Printer Friendly

BP AMERICA REACHES $630 MILLION TAX SETTLEMENT WITH STATE OF ALASKA

 ANCHORAGE, Feb. 10 /PRNewswire/ -- Alaska Gov. Walter J. Hickel and BP America Chairman Rodney Chase today announced that the state has reached a $630 million settlement agreement with BP America over disputed taxes arising under Alaska's worldwide unitary apportionment income tax.
 Under terms of the settlement, BP will pay Alaska the entire $630 million in additional taxes and interest on June 30 of this year.
 The agreement is the culmination of extensive negotiations that began in June 1992 between representatives of BP and senior officials of the state departments of law and revenue.
 Hickel praised the settlement as appropriate and fair to both parties, commenting, "As I stressed in my state of the budget message to the legislature last month, Attorney General Charles Cole has continued to vigorously pursue resolution of the remaining assessments against the major oil producers.
 "Today's action clearly confirms the state's intentions in that regard, and we are gratified by BP's commitment to resolve its disputes with Alaska."
 Chase commented, "BP believes this is an equitable resolution of complex issues. It avoids lengthly litigation. The spirit of cooperation exhibited in this agreement will allow us to proceed to settle other outstanding issues with the state of Alaska."
 The settlement resolves a variety of issues ranging from the characterization of various foreign taxes, the deductibility of the windfall profits tax and the constitutionality of worldwide combination as applied to foreign corporations.
 Cole today said that the state's modified apportionment method for the taxing of oil companies was enacted in 1981 in response to concerns that the separate accounting method that had been in place since 1978 might be found unconstitutional.
 "However," the attorney general added, "the worldwide combination has since been challenged on constitutional grounds in California, and this tax method is expected to be decided eventually by the U.S. Supreme Court."
 Today's Seattle meetings concluded an intensive negotiating session led by Cole on behalf of the state and by Ron McGimpsey, senior vice president and chief financial officer for BP America.
 McGimpsey noted that the agreement would not have a material effect upon the company's results of operations, since adequate provision has previously been established.
 Cole noted that the agreement would not have been possible without close cooperation from the Alaska Department of Revenue under the direction of Commissioner Darrel Rexwinkel.
 Terms and conditions of the settlement agreement are, by law, confidential; however, BP authorized a limited waiver for purposes of today's settlement announcement.
 -0- 2/10/93
 /CONTACT: Tom Williams of BP Exploration (Alaska) Inc., 907-564-5955/
 (BP)


CO: BP Exploration (Alaska) Inc. ST: Alaska IN: OIL SU:

DA -- CL019 -- 5449 02/10/93 20:34 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 10, 1993
Words:442
Previous Article:SCHERING-PLOUGH EXECUTIVE PLANS TO REITERATE CONFIDENCE 'CLARITIN' WILL BE CLEARED FOR MARKET
Next Article:A VERY SPECIAL LADIES NIGHT ON THE ARSENIO HALL SHOW FRIDAY, FEB. 12
Topics:


Related Articles
THE BRITISH PETROLEUM COMPANY p.l.c. REPORTS RESULTS
UNOCAL AND STATE OF ALASKA SETTLE TAX DISPUTE
BP SETTLES TAX DISPUTE IN ALASKA
Production Started From New Oil Field On Alaska's North Slope
BP Pays $25.3 Million in Settlement.
BP Purchases Three Tankers to Deliver North Slope Crude.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters