“Richards' contract says he will be paid for legal work on AKLNG….as well as on ‘taxation and credits.’”

To those that consider the $50,000 contract a waste of Alaska resources consider two points.

First, its plausible Alaska is paying 35 cents of every dollar North Slope Majors spend for legal services. “Deductions” are confidential. Why wouldn’t the Majors try to deduct everything they could, to reduce their oil tax liability and increase their share?

Second, Alaska is facing two unintended consequences resulting from SB21 and low oil prices. Net Operating Loss Carryover and unused monthly Production Tax Credits applied to a producer’s annual oil tax true-up could cost Alaska many hundreds of millions. 

Spending $50,000 to save hundreds of millions seems like money well spent.