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.