Legislature(2017 - 2018)BARNES 124

03/30/2018 01:00 PM RESOURCES

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Audio Topic
02:34:21 PM Start
02:35:08 PM HB331
03:15:15 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to 2:30 pm --
*+ HB 331 TAX CREDIT CERT. BOND CORP; ROYALTIES TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+= HB 288 OIL AND GAS PRODUCTION TAX TELECONFERENCED
Scheduled but Not Heard
-- Testimony <Invitation Only> --
+= HB 399 CORP. TAX: REMOVE EXEMPTIONS/CREDITS TELECONFERENCED
Scheduled but Not Heard
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE RESOURCES STANDING COMMITTEE                                                                             
                         March 30, 2018                                                                                         
                           2:34 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Andy Josephson, Co-Chair                                                                                         
Representative Geran Tarr, Co-Chair                                                                                             
Representative John Lincoln, Vice Chair                                                                                         
Representative Harriet Drummond                                                                                                 
Representative Justin Parish                                                                                                    
Representative Chris Birch                                                                                                      
Representative DeLena Johnson                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative George Rauscher                                                                                                  
Representative David Talerico                                                                                                   
Representative Mike Chenault (alternate)                                                                                        
Representative Chris Tuck (alternate)                                                                                           
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 331                                                                                                              
"An  Act  establishing the  Alaska  Tax  Credit Certificate  Bond                                                               
Corporation; relating  to purchases  of tax  credit certificates;                                                               
relating   to  overriding   royalty   interest  agreements;   and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 288                                                                                                              
"An  Act relating  to  the minimum  tax imposed  on  oil and  gas                                                               
produced from leases or properties  that include land north of 68                                                               
degrees North latitude; and providing for an effective date."                                                                   
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
HOUSE BILL NO. 399                                                                                                              
"An Act disallowing a federal tax  credit as a credit against the                                                               
corporate  net income  tax; repealing  a  provision allowing  the                                                               
exclusion of  certain royalties accrued or  received from foreign                                                               
corporations  for  purposes  of  the corporate  net  income  tax;                                                               
repealing the  reduced rate  for the  alternative tax  on capital                                                               
gains  for corporations;  repealing  an exemption  from filing  a                                                               
return  under the  corporate  net income  tax  for a  corporation                                                               
engaged in a  contract under the Alaska  Stranded Gas Development                                                               
Act; and providing for an effective date."                                                                                      
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 331                                                                                                                  
SHORT TITLE: TAX CREDIT CERT. BOND CORP; ROYALTIES                                                                              
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
02/07/18       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/07/18       (H)       RES, FIN                                                                                               
03/30/18       (H)       RES AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
KEN ALPER, Director                                                                                                             
Tax Division                                                                                                                    
Department of Revenue                                                                                                           
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:     Co-provided  a  PowerPoint  presentation                                                             
entitled, "State  of Alaska Department  of Revenue HB331:   Oil &                                                               
Gas  Tax  Credit  Bond  Proposal"   dated  3/30/18  and  answered                                                               
questions during the hearing of HB 331.                                                                                         
                                                                                                                                
MIKE BARNHILL, Deputy Commissioner                                                                                              
Office of the Commissioner                                                                                                      
Department of Revenue                                                                                                           
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:     Co-provided  a  PowerPoint  presentation                                                             
entitled, "State  of Alaska Department  of Revenue HB331:   Oil &                                                               
Gas  Tax  Credit  Bond  Proposal"   dated  3/30/18  and  answered                                                               
questions during the hearing of HB 331.                                                                                         
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
2:34:21 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  GERAN   TARR  called   the  House   Resources  Standing                                                             
Committee meeting  to order at  2:34 p.m.   Representatives Tarr,                                                               
Birch, Parish,  Drummond, Lincoln, and Josephson  were present at                                                               
the call to order.   Representatives Drummond and Johnson arrived                                                               
as the meeting was in progress.                                                                                                 
                                                                                                                                
          HB 331-TAX CREDIT CERT. BOND CORP; ROYALTIES                                                                      
                                                                                                                                
2:35:08 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR announced that the  only order of business would be                                                               
HOUSE BILL  NO. 331, "An  Act establishing the Alaska  Tax Credit                                                               
Certificate  Bond  Corporation;  relating  to  purchases  of  tax                                                               
credit  certificates;  relating  to overriding  royalty  interest                                                               
agreements; and providing for an effective date."                                                                               
                                                                                                                                
