CSSB 134(FIN): "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(FIN) 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 person under AS 31.05.093 and may consider the results, 12 evidence of good faith, other relevant factors, and mitigating circumstances. The costs 13 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 that on the first day of a state fiscal year is the operator of a well for which a permit 10 to drill has been issued under AS 31.05.090 and that has not, before that day, plugged 11 and abandoned the well and reported abandonment of the well in accordance with 12 regulations of the commission shall pay to the commission an annual regulatory cost 13 charge for that fiscal year. A regulatory cost charge may not be collected from a 14 person unless the operation for which the person is responsible is within the 15 jurisdiction of the commission. 16 (b) The commission shall annually determine regulatory cost charges under this 17 section. The regulatory cost charge to be paid by a person for a state fiscal year must 18 be based on the total volume during the most recently concluded calendar year for the 19 wells described in (a) of this section of which the person was the operator on the first 20 day of the fiscal year as a percentage of the total volume during the same calendar 21 year of all wells described in (a) of this section for which permits to drill have been 22 issued under AS 31.05.090. For purposes of this subsection, "total volume" means the 23 sum of the volume of all oil, gas, and water produced from a well, and all oil, gas, 24 water, and other fluids, including waste slurry, injected into the well. For purposes of 25 determining volume under this subsection, 6,000 cubic feet of gas has a volume that 26 is the equivalent of one barrel of oil. 27 (c) The commission shall determine the regulatory cost charges levied under 28 this section so that the total amount to be collected approximately equals the 29 appropriations made for the operating costs of the commission under this chapter for 30 the fiscal year, less the estimated total of the fees to be collected under AS 31.05.090. 31 If the amount the commission expects to collect under this section and under
01 AS 31.05.090 exceeds the appropriations made for the operating costs of the 02 commission under this chapter, the commission shall, by order, adjust the regulatory 03 cost charges so that the total amount of the regulatory cost charges and fees that are 04 collected approximately equals the appropriations made for the operating costs of the 05 commission under this chapter for the fiscal year. 06 (d) The commission shall administer the collection of the regulatory cost 07 charges imposed under this section. The Department of Administration shall identify 08 the amount of the appropriations made for the operating costs of the commission under 09 this chapter that lapses into the general fund each year. The legislature may 10 appropriate to the commission for its operating costs under this chapter for the next 11 fiscal year an amount that is at least equal to the lapsed amount. If the legislature 12 makes an appropriation to the commission under this subsection that is at least equal 13 to the lapsed amount, the commission shall reduce the total regulatory cost charge 14 collected for that fiscal year by a comparable amount. 15 (e) The commission may adopt regulations under AS 44.62 (Administrative 16 Procedure Act) necessary to administer this section, including regulations for 17 investigation of the accuracy of reported information and for collecting required 18 payments. 19 * Sec. 3. AS 37.05.146(b)(4) is amended by adding a new subparagraph to read: 20 (W) Alaska Oil and Gas Conservation Commission under 21 AS 31.05.093. 22 * Sec. 4. AS 43.55.017(c) is amended to read: 23 (c) The taxes imposed by this chapter are not in place of the tax imposed by 24 [AS 43.57 OR] income taxes, franchise taxes , or taxes upon the retail sale of oil or gas 25 products. 26 * Sec. 5. AS 43.56.030 is amended to read: 27 Sec. 43.56.030. In place of other taxes. Except for those taxes imposed under 28 AS 43.55 [AND AS 43.57], the taxes levied or authorized under AS 43.56.010(b) are 29 in place of 30 (1) all other ad valorem taxes or other taxes imposed by a municipality 31 on property subject to tax under this chapter or exempted from taxation by
01 AS 43.56.020 ; [,] and 02 (2) all other taxes imposed by a municipality on or with respect to the 03 property subject to tax under this chapter or exempted from taxation by AS 43.56.020, 04 including, but not limited to, 05 (A) taxes on the retail sale or use of the property except for the 06 retail sales tax on the first $1,000 of each sale; 07 (B) taxes on the sale or use of gas or unrefined oil; 08 (C) taxes on the sale or use of services used in or associated 09 with the property or in its maintenance or operation except for the sales tax on 10 the first $1,000 of each sale; 11 (D) taxes on or measured by gross or net income from the 12 property, including income from the exploration for, production of, or pipeline 13 transportation of gas or unrefined oil or property; and 14 (E) any license, excise, fee, charge or other tax on or pertaining 15 to the property or services. 16 * Sec. 6. AS 43.57.010 and AS 43.82.210(a)(3) are repealed. 17 * Sec. 7. INITIAL REGULATORY COST CHARGE OF THE ALASKA OIL AND GAS 18 CONSERVATION COMMISSION. In the absence of regulations adopted under 19 AS 31.05.093(e), added by sec. 2 of this Act, the Alaska Oil and Gas Conservation 20 Commission may determine regulatory cost charges under AS 31.05.093, added by sec. 2 of 21 this Act, for the state fiscal year beginning July 1, 1999, and notify persons liable to pay the 22 regulatory cost charges of the amounts so determined at any time on or after July 1, 1999. 23 The commission may specify a time, no less than 20 days after notification, by which payment 24 of the regulatory cost charges shall be made. 25 * Sec. 8. This Act takes effect July 1, 1999.