Legislature(1995 - 1996)
1995-03-22 House Journal
Full Journal pdf1995-03-22 House Journal Page 0848 HB 207 The House Special Committee on Oil and Gas has considered: HOUSE BILL NO. 207 "An Act relating to adjustments to royalty reserved to the state to encourage otherwise uneconomic production of oil and gas; relating to the depositing of royalties and royalty sale proceeds in the Alaska permanent fund; and providing for an effective date." and recommends it be replaced with: CS FOR HOUSE BILL NO. 207(O&G) "An Act relating to adjustments to royalty reserved to the state to encourage otherwise uneconomic production of oil and gas; and providing for an effective date." 1995-03-22 House Journal Page 0849 HB 207 The report was signed by Representative Rokeberg, Chair, with the following individual recommendations: Do pass (4): Ogan, Brice, Rokeberg, B.Davis No recommendation (1): G.Davis Amend (2): Williams, Finkelstein A House Special Committee on Oil and Gas letter of intent for CSHB 207(O&G), signed by Representative Rokeberg, Chair, appears below: "In amending AS 38.05.180(j) it is the intent of the House Special Committee on Oil and Gas to encourage the oil and gas industry in Alaska to develop uneconomic marginal oil and gas fields. Modification of the statutes will encourage future petroleum development in Alaska. The climate for additional capital investment will improve the State of Alaska's ability to compete in a world wide market. The legislation creates an incentive for industry to select Alaska as a place to invest. Continued investment in Alaska will produce quality jobs for Alaskans and an additional source of revenue for the State of Alaska. Oversight by the Royalty Oil and Gas Development Advisory Board will insure that the State of Alaska's best interests are protected. A stronger definition of a delineated field was included to remove ambiguities. A sliding scale royalty or other mechanism on undeveloped fields has been included for use by the Commissioner of Natural Resources when the price of oil or gas changes. The relevant factors of proved reserves, well productivity or capital investment were elevated to a higher level of consideration if production would not otherwise be economically feasible for a field, pool, or portion of a field or pool. A better relationship between the State of Alaska and Alaska's primary industry will enable Alaska to be the first choice for investment opportunities." The following fiscal notes apply to CSHB 207(O&G): Indeterminate fiscal note, Dept. of Revenue, 3/22/95 1995-03-22 House Journal Page 0850 HB 207 Fiscal note, Dept. of Natural Resources, 3/8/95 Zero fiscal note, Dept. of Revenue, 2/27/95 HB 207 was referred to the Resources Committee.