JUNEAU — The Alaska House has passed a resolution calling on Congress to honor a key promise made during statehood: returning 90 percent of mineral royalties from federal lands to the state.
Senate Joint Resolution 19, sponsored by Sen. Jesse Bjorkman (R-Nikiski), urges Congress to restore the original 90/10 revenue split that was guaranteed in the Alaska Statehood Act of 1958 and an amendment to the federal Mineral Leasing Act.
“This is about reclaiming our birthright,” Bjorkman said Sunday. “Alaska relieved the federal government of its largest financial burden at the time, and in return, we were promised a 90 percent royalty share. That deal has been broken.”
The resolution highlights the fact that most resource development on the North Slope now occurs on federal land, including the National Petroleum Reserve-Alaska (NPR-A), where revenue sharing is capped at 50 percent. Complicating matters, most of that 50 percent share goes to nearby communities and the Permanent Fund, not the state’s general fund.
Bjorkman pointed to the Willow Project as an example. The state is expected to lose general fund revenue because ConocoPhillips can deduct development costs—roughly $500 million in FY2025—from state taxes without an offset in royalties.
“Restoring the 90 percent share means more money for public safety, roads, schools, and PFDs,” said Bjorkman. “And less pressure to tax Alaskans or producers.”
The resolution passed the Senate 19-0 with bipartisan support and has 17 co-sponsors.