2:36:27 PM                                                                                                                    
                                                                                                                                
KEN  ALPER,  Director,  Tax   Division,  Department  of  Revenue,                                                               
reported  that House  Bill 111  had  ended the  Alaska system  of                                                               
cashable   tax  credits,   even  though   there  were   still  "a                                                               
substantial  amount of  them still  on  the books  at some  point                                                               
needing to be either used by  tax payers to offset taxes, sold to                                                               
other taxpayers, or purchased by  the state pending funding."  He                                                               
relayed  that  there  was about  $800  million  outstanding  with                                                               
another  $150 million  in process  before the  final tax  credits                                                               
were  eligible for  cash re-purchase.   He  declared that  "we're                                                               
looking at a recession in  Alaska, private sector jobs are down."                                                               
He  mused that  one aspect  of the  proposed bill  was to  give a                                                               
boost to  the Alaska economy, which  had been a component  of the                                                               
Governor's stimulus  package introduced  at the beginning  of the                                                               
legislative session, slide  2.  He reported that  Alaska had lost                                                               
many jobs  since the price  of oil started  to drop in  the later                                                               
months of  2014; the  private sector jobs  had dropped  about 3.8                                                               
percent, 9,200 jobs, and the oil  and gas sector jobs had dropped                                                               
over  30  percent,  according  to   the  Department  of  Labor  &                                                               
Workforce Development.   He shared the ISER  (Institute of Social                                                               
and   Economic  Research)   forecast  for   2018  indicating   an                                                               
additional  small drop,  and not  a recovery.   He  declared that                                                               
proposed HB  331 was intended  to provide  a boost of  funding to                                                               
help  resolve  some  of  the  uncertainty for  the  oil  and  gas                                                               
industry  relating to  the not  full  payment of  the earned  tax                                                               
credits  in the  manner  to which  they had  been  paid in  prior                                                               
years.  He  explained that this uncertainty  meant that companies                                                               
were unable  to plan their next  round of investment.   He stated                                                               
that the  proposed bill would  provide about $700 million  to the                                                               
oil  and gas  sector and  into the  economy by  incentivizing new                                                               
spending in Alaska.                                                                                                             
                                                                                                                                
2:41:00 PM                                                                                                                    
                                                                                                                                
MIKE BARNHILL,  Deputy Commissioner, Office of  the Commissioner,                                                               
Department of  Revenue, directed attention  to slide 3,  "Bill is                                                               
Structured to Balance Competing Interests."   He pointed out that                                                               
the legislature  resolved one issue  with respect to the  oil and                                                               
gas tax  credits in  the previous session  by sunsetting  the tax                                                               
credit program,  even though  it left  an issue  with outstanding                                                               
tax credits of $700 million to  $1 billion.  He declared that the                                                               
proposed  bill  was an  attempt  to  balance competing  interests                                                               
through financing.  He explained  that the state could not afford                                                               
to tap  into the state  savings to pay all  of this today,  so it                                                               
was being proposed  to borrow and pay this off  over time through                                                               
debt service.   He  noted that  the tax  credit program  had been                                                               
calculated,  and actively  marketed, to  attract investment  into                                                               
the state from  new and small oil and  gas exploration companies.                                                               
He shared  a story  of marketing these  slide shows  to investors                                                               
and pointed out  that this program was about reliance.   He added                                                               
that any litigation against the  state would include evidence for                                                               
the  role of  the  Department  of Revenue  in  trying to  attract                                                               
investment from outside entities.                                                                                               
                                                                                                                                
CO-CHAIR  TARR  asked, as  the  program  for repayment  had  been                                                               
created  in statute,  how it  was advertised  to companies.   She                                                               
questioned  that  companies would  not  request  the details  and                                                               
potentials  for pitfalls  included in  the statutory  formula for                                                               
repayment.                                                                                                                      
                                                                                                                                
