State to collect pipeline back taxes following settlement

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JUNEAU, Alaska (AP) - The state expects to collect about $165 million its owed in back taxes from companies that paid to ship oil down the Trans-Alaska Pipeline, but the payments are not expected to be in cash.

Alaska's Energy Desk reports the oil companies are expected to pay their tax bills by buying tax credits the state owes to other companies.

The state owes nearly $1 billion to small oil and gas companies under the cash-for-credits program the Legislature ended last year.

A settlement was reached earlier this month on the pipeline shipping rates that created a new rate calculation following years of disputes over high rates. The settlement also allows the state to collect.

The settlement still requires approval by the Regulatory Commission of Alaska and the Federal Energy Regulatory Commission.