Sun Star

Tuesday, May 2, 2006

news
Former natural resources chief speaks out
By MATT EMMONS
News Editor

Perhaps no one represents the pitched debate over Alaska's natural resources more than Tom Irwin, Governor Murkowsi's former chief of the Department of Natural Resources.

Irwin lost his position in October of 2005 after a he sent a memo to the state attorney general that voiced concerns over the governor fulfilling his legal obligations in secret gas line negotiations.

Irwin's dismissal caused six other senior employees of the Natural Resources Department to resign in protest, including the director of the state Division of Oil and Gas. Irwin has since relocated to a position at Golden Valley Electrical Association, but he still has his eye on the negotiations.

Irwin urges a full investigation of the issues. "It's a very complex issue and there's no rush," he said. "Billions are at stake."

He says he thinks the industry's claims that higher taxes will disrupt investment are groundless. Irwin said that exploration is driven less by tax rates than by access to resources and facilities. "I think they treat us like we're stupid," he said. "BP hasn't done any exploration in the last five years, why would they do it now?"

Irwin said that the proposed taxation plans might be more confusing than they appear. "People want a simple system, but proceeds and profit taxes aren't simple," he said. "It's in the details. We need to look very closely at what is deductible."

Irwin said he thinks the legislature is doing an excellent job of looking out for Alaskans' interests, but he worried that they might be making decisions based on incomplete information, partly due to the governor's secrecy on the gas line negotiations, which he said was inexcusable. "We have a tremendous amount of resources that are tremendously valuable," he said. "How can we know if the oil tax is a reasonable deal when it's linked to the gas line deal, but we can't see the gas line deal?"

Irwin said that he was also frustrated by the plan to allow Canada to build their pipeline project first, and by the long-term tax-rate stability that oil companies are asking for. "25 or 30 years is a big risk, and it isn't in line with the Alaska constitution," he said.

Alaskans shouldn't expect any special favors from oil companies, Irwin said. "They don't love Alaska, and why should we expect them to?" he said. "They'll go where they get the best return."

But Irwin said that oil companies have a good investment in Alaska, and they know it. "As a natural resources person I can tell you that the biggest risk is finding the resource," he said. "We already know the gas is there."

He also stressed that our stable society is a great boon for investment. "Alaska is expensive, but none of the officials need armed guards or compounds with barbed wire," he said. "Alaska is a wonderful, free state that welcomes resource development."

Irwin said it was humbling to have the support of the staff members who resigned in protest, and he was surprised that the governor made the debate public. "The memo was internal and confidential, and I couldn't believe it was released," he said. "It was all worth it if it encouraged Alaskans to get involved and ask questions."

Irwin said that he hoped UAF students would take an interest in the issue. "I want Alaskans at the university to study and understand these issues," he said. "It's our state, our resources and our university."



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