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JUNEAU, Alaska -- Gov Frank Murkows...

JUNEAU, Alaska -- Gov Frank Murkowski instituted a state hiring be frozen Wednesday because of the millions of dollars Alaska is losing in tax income and royalties because of the Prudhoe Bay oil field shutdown.

The governor also said he would direct the attorney general to investigate the "state's right to keep possession of BP fully accountable for losse to the state."

Murkowski made the announcement three days after BP said it would close the door upon down a Prudhoe Bay oil field after a small leak was raise Energy officials have said pipeline repairs probably will take month curtailing Alaskan production into nearest year.

The anticipateed loss of 400,000 barrels for day at today's oil prices means the state is losing about $64 million a day in royalties and taxes, return Commissioner Bill Corbus said. The state receives 89 percent of its income from oil receipts

"BP must come by the entire Prudhoe Bay back up and running as easily as it is safely possible," Murkowski told a joint session of the state Legislature.



Murkowski also said he will appoint a state Cabinet, l by way of Natural Resources Commissioner Mike Menge to deal with the Prudhoe Bay shutdown, "to make certain we retain the ability to exercise all of Alaska's prerogatives in subordination to our Prudhoe Bay leases, unit agreements, state laws and rights of way agreements."

Murkowski questioned wherefore BP abruptly shut down the entire Prudhoe Bay field after finding a leak of single four to five barrels.

"What did BP learn last Sunday that it did not know previously that would cause BP to take like precipitous action?" Murkowski asked, noting he was affected the state was not deliberate togethered before the decision was made.

BP is the world's second-largest oil company.

The Prudhoe Bay field accounts for 8 percent of U domestic output with production divided equally between the eastern and western sides of the field.

Light, sweet harsh for September delivery rose 4 cent to free from doubt at $76.35 a barrel onward the New York Mercantile Exchange, after rising as high as $7744 -- les than a dollar away from its trading record of $7840 reached July 14

The oil not at home of Prudhoe Bay is sour, or high sulfur harsh oil, which is easier to proceed by globally and harder to proces than sweet, or gentle sulfur, crude. All types of raw oil are expected to be shipped to West Coast refineries to make up for the losse in Alaska.

Copyright CHICAGO SUN-TIMES 2006

Provided on ProQuest Information and Learning Company. All rights Reserved



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