CSSB 134(RES): "An Act authorizing the Alaska Oil and Gas Conservation Commission to determine the amount of and to collect a charge for operating wells subject to the commission's jurisdiction, and to allocate expenses of investigation and hearing; repealing the oil and gas conservation tax; and providing for an effective date."
00CS FOR SENATE BILL NO. 134(RES) 01 "An Act authorizing the Alaska Oil and Gas Conservation Commission to 02 determine the amount of and to collect a charge for operating wells subject to 03 the commission's jurisdiction, and to allocate expenses of investigation and hearing; 04 repealing the oil and gas conservation tax; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 31.05 is amended by adding a new section to article 1 to read: 07 Sec. 31.05.085. Expenses of investigation or hearing. (a) During a hearing 08 or investigation held under this chapter, the commission may allocate the costs of the 09 hearing or investigation among the parties, including the commission, as is just under 10 the circumstances. In allocating costs, the commission shall consider the regulatory 11 cost charge paid by a permittee under AS 31.05.093 and may consider the results, 12 ability to pay, evidence of good faith, other relevant factors, and mitigating 13 circumstances. The costs allocated may include 14 (1) the costs of any time devoted to the investigation or hearing by
01 hired consultants, whether or not the consultants appear as witnesses or participants; 02 and 03 (2) any out-of-pocket expenses incurred by the commission in the 04 particular proceeding. 05 (b) The commission shall provide an opportunity for any person objecting to 06 an allocation to be heard before the allocation becomes final. 07 * Sec. 2. AS 31.05 is amended by adding a new section to read: 08 Sec. 31.05.093. Regulated well regulatory cost charge. (a) Every person 09 operating a well for which a permit to drill has been issued under AS 31.05.090 and 10 from which oil or gas is produced or into which oil, gas, water, or other fluids, 11 including waste slurry, are injected shall pay to the commission an annual regulatory 12 cost charge. A regulatory cost charge may not be collected from a person unless the 13 operation for which the person is responsible is within the jurisdiction of the 14 commission. 15 (b) The commission shall by regulation establish a method to determine 16 annually the amount of the regulatory cost charge under this section. The regulatory 17 cost charge to be paid by a person must be based on the total volume during a 18 calendar year of the wells of the permittee as a percentage of the total volume during 19 the same year of all wells for which permits to drill have been issued under 20 AS 31.05.090. For purposes of this subsection, "volume" means the sum of all oil, 21 gas, or water produced from wells, and oil, gas, water, and other fluids, including 22 waste slurry, injected into the wells. For purpose of determining volume under this 23 subsection, 6,000 cubic feet of injected gas has a volume that is the equivalent of one 24 barrel of oil. 25 (c) If the amount the commission expects to collect under this section and 26 under AS 31.05.090 exceeds the appropriations made for the operating costs of the 27 commission under this chapter, the commission shall, by order, adjust the regulatory 28 cost charge so that the total amount of the regulatory cost charge and fees that are 29 collected approximately equals the appropriations made for the operating costs of the 30 commission under this chapter for the fiscal year. 31 (d) The commission shall administer the collection of the regulatory cost
01 charge imposed under this section. The Department of Administration shall identify 02 the amount of the appropriations made for the operating costs of the commission under 03 this chapter that lapses into the general fund each year. The legislature may 04 appropriate to the commission for its operating costs under this chapter for the next 05 fiscal year an amount that is at least equal to the lapsed amount. If the legislature 06 makes an appropriation to the commission under this subsection that is at least equal 07 to the lapsed amount, the commission shall reduce the total regulatory cost charge 08 collected for that fiscal year by a comparable amount. 09 (e) The commission may adopt regulations under AS 44.62 (Administrative 10 Procedure Act) necessary to administer this section, including regulations for 11 investigation of the accuracy of reported information and for collecting required 12 payments. 13 * Sec. 3. AS 37.05.146(b)(4) is amended by adding a new subparagraph to read: 14 (W) Alaska Oil and Gas Conservation Commission under 15 AS 31.05.093. 16 * Sec. 4. AS 43.55.017(c) is amended to read: 17 (c) The taxes imposed by this chapter are not in place of the tax imposed by 18 [AS 43.57 OR] income taxes, franchise taxes , or taxes upon the retail sale of oil or gas 19 products. 20 * Sec. 5. AS 43.56.030 is amended to read: 21 Sec. 43.56.030. In place of other taxes. Except for those taxes imposed under 22 AS 43.55 [AND AS 43.57], the taxes levied or authorized under AS 43.56.010(b) are 23 in place of 24 (1) all other ad valorem taxes or other taxes imposed by a municipality 25 on property subject to tax under this chapter or exempted from taxation by 26 AS 43.56.020 ; [,] and 27 (2) all other taxes imposed by a municipality on or with respect to the 28 property subject to tax under this chapter or exempted from taxation by AS 43.56.020, 29 including, but not limited to, 30 (A) taxes on the retail sale or use of the property except for the 31 retail sales tax on the first $1,000 of each sale;
01 (B) taxes on the sale or use of gas or unrefined oil; 02 (C) taxes on the sale or use of services used in or associated 03 with the property or in its maintenance or operation except for the sales tax on 04 the first $1,000 of each sale; 05 (D) taxes on or measured by gross or net income from the 06 property, including income from the exploration for, production of, or pipeline 07 transportation of gas or unrefined oil or property; and 08 (E) any license, excise, fee, charge or other tax on or pertaining 09 to the property or services. 10 * Sec. 6. AS 43.57.010 and AS 43.82.210(a)(3) are repealed. 11 * Sec. 7. INITIAL REGULATORY COST CHARGE OF THE ALASKA OIL AND GAS 12 CONSERVATION COMMISSION. Until adjusted as required by AS 31.05.093(c), added by 13 sec. 2 of this Act, the regulated well regulatory cost charge to be levied and collected by the 14 Alaska Oil and Gas Conservation Commission under AS 31.05.093 shall be determined by 15 applying the method for determining the regulatory cost charge set out in AS 31.05.093(b), 16 added by sec. 2 of this Act, to the total volume described in that subsection during the 17 calendar year ending December 31, 1998. 18 * Sec. 8. This Act takes effect July 1, 1999.