HEX/Furie owner John Hendrix was given a gift today by the House Resources Committee. In a 7-2 vote, the committee voted to advance House Bill 271 from the committee. It now heads to the House Finance Committee.

HB 271, introduced by Representative Zack Fields (D – Anchorage), aims to permanently reduce the royalty rate in the Kitchen Lights Unit (the gas leases in Cook Inlet where Furie operates) from 12.55 to 3%. 

In September 2024, Hendrix petitioned the commissioner of the Department of Natural Resources (DNR) for royalty relief in his Kitchen Lights Unit. Five months later, the DNR approved a 76% reduction in royalties for Hendrix’s Cook Inlet gas leases. The approval was back-dated to September 2024, resulting in a $2 million credit. This Landmine article, “HEX/Furie royalty relief approved by DNR includes $2 million credit for future royalty payments,” goes into more detail. From the article:

The $2 million represents a period of just over five months from September 1, 2024 to February 2, 2025. That works out to approximately $400,000 a month in royalty payments. At the 76% reduction, Hendrix will not have to pay any royalties to the state for around 20 months, unless he produces more gas and the royalty payments increase.

This Landmine article, “Hendrix Handout: House majority bill aims to permanently reduce royalty rate in Kitchen Lights Unit,” provides more detail on HB 271 as well as a history of Hendrix’s troubling pattern of behavior of getting naive or gullible legislators to introduce legislation that directly benefits his business.

The yes votes on the committee were:

• Representative Robyn Frier (D – Utqiagvik), Co-Chair
• Representative Maxine Dibert (D – Fairbanks), Co-Chair 
• Representative Zack Fields (D – Anchorage)
• Representative Carolyn Hall (D – Anchorage)
• Representative Dan Saddler (R –  Eagle River)
• Representative Bill Elam (R – Nikiski) 
• Representative Julie Coulombe (R – Anchorage)

Representatives Mike Prax (R – North Pole) and Donna Mears (D – Anchorage) had the sense to vote no. 

I have been tracking John Hendrix’s unscrupulous activities for three years. I provided public testimony to the committee today on why this bill, designed to directly benefit John Hendrix, is a bad idea. You can read my public testimony here.