“Mama always said life was like a box of chocolates. You never know what you’re gonna get.” This was said by the lead character in the 1994 film “Forrest Gump.” Many think we can “spit out” SB 21 like a bad chocolate if the state needs more revenue. Forrest and his mamma know you have to swallow, like it or not.
Alaska has seen many changes to the oil tax system over the years. Only three changes favored the state. They took place as a result of extraordinary circumstances. First, in the Amerada Hess litigation (1977-2006) the oil companies were found to have undervalued the wellhead price for the state’s royalty share. The second circumstance was the Exxon Valdez oil spill. The third was the Veco scandal.
Some legislators, including ConocoPhillips employee Sen. Kevin Meyers, admit they aren’t sure what we’re gonna get. Sweet.
— Judy Robinson