WASHINGTON (AP) -- Alaska Sens. Frank Murkowski and Ted Stevens on Tuesday introduced legislation to extend a tax credit to promote more energy development.
The Republican senators said the bill is important not only for the country, but will help promote development of billions of additional barrels of oil from Alaska's West Sak field in the Prudhoe Bay area.
The Clinton-Gore Administration for several years has been seeking to end the credit, which doesn't apply to any facility built after July 1, 1998, Murkowski said in a statement.
The senator said it makes no send to end the credit when the county is 58 percent dependent on foreign sources of oil.
''Doing away with the credit sends a direct signal to the market that this country will not lift a finger to encourage energy development at home,'' Murkowski said.
The proposal would extend the so-called Section 29 tax credit gas from non-conventional sources such as Devonian shale, tight rock formations, coal beds and geo-pressurized brine, Murkowski said.
It would extend the tax credit until 2013 for facilities that are placed in service before 2011.
The bill also expands the definition of qualifying investments to include heavy oil production. The broader definition could help development of the West Sak field, which is costly to develop because of the density of the oil and its sand content.
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