Green disputes claim of tax taint

August 7, 2007

RUSSELLSTIGALL/Frontiersman

MAT-SU - Gov. Sarah Palin believes the indictments of three former state representatives, including the Mat-Su Valley's Vic Kohring, tainted the legislative process in approving the petroleum profit tax.

Mat-Su Valley legislators will join their colleagues to review the petroleum profit tax, also known as PPT, at a special session Palin has called that begins Oct. 18. The location of the special session is yet to be released.

The PPT was called into question in May when the grand jury indictments of Kohring, Bruce Weyhrauch and Peter Kott on charges of bribery and corruption. The U.S. Department of Justice accuses the three of taking official acts in return for bribes. These acts include &#8220voting in favor of the PPT bill supported by [oil and gas company VECO]; lobbying other elected officials to support versions of the PPT bill; and providing official support for the natural gas pipeline legislation and the PPT bill.”

Senate President Lyda Green, R-Wasilla, disagrees with Palin's belief the tax has been tainted by the alleged corruption of three lawmakers.

&#8220It's probably unfair to those of us who never had our votes challenged or corrupted,” Green said.

The tax may not have pleased everyone, but it was a good compromise, Green said.

&#8220Everyone had the opportunity to hear the information and came up with the best legislation that could get passed,” Green said. &#8220You go with the package that pleases the most people.”

Green says the tax is usable as is.

&#8220I would let the current plan exist to make sure we have all the correct information about it,” she said.

Palin's Alaska Gas Inducement Act has been met with some skepticism by the oil and gas industry, Green said. The act uses $500 million to entice oil and gas companies to bid on the construction of a gas pipeline from the North Slope.

&#8220The idea is to get cooperation and participation,” Green said, adding that for the Legislature to adjust the PPT after the fact could fulfill the fear of the oil and gas - that after the industry makes a commitment to a project, Alaska will adjust the rules.

&#8220If you have to go back and tinker with [the PPT], but go ahead and give it a couple years,” Green said.

Green also said she is concerned that the special session, which could take up to 30 days, would not give legislators enough time to digest reports coming back from consultants. The PPT could also come up in regular session if a legislator wants it changed.

Legislators may have a tough time coming up with a review of the PPT that Palin would be happy with, Green said. &#8220There are 20 senators and there will probably be 20 opinions.”

Jeff Turner of Sen. Green's office said that the governor has the right to pick the location of the special session; however, Green would like to see the session held close to the Valley.

&#8220She would like it to be held on the road system,” Turner said.

A special legislative session in June was held in the Egan Center in Anchorage. Turner said the venue is ideally located, close to hotels and Legislative Information Offices.

Cody Rice, chief of staff for Rep. Carl Gatto, R-Palmerm said the representative would prefer the special session be held in Anchorage or in the Mat-Su Valley.

&#8220Of course, he would prefer the Mat-Su,” Rice said.

Contact Russell Stigall at 352-2267 or russell.stigall-@frontiersman.com.