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Alaska Gov. Announces Gas Pipeline Deal

Tuesday, February 21, 2006 11:15:08 PM
By MATT VOLZ

JUNEAU, Alaska (AP) - Three major oil companies and state officials reached agreement Tuesday on a tax proposal aimed at bringing a long-planned $20 billion gas pipeline from Alaska's North Slope to the Midwest closer to construction.

The accord on a tax and royalties structure for developing Alaska's natural gas will hinge on the Legislature passing a new state oil production tax.

Alaska Gov. Frank Murkowski on Tuesday introduced a bill that calls for a 20 percent tax of oil companies' net profits in Alaska plus a 20 percent tax credit for reinvestment in Alaska.


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