JUNEAU - Changing Alaska's system of taxing oil and gas production together is premature and could cause an unintended disincentive for producers to explore for natural gas. That's the view of Marilyn Crockett, executive director of the Alaska Oil and Gas Association.
Crockett testified Friday in front of the House Resources Committee, which is weighing whether to separate oil and gas production for taxation.
The Senate's already passed a bill that does that. The way some senators see it, if oil prices remain high relative to gas when gas begins flowing through a mega line, the state could lose up to $2 billion a year in revenue due to a "dilution effect."
Crockett called the $2 billion estimate flawed.