1998-03-26                     House Journal                      Page 2749
HB 393                                                                       
The House Special Committee on Oil & Gas has considered:                       
                                                                               
HOUSE BILL NO. 393                                                            
"An Act relating to contracts with the state establishing payments            
in lieu of other taxes by a qualified sponsor or qualified sponsor             
group for projects to develop stranded gas resources in the state;             
providing for the inclusion in such contracts of terms making                  
certain adjustments regarding royalty value and the timing and                 
notice of the state's right to take royalty in kind or in value from           
such projects; relating to the effect of such contracts on municipal           
taxation; and providing for an effective date."                                
                                                                               
and recommends it be replaced with:                                            
                                                                               
CS FOR HOUSE BILL NO. 393(O&G)                                                
"An Act relating to contracts with the state establishing payments            
in lieu of other taxes by a qualified sponsor or qualified sponsor             
group for projects to develop stranded gas resources in the state;             
providing for the inclusion in the contracts of terms making certain           
adjustments regarding royalty value and the timing and notice of               
the state's right to take royalty in kind or in value from projects to         
develop stranded gas resources in the state; relating to the effect            
of the contracts on municipal taxation; and providing for an                   
effective date."                                                               
                                                                               
                                                                               
and recommends the following amendment to CSHB 393(O&G):                       
                                                                               

1998-03-26                     House Journal                      Page 2750
HB 393                                                                       
Page 2, line 19, following "tankers":                                          
                                                                               
	Insert "although experimental research is being conducted on other            
alternative technologies such as gas to liquids, this technology is not        
yet commercially viable; if this research results in a commercially            
viable technology, and, after economic analysis by the state of the            
application of this technology, it is shown that local or state tax or         
regulatory changes are necessary to commercialize an Alaska project            
using this technology, then this technology may be considered in               
regard to this legislation"                                                    
                                                                               
The report was signed by Representative Hodgins, Chair, with the               
following individual recommendations:                                          
                                                                               
Do pass (1): Hodgins                                                           
                                                                               
No recommendation (5):  Bunde, Ogan, Rokeberg, Brice, Kemplen                  
                                                                               
The following fiscal notes apply to CSHB 393(O&G):                             
                                                                               
Fiscal note, Dept. of Natural Resources, 2/11/98                               
Fiscal note, Dept. of Revenue, 2/11/98                                         
                                                                               
HB 393 was referred to the Resources Committee.                                
                                                                               
**The presence of Representative Kott was noted.