Taylor Bickford, Campaign Manager

uneau, AK – The state House has voted to reject Senator Stedman’s proposed “decoupling” of production taxes on oil and gas today in the waning hours of the 2010 legislative session.

This move will result in the state losing potentially $20 billion under likely pricing scenarios as a result of the unalterable tax structure of AGIA. Governor Parnell, a proponent of the billion dollar giveaway, is not confident that there can be a succesful open season without such an arrangement, according to a statement from his spokesperson, Sharon Leighow.

Republican gubernatorial candidate Bill Walker sees Governor Parnell’s plan as an attempt to save an uneconomic project by shifting the consequence of Canadian price collapses from the North Slope producers to the state.

“The intent of AGIA was never to have Alaska subsidize a collapsed Canadian gas market, yet that is exactly what could happen if oil and gas taxes are not separated before May 1st,” said Walker in a statement released today.

“Senator Stedman is correct in his assessment of this potential $20 billion subsidy by Alaska of the collapsed Canadian gas markets. Governor Parnell’s support of this subsidy is indicative of his ‘AGIA at all cost’ position.”

The primary benefit of a gas pipeline to Alaskans, other than providing access to affordable energy for in-state use and industrial use, is that taxes and royalties from gas sales will offset those from declining oil production.