Alaska governor institutes hiring freeze after Prudhoe Bay shutdown

JUNEAU, Alaska – Gov. Frank Murkowski today instituted a state hiring freeze, and said he would direct Attorney General David Marquez to investigate the "state's right to hold BP fully accountable for losses to the state."

Murkowski made the announcement three days after BP said it would shut down the Prudhoe Bay oil field near Alaska's north coast after a small leak was found.

The expected loss of 400,000 barrels per day at today's oil prices means $6.4 million lost daily in royalties and taxes, Revenue Commissioner Bill Corbus said.

The state receives 89 percent of its income from oil revenue.

"BP must get the entire Prudhoe Bay back up and running as soon as it is safely possible," Murkowski told a joint session of the state Legislature.

Murkowski also said he will appoint a state task force, led by Natural Resources Commissioner Mike Menge, to deal with the Prudhoe Bay shutdown, "to make certain we retain the ability to exercise all of Alaska's prerogatives under our Prudhoe Bay leases, unit agreements, state laws and rights of way agreements."

He said the state intends to carefully scrutinize BP's plans to protect the environment from future damage and plans to resume operations.

He said he was ensuring all Alaskans that the state will hold BP responsible.