One-third of the gross revenues from the sale of our oil is a good standard to apply in determining if Alaskans are getting their fair share. Governor Hammond was a key architect of our economic relationship with the oil industry. He stated the original agreement was one-third to the state, one-third to the federal government, and one-third to the producers.
Historically, we have gotten 27 percent of the gross revenues from the sale of our oil. In 2004, when we were getting roughly 27 percent, Governor Hammond said Alaskans were being “shortchanged hundreds of millions of dollars” compared with the one-third “once agreed to be our ‘fair share.’” Before SB21 was passed, when the “ACES” tax was in place, Alaska received about 35 percent of the gross revenues.
Currently, Alaskans are getting less than 20 percent of the gross revenues from the sale of our oil, and the producers are getting almost 50 percent.