Friday, September 9, 2011

Palin's ACES after 4 years = more tax revenue for Alaska

Palin's ACES after 4 years = more tax revenue for Alaska

  My Photo

Caribou herd migration near Prudhoe Bay, Alaska
I have run into strange criticism from Palin-haters recently.  They are upset about legislation she passed in 2007 in Alaska called ACES.  To these critics, ACES is "horrible" and the "worst" legislation "ever".  From what I've read, critics are standing on very wobbly legs and apparently must  hate needy people relying on government assistance.  (I'll get to that in a sec...)

Regarding why ACES critics are completely wrong, the best round up I found is from March 2011, Whitney Pritcher: part 1 here and part 2 here.

For this post, however, I want you ACES critics simply to think about people in the State of Alaska -> the needy people and those on welfare or any type of government assistance.

For starters, in general, I personally am against able bodied men and women to be on the dole at all.  However, incapable, elderly, sick and needy do need a safety net.  I have a heart and so do most conservatives.  A safety net is currently there for those in need in productive and wealthy societies.  However, those who CAN work (doing ANYTHING) - SHOULD work.  That said: every state has people dependent on the government to survive. 

News flash:  state government doesn't produce anything.  So where does state government get (most) money?  Tax revenues.

Caribou graze on the tundra by the Prudhoe Bay oil refinery, Alaska
In 2009 and 2010, the Alaska Health and Human Services department spent about $2,000,000 dollars on the following:

A visual breakdown of how funds were spent below with the majority on Health Care Services.  More state revenue = more funds for those in need...  My point?
More state revenue = good.  Less revenue = bad.

This leads me to the big question of today: where does Alaska get its MAJORITY of tax revenue from?  Let's go to the source shall we.  From the "Oil and Gas Production Tax Status Report to the legislature Alaska Department of Revenue" January 18, 2011: 

"The State of Alaska depends heavily on the oil industry, with more than 80% of its unrestricted revenue coming from oil taxes and royalties."

Hey ACES critic, let that sink in for a minute.  80% of unrestricted revenue comes from oil taxes and royalties.  

Oil and gas production in Alaska = revenue = taxes.  GOT IT?  From the same Jan 2011 report:

"State revenues under PPT and ACES exceeded the amount that would have been received under ELF for each of the four fiscal years since implementation of a net profits tax."

The current legislation (ACES) Sarah Palin implemented generates more taxes and revenue for Alaskans compared to its predecessor.  Here is a visual:

from the state of Alaska report here

bear on pipeline near Prudhoe Bay refinery, Alaska
Out of work but need an Oil, Petrol or Refinery job in Prudhoe Bay right now?  CH2M Hill is hiring.

map of Prudhoe Bay

Alaska's January 2011 report does also say production in 2010 was down a bit, but from April 2010, how were things at Miller Energy?  "Miller's CEO, Scott Boruff, has described his company as one of the fastest growing that no one knows about.

Boruff said Wednesday that Obama's new domestic oil strategy opens the door for Miller Energy to secure more drilling permits in Alaska.

"We've got an open door now to drill," Boruff said. "It's exciting."

The company disclosed March 15 that its asset value is more than $492 million, including oil and natural gas reserves valued at $372 million based on oil selling for $61.18 per barrel and gas at $4.75 per million cubic feet.

The company said the increase in asset value is a direct result of the December acquisition of Pacific Energy Resources assets through a Chapter 11 bankruptcy auction in which Miller bought onshore and offshore production facilities, an offshore oil and gas drilling platform, leases on more than 600,000 acres of land and other infrastructure.

The Pacific Energy property had included abandoned production facilities off the coast of California with significant environmental liability that scared away potential investors, according to Miller Energy. Miller was able to buy the Pacific Energy assets when the U.S. Bankruptcy Court separated the California and Alaska properties.

