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Parnell picks apart issues

Posted: July 28, 2014 - 8:02pm  |  Updated: July 29, 2014 - 9:21am

Editor’s note: This is the second article in a two-part series detailing Republican Gov. Sean Parnell in his roles as an Alaska resident, governor and candidate for office. The first pasrt ran in Monday’s Clarion.

 

Republican Gov. Sean Parnell is all smiles over the Alaska liquefied natural gas project that proposes to build a second major pipeline in the state connecting North Slope resources to market.

The hope is that the AKLNG project will become a second lifeline for the state both in revenue and in affordable energy, particularly in the Interior where costs skyrocket during the cold winter months.

That hope has existed for decades, but it came one step closer to becoming a reality last week when the project partners, including the state, filed for an export permit with the federal government.

“It is an unprecedented step in that the state and these companies are aligned in moving Alaska’s gas to Alaskans,” Parnell said in an interview with the Empire last week. “When an export license application like that is filed, that’s another significant step toward getting a gasline.”

But it’s not one of the first steps. While talks about a gasline have risen and fallen in intensity a number of times over Alaska’s history, this latest effort started accelerating about 14 months ago after the 2013 Legislature approved Parnell’s hallmark legislation — SB21.

“It takes a healthy oil industry to give us a shot at a gasline,” Parnell said.

The governor's oil solution 

Like many Alaskans, Parnell was a believer in the ACES tax structure implemented by former Gov. Sarah Palin at first. But over time, he says, problems began to surface in increasing frequency. Eventually it became apparent to the governor and his administration that change was needed.

“It’s about the long term,” Parnell said in describing his thinking behind SB21. “It’s not about getting as much as we can right now and sacrificing our kids and their future by riding production down at 6 to 8 percent like we were.

“Alaskans deserve better than that,” he added.

So Parnell’s team crafted a package designed to both increase the volume of oil produced and shipped through the pipeline and to attract new investment from the current producers so the trend of declining production is reversed.

“There’s a lot more oil in the ground in this state than we have recovered or that we can recover in your lifetime or mine,” Parnell said.

Democrats and others have dubbed the proposal “The Giveaway,” however, saying it was a favor to oil companies that gives away the state’s resources without extracting adequate taxes and fees. Enough Alaskans agreed with that thinking that an initiative effort to get a repeal vote on the general ballot was successful.

Short-lived investments?

On August 19, when voters submit their primary votes for elected officials they will also be faced with a “yes or no” question that carries substantial economic and political implications.

Voters can vote “yes” to repeal SB21 and return the state to the ACES tax structure, or they can vote “no” and keep the new SB21 in place.

The governor and his allies in support of SB21 point to billions of dollars in new investment. Their opponents say those investments would have happened anyway or are for show.

Parnell doesn’t think so. If SB21 falls, the governor expects that new investment to leave the state as quickly as it came.

“What happens if we go the other direction on August 19? Uncertainty is created, and that equals risk for Alaskans,” Parnell said, adding that the billions invested “will go to a safer place. It’s the nature of economics, and it’s the nature of what you and I would do if our money if our savings were at risk in a particular bank.”

While Parnell said he has not talked with individual companies about their plans should SB21 be repealed, he pointed to a situation in the early 2000s when one of the Big Oil companies took planned investment dollars out of Alaska because a permitting process took too long.

“That investment money moved and was no longer available to Alaskans and the Alaska branch of that company,” Parnell said, citing an email he had seen from the company’s headquarters. “Any time we take too long, any time we create uncertainty, any time we’re not competitive as a state it’s too easy to lose those jobs and opportunities for Alaskans.”

Bringing back the tourists

Between 2007 and 2008 Alaska saw a (then) record-setting number of visitors, but by the time Parnell took office two years later things weren’t going well. In light of the national recession that had caused many Americans to slash their vacation spending, Alaska’s numbers had been declining since the record-setting year.