MR. BARNHILL  offered to  share the slide  show for  marketing to                                                               
investors.  He referred to the  anxiety in 2010 in the Cook Inlet                                                               
region regarding a  shortage of gas to generate  electricity.  He                                                               
stated  that,  as  there was  considerable  enthusiasm  for  this                                                               
program, this  was reflected  in the marketing.   He  pointed out                                                               
that, regardless  of any  due diligence  by the  investors, there                                                               
had been investment and the  state had paid a considerable amount                                                               
of money  for some period  when the  credits were tendered.   The                                                               
state  had  stopped  making  payments   when  the  price  of  oil                                                               
"bottomed  out."    He  pointed  out  that  the  state  had  made                                                               
statements  and actions  which would  be weighed  along with  the                                                               
enacted statutory  language in  determining resolution  for this.                                                               
He  reiterated  that  the  committee   should  be  aware  of  the                                                               
enthusiasm for which the program was marketed.                                                                                  
                                                                                                                                
2:48:17 PM                                                                                                                    
                                                                                                                                
MR. ALPER  noted that the  statutory formula language  had "found                                                               
its way  in in 2007 and  was largely forgotten."   He pointed out                                                               
that eight  consecutive years  of budgets  had ignored  this, and                                                               
that language  had been written in  every year to fully  fund the                                                               
amount  of  credits requested.    It  was  not until  the  fiscal                                                               
crisis, when it  was realized that the state could  not afford to                                                               
do this, that the language was brought back to light.                                                                           
                                                                                                                                
CO-CHAIR Tarr  offered her belief  that the risk assessment  by a                                                               
company  should  have  included  a very  careful  review  of  the                                                               
statute, and the corresponding payment schedule.                                                                                
                                                                                                                                
REPRESENTATIVE PARISH offered an example  of a contract offer and                                                               
asked  if there  was an  obligation to  continue with  that anti-                                                               
market practice.                                                                                                                
                                                                                                                                
2:50:50 PM                                                                                                                    
                                                                                                                                
MR. BARNHILL said that, ultimately,  a court would have to decide                                                               
the obligation.   He stated that he was just  trying to offer the                                                               
committee  a better  understanding  of "the  various factors  the                                                               
courts  would weigh  in evaluating  that."   He suggested  that a                                                               
business,  which  made representations  to  the  public and  then                                                               
suddenly  changed  those or  changed  their  practice, could  not                                                               
expect  but that  the  customers would  be  frustrated with  that                                                               
sudden change of  practice.  He declared that  the reputation and                                                               
the  stability of  the business  was important.   He  opined that                                                               
state  credibility was  a similar  concept and  that the  current                                                               
administration wanted  to emphasize that,  as the state was  in a                                                               
recession, that the state's business  arrangements were viewed as                                                               
credible  and stable,  and that  the state  was a  good place  to                                                               
invest.                                                                                                                         
                                                                                                                                
REPRESENTATIVE PARISH  stated that he  would rather the  state be                                                               
recognized for its honoring of  contracts and statutes instead of                                                               
the word of  a character, Mr. Moose, in a  marketing program.  He                                                               
expressed  his dissatisfaction  that the  previous administration                                                               
had "put us on hook and put Mr. Moose's good name at risk."                                                                     
                                                                                                                                
REPRESENTATIVE BIRCH declared that this  was a "huge issue, talks                                                               
about  state credibility,"  and  he demanded  that the  committee                                                               
"roll through this presentation and ..."                                                                                        
                                                                                                                                
CHAIR TARR  cut off Representative  Birch, reminded him  that she                                                               
was the  chair of the  committee and affirmed:   "I will  run the                                                               
committee as  I see fit, and  I will allow you  to ask questions.                                                               
Everyone is  an equal  member of this  committee.   Everyone will                                                               
have an opportunity  to ask questions."  She  asserted that there                                                               
would not be  any continued conversation for how  she was running                                                               
the committee meeting.                                                                                                          
                                                                                                                                
REPRESENTATIVE BIRCH  asked if the  chair planned to  adjourn the                                                               
meeting at 3:05 p.m. as stated at the outset.                                                                                   
                                                                                                                                
CHAIR TARR replied, "yes we are."                                                                                               
                                                                                                                                
REPRESENTATIVE  BIRCH offered  his  encouragement  to finish  the                                                               
presentation.                                                                                                                   
                                                                                                                                
