At the same time, I must admit that I am not at all familiar with the details of the issue and must therefore rely on this story to explain it.
It has failed to do so.
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I’ll try since I lived through the issue (and basically supported it then), and my business is feeling its effects now.
ACES is a progressive tax based on the price of oil. The higher the price of oil, the higher the tax. It starts in the 20% range and goes all the way to the 90% range including a 12.5% state royalty. Meanwhile the Trans Alaska Pipeline (TAPS) is running at about 1/3 capacity and losing 6% a year; so future exploration is necessary or the TAPS may reach a point where it’s no longer economically feasible to run (estimated to occur in 5-7 years without additional production). Once it’s shut down the original act from the 70’s requires the pipeline and its infrastructure to be removed and the environment restored to its original state. Therefore, it is in Alaska’s best interest to somehow spur new exploration on state land especially in light of North Dakotas flat 12% tax on oil production. It’s a matter of staying competitive since the Feds won’t allow exploration on the 67% of Alaska they control. When ACES was passed a highly charged “Anti-Oil Corruption” political atmosphere existed.........and remaining competitive with other states was not necessarily fully considered. Now major exploration investment has since ostenibly left for more profitable grounds, while the major oil companies simply maintain what they have knowing full well the final circumstances of no new production to the State’s economy. It’s called being over a barrel.
So are you saying that Palin made a mistake with ACES?