In order to right the ship, Parnell traveled to Florida for a trade show to meet with executives from the cruise ship industry and figure out how to respark the national wonder of traveling to and exploring America’s Last Frontier.

He emerged from the meetings with a three-pronged approach to reversing the declining trend of visitors. That plan consisted of reducing the head tax on visitors; crafting cruise regulations that are consistent and clear; and increasing the state’s budget for marketing itself to the Lower 48 and the rest of the world.

“It’s all about creating an environment here where travelers and investment in the travel industry will come to Alaska,” Parnell said.

Just last week the state announced a third consecutive year of growth in the number of visitors over a year’s time — and this year the previous high, which had been set just before the recession, was broken.

“We are seeing the benefits of an effective tourism marketing program,” Susan Bell, the commissioner of the Department of Commerce, Community, and Economic Development, said in a press release.

Against attack advertising

This election year might be one of the few when the governor’s race takes a back seat to another political contest. Control of the U.S. Senate is up for grabs this fall, and Republicans are likely to take control, according to the Washington Post’s “Election Lab.”

In their effort to regain control of the Senate, national Republicans have identified freshman Sen. Mark Begich, D-Alaska, as a vulnerable candidate, and they’re funneling millions into Alaska to unseat Begich. Democrats are paying millions to protect him.

Parnell doesn’t like the negative ads from either side one bit.

“It diminishes us as a people to engage in that reputational destruction, as I call it,” Parnell said. “We try to destroy each other instead of trying to solve problems for Alaskans and meet those challenges.”

While the majority of advertising — and, therefore, negative attack ads — are centered on the Senate race, there have been negative ads and statements made in governor’s race as well — but Parnell is opting for a different course.

“I try to keep myself and our staff on that high road,” Parnell said.

That doesn’t mean Parnell won’t be working with the Republican nominee to unseat Begich this November, however.

“For the last six years, Sen. Begich has supported President (Barack) Obama much of the time, and he’s criticized me for standing up for Alaska in terms of litigating federal overreach,” Parnell said. “I want a fighter for Alaska in those congressional seats, not somebody who will walk in lock-step with the Obama administration most of the time.”

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jford
3378
Points
jford 07/29/14 - 09:08 am
3
0
Morris News offers up a puff piece backing Parnell.

The Clarion isn't a newspaper in the sense of having any journalistic ethics, it's nothing more than a political/corporate mouthpiece.

WinchesterM1
219
Points
WinchesterM1 07/29/14 - 12:11 pm
3
0
..spin... how you find it..use facts.

You`ll notice lately (since dropping the original wild "million barrels a day" claim ) that Governor Parnell, while allowing no detailed questioning in public attending debates, premises everything he says through media outlets like this on the subject of the "YES on 1" repeal effort by voters, and the "6-8% decline" that BS21 "will reverse, halt, slow, or somehow otherwise alter. "Hopefully" he says, to benefit Alaska more than ACES did (Senator Meyer called BS21 a "crapshoot" immediately after passage on the floor).
Claiming and premising that a "6%-8%" decline reversal is due to him, his party, his policies, or BS21 is patently false. As were all the previous boneheaded schemes and reasons Parnell brewed up with the oil companies in the back rooms in Houston and L.A. since taking office, to extort billions from Alaska for his old bosses. After he was elected, to SUDDENLY, and it was that,..turn right around (after having PRAISED ACES in the campaign!!!!) and toss ACES on the trash heap AS SOON AS HE WAS ELECTED!.
Now listen fellow Alaskans. While we were under ACES, in early 2012, Conoco told it`s shareholders that it`s Alaska cash cow was as important as ever at being it`s key profit generator, and generating record profits for use in other projects..and dividends.
Conoco officially also stated at that same time, due to "technological advances" in drill science and "efficiencies" in methods and delineating geological formations on current leases, that Conoco would "slow the decline rate to 3% and possibly 2% per year in Alaska by the end of 2016!!" (Conoco is the largest oil producer of the three on the slope. This report was submitted to the SEC and the public under ACES now..important to remember this..)

