Arco agreed to pay Alaska $243 million in taxes.
Alaska officials and Atlantic Richfield said the payment covers production taxes on oil pumped from the North Slope and Cook Inlet in 1980-85. The state said Arco underpaid the tax owing to a dispute over the value of the crude oil. Arco said the payment will be made from a reserve created more than a year ago to cover several tax and royalty disputes over Alaskan oil and therefore won’t affect current earnings. The reserve stood at $690 million in December, 1984.
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