By Brian Smith Gov. Sean Parnell called for a slowing of government spending in the face of declining state oil production and a stalemate on tax reform during a Wednesday speech to the Kenai and Soldotna chambers of commerce. "I believe that government should not be spending as much as we are, that we need to slow that growth," he said to the crowd gathered at the Soldotna Sports Center. "Why? Because it promotes individual liberty, but also because we can't sustain it from an economic perspective." Parnell, along with House Speaker Rep. Mike Chenault, R-Nikiski, Rep. Kurt Olson, R-Soldotna, and Sen. Tom Wagoner, R-Kenai, spoke about the results of the most recent legislative sessions. The four focused on failed legislation for oil tax reform, an in-state natural gas pipeline, the performance of the Alaska Senate, and the state's financial direction. The governor said stemming the decline of oil production in the state, but more specifically from the North Slope, is the state's highest priority in hopes of stabilizing its economic future. He said production is declining at 6 to 9 percent per year, which he attributed in part to the state's lack of "competitiveness" with other oil-producing states such as Texas and North Dakota. "We are maintaining ourselves in this status quo decline mode," he said. "So I was disappointed we weren't able to get an oil tax change. ... I hear this word out there that, 'Oh, it's just a giveaway.' Let me put it in just a little different context. Can the state of Alaska afford to live on $8.5 billion a year instead of $10 billion? Can we? I think we can. Especially if that means more jobs, more economic growth and more opportunity for the future here as Alaskans." Parnell criticized the Senate's oil tax plan for not addressing immediate production, which he tried to address in the short-lived special session using the Senate's methodology, he said. "(I said) I'll take the same methodology they use for new fields because if they think it will increase production ... it ought to work for existing fields too," he said. "So that's what I did -- I gave them a comprehensive bill with their own methodology." Despite his attempts falling short, Parnell praised the central Peninsula legislative delegation for their work on oil tax reform. After his speech, Parnell signed HB314 into law, which increases the terms for railroad land leases from 55 years to 95 years and provides more financial stability for the Alaska Railroad Corp. The bill was one of Olson's. Wagoner said the last legislative session was the most difficult he's experienced. He said it was very difficult to work in the bi-partisan majority group. "That's why the Senate's own bill on oil and gas taxes didn't get to the floor for a vote," he said. "Eleven people would not sign off on it. Think about that." Wagoner said he didn't think the work was meaningful and he later called for an overhaul of the bipartisan group. "A 10 to 10 split among ideological lines is not workable and it is not a workable situation," he said. "You are just not going to get any agreement. That needs to be changed statewide and I very much look forward to working on those changes." Chenault talked about the "ugly, bad and the good." He said the ugly this last legislative session "was just pure simple politics." "You had a dysfunctional group and they called themselves the bipartisan coalition and I hate to say this, but ... they have also been called the bipolar," Chenault said. That Senate group could tackle easy bills, but on any tougher items, "they just couldn't function," he said. He echoed Parnell's thoughts on the Senate's oil tax bill only fixing a part of the puzzle. "If that wasn't bad enough, what they had actually done was they had spent in the neighborhood of $750,000 on consultants because they didn't have enough information to make a good decision," he said. "... That's the best they could come up with? That they could actually pass? And that hadn't even been vetted through the consultants we paid three-quarters of a million dollars for?" The "bad" Chenault said was that the Senate "once again failed to address Alaska's long term energy needs by failing to even have a meaningful hearing on House Bill 9." He said he supported a 48-inch gas line regardless of its terminal location. He said the state can't afford to wait on the results of experimental oil and gas development in Cook Inlet before building the line. "But we'll not ever know what'll happen until we get to an open season," he said. "An open season is where it's determined if you have sellers and buyers that can come to a 30-year contract on buying gas and selling gas. Until we get to that point we are never going to build a pipeline." In his comments, Olson said he had high hopes for Chenault's HB9, but those were dashed in the Senate. "By giving it a committee in (Senate Community and) Regional Affairs for the first committee it was a stake through the heart of the bill," he said. "We knew at that point it would be pretty much dead on arrival." Said Parnell, "I'm happy to address questions on the gas line because we have made huge progress there, not withstanding my deep disappointment ... on HB9 and that instate gas line. "But we have turned the corner on a project in this state with producers aligned with an independent pipeline company and we finally have some hope we are going to get that." Chenault also spoke about funding alternative energy projects across the state, including wind and hydro. "While I believe in alternative energy, it comes at a cost," he said. "We have to be aware that the state and federal money is what is driving the cost of that electricity down to where we can afford it." Olson thanked the governor for not exercising his veto authority this year on Peninsula capital projects and said all four speaking believed in local infrastructure and the capital budget as a benefit for the economy. "We appreciate the fact that the governor agreed with what we have in the capital budget," he said. "That's been extremely helpful and it's been a good year for most of the people that I have talked to from the construction industry. We are seeing the money start and the jobs are being bid and it is definitely having an impact on the local economy."