Governor Parnell, would you please explain why you and your campaign are taking personal credit, for, along with BS21, the plans that our major oil producer in Alaska solidified under the "ACES" (Alaska`s Clear and Equitable Share) tax system?
Please tell us in detail how and by what logical connection are you claiming that your two billion a year giveaway legislation is the cause or somehow responsible for Conoco`s ..."2% decline rate" statement while under ACES?
I read the shareholder report and they never mentioned ONCE the word taxes in reference to their Alaska operations. Only bragging how profitable Alaska was for them. (because they couldn`t say anything about any "quid-pro-quo" about taxes and production on leases..the SEC listens to "official" shareholder reporting by these companies.!!).

Please fellow Alaskans, help take Alaska back from corruption, and vote "Yes on 1" on August 19th,.. and this come November`s general election, let`s send Parnell back to his retirement village in Houston, and elect a Governor who put`s Alaska and our constitution first again.
When you look at this, you know in your heart it`s the right thing to do, for ourselves and for Alaska. http://juneauempire.com/stories/102807/let_20071028011.shtml and http://www.adn.com/article/20130327/conocophillips-employees-steer-alask... Vote YES on 1 and help take Alaska back.

WinchesterM1
219
Points
WinchesterM1 07/29/14 - 11:58 am
3
1
You`ll notice lately (since

You`ll notice lately (since dropping the original wild "million barrels a day" claim ) that Governor Parnell, while allowing no detailed questioning in public attending debates, premises everything he says through media outlets like this on the subject of the "YES on 1" repeal effort by voters, and the "6-8% decline" that BS21 "will reverse, halt, slow, or somehow otherwise alter. "Hopefully" he says, to benefit Alaska more than ACES did (Senator Meyer called BS21 a "crapshoot" immediately after passage on the floor).
Claiming and premising that a "6%-8%" decline reversal is due to him, his party, his policies, or BS21 is patently false. As were all the previous boneheaded schemes and reasons Parnell brewed up with the oil companies in the back rooms in Houston and L.A. since taking office, to extort billions from Alaska for his old bosses. After he was elected, to SUDDENLY, and it was that,..turn right around (after having PRAISED ACES in the campaign!!!!) and toss ACES on the trash heap AS SOON AS HE WAS ELECTED!.
Now listen fellow Alaskans. While we were under ACES, in early 2012, Conoco told it`s shareholders that it`s Alaska cash cow was as important as ever at being it`s key profit generator, and generating record profits for use in other projects..and dividends.
Conoco officially also stated at that same time, due to "technological advances" in drill science and "efficiencies" in methods and delineating geological formations on current leases, that Conoco would "slow the decline rate to 3% and possibly 2% per year in Alaska by the end of 2016!!" (Conoco is the largest oil producer of the three on the slope. This report was submitted to the SEC and the public under ACES now..important to remember this..)

Governor Parnell, would you please explain why you and your campaign are taking personal credit, for, along with BS21, the plans that our major oil producer in Alaska solidified under the "ACES" (Alaska`s Clear and Equitable Share) tax system?
Please tell us in detail how and by what logical connection are you claiming that your two billion a year giveaway legislation is the cause or somehow responsible for Conoco`s ..."2% decline rate" statement while under ACES?
I read the shareholder report and they never mentioned ONCE the word taxes in reference to their Alaska operations. Only bragging how profitable Alaska was for them. (because they couldn`t say anything about any "quid-pro-quo" about taxes and production on leases..the SEC listens to "official" shareholder reporting by these companies.!!).

Please fellow Alaskans, help take Alaska back from corruption, and vote "Yes on 1" on August 19th,.. and this come November`s general election, let`s send Parnell back to his retirement village in Houston, and elect a Governor who put`s Alaska and our constitution first again.
When you look at this, you know in your heart it`s the right thing to do, for ourselves and for Alaska. http://juneauempire.com/stories/102807/let_20071028011.shtml and http://www.adn.com/article/20130327/conocophillips-employees-steer-alask... Vote YES on 1 and help take Alaska back.

