Unopposed Sitka Senator Raises Over $26,000 From Energy Leaders

Sitka state Sen. Bert Stedman raised more than $26,000 during October, leading the fundraising totals for state Senate candidates despite running without an opponent. The unopposed Republican secured roughly half of his monthly contributions from executives and regulators in the oil and gas sector. This campaign activity occurred just before Tuesday’s election, where Alaskans will choose a new governor and decide on 50 state legislative seats.

The largest single contribution to Stedman’s campaign came from John Hendrix, president of HEX Operating, a Cook Inlet oil and gas producer. Hendrix donated $5,000 to the senator’s effort. Other major contributors included Bill Armstrong, CEO of Armstrong Oil & Gas, and John Sims, president of Enstar Natural Gas Co. Executives from ConocoPhillips and Polar LNG also appear on the donor list, indicating broad support from the resource industry.

Regulators within the industry also provided financial support. Tom McKay, a member of the Alaska Oil and Gas Conservation Commission and former state representative, made a small donation. John Springsteen, a member of the Regulatory Commission of Alaska, also contributed. Stedman stated that fundraising remains necessary even without a rival candidate to prevent constituents from feeling taken for granted. He attributed the support to his long-term involvement in energy policy as a member of the Energy Council and the National Petroleum Council.

Stedman, a member of the Senate Finance Committee, represented a district that includes Prince of Wales Island, Ketchikan, and Sitka. He noted that much of his recent funding originated from a mid-October fundraiser in Anchorage. Stedman explained that political wealth and fundraising activity concentrate in the Railbelt region, including Anchorage and Mat-Su, rather than in his smaller home communities. Hendrix described Stedman as a pragmatic force in the Legislature who does not waver under political pressure.

Tax policy remains a central point of contention between the senator and industry leaders. Stedman has criticized Senate Bill 21, enacted in 2013, for replacing the Clear and Equitable Share policy with a structure that cut per-barrel tax rates. He voted against that legislation, viewing it as giving away billions in credits without adequate return. Currently, lawmakers and industry executives are focused on the severance tax structure, which imposes a 35% tax on oil production from the North Slope and Cook Inlet.

Stedman warned that changes to this tax system could destabilize growth. He noted that the current sliding scale may not equally account for new production from projects like the Pikka field, which began production this year. The senator expressed concern that if oil production increases while state revenue decreases, it will be difficult to explain to the public. Industry conversations during his campaign also touched on opposition to expanding the state’s corporate income tax to S corporations and limited liability companies.

The potential expansion of the corporate income tax was a sticking point during the legislative efforts to pass the Alaska LNG bill over the summer. Stedman supported closing the so-called S-corp loophole to offset revenue lost in property tax cuts. Negotiations ended in August after an impasse between Gov. Mike Dunleavy and lawmakers. Dunleavy is leaving office, and the outcome of the governor’s race will influence future tax policy. Former state Rep. Jonathan Kreiss-Tomkins, the sole Democrat in the race, supports expanding the corporate income tax, while Republican candidates Bernadette Wilson, Dave Bronson, and Treg Taylor oppose new taxes on the industry.