Legislature(1995 - 1996)
1996-03-28 House Journal
Full Journal pdf1996-03-28 House Journal Page 3448 HB 325 The following, which had been held over in second reading with all pending amendments (page 3418), was again before the House: CS FOR HOUSE BILL NO. 325(FIN) am An Act authorizing adjustment of the royalty for initial production of a portion of the heavy oil produced from wells on the Arctic Slope; and providing for an effective date. Amendment No. 7 was offered by Representative Navarre: Page 1, line 1 (title amendment): Delete "exemption from payment of" Insert "adjustment of the" Page 1, line 8: Delete "royalty is not payable" Insert "royalty is payable at a rate of two-thirds the rate set out in the section or provision of the lease, unit agreement, or other agreement that establishes the obligation to pay royalty on production" 1996-03-28 House Journal Page 3449 HB 325 Page 1, line 12: Delete "exemption from" Insert "reduction in" Page 2, line 19: Delete "1,825 days" Insert "5,475 days" Page 2, line 26: Delete "exemption from" Insert "reduction in" Page 2, line 28: Delete "exemption" Insert "reduction" Page 3, line 5: Delete "exemption" Insert "reduction" Page 3, line 10: Delete "an exemption from" Insert "a reduction in" Page 3, line 14: Delete "exemption" Insert "reduction" Page 3, line 15: Delete "an exemption" Insert "a reduction" Page 3, line 17: Delete "exemption" Insert "reduction" Representative Navarre moved and asked unanimous consent that Amendment No. 7 be adopted. Representative Green objected. 1996-03-28 House Journal Page 3450 HB 325 The question being: Shall Amendment No. 7 be adopted? The roll was taken with the following result: CSHB 325(FIN) am Second Reading Amendment No. 7 YEAS: 16 NAYS: 23 EXCUSED: 1 ABSENT: 0 Yeas: Brice, Brown, Davies, B.Davis, Elton, Finkelstein, Grussendorf, Hanley, Kubina, Long, Mackie, Moses, Navarre, Robinson, Therriault, Willis Nays: Austerman, Barnes, Bunde, G.Davis, Foster, Green, Ivan, James, Kelly, Kohring, Kott, Martin, Masek, Mulder, Ogan, Parnell, Phillips, Porter, Rokeberg, Sanders, Toohey, Vezey, Williams Excused: Nicholia And so, Amendment No. 7 was not adopted. Amendment No. 8 was offered by Representative Finkelstein: Page 1, lines 1 - 3 (title amendment): Delete all material and insert: ""An Act relating to modification of royalty to encourage production from an oil pool containing heavy oil; and providing for an effective date."" Page 1, line 8: Delete "royalty is not payable" Insert "royalty is payable at the rate determined under (j)(4)(A) of this section" Page 1, line 12: Delete "exemption from" Insert "reduction in" Page 2, line 26: Delete "exemption from" Insert "reduction in" 1996-03-28 House Journal Page 3451 HB 325 Page 2, line 28: Delete "exemption" Insert "reduction" Page 3, line 5: Delete "exemption" Insert "reduction" Page 3, line 10: Delete "an exemption from" Insert "a reduction in" Page 3, line 14: Delete "exemption" Insert "reduction" Page 3, line 10: Delete "an exemption from" Insert "a reduction in" Page 3, line 15: Delete "an exemption from" Insert "a reduction in" Page 3, line 17: Delete "exemption" Insert "reduction" Representative Finkelstein moved and asked unanimous consent that Amendment No. 8 be adopted. Representative Green objected. The question being: Shall Amendment No. 8 be adopted? The roll was taken with the following result: CSHB 325(FIN) am Second Reading Amendment No. 8 YEAS: 14 NAYS: 24 EXCUSED: 1 ABSENT: 1 1996-03-28 House Journal Page 3452 HB 325 Yeas: Brice, Brown, Bunde, Davies, B.Davis, Elton, Finkelstein, Grussendorf, Kubina, Long, Mackie, Navarre, Robinson, Willis Nays: Austerman, Barnes, G.Davis, Foster, Green, Hanley, Ivan, James, Kelly, Kohring, Kott, Martin, Masek, Mulder, Ogan, Parnell, Phillips, Porter, Rokeberg, Sanders, Therriault, Toohey, Vezey, Williams