HCS 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; authorizing the commission to employ additional professional staff; repealing the oil and gas conservation tax; and providing for an effective date."
00HOUSE CS FOR CS 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 authorizing the commission to employ additional professional staff; repealing the 05 oil and gas conservation tax; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 31.05 is amended by adding a new section to article 1 to read: 08 Sec. 31.05.085. Expenses of investigation or hearing. (a) During a hearing 09 or investigation held under this chapter, the commission may allocate the costs of the 10 hearing or investigation among the parties, including the commission, as is just under 11 the circumstances. In allocating costs, the commission shall consider the regulatory 12 cost charge paid by a person under AS 31.05.093 and may consider the results, 13 evidence of good faith, other relevant factors, and mitigating circumstances. The costs 14 allocated may include
01 (1) the costs of any time devoted to the investigation or hearing by 02 hired consultants, whether or not the consultants appear as witnesses or participants; 03 and 04 (2) any out-of-pocket expenses incurred by the commission in the 05 particular proceeding. 06 (b) The commission shall provide an opportunity for any person objecting to 07 an allocation to be heard before the allocation becomes final. 08 * Sec. 2. AS 31.05 is amended by adding a new section to read: 09 Sec. 31.05.093. Regulated well regulatory cost charge. (a) Every person 10 that on the first day of a state fiscal year is the operator of a well for which a permit 11 to drill has been issued under AS 31.05.090 and that has not, before that day, been 12 plugged and abandoned and reported as abandoned in accordance with regulations of 13 the commission shall pay to the commission an annual regulatory cost charge for that 14 fiscal year. A regulatory cost charge may not be collected from a person unless the 15 operation for which the person is responsible is within the jurisdiction of the 16 commission. 17 (b) The commission shall annually determine regulatory cost charges under this 18 section. The regulatory cost charge to be paid by a person for a state fiscal year must 19 be based on the total volume during the most recently concluded calendar year for the 20 wells described in (a) of this section of which the person was the operator on the first 21 day of the fiscal year as a percentage of the total volume during the same calendar 22 year for all wells described in (a) of this section. For purposes of this subsection, 23 "total volume" means the sum of the volume of all oil and gas produced from a well 24 and all oil, gas, water, and other fluids, including waste slurry, injected into the well. 25 For purposes of determining volume under this subsection, 6,000 cubic feet of gas has 26 a volume that 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. 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. ALASKA OIL AND GAS CONSERVATION COMMISSION EMPLOYMENT 26 OF ADDITIONAL PROFESSIONAL STAFF. To the extent sufficient funds are appropriated 27 for the purpose, during state fiscal year 2000, the Alaska Oil and Gas Conservation 28 Commission shall employ, in addition to currently authorized professional staff, one petroleum 29 engineer, one reservoir engineer, one petroleum geologist, and one inspector. 30 * Sec. 9. This Act takes effect July 1, 1999.