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SCR 4: Creating and relating to the Alaska Oil and Gas Competitiveness Review Task Force.

00                    SENATE CONCURRENT RESOLUTION NO. 4                                                                   
01 Creating and relating to the Alaska Oil and Gas Competitiveness Review Task Force.                                      
02 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
03       WHEREAS Alaska is a vibrant and attractive place to live, work, and invest, and                                 
04 offers outstanding opportunities for current and future generations; and                                                
05       WHEREAS the fiscal and regulatory structure of Alaska helps enable the oil and gas                              
06 sector to be competitive, successful, and sustainable, thereby delivering maximum value to                              
07 Alaskans; and                                                                                                           
08       WHEREAS the state receives more than 87 percent of its unrestricted general fund                                
09 revenue from taxes and royalties on the production of the state's oil and gas resources; and                            
10       WHEREAS oil production in the state has declined nearly 70 percent from its peak                                
11 production and has declined more than 30 percent since 2000; and                                                        
12       WHEREAS the legislature has a constitutional obligation to develop the state's                                  
13 resources for the maximum benefit of the state's residents; and                                                         
14       WHEREAS maximizing oil and gas production and benefits from oil and gas                                         
15 production is in the best interest of the state; and                                                                    
16       WHEREAS the tax, royalty, and other fiscal structures in place in the state's oil and                           
01 gas sector affect the competitive ability of the state to maintain and attract new capital                              
02 investments; and                                                                                                        
03       WHEREAS the oil and gas industry operates in a diverse and competitive global                                   
04 market; and                                                                                                             
05       WHEREAS, although a stable and competitive tax structure is important to maintain                             
06 and attract new capital investments, it is appropriate to reevaluate periodically the state's                           
07 system of oil and gas taxes and regulatory environment for the purpose of determining the                               
08 most appropriate system for encouraging increased and ongoing long-term capital investment                              
09 in and production of the resources of the state;                                                                        
10       BE IT RESOLVED by the Alaska State Legislature that the Alaska Oil and Gas                                      
11 Competitiveness Review Task Force is created in the legislative branch and shall consist of                             
12 seven members as follows:                                                                                               
13            (1)  one senator appointed by the president of the senate;                                                   
14            (2)  one representative appointed by the speaker of the house of                                             
15 representatives;                                                                                                        
16            (3)  five members of the public, including one member who is a petroleum                                     
17 engineer, one member who is a petroleum geologist, and one member who is an economist,                                  
18 appointed jointly by the president of the senate and the speaker of the house of                                        
19 representatives; and be it                                                                                              
20       FURTHER RESOLVED that the senator and representative appointed to the task                                      
21 force shall be cochairs; the legislative staff of the cochairs shall provide administrative                             
22 support for the task force; and be it                                                                                   
23       FURTHER RESOLVED that a vacancy on the task force shall be filled in the                                        
24 manner of the original appointment; and be it                                                                           
25       FURTHER RESOLVED that public members of the task force serve without                                            
26 compensation but shall receive per diem and travel expenses authorized for boards and                                   
27 commissions under AS 39.20.180; and be it                                                                               
28       FURTHER RESOLVED that the task force may meet during and between legislative                                    
29 sessions; and be it                                                                                                     
30       FURTHER RESOLVED that the duties of the task force include the following:                                       
31            (1)  to review historical, current, and potential levels of investment in the                                
01 state's oil and gas sector;                                                                                             
02            (2)  to identify factors that affect investment in oil and gas exploration,                                  
03 development, and production in the state, including tax structure, rates, and credits; royalty                          
04 requirements; infrastructure; workforce availability; and regulatory requirements;                                      
05            (3)  to review the competitive position of the state to attract and maintain                                 
06 investment in the oil and gas sector in the state as compared to the competitive position of                            
07 other regions with oil and gas resources;                                                                               
08            (4)  in order to facilitate the work of the task force, to establish procedures to                           
09 accept and keep confidential information that is beneficial to the work of the task force,                              
10 including the creation of a secure data room and confidentiality agreements to be signed by                             
11 individuals having access to the confidential information;                                                              
12            (5)  to make written findings and recommendations, together with suggested                                   
13 legislation, to the Alaska State Legislature before July 1, 2011, or as soon thereafter as                              
14 practicable, regarding                                                                                                  
15                 (A)  changes to the state's fiscal regime that would be conducive to                                    
16       increased and ongoing long-term investment in and development of the state's oil and                              
17       gas resources; and                                                                                                
18                 (B)  alternative means for increasing the state's ability to attract and                                
19       maintain investment in and development of the state's oil and gas resources, including                            
20       the creation of a state entity to engage in oil and gas exploration, development,                                 
21       production, or pipeline transportation; and                                                                       
22            (6)  to make written findings and recommendations, together with suggested                                   
23 legislation, to the Alaska State Legislature before November 1, 2011, or as soon thereafter as                          
24 practicable, regarding changes to the state's regulatory environment that would be conducive                            
25 to encouraging increased investment while protecting the interests of Alaskans and the                                  
26 environment; and be it                                                                                                  
27       FURTHER RESOLVED that the Alaska State Legislature respectfully requests the                                    
28 Governor to direct the commissioner of revenue, the commissioner of natural resources, the                              
29 commissioner of environmental conservation, and other commissioners and agency personnel                                
30 who have responsibility for and maintain information related to oil and gas investment and                              
31 activity in the state to contribute to the work of the task force by providing information                              
01 relevant to the purposes and responsibilities of the task force; and be it                                              
02       FURTHER RESOLVED that the continuation or termination of the task force shall                                   
03 be evaluated during the Second Regular Session of the Twenty-Seventh Alaska State                                       
04 Legislature; if the task force is not otherwise extended, the task force shall terminate on the                         
05 last day of the Second Regular Session of the Twenty-Seventh Alaska State Legislature.