2:54:23 PM                                                                                                                    
                                                                                                                                
MR.  BARNHILL  offered to  meet  with  members of  the  committee                                                               
individually.   He stated  that slide  4, "Oil  & Gas  Tax Credit                                                               
Background," was a  timeline and that those  credits had achieved                                                               
their  purpose.   He  acknowledged  that  there could  have  been                                                               
better  ways to  do it  and that  it  cost a  lot of  money.   He                                                               
pointed out  that, as there  were gas shortages in  the Railbelt,                                                               
the tax  credit program had  been created to solve  that problem.                                                               
He pointed  out that  the tax credits  had succeeded  in bringing                                                               
new,   small  gas   explorers  to   the  state   to  create   the                                                               
opportunities for new development and  new production.  He shared                                                               
that  the hope  had been  for investment  through the  tax credit                                                               
program  to create  a  "virtuous cycle"  of  state investment  in                                                               
development and exploration  of new fields for  new royalties and                                                               
new  production taxes  to  pay for  all  the important  programs,                                                               
slide  5.   He  stated  that  slide 6,  "State-purchased  credits                                                               
through the  FY2018," offered a  background for the  $3.6 billion                                                               
total cash purchases  which had produced real  production for the                                                               
future, with  175 million barrels  of oil  produced to date.   He                                                               
reported  that there  was a  current balance  of $807  million of                                                               
unpaid  tax credits,  of which  $514 million  was from  the North                                                               
Slope and about $300 million was not from the North Slope.                                                                      
                                                                                                                                
2:58:00 PM                                                                                                                    
                                                                                                                                
MR. ALPER,  in response  to Chair Tarr,  explained that  the $807                                                               
million  had been  offered into  the bonding  program should  the                                                               
bill pass, and  that about $750 million would be  paid, with this                                                               
reinvestment into the economy described  on an earlier slide.  He                                                               
noted that  the $130 - $180  million was in addition  to the $807                                                               
million for  credits that had not  yet been issued.   He reported                                                               
that the structure  of the bill and the bonding  would call for a                                                               
second  and  third  round  of  bonds  issued  for  these  smaller                                                               
amounts.                                                                                                                        
                                                                                                                                
2:58:52 PM                                                                                                                    
                                                                                                                                
MR.  BARNHILL  continued  with slide  7,  "Forecasted  Production                                                               
Helped by  Known Credits," and  shared the  forecasted production                                                               
for  the  fields financed  by  the  State of  Alaska  investments                                                               
through the  tax credit program,  about 106 million  barrels from                                                               
fields currently producing  on the North Slope,  an additional 23                                                               
million barrels  from fields  not yet producing,  for a  total of                                                               
215 million  barrels financed  by the tax  credits.   He reported                                                               
that Cook Inlet now  had a large amount of gas  to meet the needs                                                               
of the Railbelt region, an estimate  of 90 billion cubic feet per                                                               
year, an  equivalent of 15 million  barrels of oil.   He reported                                                               
that  the total  past and  future  production in  the Cook  Inlet                                                               
region was almost 300 million barrels of oil equivalent.                                                                        
                                                                                                                                
REPRESENTATIVE PARISH asked how  much production would have taken                                                               
place in absence of the tax credit program.                                                                                     
                                                                                                                                
MR.  BARNHILL offered  his belief  that prior  to the  tax credit                                                               
program, with  respect to the  Cook Inlet exploration,  there was                                                               
not any plan  for additional exploration in that  region, even as                                                               
there was "serious concern about brown-outs and what not."                                                                      
                                                                                                                                
REPRESENTATIVE PARISH asked about the North Slope.                                                                              
                                                                                                                                