Allen
636
Points
Allen 07/29/14 - 05:04 pm
3
0
Will This Newspaper Feature The Other Candidates?

Hopefully the newspaper will have similar articles for the other gubernatorial candidates, and they will get their own 2-part series. Or has the Clarion become the Sean Parnell mouthpiece?

KenaiKardinal88
474
Points
KenaiKardinal88 07/30/14 - 04:51 am
1
2
Good Job Parnell

We are lucky to have a governor who is so rational.

Next we need to vote out the mean-spirited liberal Begich because he votes with Obama - against Alaska's best interests.

Raoulduke
3055
Points
Raoulduke 07/30/14 - 05:57 pm
2
0
Great Job

The Oil Corporate Lobbyist Parnell! You are doing a great job for the oil Industry,not for the State,or the citizen's of Alaska.What other uses could your $20billion giveaway have been used? Medicaid Extension? More Infrastructure jobs(Roads,Bridges)? Jobs not solely oil oriented? A road from Fairbanks to Nome with a parallel rail line? No! No! These would be something. Which would actually BENEFIT Alaska,and the Alaskan. Not just the oil industry,and Parnell's cronies.

Raoulduke
3055
Points
Raoulduke 07/30/14 - 06:02 pm
2
0
Other Candidates

Now! If the Clarion stays true to form.There probably will be other candidates featured,and will have rather the same coverage.That is. Unless it is a Democrat candidate.

dragonfly2014
43
Points
dragonfly2014 08/07/14 - 04:45 pm
1
3
Why You Should Vote NO on SB21

On the International level the US has the highest corporate tax rate in the world (40%). Many large corporations and companies have moved their companies overseas, and it wasn't just because of cheaper labor. You would have thought, that after the recession, that the POTUS and Democrats in Congress would have worked with the Republicans to lower the tax rate. No they did not because their belief in higher taxes as a cure all stopped them. Most Americans don't even realize that technically the recession is over because of our slow and weak recovery.

The same holds true on a national level. Many blue states have a budget deficit like CA, and IL with high taxes. Companies are moving from blue to red states all over the country. Red states like TX are competing for their businesses and offering a lower tax rate which is increasing their revenue. N Dakota has been using using their natural resources to grow their economy. Their unemployment is 3.1% w/no deficit. Wyoming unemployment 5.4% with no state deficit. Even NY, a very liberal state with high taxes is advertising on national TV for companies to move there with tax free incentives.

Alaska is in competition with other states and countries for oil companies to explore and bring their natural resources to the market, and at the same time having to deal with the extensive over regulating by the federal government that through executive orders has given way too much power to agencies like the EPA and DOI to circumvent Congress. This completely eliminates the voters voice in Congress. A good example of poor liberal judgment would be the Keystone Pipeline offered to us from our neighbor and ally Canada. The state department did numerous environmental studies and could not find reason to deny it yet the POTUS rejected it solely for political reasons and donations to his party. Greed does have negative consequences.

Our National Debt of $17 and a half Trillion dollars ($7 Trillion in the last 5 years) not only drastically weakens our National Security, but it also means there is a lot less federal dollars going to the states. This is all the more reason not to lose the revenue Alaska receives from the oil companies. With conflicts which are actually wars going on all over the middle east it is imperative that the US strive to become independent from foreign oil. It took several billion dollars to build the Alaska pipeline so lets keep the oil flowing at a higher rate and not risk losing the revenue and all the jobs related to it.

