What sort of ‘unfinished business?'

June 4, 2006

VALLEY VOICES/Chuck Legge

I'm sure everyone's aware of the governor's recent announcement to run again. He has cited unfinished business as one of his reasons for seeking a second term. Unfinished business comes across as sort of ominous, doesn't it? It sounds vaguely threatening when you consider the business he has finished.

Perhaps he wants to save the state from hordes of freeloaders. People who expect everything to be given to them just because they find themselves at a certain point in their lives. Well, he got rid of the longevity bonus so that can't be it. How about the transportation issues in Alaska? It can be next to impossible to get from here to there in this state. Of course, if we play our cards right, we could end up with 12-and-a-half feet of bridge, and the governor has a new jet, so I guess we're good to go on transportation.

Speaking of free rides, maybe he wants to finish the tax and pipeline deal with North Slope producers before he goes? This could secure jobs and income for decades.

It should help ease market pressures on natural gas for the state, and the country. This could be the defining achievement of the Murkowski governorship. This will secure his place in history, and this is why he is seeking a second term. Just who does the Legislature think it is, fooling around with the man's legacy?

Now that we've figured out what the governor's unfinished business is, I guess we can go and check out the cartoon pages. I think the editorial cartoonist is a genius.

Before we go, however, maybe we should glance at some of the highlights of the Murkowski &#8220contract” with the big three oil companies. It's only about 350 pages, so it shouldn't take long.

First, there's the 20 percent tax on profits. Apparently 22.5, or 22, or even 21 percent is excessive. We just don't seem to understand that there's no room in their billions of dollars of profit for an extra percent. We should realize that the oil companies have our best interests in mind when they warn us that any more tax could result in less investment in Alaska. Thanks for the heads up, guys.

Then there's the time table. Oil companies want stability, so the Murkowski &#8220contract” binds Alaska to a tax rate and structure that lasts 45 years. Yep, we're obligated until 2051. Of course, the oil companies have obligations too.

They are supposed to build a natural gas pipeline with a little financial help from you and me. In fact, article 5.1 of the contract reads that oil companies are responsible for &#8220Š advancing the project as diligently as is prudent under the circumstances.”

Now we're getting tough. Our obligation starts the second the contract is signed and lasts 45 years.

Their obligation starts Š uh Š whenever. How's that for showing them who's boss?

The next part is my personal favorite. Article 37.2 on limitation to damages and remedies states that, &#8220The state and the participants have negotiated this contract in consideration of their consent to limit recovery of certain loss. Accordingly, in no event is any party liable to any other party for the following loss, however caused, that arise out of or relate to this contract or breach of it: (a) any consequential or incidental damages, including lost profits; or (b) any special or punitive damages.”

Wow, those lawyers can sure turn a phrase, can't they? What this amounts to is, oil companies can become as creative with their bookkeeping as they have been with their ad campaigns, and we can respond with a hardy tsk tsk.

Let me say that again. Big oil can cheat us, and we can't sue for damages.

Of course, there's no reason to think that oil companies would want to defraud us. Oh yeah, that Amerada Hess thing involved some accounting peculiarities, took 15 years in court, and resulted in a $600 million reimbursement to the state.

That was just ironing out a few differences between friends. Then there's the Exxon Valdez. A lot of fishermen are waiting still for the first penny from that settlement. It's probably Alaska's fault for putting Prince William Sound in a shipping lane.

There are a few other concerns, like invoking stranded gas provisions, and whether or not we should tax profits instead of production, but I have unfinished business of my own. Those cartoons aren't going to read themselves you know.

Sutton resident Chuck Legge is a free-lance cartoonist whose work appears in every edition of the Frontiersman. His Valley Voices guest opinion column appears here every four weeks.