3:00:42 PM                                                                                                                    
                                                                                                                                
MR.  ALPER stated,  "we honestly  don't  know."   He shared  that                                                               
there had  always been a  certain exploratory interest,  and part                                                               
of the perception in the industry  about the North Slope was that                                                               
it was  somewhat controlled by  three large companies.   He added                                                               
that an  intangible part  of the  program was  to "help  draw new                                                               
blood to the  oil patch because it was  generally understood that                                                               
the oil  that remained  to be  found out  there was  not elephant                                                               
fields but  were fields in  the 25  - 100 million  barrel size...                                                               
that's simply too small for the  BPs of the world to invest their                                                               
time   and  effort   seeking."     He  stated   that  the   large                                                               
international companies  in Alaska  "looked to do  large things."                                                               
He  pointed  out   that,  as  the  barriers   to  entry  included                                                               
isolation,  transportation,   and  logistical  issues,   the  tax                                                               
credits were  intended to ease the  path into Alaska for  the new                                                               
entities.  He said that it  was hard to determine what would have                                                               
happened in  the absence  of any  credits, noting  that a  lot of                                                               
these credits  were operating loss  credits.  He  explained that,                                                               
after the  transition from a  gross based  tax to a  net profits-                                                               
based tax  in 2006,  for the companies  which were  producing and                                                               
selling  oil for  profit, every  dollar they  spent came  off the                                                               
bottom line  and reduced the tax  burden.  He pointed  out that a                                                               
company  that  spent money  without  production  did not  get  an                                                               
immediate tax value  for those expenditures.   He explained that,                                                               
although  there were  several ways  to  do this,  House Bill  111                                                               
allowed the  companies to carry  over and hold  until production.                                                               
He stated that a lot of  these credits were instead taking losses                                                               
and monetizing them in real  time, instead of forcing the company                                                               
to wait a certain  number of years.  He opined  that this made it                                                               
easier for  some companies  to enter  Alaska, although  "how much                                                               
would  or would  not have  happened  without them,  I think  it's                                                               
impossible to say for sure."                                                                                                    
                                                                                                                                
3:03:13 PM                                                                                                                    
                                                                                                                                
MR.  BARNHILL moved  on to  "The  Challenge," slide  8, which  he                                                               
explained was the  background for the current bill.   He reported                                                               
that from FY08 -  FY15 the state had paid all  the tax credits in                                                               
the year that they were presented.   Beginning in FY16, the state                                                               
had been unable to make the  payments, as the governor had vetoed                                                               
the tax credits  for two consecutive years.  After  that, the tax                                                               
credits  were paid  pursuant to  a statutory  calculation:   at a                                                               
projected oil price of $60 or  higher, the formula was 10 percent                                                               
of the  gross production tax under  AS 43.55.011, and if  the oil                                                               
price was less than $60, the  formula was 15 percent of the gross                                                               
production tax.  He said that  the current forecast for the price                                                               
of oil had  been updated to $63  per barrel.  He  shared slide 9,                                                               
which  projected  the  annual  statutory  appropriation  for  the                                                               
estimated payment from FY19 - FY24.                                                                                             
                                                                                                                                
REPRESENTATIVE BIRCH  asked if there  had been  an interpretation                                                               
for a significantly smaller calculation.                                                                                        
                                                                                                                                
3:05:37 PM                                                                                                                    
                                                                                                                                
MR.  ALPER replied  that  the  tax under  AS  43.55.011 had  been                                                               
interpreted to mean  a tax on 35  percent of the net  profit.  He                                                               
said that  the per barrel  credit could be subtracted  from this,                                                               
per AS  42.55.024.  This formula,  10 or 15 percent  of the gross                                                               
amount,  was  not   explicit  in  the  statute   and  others  had                                                               
interpreted it  to say "the  amount of revenue  actually received                                                               
under  [AS  43.55.]011,  which  would  be the  net  of  that  tax                                                               
calculation minus the  credits."  He said that the  amount in the                                                               
operating budget, $49 million,  reflected the net-based mechanism                                                               
to make the same calculation.                                                                                                   
                                                                                                                                
CO-CHAIR TARR asked if the  difference in the calculation was the                                                               
per barrel credit.                                                                                                              
                                                                                                                                
MR. ALPER  replied that  the difference  was almost  entirely the                                                               
per barrel credit.  He said  that the per barrel credit increased                                                               
as the  price of oil went  down, although it would  then decrease                                                               
as  the price  of  oil continued  to  go lower  and  went into  a                                                               
minimum  tax environment.   There  was no  per barrel  credit for                                                               
prices below $40.   He added that, as the price  of oil had moved                                                               
up  into  the  $50s  and  the  $60s  per  barrel,  companies  had                                                               
increased use  of the per barrel  credit to almost the  entire $8                                                               
credit per  barrel allowed in  statute.   He noted that  this had                                                               
created  a wider  gap between  the plausible  ways of  making the                                                               
calculation.  He  pointed out that, this year, the  delta for the                                                               
difference was about $130 - $140 million.                                                                                       
                                                                                                                                
REPRESENTATIVE PARISH  mused that the difference  between the tax                                                               
amounts was "pretty  enormous" and asked why the  State of Alaska                                                               
was "erring on the side which costs the state more money."                                                                      
                                                                                                                                
