2012-04-11                     Senate Journal                      Page 2180
SB 192                                                                                                                        
The Finance Committee considered SENATE BILL NO. 192 "An Act                                                                    
relating to the oil and gas production tax; and providing for an                                                                
effective date" and recommended it be replaced with                                                                             
                                                                                                                                
                                                                                                                                

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     CS FOR SENATE BILL NO. 192(FIN) "An Act relating to                                                                        
     the oil and gas production tax; providing for a minimum tax                                                                
     on oil and gas production so that the state receives a                                                                     
     minimum production tax of 10 percent of the gross value at                                                                 
     the point of production for certain oil and gas production;                                                                
     relating to that part of the monthly production tax on the                                                                 
     gross value at the point of production of oil produced by a                                                                
     producer that produced oil in 2008 and 2011 and produces a                                                                 
     volume of taxable oil for the year in excess of a defined                                                                  
     target volume, and providing that the applicable tax rate on                                                               
     the gross value at the point of production for that category of                                                            
     oil production is 0.14 percent multiplied by the number that                                                               
     represents the difference between that average monthly                                                                     
     gross value at the point of production for a barrel of oil and                                                             
     the base amount of $75 or, if the average gross value at the                                                               
     point of production is greater than $60 above the base                                                                     
     amount of $75, that the applicable tax rate is the sum of 8.4                                                              
     percent and the product of 0.03 percent multiplied by the                                                                  
     number that represents the difference between the average                                                                  
     monthly gross value at the point of production for a barrel of                                                             
     oil and $60 above the base amount of $75, except that the                                                                  
     tax rate applicable to that category of oil production may not                                                             
     exceed 10 percent; relating to that part of the tax on the                                                                 
     gross value at the point of production of oil produced by a                                                                
     producer during the first 10 consecutive years after the start                                                             
     of sustained production or during the first 10 consecutive                                                                 
     years of sustained production after December 31, 2012,                                                                     
     whichever is later, from a lease or property containing land                                                               
     that was not or previously had not been within a unit or in                                                                
     commercial production before January 1, 2008, and                                                                          
     providing that the applicable tax rate on the gross value at                                                               
     the point of production for that category of oil is determined                                                             
     by multiplying the monthly gross value at the point of                                                                     
     production of the taxable oil produced during the month by                                                                 
     the tax rate determined by multiplying 0.05 percent by the                                                                 
     number that represents the difference between that average                                                                 
     monthly gross value at the point of production for a barrel of                                                             
     oil and the base amount of $90, except that the tax rate                                                                   
     determined for that category of oil production may not                                                                     
     exceed five percent; relating to that part of the monthly                                                                  

2012-04-11                     Senate Journal                      Page 2182
     production tax on the gross value at the point of production                                                               
     of oil produced by a producer and not otherwise described                                                                  
     above, and providing that the applicable tax rate on the gross                                                             
     value at the point of production on that category of oil                                                                   
     production is 0.27 percent multiplied by the number that                                                                   
     represents the difference between the average gross value at                                                               
     the point of production for a barrel of oil and $60 or, if the                                                             
     average gross value at the point of production is greater than                                                             
     $60 above the base amount of $60, that the applicable tax                                                                  
     rate is the sum of 16.2 percent and the product of 0.03                                                                    
     percent multiplied by the number that represents the                                                                       
     difference between the average monthly gross value at the                                                                  
     point of production for a barrel of oil and $60 above the base                                                             
     amount of $60, except that the tax rate applicable to that                                                                 
     category of oil production may not exceed 20 percent;                                                                      
     relating to payments of the oil and gas production tax;                                                                    
     relating to an adjustment to the base amounts of $60, $75,                                                                 
     $90 based on an increase in the United States Consumer                                                                     
     Price Index for all urban consumers for the most recent year;                                                              
     relating to the allocation of lease expenditures and                                                                       
     adjustments to lease expenditures; relating to the duties of                                                               
     the Department of Revenue; relating to a petroleum                                                                         
     information management system; relating to the duties of the                                                               
     Alaska Oil and Gas Conservation Commission, the                                                                            
     Department of Natural Resources, and the Department of                                                                     
     Labor and Workforce Development that relate to providing                                                                   
     the Department of Revenue with certain information relating                                                                
     to oil and gas; and providing for an effective date."                                                                      
                                                                                                                                
Signing do pass: Senators Hoffman, Stedman, Cochairs; Senators                                                                  
Thomas, Egan, Olson, Ellis. Signing amend: Senator McGuire.                                                                     
                                                                                                                                
The following fiscal information was published today:                                                                           
     Fiscal Note No. 3, Department of Natural Resources                                                                         
     Fiscal Note No. 4, Department of Administration                                                                            
     Fiscal Note No. 5, Department of Revenue                                                                                   
                                                                                                                                
The bill was referred to the Rules Committee.