Last week, the company announced third quarter earnings of $271.9 million, or $9.51 per fully diluted share, for the period ending Jan. 31 and revenue of $1.1 million for the period."

... Perhaps Miller is hiring?  They are GROWING!  Updates on Miller include:

March 28, 2011:  Miller Energy Resources Initiates Operations to Restart Production from its Osprey Platform in Alaska

June 13, 2011:   "Miller Energy Resources Announces $100 Million Credit Facility and the Successful Redevelopment of the RU-1 Well in Alaska"

and from September 09, 2011:

"Miller Energy Resources (“Miller”) (NYSE: MILL) today reported its results for the first quarter ended July 31, 2011. The Company reported revenues grew 102% to a record $8.9 million in the first quarter of fiscal 2012 compared with $4.4 million in the first quarter of the prior fiscal year. Net loss for the first quarter of fiscal 2012 was $182,680, or $0.00 per diluted share, and improved from a loss of $1.1 million, or $0.04 per diluted share, in the first quarter of fiscal 2011.

"Our first quarter revenues more than doubled since last year due to new oil wells that we reworked in Alaska,” stated Scott Boruff, CEO of Miller Energy Resources. “We expect to accelerate our redevelopment efforts on the Osprey platform in the Cook Inlet of Alaska during the second half of fiscal 2012 as our new drilling rig comes online. We anticipate the new drilling rig to be delivered later this month and our crews are preparing to deploy it as soon as possible."

Well, good for Miller.  Sure sounds like they are doing well... and any tax revenue generated under ACES right NOW will benefit Alaskans...

Miller Energy’s Osprey oil platform in Cook Inlet off the coast of Alaska

If you care about needy people in Alaska then you should be happy ACES is in place generating more tax revenue like it has been for the past 4 years.  Also, p.s., Governor Parnell is in charge.  If you have problems with current Alaskan legislation, take it up with himAlaska.  More from Whitney P:

"Governor Parnell is not the only one with donors who may have a vested interested in changes to ACES and have ties to the corrupt oil taxation processes of the past. Rep. Anna Fairclough’s, who headed up the HB 110 efforts, greatest percentage of 2010 election fundingcame from energy and natural resource industry including BP and ConoccoPhillips. BP and ConoccoPhillips spoke before the House Resource committee in February to advocate for the proposed changes to ACES. Another proponent of this bill is Rep. Mike Hawker,who is no friend of Governor Palin and is one of the charter members of the Corrupt B*****s Club (CBC), the name corrupt and boastful legislators gave to themselves because of their embrace of their own corruption. Hawker, in addition to Rep.Chenault, were two legislators who voted for HB 110 and who received tens of thousands in campaign donations from VECO executives. Hawker and Chenaultvoted for Governor Murkowski’s corruption tainted PPT and against Governor Palin’s ACES. Suffice it to say, the CBC is still kickin’ in Alaska politics, perhaps now with some new inductees.

HB 110, touted by Governor Parnell and supported by a majority of Alaskan House members, does not appropriately address the criticism of ACES’s progressivity, does not deal with the volatility of oil prices, and is likely to reduce state revenue by hundreds of millions of dollars. Beyond that, the proponents of this bill have a history of engaging in crony capitalism, corruption, and unethical behavior.While it is unlikely that Senate version of the bill is unlikely to pass, Governor Parnell supports changes to ACES, and there is the potential for such a bill to be taken up again next year. These are the very things that Governor Palin has fought against her entire political career. Governor Palin has called out the unethical behavior of Alaska GOP chair Randy Ruedrich when she was an oil and gas commissioner. She implemented corruption free ACES project that was passed in a transparent manner without the outside influence of oil companies. She championed the AGIA pipeline project that was negotiated in a transparent manner. She has called out the Obama administration on their pervasive crony capitalism."

Oh yeah and by the way, from Mike's America, who's to blame for high gas prices? 
Pick one:
1. Oil Companies
2. Democrats
The answer is here...

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