MR. ALPER  explained that the  calculation was a  continuation of                                                               
the past  practice from 2015 and  had been made as  an assumption                                                               
for a certain  way.  He stated that it  had not been contemplated                                                               
to be  controversial or be  such a large  gap, as it  was "simply                                                               
being  consistent in  our own  interpretation."   He offered  his                                                               
belief  that, from  the  industry  point of  view,  there was  an                                                               
expectation  that the  funding would  be  less.   He pointed  out                                                               
that, as  the funding from the  past two years had  been based on                                                               
the  formula  outlined on  slide  8,  this was  the  expectation.                                                               
There was  now some anxiety  and uncertainty regarding  a revisit                                                               
to the formula.                                                                                                                 
                                                                                                                                
REPRESENTATIVE BIRCH  asked if  the administration  supported the                                                               
historical interpretation for the appropriation.                                                                                
                                                                                                                                
MR. BARNHILL replied, "yes."                                                                                                    
                                                                                                                                
MR.  ALPER reported  that  the  proposed bill  had  to contain  a                                                               
mechanism to  project what a  company would have received  if the                                                               
appropriations had  been as  the statutory  formula, in  order to                                                               
calculate the offered buy-out.                                                                                                  
                                                                                                                                
3:10:27 PM                                                                                                                    
                                                                                                                                
MR. BARNHILL returned to slide 9  and stated that the state would                                                               
appropriate $184  million; in  lieu of  this, under  the proposed                                                               
bill, the  governor's budget listed  an amount sufficient  to pay                                                               
debt service.  He concluded  that the impact of reducing payments                                                               
from the  total amount of  tax credits  presented in any  year to                                                               
the  statutory schedule  had been  material,  as exploration  and                                                               
development on the  North Slope had, in some  cases, been halted.                                                               
He  said that  [DOR] had  reached out  to speak  with some  banks                                                               
providing  financing to  the  companies, as  the  banks were  not                                                               
lending due to this issue.   He stated that a primary purpose for                                                               
the proposed  bill was to  create economic stimulus,  to unfreeze                                                               
credit markets, and  to restore some normalcy to the  oil and gas                                                               
sector in Alaska.                                                                                                               
                                                                                                                                
3:12:04 PM                                                                                                                    
                                                                                                                                
MR. ALPER  moved on  to slide 10,  "Proposed Solution:"  and said                                                               
that conceptually there  was an offer to buy back  the credits at                                                               
less than  face value.   He explained  that the mechanism  was to                                                               
ask the company  when they expected payment  given their pro-rata                                                               
share of  the annual statutory  formula, and then, based  on that                                                               
schedule,  the  discount  could  be  implemented.    He  directed                                                               
attention to  the chart on  slide 10  and offered an  example for                                                               
the value of the payment  schedule versus the offer for immediate                                                               
payoff.   He noted that  the proposed bill offered  two different                                                               
discount rates, and he shared examples  of the payouts using a 10                                                               
percent discount and a 5.1 percent discount.                                                                                    
                                                                                                                                
3:14:49 PM                                                                                                                    
                                                                                                                                
[HB 331 was held over]                                                                                                          
                                                                                                                                
3:15:15 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Resources Standing Committee meeting was adjourned at 3:15 p.m.                                                                 

