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Posted: Tuesday, October 30, 2012 11:47 pm | Updated: 11:52 am, Mon Jan 21, 2013.

Oct. 28, 2012

To the editor:

The history of the oil industry around the world is replete with examples of exploitation of the various countries where they operate, including state and local governments. Alaska apparently is no different.

During the past 40 years, we have witnessed a number of exploitive tactics here in Alaska. Remember the Veco corruption involving several of our legislators, some of whom did time for criminal activities? Now we have our governor, Sean Parnell, pushing a plan to “reform” our oil tax law to give a $2 billion tax break for the oil industry, with no requirements for further investment or local hire. When Parnell’s plan stalled in the special session, he withdrew, figuring he could prevail in the November election.

With a convoluted redistricting scheme concocted by his party, Parnell is now counting on Alaska citizens to vote in more legislators who will rubber stamp his $2 billion giveaway. Locally, these candidates include: John Coghill, Pete Kelly, David Pruhs, Alan Dick and Tammie Wilson.

Records filed with the Securities and Exchange Commission indicate that ConocoPhillips, one of the three major companies operating in Alaska, has averaged $1.9 billion in net profits annually since the current tax system has been in place. BP, another of the Alaska major companies, acknowledged that its Alaska profits “provide a stable production base and cash flow to fuel growth elsewhere ... ”

Gov. Parnell is peddling corporate welfare on a grand scale with no strings attached. When our state’s revenues fall as a result of this scheme, we will be faced with income taxes, sales taxes and raids on our permanent fund. Parnell worked as lobbyist for ConocoPhillips before he was governor. Apparently he still is an oil lobbyist, only now the state pays his salary.

On Nov. 6, vote for candidates Joe Thomas, Joe Paskvan, Scott Kawasaki, David Guttenberg and Bob Miller, who will stand up for all Alaskans.

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