written by Mike Here's the text of the opinion-editorial piece I co-authored with my friend and fellow representative, Mike Hawker. It ran in the Clarion, along with the Anchorage Daily news, Fairbanks Daily News-Miner, and other outlets.- -- - -- -In his State of the State address last week, Gov. Parnell laid out a roadmap to realizing Alaska's long-held hope of natural gas development.Important to us, and to the people of Alaska, that plan distinctly weaves together two goals: Alaska gas for Alaskans, and commercialization of a resource to generate multi-decade economic benefit. Will it work? We can hope so, while forging ahead with new legislation empowering the Alaska Gasline Development Corp. to continue its tremendous work to date. This legislation will strengthen the ability of AGDC to participate in an aligned project, and the ability for an AGDC line to stand on its own.We applaud Gov. Parnell for recognizing the potential for an Alaska gas pipeline project unlike any we have seen on the table, a hybrid of multiple plans committed Alaskans have worked on for many years. We believe this alignment -- of stakeholders, of goals, of work done to date -- is the elusive answer to Alaskan gas.We also commend the Governor for acknowledging the tremendous value AGDC brings to this new, aligned process. Since the legislature created AGDC almost two years ago, the organization has doggedly advanced an in-state line, delivering high-caliber work and meeting milestones laid out in a transparent, statutory framework. The momentum is strong.While supporting this goal of aligning stakeholders and plans, we want to maintain that momentum in pursuit of instate gas for Alaskans and leave open all options for convergence into an aligned project, such as the governor is promoting. To that end, we will continue advocating for legislation and funding making AGDC flexible, nimble, and as responsive as possible to Alaska's needs. If AGDC and the other stakeholders can converge this year, we support such alignment and AGDC will be the strongest possible partner working on behalf of Alaskans. If not, we are resolved to carry on with AGDC's core mission, an instate line that stands on its own.The AGDC team has secured rights-of-ways from the North Slope to Southcentral, a valuable asset to a gasline project. The team has prepared the detailed route analysis supporting an Environmental Impact Statement, another asset that will keep a new, aligned project on schedule. In addition, AGDC has developed an aggressive timeline that promises key decisions sooner rather than later.We are closer than ever to realizing Alaska's dream of gas, and AGDC has the momentum to keep advancing toward that goal. Legislation we will introduce this week will empower AGDC to develop or to participate in any project related to gas development within the state. AGDC will have the ability to negotiate on an equal footing with private-sector partners. The legislation will define reasonable, efficient regulatory processes, and will make the Alaska Natural Gas Development Authority an AGDC partner to centralize and strengthen the state's efforts. Looking past a large project, our legislation also postures AGDC for a future role extending the benefits of natural gas across as much of our state as possible.It is in Alaskans' interests to solidify their support behind this new gasline concept. However, we can't wait forever. AGDC can serve as the catalyst to bring all stakeholders -- including Alaskans -- together in a gasline project, but will also be equipped to stand on its own.We look forward to presenting our legislation this week in a major step toward ensuring Alaskans' interests are represented as years of work planning gas development finally come together as a tangible project we can all stand behind.

