2006-04-22                     Senate Journal                      Page 2861
SB 305                                                                                            
The Finance Committee considered SENATE BILL NO. 305 "An Act                                        
repealing the oil production tax and gas production tax and providing                               
for a production tax on the net value of oil and gas; relating to the                               
relationship of the production tax to other taxes; relating to the dates                            
tax payments and surcharges are due under AS 43.55; relating to                                     
interest on overpayments under AS 43.55; relating to the treatment of                               
oil and gas production tax in a producer's settlement with the royalty                              
owner; relating to flared gas, and to oil and gas used in the operation                             
of a lease or property, under AS 43.55; relating to the prevailing value                            
of oil or gas under AS 43.55; providing for tax credits against the tax                             
due under AS 43.55 for certain expenditures, losses, and surcharges;                                
relating to statements or other information required to be filed with or                            
furnished to the Department of Revenue, and relating to the penalty for                             
failure to file certain reports, under AS 43.55; relating to the powers of                          
the Department of Revenue, and to the disclosure of certain                                         
information required to be furnished to the Department of Revenue,                                  
under AS 43.55; relating to criminal penalties for violating conditions                             
governing access to and use of confidential information relating to the                             
oil and gas production tax; relating to the deposit of money collected                              
by the Department of Revenue under AS 43.55; relating to the                                        
calculation of the gross value at the point of production of oil or gas;                            
relating to the determination of the net value of taxable oil and gas for                           
purposes of a production tax on the net value of oil and gas; relating to                           
the definitions of 'gas,' 'oil,' and certain other terms for purposes of AS                         
43.55; making conforming amendments; and providing for an                                           
effective date" and recommended it be replaced with                                                 
                                                                                                    
  CS FOR SENATE BILL NO. 305(FIN) "An Act repealing the oil                                         
  production tax and the gas production tax and providing for a                                     
  production tax on oil and gas; relating to the calculation of the                                 
  gross value at the point of production of oil and gas and to the                                  
  determination of the value of oil and gas for purposes of the                                     
  production tax on oil and gas; providing for tax credits against the                              
  production tax on oil and gas; relating to the relationship of the                                
  production tax on oil and gas to other taxes, to the dates those tax                              
  payments and surcharges are due, to interest on overpayments of                                   
  the tax, and to the treatment of the tax in a producer's settlement                               

2006-04-22                     Senate Journal                      Page 2862
  with the royalty owners; relating to flared gas, and to oil and gas                               
  used in the operation of a lease or property under the production                                 
  tax; relating to the prevailing value of oil and gas under the                                    
  production tax; relating to surcharges on oil; relating to                                        
  statements or other information required to be filed with or                                      
  furnished to the Department of Revenue, to the penalty for failure                                
  to file certain reports for the tax, to the powers of the Department                              
  of Revenue, and to the disclosure of certain information required                                 
  to be furnished to the Department of Revenue as applicable to the                                 
  administration of the tax; relating to criminal penalties for                                     
  violating conditions governing access to and use of confidential                                  
  information relating to the tax, and to the deposit of tax money                                  
  collected by the Department of Revenue; amending the                                              
  definitions of 'gas,' 'oil,' and certain other terms for purposes of                              
  the production tax, and as the definition of the term 'gas' applies                               
  in the Alaska Stranded Gas Development Act, and adding further                                    
  definitions; making conforming amendments; and providing for                                      
  an effective date."                                                                               
                                                                                                    
Signing do pass: Senator Green, Cochair; Senators Bunde, Stedman.                                   
Signing no recommendation: Senator Wilken, Cochair; Senators                                        
Hoffman, Olson, Dyson.                                                                              
                                                                                                    
The following previously published fiscal information applies:                                      
 Fiscal Note No. 1, zero, Department of Natural Resources                                           
                                                                                                    
Fiscal information forthcoming.                                                                     
                                                                                                    
The bill is on today's calendar.