Excused: Nicholia Absent: Moses And so, Amendment No. 8 was not adopted. Amendment No. 9 was offered by Representative Finkelstein: Page 2, line 23: Delete and Page 3, line 9, following hours: Insert and Page 3, following line 9: Insert a new subparagraph to read: (E) only if the lessee agrees to reinvest the forgone royalty dollars in heavy oil projects in Alaska; Representative Finkelstein moved and asked unanimous consent that Amendment No. 9 be adopted. Representative Green objected. Amendment to Amendment No. 9 was offered by Representative Kubina: Following dollars in: Delete heavy oil Insert oil and gas Objection was heard. 1996-03-28 House Journal Page 3453 HB 325 The question being: Shall the amendment to Amendment No. 9 be adopted? The roll was taken with the following result: CSHB 325(FIN) am Second Reading Amendment to Amendment No. 9 YEAS: 26 NAYS: 11 EXCUSED: 1 ABSENT: 2 Yeas: Austerman, Barnes, Brice, Brown, Bunde, Davies, B.Davis, G.Davis, Elton, Finkelstein, Grussendorf, Hanley, James, Kelly, Kott, Kubina, Long, Mackie, Mulder, Ogan, Parnell, Robinson, Sanders, Therriault, Williams, Willis Nays: Foster, Green, Ivan, Kohring, Martin, Navarre, Phillips, Porter, Rokeberg, Toohey, Vezey Excused: Nicholia Absent: Masek, Moses And so, the amendment to Amendment No. 9 was adopted. The question being: Shall Amendment No. 9 as amended be adopted? The roll was taken with the following result: CSHB 325(FIN) am Second Reading Amendment No. 9 as amended YEAS: 18 NAYS: 19 EXCUSED: 1 ABSENT: 2 Yeas: Barnes, Brice, Brown, Davies, B.Davis, Elton, Finkelstein, Grussendorf, Kelly, Kott, Kubina, Long, Mackie, Navarre, Robinson, Sanders, Therriault, Willis Nays: Austerman, Bunde, G.Davis, Foster, Green, Hanley, Ivan, James, Kohring, Martin, Mulder, Ogan, Parnell, Phillips, Porter, Rokeberg, Toohey, Vezey, Williams Excused: Nicholia 1996-03-28 House Journal Page 3454 HB 325 Absent: Masek, Moses And so, Amendment No. 9 as amended was not adopted. Amendment No. 10 was offered by Representative Brown: Page 3, line 10: Insert a new subparagraph to read: (E) only to heavy oil production located at depths of less than 5,000 feet; Representative Brown moved and asked unanimous consent that Amendment No. 10 be adopted. Objection was heard and withdrawn. There being no further objection, Amendment No. 10 was adopted. Amendment No. 11 was offered by Representative Brown: Page 3, line 4: Delete "two" Insert "six" Representative Brown moved and asked unanimous consent that Amendment No. 11 be adopted. Representative Green objected. The question being: Shall Amendment No. 11 be adopted? The roll was taken with the following result: CSHB 325(FIN) am Second Reading Amendment No. 11 YEAS: 13 NAYS: 24 EXCUSED: 1 ABSENT: 2 Yeas: Barnes, Brice, Brown, Davies, B.Davis, Elton, Finkelstein, Grussendorf, Mackie, Navarre, Parnell, Robinson, Willis 1996-03-28 House Journal Page 3455 HB 325 Nays: Austerman, Bunde, G.Davis, Foster, Green, Hanley, Ivan, James, Kelly, Kohring, Kott, Long, Martin, Masek, Mulder, Ogan, Phillips, Porter, Rokeberg, Sanders, Therriault, Toohey, Vezey, Williams Excused: Nicholia Absent: Kubina, Moses And so, Amendment No. 11 was not adopted. Representative Davies placed a call of the House. Amendment No. 12 was offered by Representative Brown: Page 2, lines 2 - 13: Delete all material. Insert "well that does not exceed $15 per barrel;" The call was satisfied. Representative Brown moved and asked unanimous consent that Amendment No. 12 be adopted. Objection was heard and withdrawn. There being no further objection, Amendment No. 12 was adopted. Amendment No. 13 was offered by Representative Brown: Page 1, lines 1 - 3 (title amendment): Delete all material. Insert ""An Act relating to modification of