Legislature(2019 - 2020)
2019-04-15 House JournalFull Journal pdf
2019-04-15 House Journal Page 0619 HB 134 HOUSE BILL NO. 134 by the House Rules Committee by request of the Governor, entitled: "An Act authorizing the commissioner of natural resources to modify a net profit share lease." was read the first time and referred to the Resources and Finance Committees. 2019-04-15 House Journal Page 0620 The following fiscal note(s) apply: 1. Indeterminate, Dept. of Natural Resources 2. Indeterminate, Dept. of Revenue The Governor's transmittal letter dated April 12 follows: "Dear Speaker Edgmon: Under the authority of Article III, Section 18, of the Alaska Constitution, I am transmitting a bill authorizing the renegotiation of North Slope net profit share leases. The bill would authorize the commissioner of the Department of Natural Resources to modify North Slope net profit share leases where net profit share has hindered development of known oil and gas pools within units as a result of the percentage of profits returned to the state in addition to royalties and taxes. Modifications to net profit shares would be consistent with the existing royalty modification process. The bill would allow the commissioner to modify a net profit share lease to encourage production, prolong production or economic life of an oil or gas field or pool. A modification, however, could not result in a share reserved to the state of less than 10 percent of the net profit derived from the lease. The benefits of the bill would include incentivizing development and production of known oil and gas resources within units in production or in non-unitized areas with net profit share leases. An increase in development and production on the North Slope would generate additional revenue for the state; that result requires modification of leases to reflect production realities. I urge your prompt and favorable action on this bill. Sincerely, /s/ Michael J. Dunleavy Governor"