Document Name Date/Time Subjects
HB331 Transmittal Letter.pdf HRES 3/30/2018 1:00:00 PM
HRES 4/4/2018 1:00:00 PM
HRES 4/6/2018 1:00:00 PM
HRES 4/7/2018 2:00:00 PM
HRES 4/9/2018 1:00:00 PM
HRES 4/10/2018 8:00:00 AM
HB 331
HB331 Version A.PDF HRES 3/30/2018 1:00:00 PM
HRES 4/4/2018 1:00:00 PM
HRES 4/6/2018 1:00:00 PM
HRES 4/7/2018 2:00:00 PM
HRES 4/9/2018 1:00:00 PM
HRES 4/10/2018 8:00:00 AM
HB 331
HB331 Fiscal Note -DNR-DOG 1.29.18.pdf HRES 3/30/2018 1:00:00 PM
HRES 4/4/2018 1:00:00 PM
HRES 4/6/2018 1:00:00 PM
HRES 4/7/2018 2:00:00 PM
HRES 4/9/2018 1:00:00 PM
HRES 4/10/2018 8:00:00 AM
HB 331
HB331 Fiscal Note-DOR-TAX 2.5.18.pdf HRES 3/30/2018 1:00:00 PM
HRES 4/4/2018 1:00:00 PM
HRES 4/6/2018 1:00:00 PM
HRES 4/7/2018 2:00:00 PM
HRES 4/9/2018 1:00:00 PM
HRES 4/10/2018 8:00:00 AM
HB 331
HB331 Supporting Document - Presentation Credit Bonds for HRES 3.30.18.pdf HRES 3/30/2018 1:00:00 PM
HRES 4/6/2018 1:00:00 PM
HRES 4/7/2018 2:00:00 PM
HRES 4/9/2018 1:00:00 PM
HRES 4/10/2018 8:00:00 AM
HB 331
HB331 Supporting Document - DOR.LAW 3.2.18.pdf HRES 3/30/2018 1:00:00 PM
HRES 4/4/2018 1:00:00 PM
HRES 4/6/2018 1:00:00 PM
HRES 4/7/2018 2:00:00 PM
HRES 4/9/2018 1:00:00 PM
HRES 4/10/2018 8:00:00 AM
HB 331
HB288 Sponsor Statement 1.21.18.pdf HRES 1/22/2018 1:00:00 PM
HRES 1/26/2018 1:00:00 PM
HRES 1/29/2018 1:00:00 PM
HRES 3/30/2018 1:00:00 PM
HRES 4/2/2018 1:00:00 PM
HRES 4/13/2018 1:00:00 PM
HRES 4/14/2018 2:00:00 PM
HRES 4/16/2018 1:00:00 PM
HB 288
HB288 ver A 1.16.18.PDF HRES 1/22/2018 1:00:00 PM
HRES 1/26/2018 1:00:00 PM
HRES 1/29/2018 1:00:00 PM
HRES 3/30/2018 1:00:00 PM
HRES 4/2/2018 1:00:00 PM
HRES 4/13/2018 1:00:00 PM
HRES 4/14/2018 2:00:00 PM
HRES 4/16/2018 1:00:00 PM
HB 288
HB288 Fiscal Note DOR-TAX 1.20.18.pdf HRES 1/22/2018 1:00:00 PM
HRES 1/26/2018 1:00:00 PM
HRES 1/29/2018 1:00:00 PM
HRES 3/30/2018 1:00:00 PM
HRES 4/2/2018 1:00:00 PM
HRES 4/13/2018 1:00:00 PM
HRES 4/14/2018 2:00:00 PM
HRES 4/16/2018 1:00:00 PM
HB 288
HB288 Sectional Analysis 1.21.18.pdf HRES 1/22/2018 1:00:00 PM
HRES 1/26/2018 1:00:00 PM
HRES 1/29/2018 1:00:00 PM
HRES 3/30/2018 1:00:00 PM
HRES 4/2/2018 1:00:00 PM
HRES 4/13/2018 1:00:00 PM
HRES 4/14/2018 2:00:00 PM
HRES 4/16/2018 1:00:00 PM
HB 288
HB 288 CS Version D 3.27.18.pdf HRES 3/30/2018 1:00:00 PM
HRES 4/2/2018 1:00:00 PM
HRES 4/13/2018 1:00:00 PM
HRES 4/14/2018 2:00:00 PM
HRES 4/16/2018 1:00:00 PM
HB 288
HB 288 Summary of Changes Version A to Version D 3.29.18.pdf HRES 3/30/2018 1:00:00 PM
HRES 4/2/2018 1:00:00 PM
HRES 4/13/2018 1:00:00 PM
HRES 4/14/2018 2:00:00 PM
HB 288
HB 288 Fiscal Analysis for Version D 3.27.18.pdf HRES 3/30/2018 1:00:00 PM
HRES 4/2/2018 1:00:00 PM
HRES 4/13/2018 1:00:00 PM
