The fun is over, it's time to get down to business

The party is over for the Palin Administration and the Alaska State Legislature, the tax legislation that was implemented through ACES has to be reworked to stimulate production.

The price of oil and the increase in spending dictate this.

The Alaska Legislature, the Palin Administration and even the EDITORS at the ADN
looked to Alberta when it drafted its legislation.

From the ADN:

UPPING ALASKA'S OIL TAX

In Alberta, the 105-page "Our Fair Share" report concludes the province is being shortchanged on royalties and taxes.

"The total government take ... can be increased with Alberta still remaining an attractive investment destination," the report says, acknowledging some loss of industry spending in the province.

Alaska Gov. Sarah Palin called state lawmakers into special session last week and handed them a plan she calls "Alaska's Clear and Equitable Share." It calls for upping the oil tax rate that Alaska lawmakers wrote only last year.

The Palin administration says its tax plan would place Alaska about average worldwide in terms of government take.

That's also the opinion of Pedro van Meurs, an international tax consultant and a key adviser to former Gov. Frank Murkowski on last year's oil tax change.

Last week, van Meurs recommended that lawmakers not change the tax until 2011, when the law calls for a review. However, he also said Palin's proposal to raise the tax rate from 22.5 percent of oil company profits to 25 percent fits with what he recommended to Murkowski last year.

"That is perfect as far as I'm concerned," van Meurs said.

Van Meurs also said he sees no harm in Palin's plan to end tax credits for past oil field investments, and he sees no "great evidence" that oil field costs have risen as much on the North Slope as in other oil zones such as the Gulf of Mexico and Alberta.

State Revenue Commissioner Patrick Galvin acknowledges the governor's tax plan could ding investment to some degree. However, the state and its experts believe the plan will net more state revenue without jeopardizing Alaska's standing in the world as a good place for oil companies to spend their money.

After past oil tax hikes in Alaska, oil companies sometimes reacted by axing planned drilling or other work, only to relent and go ahead with the projects later.

Well Alberta is learning their lesson in raising taxes on the oil industry. Yesterday it is reported that Alberta is asking their federal government to cut taxes even though Alberta recently raised them.

The Alberta government is seeking federal tax breaks for the newly struggling oil sands sector, including accelerated capital writeoffs for upgraders, as sliding oil prices and high costs have caused companies to delay or shelve development plans.

Iris Evans, the province's Minister of Finance and Enterprise, plans to make the pitch next week at a meeting of federal and provincial finance ministers in Saskatoon, a spokesperson said.

"We want to talk about anything that will help stimulate the economy and encourage investment," spokeswoman Robyn Cochrane said.

Last week, Norwegian-based StatoilHydro ASA became the latest in a parade of companies to announce the delay or withdrawal of plans to build upgraders near Edmonton. Six months ago, there were as many as seven companies with such plans.

Virtually all those investments have now been put on hold.

StatoilHydro blamed lower oil prices, continued high costs in Alberta and regulatory uncertainty for its decision.

There is a lesson here for the Palin Administration and the Alaska Legislature. You can never tax yourself into economic prosperity while you spend like a drunken sailor.

And last but not least, Dan Fagan KFQD talk show guru and Andrew Halcro, internet gunshoe guru pointed to Pedro van Muers as the go-to-know-it-all-guy when it came to oil deals.

From the ADN:

That's also the opinion of Pedro van Meurs, an international tax consultant and a key adviser to former Gov. Frank Murkowski on last year's oil tax change.

Last week, van Meurs recommended that lawmakers not change the tax until 2011, when the law calls for a review. However, he also said Palin's proposal to raise the tax rate from 22.5 percent of oil company profits to 25 percent fits with what he recommended to Murkowski last year.

"That is perfect as far as I'm concerned," van Meurs said.

Van Meurs also said he sees no harm in Palin's plan to end tax credits for past oil field investments, and he sees no "great evidence" that oil field costs have risen as much on the North Slope as in other oil zones such as the Gulf of Mexico and Alberta.

Fagan and Halcro, do your homework next time. Van Muers said he saw no "great evidence" that oil field costs have risen"? Try telling that to the companies in Alberta.

You certainly didn't do your homework when it came to Trooper Wooten and his past ex-wives/child custody issues and you two didn't do it when it came to van Muers.