T. Shively, former commissioner of the state Department of Natural Resources, and Edward B. Rasmuson, chairman of the Rasmuson Foundation. It is part of the information supplied to voters by the state Division of Elections about the Nov. 7 general election.

€ Ballot Measure 2 discourages oil and gas exploration and development.

Alaska's oil production continues to decline, and we need new investment in oil and gas exploration and development. But, when explorers find oil, they also find gas. That gas would then be subject to billions of dollars of new taxes, making it less likely that the producers would make the investments necessary to find and produce more oil and gas. Alaska needs new investment, and this ballot measure would have a chilling effect on that investment.

€ The Gas Reserves Tax puts the Alaska Gas Pipeline in jeopardy and will delay its development.

The Alaska Gas Pipeline would create thousands of jobs and generate new state revenue for roads, schools and other public services. The project is now at a critical crossroads. Alaska can choose to move forward with the project, or not.

Ballot Measure 2 will jeopardize the gas pipeline, placing billions of dollars of new taxes on the project, while also discouraging oil exploration. Voting yes on this initiative puts Alaska's future at risk.

€ Ballot Measure 2 would mean fewer jobs, less state revenue, and less money in the permanent fund.

Alaska needs the gas pipeline, with its thousands of jobs and billions in state revenue. Without the development of the Alaska Gas Pipeline, North Slope oil roads and schools, and less money deposited into the permanent fund. This ballot measure could stop development of the gas pipeline and discourage new investment in Alaska.

€ The Gas Reserves Tax sends the wrong message to Alaska investors and employers.

No other jurisdiction in the world imposes such a tax, because it is simply bad public policy. The reserves tax punishes explorers and gas leaseholders and creates disincentives for future investment. Passage of the reserves tax would indicate to investors across industries that Alaska is not open for business and that our policy of stable taxation is eroding.

Sen. Ted Stevens recently expressed his view that &#8220our opportunities are staggering, but we must attract investment if we are to realize this potential. The choices we make now will determine our ability to create a climate for investment in our state. If we choose to implement a gas reserves tax, we will discourage those who seek to invest here, and we will put our future as a leader in natural resource development at risk.

We urge you to vote &#8220no” on Ballot Measure 2.