Hickel offers sound advice for lawmakers

In 2002, former Gov. Walter J. Hickel authored a book called &#8220Crisis in the Commons: The Alaska Solution.” In it, the longtime Alaskan lays out a simple, straightforward case for proper, common-sense management of the state's natural resources.

The people-based approach to sharing resources for the benefit of all is an extension of the Alaska Constitution's &#8220maximum benefit” clause, and it has renewed relevance today as the Legislature debates the merits of proposals to reform the state's oil tax structure. Judging from the intensity of that debate, opinions on what passes for &#8220maximum benefit” is wildly divergent.

What it means to Hickel, however, is clear. In his book's opening pages, he wrote: &#8220The Alaskan people, through our state government, won ownership of much of our land and our natural resources. Using neither classic capitalism nor socialism, we have developed a new way to prosperity, based on common ownership and rooted in constitutional democracy. … This new way is now a remarkable success. Alaska today is a diamond, a brilliant star, a state with an outstanding quality of life, celebrating a glorious natural environment and a robust, healthy economy.”

The tax debate and concurrent negotiations for a gas pipeline place Alaska at a historic crossroads. Which path elected officials choose could well make the difference in how Hickel's &#8220diamond” looks after the dust settles.

Not content to wait and see, Hickel offered up some advice to lawmakers last week. As co-chair of a group called Backbone II, a nonpartisan citizen organization advocating for Alaskans on oil and gas development issues, the two-time former governor urged caution and careful consideration in suggesting the following:

€ Don't pass new oil and gas provisions before you've seen the secret gasline contract.

€ If you do choose to take that risk, hold out for a minimum tax rate of 25 percent at $40 per barrel, with a progressive one-quarter percent increase per dollar per barrel.

€ As a net profits tax can mean unending audits and litigation, include tough enforcement with big penalties for under-reporting.

€ Even better for now, simply repeal ELF for the major North Slope production units. At $60 oil, the state will receive an additional $800 million this year.

€ Don't mortgage our future with oil and gas taxes linked to a gas contract that apparently includes no commitment to build a project, and don't bind future legislatures to a 30-year tax rate. That clearly violates the Constitution and ensures decades of litigation and delay.

€ Dump Senate Bill 316, which effectively strips Alaskans of the right of judicial review and the democratic process.

€ Protect the state's ability to develop North Slope gas. Include House Bill 71 in any oil and gas legislation and require the producers to provide a gas supply for the All Alaska gasline and other legitimate competing proposals.

€ This is the most important issue since statehood. Don't be rushed. Make sure that whatever you do is for the maximum benefit of the people. Take a break. After you've discussed these issues with your constituents, return to Juneau next year and work with a governor you can trust to do what's best for Alaska.

There continues to be no shortage of political maneuvering going on over these issues in Juneau. With the flow of information relentlessly fouled by industry propaganda, we appreciate Gov. Hickel's calm appeal to reason and his continued defense of citizens' rights.

In the end, though, it is up to each of us, individually, to hold elected officials accountable and insist they remember the Alaska Constitution before casting a final vote on the oil and gas issues before them.