Governor addresses Chamber of Commerce

July 22, 2005

DAWN DE BUSK\Frontiersman reporter

WASILLA - Arriving late for his address at the Greater Wasilla Chamber of Commerce luncheon on Tuesday, Gov. Frank Murkowski joked about being stuck in traffic slowed by road construction.

He guaranteed during his speech to support Mat-Su road improvements, like the Parks Highway upgrades that delayed his entourage, to "make living conditions better and safer not just for everyday activities, but for kids moving on the school buses."

The governor traveled to the Valley not only to speak but to sign into law two bills he said would help promote the health and wealth of businesses operating in Alaska. Mat-Su legislators sponsored both bills.

Murkowski signed House Bill 197, sponsored by Rep. Vic Kohring, R-Wasilla. That law will allow natural gas-drilling companies to skip a contingency plan if there's no chance of hitting oil while exploring for natural gas, Kohring said.

If the state Department of Natural Resources, Division of Oil and Gas, and Oil and Gas Conservation Commission determine that geological formations in a given area indicate there's no chance of finding oil while drilling for gas, companies drilling in the area will also sidestep the previously required proof of financial responsibility.

"This simplifies the process with less paperwork," Kohring said. "The drilling companies don't have to jump through as many hoops. It expedites the process of allowing them to get natural gas out of the ground. The goal is to get more wells punched, get more gas to market. The result is more jobs, more money for state treasury for building roads and schools."

Friends of Mat-Su board member Chris Whittington-Evans on Wednesday said the government shouldn't be subsidizing industry.

"Alaskans want operators to put up the money to clean up their mess afterwards. Rather than lowering financial responsibility, especially in areas with residential values, we ought to be raising it," Whittington-Evans said.

Whittington-Evans said the coal-bed methane issue has proven that people don't want to jeopardize their own investments in land, home and water wells, particularly when the resource being removed is exported out of state.

Murkowski also signed Senate Bill 158 into law on Tuesday. That bill prohibits other government entities - such as boroughs and municipalities - from taxing companies working on state contracts.

Sen. Charlie Huggins, R-Mat-Su, drafted the bill after the municipality of Anchorage taxed Dimond Electric Co., which was doing a state contract.

"This just maintains the status quo. It allows businesses to improve local communities without being taxed by the community," Huggins said prior to watching Murkowski's signing of the bill. As part of the ceremony, Murkowski handed Huggins and his wife, Becky, gold-plated pens.

During his speech, Murkowski also told the audience why he left Washington, D.C., and sought the governorship in Alaska.

"Our conviction is to build the economy of the state. We want a strong, healthy economy, good health care and good job opportunities," he said.

Murkowski stressed the importance of marketing Alaska's nonrenewable resources, rolling the profits back into dividends and using technology to conserve the state's renewable resources, like forests and fish.

"We're sitting in a position that is envious to other states," he said.

Contact Dawn De Busk at 352-2252, or dawn.debusk@

frontiersman.com.