Legislature(2009 - 2010)
2010-04-01 Senate Journal
Full Journal pdf2010-04-01 Senate Journal Page 2067 SB 305 SENATE BILL NO. 305 "An Act relating to the tax on oil and gas production; and providing for an effective date" was read the second time. Senator Stedman, Cochair, moved and asked unanimous consent for the adoption of the Finance Committee Substitute offered on page 2044. Without objection, CS FOR SENATE BILL NO. 305(FIN) "An Act relating to that part of the tax on oil and gas production that increases the rate of tax as the production tax value of oil or the BTU equivalent barrel of gas increases above $30, separating the determination of that rate between oil and gas, and making that rate distinct between oil and gas; relating to availability of a portion of the money received from the tax on oil and gas production for 2010-04-01 Senate Journal Page 2068 appropriation to the community revenue sharing fund; relating to the allocation of lease expenditures and adjustments to lease expenditures; and providing for an effective date" was adopted. Senators French, Stedman offered Title Amendment No. 1: Page 1, lines 1 - 4: Delete all material. Insert "An Act providing that the tax rate applicable to the production of oil as the average production tax value of oil, gas produced in the Cook Inlet sedimentary basin, and gas produced outside of the Cook Inlet sedimentary basin and used in the state increases above $30 shall be 0.4 percent multiplied by the number that represents the difference between that average monthly production tax value and $30, or the sum of 25 percent and the product of 0.1 percent multiplied by the number that represents the difference between that average monthly production tax value and $92.50, except that the total rate determined in the calculation may not exceed 50 percent; providing for an increase in the rate of tax on the production of gas as the average production tax value on a BTU equivalent barrel basis of gas produced outside of the Cook Inlet sedimentary basin and not used in the state increases above $30; relating to payments of the oil and gas production tax; relating to availability of a portion of the money" Senator French moved for the adoption of Amendment No. 1. Senator Stedman objected. Senator Meyer moved and asked unanimous consent to abstain from voting on Title Amendment No. 1 and CS FOR SENATE BILL NO. 305(FIN) due to a conflict of interest. Objections were heard and Senator Meyer was required to vote. Senator Stedman withdrew his objection. There being no further objection, Title Amendment No. 1 was adopted. Senator Ellis moved and asked unanimous consent that CS FOR SENATE BILL NO. 305(FIN)(title am) "An Act providing that the tax rate applicable to the production of oil as the average production tax value of oil, gas produced in the Cook Inlet sedimentary basin, and gas 2010-04-01 Senate Journal Page 2069 produced outside of the Cook Inlet sedimentary basin and used in the state increases above $30 shall be 0.4 percent multiplied by the number that represents the difference between that average monthly production tax value and $30, or the sum of 25 percent and the product of 0.1 percent multiplied by the number that represents the difference between that average monthly production tax value and $92.50, except that the total rate determined in the calculation may not exceed 50 percent; providing for an increase in the rate of tax on the production of gas as the average production tax value on a BTU equivalent barrel basis of gas produced outside of the Cook Inlet sedimentary basin and not used in the state increases above $30; relating to payments of the oil and gas production tax; relating to availability of a portion of the money received from the tax on oil and gas production for appropriation to the community revenue sharing fund; relating to the allocation of lease expenditures and adjustments to lease expenditures; and providing for an effective date" be considered engrossed, advanced to third reading and placed on final passage. Without objection, it was so ordered. CS FOR SENATE BILL NO. 305(FIN)(title am) was read the third time. The question being: "Shall CS FOR SENATE BILL NO. 305(FIN)(title am) "An Act providing that the tax rate applicable to the production of oil as the average production tax value of oil, gas produced in the Cook Inlet sedimentary basin, and gas produced outside of the Cook Inlet sedimentary basin and used in the state increases above $30 shall be 0.4 percent multiplied by the number that represents the difference between that average monthly production tax value and $30, or the sum of 25 percent and the product of 0.1 percent multiplied by the number that represents the difference between that average monthly production tax value and $92.50, except that the total rate determined in the calculation may not exceed 50 percent; providing for an increase in the rate of tax on the production of gas as the average production tax value on a BTU equivalent barrel basis of gas produced outside of the Cook Inlet sedimentary basin and not used in the state increases above $30; relating to payments of the oil and gas production tax; relating to availability of a portion of the money received from the tax on oil and gas production for appropriation to the community revenue sharing fund; relating to the allocation of lease 2010-04-01 Senate Journal Page 2070 expenditures and adjustments to lease expenditures; and providing for an effective date" pass the Senate?" The roll was taken with the following result: CSSB 305(FIN)(title am) Third Reading - Final Passage Effective Date YEAS: 16 NAYS: 3 EXCUSED: 1 ABSENT: 0 Yeas: Coghill, Davis, Egan, Ellis, French, Hoffman, Kookesh, McGuire, Menard, Meyer, Olson, Paskvan, Stedman, Stevens, Thomas, Wielechowski Nays: Bunde, Dyson, Huggins Excused: Wagoner and so, CS FOR SENATE BILL NO. 305(FIN)(title am) passed the Senate. Senator Ellis moved and asked unanimous consent that the vote on the passage of the bill be considered the vote on the effective date clause. Without objection, it was so ordered. Senator Bunde gave notice of reconsideration.