With the release of President Donald J. Trumps Executive Order, “Unleashing Alaska’s Extraordinary Resource Potential,” Alaskans are optimistic that we’ll see increased production of our petroleum and mining resources. However, this enthusiasm is tempered because Congress has gone back on its promise to provide Alaska with 90% of the royalty revenues from production on federal land. Alaska’s present and future revenues are also weighed down by the write-offs against state taxes that oil companies can claim for activity on federal lands and necessary upgrades to Alaska’s aging infrastructure to support production activity.
When Congress was deliberating granting Alaska statehood, there was recognition that our large, remote state wouldn’t have enough of a population and industrial base to be self-sufficient. In exchange for taking on the financial responsibility of providing public services, the people of Alaska were promised 90% of the royalties from production on federal lands in both the Alaska Statehood Act of 1958 and an amendment to the Mineral Act of 1920.
It was also acknowledged at the time the Statehood Act was under consideration that some of the most valuable land in Alaska, in particular the Naval Petroleum Reserve (now the National Petroleum Reserve Alaska) and the Arctic Wildlife Range (now the Arctic National Wildlife Refuge), had been reserved by the federal government and was not available for the state to select. With roughly two-thirds or more of the North Slope under federal control, Alaska’s ability to determine its own revenue stream has been severely impacted.
If the State of Alaska receives its birthright of 90% of the royalties from federal land, there will be more revenue to meet the needs of Alaskans — public safety, roads, schools and Alaska Permanent Fund dividends. Also, there will be less pressure to tax producers and Alaskans who work because the State of Alaska is getting its rightful share of royalty revenue from federal lands.
This week I introduced Senate Joint Resolution 19 “ANWR & National Petroleum Reserve: State Share” asking Congress to uphold the promise made in the Alaska Statehood Act to provide 90% of the revenues from production in the Arctic National Wildlife Refuge and to extend that promise to production in the National Petroleum Reserve Alaska. This will allow the state to support the programs and infrastructure projects necessary for the petroleum industry and provide services for our citizens. Based on conversations I’ve had with my colleagues in the Legislature, I anticipate that this resolution will be well received and I am working to get it through the Legislature and to the decision-makers in Washington, D.C., this session.
I am honored to be your state senator and I want to hear from you. You’re welcome to call my office at 907-283-7996 or email me at Sen.Jesse.Bjorkman@akleg.gov. I hope you’ll take the time to share your questions and ideas.