Surprise: Shell’s rig ran aground in Alaska because the company was trying to avoid taxes

[HarveyDarkey]

4 Jan 2013 12:17 PM
By Philip Bump

On New Year’s Eve, in the middle of a storm, Shell was trying to tow its Kulluk drilling rig from Alaska to Seattle. Why then? Why risk the bad weather, which, as it turned out, caused the rig to break free from its tugboats and run aground on Kodiak Island?

To avoid paying state taxes, of course. From Alaska Dispatch:

A Shell spokesman last week confirmed an Unalaska elected official’s claim that the Dec. 21 departure of the Kulluk from Unalaska/Dutch Harbor involved taxation.

City councilor David Gregory said Shell would pay between $6 million and $7 million in state taxes if the Kulluk was still in Alaska on Jan. 1.

Ah, but the weather had other plans, sorry to say. Shell will end up having to pay that money after all, and then some.

Gregory said the departure of the Kulluk took money away from local small businesses servicing the rig. He predicted the maritime mishap will prove very costly to the oil company.

“It will cost them more than that $6 million in taxes. Maybe they should have just stayed here,” Gregory said.

http://grist.org/news/surprise-shells-rig-ran-aground-in-alaska-because-the-company-was-trying-to-avoid-taxes/

[Moonwalk]

1. So do they now have to pay the taxes?

[Hotler]

2. The money they will use to pay the taxes will come....

from the millioms in tax payer subsides that we give them.

[lpbk2713]

3. I'm glad it bit them in the ass.

And I particularly hope the bean counters who wanted
it moved are now being held accountable as well.

[NBachers]

4. Will Shell be fully charged for all the taxpayer-financed Coast Guard help they've received?

[NCarolinawoman]

5. Excellent point!

Are the talking heads covering this? Time to shine a spotlight on this garbage.


I wish.....

[Blue_In_AK]

6. Also note another Shell drilling rig is under criminal investigation.

http://www.adn.com/2013/01/04/2742278/report-shell-drilling-rig-discoverer.html

Shell's offshore drilling activities up here this year have been a continuing comedy (?) of errors.

As the Kulluk drilling rig remains grounded near Kodiak Island, CBS News reports that the activities of another drilling rig contracted by Shell in Alaska is under criminal investigation by the U.S. Coast Guard.

Citing unnamed sources, CBS News reports that the investigation follows a November marine safety inspection that uncovered problems with the ship's management system and pollution control systems while the rig was moored in Seward.

CBS reports:

The inspectors also listed more than a dozen "discrepancies" which, sources tell CBS News, led them to call in the Coast Guard Investigative Service (CGIS) to determine if there were violations of federal law.

Sources told CBS News that when criminal investigators arrived, the Noble Discoverer's crew had been provided with lawyers and declined to comment.

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