written by MikeHere is the op-ed Anchorage Representative Mike Hawker and I co-wrote on in-state gas and Escopeta, which ran in the Fairbanks Daily News Miner. We're seeing if any other publishers in the state have an interest in running the piece as well.By Mike Chenault & Mike HawkerEncouraging development of Alaska's energy resources to benefit Alaskans is one of our highest priorities as legislators. To that end, we couldn't be more pleased with the recent announcement of a major natural gas find in Cook Inlet.Confirmation of this discovery could significantly improve Southcentral Alaska's energy security. For now, we are cautiously optimistic and wish Escopeta Oil Company the greatest success proving up this potentially spectacular prospect.As we celebrate their success, our greater goal must remain a secure, long-term, reasonably priced, clean energy supply for as much of Alaska as possible -- energy that allows our communities to thrive.It is imperative we continue planning toward that goal. Alaska's future isn't about North Slope gas over Cook Inlet gas, security for Anchorage over Fairbanks, exports to Asia over North America. And it's not about a band-aid size fix that leaves the same issues on the table for years to come.We need all of the options to play out in an overall solution that promises longevity, security, and growth. We must develop a healthy in-state market that delivers gas to consumers and allows exports that help producers maximize the value of their investments. But most of all, we need a strong, central organization such as the Alaska Gasline Development Corporation (AGDC) to bring these elements together for the greatest benefit.Alaska, we have been here before. For decades, we have hoped for gas --for use at home and as a state revenue-generator -- yet we've never realized that dream. We've watched windows of opportunity slam shut as we endlessly debate which gasline project in the acronym alphabet soup of proposals is best.This is the time for decisive action defining the future Alaskans want -- one where the benefits of gas reach more areas of Alaska than ever.We recently announced plans for legislation enabling AGDC and an in-state gasline. House majority members from across the state were adamant that planning a natural gas future cannot be set aside another legislative session. Alaskans also heard that instate gas isn't only about Anchorage or Kenai. It's about Fairbanks and the Railbelt, and about the people in communities off the road system who depend on our cities for supplies, educational institutions and health care facilities.Natural gas is a resource that, by our Constitution, is to be developed for the maximum benefit of Alaskans. While we may not be able to weave a gasline network touching every village and town, we can and should do more to increase the benefits of natural gas throughout Alaska.AGDC can be the organization that gets the job done. The main mission for Dan Fauske and his top-notch team at AGDC is the in-state line established by Speaker Chenault's House Bill 369 in 2010. Our legislative package will empower AGDC to keep the momentum rolling on those plans that are well underway. We believe AGDC has demonstrated tremendous leadership and project management, and we need look no further for a vehicle to take us into a natural gas future.Our goal is to empower AGDC to be nimble, innovative, and responsive to major shifts in supply and demand around the world, for the greatest benefit of Alaska. If the new Cook Inlet find is a huge as some suggest, we need to consider building a line running north to Fairbanks, allowing the Interior to build out its gas infrastructure as we continue developing another line linking the North Slope.That may be the exact course AGDC would elect to pursue, given the authority to do so. To reach that point, we must enable, empower and encourage AGDC, maintaining the momentum and world-class work we've seen so far.Alaskans heard Governor Parnell talk recently about the need for humility and flexibility as he pursues alignment of an in-state gasline with the AGIA-sponsored project. Our legislation will position AGDC to be a strong partner in an aligned, commercial project, if that becomes a viable solution. We support that alignment, but we're also unwilling to stand by and hope for the best. By empowering AGDC and aligning other state efforts, such as ANGDA, we will also be prepared to proceed with a stand-alone, in-state gasline.Acting decisively and with a unified voice today, we can usher a natural gas future into Alaska, regardless of when the next window opens to the Outside world.