Legislature(1995 - 1996)
04/26/1995 03:45 PM Senate RES
Audio | Topic |
---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CSHB 207(FIN) am ADJUSTMENTS TO OIL AND GAS ROYALTIES Number 325 SENATOR LEMAN brought CSHB 207(FIN) am before the committee as the next order of business. He stated the committee would be addressing a proposed Resources SCS, version "S." COMMISSIONER SHIVELY, Department of Natural Resources, commented that substantial changes have been made in the new committee substitute, and the department is not sure that the bill will be as valuable a tool for managing royalties as they originally thought. The department will work with committee staff and the industry to see exactly what the new wording means, and they will be prepared to offer more comments on it at the next meeting of the committee on Friday. Number 359 ROY BOWDRE, testifying from Delta Junction, stated he was strongly opposed to HB 207 because it gives the commissioner complete secrecy and it does not make him be responsible to any person or committee. The state already has the power to lower royalties, and the bill allows it to be done in complete secrecy. He urged defeat of the legislation. Number 366 LEONARD EFTA, testifying from Kenai, agreed the bill gives the commissioner too much power. He is also opposed to language on page 5, line 32 and page 6, lines 1 - 3 which provides that the commissioner's final findings and determination regarding royalty reduction is final and not appealable to the court. Number 375 KEITH BURKE, testifying for the Alliance in Anchorage, voiced their support for the ability of the commissioner to adjust the royalty provisions on marginal fields because they believe it is the quickest way to create jobs and to create some additional revenues for the state to alleviate some of the fiscal gap problems that are being faced. However, in looking at the draft committee substitute, he is concerned about some of the financial parameters that are placed in the bill, the sunset provisions, and the additional reviews and approval requirements by the legislative body. Number 407 JIM BRANCH, Production Manager, Exxon Co., testifying from Anchorage, said the state is seriously trying to improve the investment climate for the oil and gas industry. He said the investment reception and confidence in our state must be improved if we are to be successful in the worldwide competition for oil and gas investment dollars. He emphasized that the state's number one priority should be budget discipline. Fiscal reform, primarily to extending reductions, will send the strongest signal to investors. Number 437 KEVIN TABLER, Land Manager for Union Oil Co. in Anchorage, expressed the company's pleasure that the state is looking into ways in which to work with industry and provide for a better future for Alaska. Mr. Tabler said UNOCAL supported the version of HB 207 that passed the House, but they have not had an opportunity to fully digest the contents of the new Resources SCS. However, in looking at it, they do not support its sunset provisions and have concerns with other language in it. Number 488 SENATOR LEMAN commented that a split or dual sunset for existing fields in production and for new fields might be considered. He said the intent of the committee was to stimulate some activity by having this be open for the next two to two and one-half years, and then the legislature could address that sunset at some time in the future. He added that he could see how this might affect UNOCAL with existing fields, and he suggested Mr. Tabler come back with another proposal for existing fields and how that sunset may apply to them. Number 495 CHUCK SULLIVAN, Manager, Contracts/Administration, Parker Drilling, testifying from Anchorage, said the company has been in Alaska since 1969 and has had as many as 10 oil rigs operating in the state. Currently, they have one rig operating that provides 55 jobs directly with the rig. He said the business environment in Alaska and throughout the world has changed with more competition for investment dollars. He applauded the legislature's efforts to try to make Alaska's fields more competitive worldwide by encouraging additional investments in the oil industry. Number 516 RICHARD FINEBERG, testifying from Fairbanks, said he has not yet had an opportunity to review the new Resources SCS, but he pointed out that there have been two major international comparisons of fiscal systems for petroleum exploration and production completed recently, and there has been no discussion or analysis of these studies in relation to HB 207. He suggested holding over the legislation for the interim for the kind of major study it deserves. TAPE 95-49, SIDE B Number 005 SENATOR LEMAN said it was his intent to move a version of HB 207 out of committee within the next few days, and he suggested that any additional comments on the legislation be forwarded to the committee as soon as possible. There being no further testimony on HB 207, he closed the public hearing and stated it would be back before the committee at its Friday meeting.
Document Name | Date/Time | Subjects |
---|