———- Forwarded message ———-
From: Chris Jonsson
Date: Sat, Jun 11, 2011 at 11:17 PM
Subject: Koch to Palin/Murkowski: Lower our royalties or jobs go away

Crooks and Liars
Saturday June 11, 2011 10:30 am
Koch to Palin/Murkowski: Lower our royalties or jobs go away
By karoli

Well, here’s an interesting little email (PDF) in the newly-released Sarah Palin collection.

In late June, 2008 around the time oil prices skyrocketed due to what we now understand to be rampant speculation, Koch Industries reached out to Lisa Murkowski and used her to reach out to Sarah Palin. Here’s the text of Murkowski’s letter to Palin:

While I know it may seem paradoxical for an oil refinery to be facing significant losses at this time of record crude oil and gasoline/diesel prices, I am writing to ask you and your administration to immediately undertake a new review of the equity of the state’s current royalty oil contract with Flint Hills Resources , which runs the state’s largest oil refinery at North Pole.

As you well know the Flint Hills refinery, owned by Koch Industries, is vital to Alaska’s economy for a host of reasons. Not only does the refinery employ 155 residents in the Fairbanks area , one of the largest manufacturing employers left in the state, the refinery also produces significant amounts of aviation fuel, which is one of the key reasons why the state’s air cargo transshipment industry has boomed in the past decade at both the Anchorage and Fairbanks International Airports. Those shipments also constitute a vital revenue source for the state-owned Alaska Railroad. If the refinery were to close due to its losses, or simply convert into a fuel distributor of imported product, it would deny Alaskans of about 60 percent of their locally produced fuel, potentially requiring the state to purchase more expensive fuel from refineries in the Lower 48 States, further hiking prices for gasoline and other fuels – something that simply should not be allowed to happen at this time of record energy prices throughout the State.

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