From Lisa Demer in Anchorage --

A two-week study of Alaska's oil and gas tax structure has convinced some state senators that the Legislature needs to act fast to separate the resources into two, independent taxing systems, one for natural gas, one for oil.

State Sen. Bert Stedman, a Republican from Sitka who co-chairs the Senate Finance Committee through which all tax legislation passes, told reporters Friday that the cost to the state if nothing is done could amount to $2 billion in lost revenue a year.

The hit comes when oil prices are high and natural gas prices are relatively low. The state's complicated tax formula links the two values -- "a substantial flaw" in the current structure, according to Stedman.

Sen. Joe Paskvan is a Democrat from Fairbanks who sat in on the Senate Finance Committee hearings over the last two weeks at Stedman's request.

"I believe now that the law as it currently exists puts Alaska at risk of being plundered," Paskvan told reporters. "Without changes before May 1, 2010, my belief is that essentially we have a Third World resource extraction model, that will end up being a plunder of Alaska's resources."

That May 1 date is significant, the senators said, because the tax structure in place then could be locked in for the first 10 years that natural gas flows if a big gas pipeline is ever built. That's the start of a period set in law for oil producers to commit to shipping natural gas in a pipeline.

Stedman said his committee intends to introduce a bill to separate oil and gas taxes and wants it on a fast track.

Gov. Sean Parnell, who has his own bills to increase and expand tax credits to oil producers, said he's willing to listen but doesn't believe the urgency is there. When the oil producers make their commitments, they will want to negotiate the tax rates, he said.

House Speaker Mike Chenault, a Republican from Nikiski, said he's been monitoring the Senate hearings and believes Stedman has identified a serious issue that needs to be addressed.