Legislature(2011 - 2012)
2012-04-14 Senate Journal
Full Journal pdf2012-04-14 Senate Journal Page 2282 HB 276 CS FOR HOUSE BILL NO. 276(FIN) "An Act providing for a credit against the oil and gas production tax for costs incurred for conducting seismic exploration and drilling certain oil or natural gas exploration wells in certain basins; relating to the determination of the production tax value of oil and gas production; and relating to a special tax rate for new oil or gas production south of 68 degrees North latitude" was read the second time. Senator Stedman, Cochair, moved and asked unanimous consent for the adoption of the Finance Senate Committee Substitute offered on page 2263. Without objection, SENATE CS FOR CS FOR HOUSE BILL NO. 276(FIN) "An Act relating to the oil and gas production tax; providing for a reduction in the production tax value in the amount of 30 percent of the gross value at the point of production for oil and gas produced from certain leases or properties north of 68 degrees North latitude that were not, as of January 1, 2008, in commercial production or within a unit; providing for a credit against the oil and gas production tax for costs incurred for conducting seismic exploration and drilling certain oil or natural gas exploration wells in certain basins; relating to the determination of the production tax value of oil and gas production; providing that the tax rate for new oil or gas production south of 68 degrees North latitude and outside of the Cook Inlet sedimentary basin may not exceed four percent of the gross value at the point of production; and providing for an effective date" was adopted. 2012-04-14 Senate Journal Page 2283 Senator Stedman offered Amendment No. 1 : Page 1, line 2, following the first occurrence of "value": Insert "of a producer" Page 14, line 18: Delete "oil and gas produced" Insert "a producer is reduced," Page 14, line 19: Delete "produced" Page 14, line 20, following "later,": Insert "by 30 percent of the gross value at the point of production of oil and gas produced, for the calendar year," Page 14, lines 22 - 23: Delete ", is reduced by, for the calendar year, 30 percent of the gross value at the point of production of that oil and gas" Senator Stedman moved for the adoption of Amendment No. 1. Senator Coghill objected, then withdrew his objection. There being no further objection, Amendment No. 1 was adopted. Senators Coghill, Dyson, Giessel, Huggins offered Amendment No. 2 : Page 1, lines 3 - 4: Delete "north of 68 degrees North latitude" Insert "in the state" Page 14, line 21: Delete "north of 68 degrees North latitude" Insert "in the state" Page 14, following line 25: Insert new bill sections to read: "* Sec. 11. The uncodified law of the State of Alaska is amended by adding a new section to read: TRANSITIONAL PROVISIONS. The Department of Revenue shall adopt regulations to determine, as applicable to a partial year, the reduction in production tax value provided under sec. 10 of this Act. * Sec. 12. Section 10 of this Act takes effect immediately under AS 01.10.070(c)." 2012-04-14 Senate Journal Page 2284 Renumber the following bill section accordingly. Page 14, line 26: Delete "This" Insert "Except as provided in sec. 12 of this Act, this" Senator Coghill moved for the adoption of Amendment No. 2. Objections were heard. The question being: "Shall Amendment No. 2 be adopted?" The roll was taken with the following result: SCS CSHB 276(FIN) am S Second Reading Amendment No. 2 YEAS: 7 NAYS: 13 EXCUSED: 0 ABSENT: 0 Yeas: Coghill, Dyson, Giessel, Huggins, McGuire, Menard, Meyer Nays: Davis, Egan, Ellis, French, Hoffman, Kookesh, Olson, Paskvan, Stedman, Stevens, Thomas, Wagoner, Wielechowski and so, Amendment No. 2 failed. Senator Meyer moved and asked unanimous consent that the bill be considered engrossed, advanced to third reading and placed on final passage. Without objection, it was so ordered. SENATE CS FOR CS FOR HOUSE BILL NO. 276(FIN) am S was read the third time. Senators Menard, Dyson moved and asked unanimous consent to be withdrawn as cross sponsors on the bill. Without objection, it was so ordered. Senators Wielechowski, French, Kookesh, Ellis moved and asked unanimous consent to be shown as cross sponsors on the bill. Without objection, it was so ordered. Senator Meyer moved and asked unanimous consent to abstain from voting due to a conflict of interest. Objections were heard and Senator Meyer was required to vote. 2012-04-14 Senate Journal Page 2285 The question being: "Shall SENATE CS FOR CS FOR HOUSE BILL NO. 276(FIN) am S "An Act relating to the oil and gas production tax; providing for a reduction in the production tax value of a producer in the amount of 30 percent of the gross value at the point of production for oil and gas produced from certain leases or properties north of 68 degrees North latitude that were not, as of January 1, 2008, in commercial production or within a unit; providing for a credit against the oil and gas production tax for costs incurred for conducting seismic exploration and drilling certain oil or natural gas exploration wells in certain basins; relating to the determination of the production tax value of oil and gas production; providing that the tax rate for new oil or gas production south of 68 degrees North latitude and outside of the Cook Inlet sedimentary basin may not exceed four percent of the gross value at the point of production; and providing for an effective date" pass the Senate?" The roll was taken with the following result: SCS CSHB 276(FIN) am S Third Reading - Final Passage Effective Date YEAS: 17 NAYS: 3 EXCUSED: 0 ABSENT: 0 Yeas: Coghill, Davis, Egan, Ellis, French, Hoffman, Kookesh, McGuire, Menard, Meyer, Olson, Paskvan, Stedman, Stevens, Thomas, Wagoner, Wielechowski Nays: Dyson, Giessel, Huggins and so, SENATE CS FOR CS FOR HOUSE BILL NO. 276(FIN) am S passed the Senate. Senator Meyer 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 and the bill was referred to the Secretary for engrossment.