A.I.P. ENDORSES FINANCIAL PLAN FOR THE STATE

Larry Wood
Vice-Chair South, Alaskan Independence Party
Palmer, AK
September 26 2002

The Alaskan Independence Party has endorsed Ray Metcalf's financial plan to resolve the State's fiscal roller coaster ride. A.I.P. chose to endorse this plan because it is the only plan offered by any party or candidate that will finally put Alaska and Alaskans first.

The plan calls for a redressing of the oil royalties now taken by the State off of oil production and the development of an in-state petrochemical industry.

Alaska and the federal government receive about 57% of the profits from Alaska crude versus 79%, the average royalty enjoyed world-wide by oil producing states. Adjusting the oil royalty to conform to world standards also means adopting a 'cost plus' agreement with the producers whereby they recoup their development and exploration costs first.

The $12 billion in development costs for Prudhoe and the TAPS was recouped by the oil companies around late 1982. Meaning that Alaska has been losing 22% of potential royalties ever since. Yes, costs of production are higher, but the cost of the infrastructure was repaid long ago.

One of the key points of the plan requires investment by the State of Alaska through the Permanent Fund into production, transportation, distribution, and retail sales outlets to take full advantage of value-added resource development of our hydrocarbon resources. A ready made infrastructure exists with the Williams refinery and gas stations. Realizing the full benefit of our hydrocarbon resources is only one facet of this plan.

The financial plan does not take your PFD, drain the PF, impose new taxes on Alaskans, or otherwise require dire changes in the State's economy. The plan focuses upon a vastly overdue redressing and utilization of a resource that has been steadily draining south with little benefit beyond a few bucks to Alaskans each year. Little benefit compared to the potential that has been refused Alaskans, until now.

If you want to know more, you can go to the following web site at:

www.wood-alaska.com/hd16.htm

There are links for the full document and a synopsis of the plan.

You need to ask those running for office these questions: "Do you have a financial plan for Alaska?" "Does that plan require new taxes or a reduction in the PFD?" "Have you received campaign funds from the oil industry?"

Alaska needs politicians who will put Alaska first. Not continue the sellout and rape of our resources with little benefit to Alaska or Alaskans. The Metcalf Plan realizes A.I.P.'s goal of value-added resource development, of an Alaska that is economically stable and financially independent.