HRES 4/14/2018 2:00:00 PM
HRES 4/16/2018 1:00:00 PM
HB 288
HB 399 Sponsor Statement 3.26.18.pdf HRES 3/28/2018 1:00:00 PM
HRES 3/30/2018 1:00:00 PM
HRES 4/2/2018 1:00:00 PM
HRES 4/4/2018 1:00:00 PM
HB 399
HB 399 O 3.26.18.pdf HRES 3/28/2018 1:00:00 PM
HRES 3/30/2018 1:00:00 PM
HRES 4/2/2018 1:00:00 PM
HRES 4/4/2018 1:00:00 PM
HB 399
HB 399 Sectional Sectional Analysis ver O 3.26.18.pdf HRES 3/28/2018 1:00:00 PM
HRES 3/30/2018 1:00:00 PM
HRES 4/2/2018 1:00:00 PM
HRES 4/4/2018 1:00:00 PM
HB 399
HB 399 Fiscal Note-DOR-TAX 3.24.18.pdf HRES 3/28/2018 1:00:00 PM
HRES 3/30/2018 1:00:00 PM
HRES 4/2/2018 1:00:00 PM
HRES 4/4/2018 1:00:00 PM
HB 399
HB 399 Fiscal Note-DOR-TAX 3.27.18.pdf HRES 3/30/2018 1:00:00 PM
HRES 4/2/2018 1:00:00 PM
HRES 4/4/2018 1:00:00 PM
HB 399
HB 399 Additional Documents DOR Letter 3.26.18.pdf HRES 3/28/2018 1:00:00 PM
HRES 3/30/2018 1:00:00 PM
HRES 4/2/2018 1:00:00 PM
HRES 4/4/2018 1:00:00 PM
HB 399
HB 399 Additional Documents CIT Sector Report FY 2017 3.26.18.pdf HRES 3/28/2018 1:00:00 PM
HRES 3/30/2018 1:00:00 PM
HRES 4/2/2018 1:00:00 PM
HRES 4/4/2018 1:00:00 PM
HB 399
HB 399 Additional Documents - Indirect Expenditure Report Reduced Rate Capital Gains.pdf HRES 3/28/2018 1:00:00 PM
HRES 3/30/2018 1:00:00 PM
HRES 4/2/2018 1:00:00 PM
HRES 4/4/2018 1:00:00 PM
HB 399
HB 399 Additional Documents - Indirect Expenditure Report Foreign Royalty.pdf HRES 3/28/2018 1:00:00 PM
HRES 3/30/2018 1:00:00 PM
HRES 4/2/2018 1:00:00 PM
HRES 4/4/2018 1:00:00 PM
HB 399
HB 399 Additional Documents - Indirect Expenditure Report Federal Credits.pdf HRES 3/28/2018 1:00:00 PM
HRES 3/30/2018 1:00:00 PM
HRES 4/2/2018 1:00:00 PM
HRES 4/4/2018 1:00:00 PM
HB 399
HB 399 Additional Documents - Indirect Expenditure Report Stranded Gas.pdf HRES 3/28/2018 1:00:00 PM
HRES 3/30/2018 1:00:00 PM
HRES 4/2/2018 1:00:00 PM
HRES 4/4/2018 1:00:00 PM
HB 399
HB 399 Opposing Document - Letter in Opposition 3.28.18.pdf HRES 3/28/2018 1:00:00 PM
HRES 3/30/2018 1:00:00 PM
HRES 4/2/2018 1:00:00 PM
HRES 4/4/2018 1:00:00 PM
HB 399
HB 288 Supporting Document - Oklahoma Legislature passes tax hikes for teacher pay. Washington Post 3.28.18.pdf HRES 3/30/2018 1:00:00 PM
HRES 4/2/2018 1:00:00 PM
HB 288
HB331 Sectional Analysis 3.29.18.pdf HRES 3/30/2018 1:00:00 PM
HRES 4/4/2018 1:00:00 PM
HRES 4/6/2018 1:00:00 PM
HRES 4/7/2018 2:00:00 PM
HRES 4/9/2018 1:00:00 PM
HRES 4/10/2018 8:00:00 AM
HB 331
HB331 Supporting Document - Letter of Support 3.29.18.pdf HRES 3/30/2018 1:00:00 PM
HRES 4/4/2018 1:00:00 PM
HRES 4/6/2018 1:00:00 PM
HRES 4/7/2018 2:00:00 PM
HRES 4/9/2018 1:00:00 PM
HB 331
HB 288 CS Version D Slide Presentation 3.30.18.pdf HRES 3/30/2018 1:00:00 PM
HB 288