The Fair Share Act is a bill proposed by a group of dedicated Alaskans to amend existing laws to permit Alaskans to get our fair share. The Fair Share Act’s main features are:

• The Fair Share Act only applies to our largest and most profitable legacy fields. It does not apply to new and developing fields that have more challenging economics.

• It increases Alaskans’ share of production revenues from the largest and most profitable legacy fields by increasing the gross tax rate, eliminating net tax credits, and increasing our percentage share as the price of oil and producers’ profits increase. These changes will increase our share by roughly $1 billion per year.

• It only permits costs related to our largest and most profitable legacy fields to be deducted for the purpose of calculating the net tax. This will ensure Alaskans’ share from those fields is not reduced through deducting unrelated costs and will help level the playing field between new producers and legacy producers.

• It permits Alaskans to know the revenues, costs, and profits for each of the three largest and most profitable legacy fields. This will ensure Alaskans have the facts necessary to discuss, establish, and maintain sound oil policies and their fair share.

The Fair Share Act is fair to both producers and Alaskans. It continues the existing tax breaks for new and developing fields while ensuring we collect our fair share from the largest and most profitable legacy fields. It levels the playing field for new companies coming to Alaska and eliminates deductions of unrelated costs from the largest and most profitable legacy fields. It also provides Alaskans the information necessary to know how our producer partners are performing. These oil policies are simply better than existing law.

Under SB21 and existing law, our economy is suffering, our unemployment rate is the highest of any state, our essential services (such as education, health care, universities, senior services, the marine highway, rural power cost equalization, and public safety) are being cut, our local property and sales taxes are being increased, our capital budgets (that support Alaskan jobs and infrastructure) have been all but eliminated, our state’s credit ratings have been downgraded, our permanent fund dividends are being cut, and the permanent fund itself is at increasing risk.

Oil on state lands belongs to all Alaskans. Our Constitution requires Alaskans get the “maximum benefit” from the sale of our oil. Today, Alaskans are not getting a fair share of the oil revenues and, in fact, are getting a smaller share from our largest and most profitable legacy fields than ever before. The Fair Share Act is a bill proposed by Alaskans through initiative to amend existing law to restore Alaskans’ fair share from the sale of our oil from those legacy fields.