Raoulduke
3055
Points
Raoulduke 08/07/14 - 06:18 pm
1
1
The repeal of a very sad law

The explanation of other regions of the country,and the percentage of corporate tax in the U.S.We already have a great percentage of corporations.Stationed outside of the United States,or Incorporated through th State of Delaware Which is a good shelter for the corporations. Does not explain. Why the State of Alaska should give away $20 Billion to the richest corporations in the world with absolutely no guarantee of anything in return.I believe .The monies could go to the betterment of the state,and it's citizen's by investing in infrastructure.Which would not be solely oil oriented i.e.Roads,Bridges.Rail Lines,and the like.Which would employ thousands.

beaverlooper
3072
Points
beaverlooper 08/07/14 - 06:36 pm
2
0
dragon fly

Name ONE corporation that ACTUALLY pays 40% income tax and I'll name you ten that paid less than I do.

dragonfly2014
43
Points
dragonfly2014 08/08/14 - 01:28 pm
0
1
Alaska's Economy is Dependent on Future Development

Raoulduke – beaverlooper

Sound fiscal judgment requires consideration for the future not just the present. Your argument for repeal of SB 21 does not address important issues. Alaska has the highest industry costs and tax rates in the nation. Wood Mac Kenzie, a leading world energy industry research firm, ranked Alaska as one of the least attractive places in North America for investment. As much as $60 billion in new investment may be required to slow the production decline and develop new fields. (Alaska Oil and Gas Association).

According to a special report by the University of Alaska’s Institute for Social and Economic Research (ISER), without oil, the economy in Alaska today would be only half its current size. One third of the jobs for Alaskans are tied to oil and gas. It is the backbone of Alaska's economy. The oil and gas industry has been paying for about 40% of the state's government operations. Unrestricted general fund revenues from the oil and gas industry in FY 2014 is expected to reach $6.4 billion.

www.akrdc.org/issues/oilgas/overview.html

Raoulduke
3055
Points
Raoulduke 08/08/14 - 04:25 pm
1
1
Repeal

As long as the information given is coming from Oil Corporate rags .I still haven't had anyone convince me.Why should The State of Alaska give away $20 billion to the richest corporations for no guarantee of anything in return.Would you spend your money for nothing? SB21 will cost Alaska,and Alaskan's a great deal more than $20 Billion.The state gets less as production increases.Why?Would anyone other than a person LOBBYING for the Oil Corporations. Want to keep this very sad bill.This does NOT benefit Alaska,or the Alaskan.

beaverlooper
3072
Points
beaverlooper 08/10/14 - 01:41 pm
0
0
you didn't back up your statement

If it's so bad why are they here to begin with?Was it cheap in the beginning when all that was there was nothing but frozen ground and snow on the slope?
They haven't promised to stop the decline,they haven't promised anything if the new tax structure is kept in place.So they do a little extra just before the vote, it's called campaigning. Just like politicians,tell them what they want to hear ,then do as you please. Big oil gets more tax breaks than almost any other industry in the country already.
They are not going to waste all of that infrastructure that is already there.They have to take it all out when they go,including the pipeline and that would be very expensive, unless they sell to smaller companies that don't need the giant oil fields to have a satisfactory profit. That's one of the reasons the big 3 own most of the pipeline,to keep the smaller guys out, by charging them more to ship a barrel of oil than they do them selves.They would like to do the same with the gas line.
You said Alaska is ONE of the least attractive places for investment in North America,these are world wide companies,they have invested in places like Russia where they did all of the exploration,drilling, built all of the things necessary to produce those oil fields only to be forced to sell to the Russian national oil company for pennies on the dollar,and Alaska is not business friendly? There are other places that come to mind Venezuela,Nigeria.
Let them frack the he double hockey sticks out of North Dakota,Oklahoma (where they've started having earth quakes when there were none before) and let them see just how good a deal those states got in a few years.
My belief is what they are doing right now is basically extortion.If you don't play my way I'll take my ball and go home.
By the way you never did respond to my challenge about which companies pay actually pay40% in taxes.

jford
3378
Points
jford 08/08/14 - 11:41 pm
2
1
….reading what dragonfly wrote, and unpacking the falsehoods

It's uncanny how much misinformation and how much outright disinformation there is packed into such a small comment.