royalty to encourage production from an oil pool containing heavy oil; and providing for an effective date."" Page 1, line 8: Delete "royalty is not payable" Insert "royalty is payable at a rate of three percent" 1996-03-28 House Journal Page 3456 HB 325 Page 1, line 12: Delete "exemption from" Insert "reduction in" Page 2, line 26: Delete "exemption from" Insert "reduction in" Page 2, line 28: Delete "exemption" Insert "reduction" Page 3, line 5: Delete "exemption" Insert "reduction" Page 3, line 10: Delete "an exemption from" Insert "a reduction in" Page 3, line 14: Delete "exemption" Insert "reduction" Page 3, line 15: Delete "an exemption from" Insert "a reduction in" Page 3, line 17: Delete "exemption" Insert "reduction" Representative Brown moved and asked unanimous consent that Amendment No. 13 be adopted. Representative Green objected. 1996-03-28 House Journal Page 3457 HB 325 Amendment to Amendment No. 13 was offered by Representative Davies: Add the following to the amendment: Page 3, line 24, following 5": Insert "the entire amount of royalty received by the state under the reduction authorized by this subsection is subject to deposit into the Alaska permanent fund (AS37.13.010); (6)" Representative Davies moved and asked unanimous consent that the amendment to Amendment No. 13 be adopted. Representative Rokeberg objected. The question being: Shall the amendment to Amendment No. 13 be adopted? The roll was taken with the following result: CSHB 325(FIN) am Second Reading Amendment to Amendment No. 13 YEAS: 17 NAYS: 22 EXCUSED: 1 ABSENT: 0 Yeas: Brice, Brown, Davies, B.Davis, Elton, Finkelstein, Grussendorf, James, Kubina, Long, Mackie, Moses, Navarre, Ogan, Robinson, Williams, Willis Nays: Austerman, Barnes, Bunde, G.Davis, Foster, Green, Hanley, Ivan, Kelly, Kohring, Kott, Martin, Masek, Mulder, Parnell, Phillips, Porter, Rokeberg, Sanders, Therriault, Toohey, Vezey Excused: Nicholia And so, the amendment to Amendment No. 13 was not adopted. The question being: Shall Amendment No. 13 be adopted? The roll was taken with the following result: 1996-03-28 House Journal Page 3458 HB 325 CSHB 325(FIN) am Second Reading Amendment No. 13 YEAS: 17 NAYS: 22 EXCUSED: 1 ABSENT: 0 Yeas: Brice, Brown, Davies, B.Davis, Elton, Finkelstein, Grussendorf, James, Kelly, Kubina, Long, Mackie, Moses, Navarre, Robinson, Therriault, Willis Nays: Austerman, Barnes, Bunde, G.Davis, Foster, Green, Hanley, Ivan, Kohring, Kott, Martin, Masek, Mulder, Ogan, Parnell, Phillips, Porter, Rokeberg, Sanders, Toohey, Vezey, Williams Excused: Nicholia And so, Amendment No. 13 was not adopted. Amendment No. 14 was offered by Representative Davies: Page 1, line 8, following royalty is not payable: Delete under the conditions and to the extent described in this subsection, Page 1, line 10, following Umiat baseline: Insert if oil production from the lease is not otherwise economically feasible determined from information provided by the lessee and subject to an audit by the Legislative Budget and Audit Committee or an independent auditor hired by the legislature. Royalty exemption may be granted under the conditions to the extent described in this subsection, as follows: Representative Davies moved and asked unanimous consent that Amendment No. 14 be adopted. Representative Green objected. The question being: Shall Amendment No. 14 be adopted? The roll was taken with the following result: 1996-03-28 House Journal Page 3459 HB 325 CSHB 325(FIN) am Second Reading Amendment No. 14 YEAS: 15 NAYS: 24 EXCUSED: 1 ABSENT: 0 Yeas: Brice, Brown, Davies, B.Davis, Elton, Finkelstein, Grussendorf, Kubina, Long, Mackie, Moses, Navarre, Robinson, Therriault, Willis Nays: Austerman, Barnes, Bunde, G.Davis, Foster, Green, Hanley, Ivan, James, Kelly, Kohring, Kott, Martin, Masek, Mulder, Ogan, Parnell, Phillips, Porter, Rokeberg, Sanders, Toohey, Vezey, Williams