Speaking on the issue of gas pipeline fiscal certainty media darling and part time Alaska Governor Palin was quoted saying "We are open to whatever it takes to make sure it happens" (LINK)Really? - Here's my suggestions for fiscal certainty:
1) Tax Holiday for the first 5 years. This will promote upstream work to fill the line from day one. It will also promote early payoff for pipeline investors.
2) Fixed Rates for the first 20 years. Unless your name is Obama, Bernanke, or Geithner it's hard to lay hands on $40 billion these days. Fixed tax rates allow investors to run the numbers and commit to a pipeline with fewer downside risk.
3) Long term Lower Tax Rates for gas sold in state. Promote the follow on projects. A greater number downstream uses (residential and commercial) will encourage expansion and support long term revenue stability for the State and the investors.
4) Open Your Eyes in terms of who builds the pipeline. AGIA made some sense in the formative stages. It sputtered in the market place. Then commodity prices plunged.
The little graphic above tells the tale. It's a graphic from the Governor's website - It's "Governor Palin's" AGIA - not "Alaska's" no it's her's. It's wrapped up in her massive ego. It's time to let go, wake up and move on - just do "Whatever it takes".