Why do the oil companies pay the people who live in Alaska?

I live in Alaska.





Alaskan oil belongs to the people of Alaska. The state charges the oil companies by the barrel to remove it. Most of the monies earned are used to run the Alaska state government, build roads, schools, and provide services to remote native villages.





A small percentage of this money was put aside starting in 1973 into a Permenent Fund. After 9 years it grew enough to begin paying off. Each year the interest earned over the past 5 years is averaged and givein to qualifying Alaskans.





The money is not coming from the oil companies to Alaskans. It is money the state of Alaska has put into this fund - it's principal grows each year - and the state has invested in stocks, bonds ect. When wall street takes a hit, so does this fund. It is the money earned from the interest generated by putting this money to work that is given to Alaskans.





Hope this helps. Why do the oil companies pay the people who live in Alaska?
It is the Alaska dividend check your friend is talking about. First off you have to take into consideration that Alaska is a fairly new state compared to the lower 48. In the development of state politics structure Alaska retained much of it's oil and future natural resources through mineral rights and such whereas down here the states did not, they pretty much gave them up to the federal government with regards to rights and management. In turn the federal government has leased those lands to oil companies, those companies have faced much congressional adversity with respect to drilling and exploration on behalf of conservation mostly. So while Alaska has been busy developing it's resources and passing the profit to its citizens we have remained stagnant and have been left to the mercy of foreign markets.


I believe Palin is key to pressing forward here in the lower 48 and she will negotiate on behalf of the US citizens to keep those profits here and spread the wealth just as Alaska does.Why do the oil companies pay the people who live in Alaska?
That is the Alaska Perminent Fund. It pays residents who have lived in ALaska for at least one year an annual check. It is not the oil companies it is the State Government and why? Because it is Alaska's oil thus the peoples oil
The money comes from the State of Alaska from taxes on the oil companies.
Ii is nothing more than bribery or cash public relations, it works for them too
because they drill their land for oil.