Excused: Nicholia And so, Amendment No. 14 was not adopted. Amendment No. 15 was offered by Representative Navarre: Page 2, line 1: Delete 500" Insert 300" Representative Navarre moved and asked unanimous consent that Amendment No. 15 be adopted. Representative Green objected. The question being: Shall Amendment No. 15 be adopted? The roll was taken with the following result: CSHB 325(FIN) am Second Reading Amendment No. 15 YEAS: 14 NAYS: 25 EXCUSED: 1 ABSENT: 0 Yeas: Brice, Brown, Davies, B.Davis, Elton, Finkelstein, Grussendorf, Kubina, Long, Mackie, Navarre, Robinson, Therriault, Willis 1996-03-28 House Journal Page 3460 HB 325 Nays: Austerman, Barnes, Bunde, G.Davis, Foster, Green, Hanley, Ivan, James, Kelly, Kohring, Kott, Martin, Masek, Moses, Mulder, Ogan, Parnell, Phillips, Porter, Rokeberg, Sanders, Toohey, Vezey, Williams Excused: Nicholia And so, Amendment No. 15 was not adopted. Amendment No. 16 was offered by Representative Navarre: Page 2, line 1: Delete 500" Insert 400" Representative Navarre moved and asked unanimous consent that Amendment No. 16 be adopted. Representative Green objected. Amendment to Amendment No. 16 was offered by Representative Green: Delete 400" Insert 450" Objection was heard. The question being: Shall the amendment to Amendment No. 16 be adopted? The roll was taken with the following result: CSHB 325(FIN) am Second Reading Amendment to Amendment No. 16 YEAS: 28 NAYS: 11 EXCUSED: 1 ABSENT: 0 Yeas: Austerman, Barnes, Brice, Bunde, Davies, B.Davis, G.Davis, Elton, Finkelstein, Green, Grussendorf, Hanley, James, Kelly, Kohring, Kubina, Long, Mackie, Masek, Moses, Mulder, Ogan, Parnell, Robinson, Rokeberg, Therriault, Toohey, Willis 1996-03-28 House Journal Page 3461 HB 325 Nays: Brown, Foster, Ivan, Kott, Martin, Navarre, Phillips, Porter, Sanders, Vezey, Williams Excused: Nicholia And so, the amendment to Amendment No. 16 was adopted. The question being: Shall Amendment No. 16 as amended be adopted? The roll was taken with the following result: CSHB 325(FIN) am Second Reading Amendment No. 16 as amended YEAS: 29 NAYS: 10 EXCUSED: 1 ABSENT: 0 Yeas: Austerman, Barnes, Brice, Brown, Bunde, Davies, B.Davis, G.Davis, Elton, Finkelstein, Green, Grussendorf, Hanley, James, Kelly, Kohring, Kott, Kubina, Long, Mackie, Masek, Moses, Mulder, Navarre, Ogan, Parnell, Robinson, Therriault, Willis Nays: Foster, Ivan, Martin, Phillips, Porter, Rokeberg, Sanders, Toohey, Vezey, Williams Excused: Nicholia And so, Amendment No. 16 as amended was adopted. Representative Kubina moved and asked unanimous consent to rescind previous action in failing to adopt Amendment No. 9 as amended. Objection was heard. Representative Kubina moved and asked unanimous consent to withdraw the motion. There being no objection, it was so ordered. Representative Vezey moved and asked unanimous consent that CSHB325(FIN) am be considered engrossed, advanced to third reading and placed on final passage. Objection was heard. 1996-03-28 House Journal Page 3462 HB 325 The question being: Shall CSHB 325(FIN) be advanced to third reading on the same day? The roll was taken with the following result: CSHB 325(FIN) am Second Reading Advance to Third Reading YEAS: 26 NAYS: 13 EXCUSED: 1 ABSENT: 0 Yeas: Austerman, Barnes, Bunde, G.Davis, Foster, Green, Hanley, Ivan, James, Kelly, Kohring, Kott, Martin, Masek, Moses, Mulder, Ogan, Parnell, Phillips, Porter, Rokeberg, Sanders, Therriault, Toohey, Vezey, Williams Nays: Brice, Brown, Davies, B.Davis, Elton, Finkelstein, Grussendorf, Kubina, Long, Mackie, Navarre, Robinson, Willis Excused: Nicholia And so, lacking the necessary 30 votes, CSHB 325(FIN) am failed to advance and will be in third reading on the March 29, 1996, calendar.