Comment Letter:
Support of HB110 - Mary Ann Pease, MAP Consulting, LLC

March 24 Via email to House Finance Committee members

Dear Legislators-

As someone actively working with oil and gas issues on a daily basis, I can't overstate the need to encourage additional exploration and development opportunities for the oil industry in Alaska. It is truly our lifeblood and that fluid is slowing to a relative trickle that will necessitate the shutdown of TAPS in the near future, if additional production is not added from the North Slope and other Regions. That is a dramatic potential consequence for Alaska, but also a real probability under our present scenario.

A change in our present oil tax structure is the best option to promote additional production, new exploration and drilling from the North Slope. I urge you to support the Governor's bill to alter the tax structure to make exploration and development more attractive to oil producers.

Can we guarantee that a tax change will increase North Slope production? No - but we know that under the present tax structure, there is no incentive for producers to explore in Alaska compared to other regions with more favorable tax regimes. We also know that favorable tax incentives can generate industry activity as evidenced by recent drilling in Cook Inlet and the shipping of a jack-up rig to the Inlet in response to legislative action last year. We may not hit a home run with oil tax changes, but it is certain that we have struck out with the existing oil tax program. I urge you to take action now and HB 110 is a positive FIRST STEP in the right direction for Alaska. We need to have the *open for business* sign prominently displayed once again in our State.

Mary Ann Pease
MAP Consulting, LLC

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