Now I expect such from people who are trying to fool others, falsehoods are their stock in trade, … I can only hope such is the case, because if dragonfly actually believes what was written, then dragonfly has a very large problem telling fact from fiction.

dragonfly2014
43
Points
dragonfly2014 08/09/14 - 12:43 am
0
2
Facts vs Liberal Bias

jford

I don't consider research from the University of Alaska or one of the largest energy research firms to be fiction.

Both large and small businesses all over Alaska agree with SB21 not just those who work on the North Slope or for oil field services.

I doubt if SB21 will be repealed.

jford
3378
Points
jford 08/09/14 - 09:53 am
2
0
Your 'research' from the UofA was debunked.

The Goldsmith report was ginned up using oil corporation figures which skewed the results. It has been thoroughly debunked.

Here is the new report from the UofA which shows SB 21 is a loser for the people of Alaska.

http://www.adn.com/article/20140808/iser-researcher-aces-brings-13-billi...

As for who is for or against SB 21, sure there are some firms hoping to cash in on ignorant Alaskans if they will only give them a piece of the giveaway pie. The vote no campaign is funded by the companies hoping to cash in on Alaska's treasury.

As to the rest of your fairy tales, Texas is losing revenue, you don't gain revenue when cutting taxes, that's a myth, you might fall for it, but anyone who values reality won't buy into that kind of obvious winger mythology.

Vote yes to repeal SB 21, stop the corporate giveaway.

jford
3378
Points
jford 08/09/14 - 09:56 am
2
0
Oh, and dragonfly, California is running a budget surplus.

Do try to report reality instead of your winger induced mythology.

beaverlooper
3072
Points
beaverlooper 08/09/14 - 06:39 pm
2
0
What

That article has absolutely nothing to to do with fjord's statement about California' s budget.
California has been producing oil for 150+ years, where do you think North Dakota will be in 150 years? Wrung out like an old dish rag.
By the way in Texas individuals own the mineral rights as well as the surface rights. That is one reason they have reworked all those old wells. Even if they only pump 2 barrels a day at say $90 per barrel. that's $1260 a week,or $65,700 a year.No doubt there are expenses involved,transport etc. ,Still not bad even if expenses are %30, and if you have 2 or 3 wells on your property,well.......

jford
3378
Points
jford 09/03/14 - 08:45 pm
1
0
Parnell loses another lawsuit, he sues all the time, and loses.

And he just lost again, costing the state more money to prop up his wingnut [filtered word]gedness.

A federal judge in Anchorage ruled Wednesday that the state Elections Division violated the U.S. Voting Rights Act.

Gleason read her ruling from the bench, citing the urgency of resolving the matter with the general election just two months away. The nine-day, non-jury trial concluded July 3.

The decision comes at an inopportune time for the Parnell administration.

Republican Gov. Sean Parnell is in an election battle in which the No. 2 person on the opposing ticket is a prominent Native leader from Southeast, Byron Mallott, a Democrat.

Though Mallott has joined the independent ticket led by Bill Walker, a spokesman for the Democratic Party cited the case Wednesday in attacking Parnell’s record.

" I view today’s decision as an opportunity to expand our efforts.” said Treadwell, one of the losing defendants.

Gleason spoke sharply with one of the state’s attorneys in the courtroom when she asked when the Elections Division would file its own proposed remedies. The lawyer, assistant attorney general Margaret Paton-Walsh, replied there wasn’t enough time to change anything, especially with officials preparing for local elections in October.

Gleason indicated that answer was unacceptable.

“If your proposal is you’re unwilling to do anything, I’ll take that under advisement,” Gleason told Paton-Walsh.

“If your response is ‘we can do absolutely nothing between now and Nov. 4,’ so be it -- I’ll go forward,” Gleason said.

Paton-Walsh reversed herself and said the state would file its suggestions by Friday.

Parnell loses another one of his ideologically driven frivolous lawsuits which cost the state millions of dollars.

Parnell isn't a conservative, he's a wingnut.

Dump Parnell.

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