State to receive $18 million
August 27, 2004
The settlement covers disputed production taxes for 2000 and 2001 on BP's share of oil production at the Prudhoe, Kuparuk, Endicott, North Star and Milne Point fields.
"The Departments of Revenue and Law worked with BP to craft a fair settlement that avoids protracted hearings and lawsuits that could drag on for years," said Governor Frank H. Murkowski. "I am pleased that the parties reached agreement."
Significant change occurred in BP's business during the years in question and this settlement provides future guidance to both the state and BP.
"This agreement represents a significant achievement in that it provides clarity on BP's tax obligations pertaining to new issues," said Steve Marshall, president, BPXA. "The priority for both parties was to pursue this effort jointly and come to mutual agreement without resorting to litigation, which we've accomplished."
Alaska tax statutes require that the specific terms and conditions of the agreement remain confidential.
BP is expected to transfer the funds to the state on August 26, 2004. All of the payment will be deposited into the Constitutional Budget Reserve Fund.
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