SB 21 (More Alaska Production Act)

Oil & Gas Production and Mineral Mining in AlaskaSeptember 26 – 27, 2013

Brad Keithley President, Keithley Consulting, LLC

Background• Lead up to SB21 • Principles behind the governor's proposal• Key elements • Legislative outcome • But …

Lead up to SB 21: Previous tax policy uncompetitive

Lead up to SB 21: Reducedinvestment

Principles behind the Governor’s Proposal

Key elements

Legislative outcome: Reducedtax rates

Legislative outcome: Increasedcompetitiveness

Legislative outcome: Increasedproduction and return

Legislative outcome: Increasedproduction and return

But …

Article 11 of the Alaska Constitution• Section 1: The people

may … approve or reject acts of the legislature by referendum

• Section 7: An act rejected by referendum is void thirty days after certification.

Referendum election set for August 14, 2014