Legislature(2013 - 2014)

2014-02-24 Senate Journal

Full Journal pdf

2014-02-24                     Senate Journal                      Page 1749
SB 138                                                                                                                        
The Resources Committee considered SENATE BILL NO. 138 "An                                                                      
Act relating to the purposes of the Alaska Gasline Development                                                                  
Corporation to advance to develop a large-diameter natural gas                                                                  
pipeline project, including treatment and liquefaction facilities;                                                              
establishing the large-diameter natural gas pipeline project fund;                                                              
creating a subsidiary related to a large-diameter natural gas pipeline                                                          
project, including treatment and liquefaction facilities; relating to the                                                       
authority of the commissioner of natural resources to negotiate                                                                 
contracts related to North Slope natural gas projects, to enter into                                                            
confidentiality agreements in support of contract negotiations and                                                              
implementation, and to take custody of gas delivered to the state under                                                         
an election to pay the oil and gas production tax in kind; relating to the                                                      
sale, exchange, or disposal of gas delivered to the state under an                                                              
election to pay the oil and gas production tax in kind; relating to the                                                         
duties of the commissioner of revenue to direct the disposition of                                                              
revenues received from gas delivered to the state in kind and to consult                                                        
with the commissioner of natural resources on the custody and                                                                   
disposition of gas delivered to the state in kind; relating to the                                                              
authority of the commissioner of natural resources to propose                                                                   
modifications to existing state oil and gas leases; making certain                                                              
information provided to the Department of Natural Resources and the                                                             
Department of Revenue exempt from inspection as a public record;                                                                
making certain tax information related to an election to pay the oil and                                                        
gas production tax in kind exempt from tax confidentiality provisions;                                                          
relating to establishing under the oil and gas production tax a gross tax                                                       
rate for gas after 2021; making the alternate minimum tax on oil and                                                            

2014-02-24                     Senate Journal                      Page 1750
gas produced north of 68 degrees North latitude after 2021 apply only                                                           
to oil; relating to apportionment factors of the Alaska Net Income Tax                                                          
Act; authorizing a producer's election to pay the oil and gas production                                                        
tax in kind for certain gas and relating to the authorization; relating to                                                      
monthly installment payments of the oil and gas production tax;                                                                 
relating to interest payments on monthly installment payments of the                                                            
oil and gas production tax; relating to settlements between producers                                                           
and royalty owners for oil and gas production tax; relating to annual                                                           
statements by producers and explorers; relating to annual production                                                            
tax values; relating to lease expenditures; amending the definition of                                                          
gross value at the 'point of production' for gas for purposes of the oil                                                        
and gas production tax; adding definitions related to natural gas terms;                                                        
clarifying that credit may not be taken against the in-kind levy of the                                                         
oil and gas production tax for gas for purposes of the exploration                                                              
incentive credit, the oil or gas producer education credit, and the film                                                        
production tax credit; making conforming amendments; and providing                                                              
for an effective date" and recommended it be replaced with                                                                      
                                                                                                                                
       CS FOR SENATE BILL NO. 138(RES) "An Act relating                                                                         
       to the purposes of the Alaska Gasline Development                                                                        
       Corporation to advance to develop a large-diameter                                                                       
       natural gas pipeline project, including treatment and                                                                    
       liquefaction facilities; establishing the large-diameter                                                                 
       natural gas pipeline project fund; creating a subsidiary                                                                 
       related to a large-diameter natural gas pipeline project,                                                                
       including treatment and liquefaction facilities; relating to                                                             
       the authority of the commissioner of natural resources to                                                                
       negotiate contracts related to North Slope natural gas                                                                   
       projects, to enter into confidentiality agreements in                                                                    
       support of contract negotiations and implementation, and                                                                 
       to take custody of gas delivered to the state under an                                                                   
       election to pay the gas production tax in gas; relating to                                                               
       the sale, exchange, or disposal of gas delivered to the                                                                  
       state under an election to pay the gas production tax in                                                                 
       gas; relating to the tax on oil production; relating to the                                                              
       tax on gas production; relating to the duties of the                                                                     
       commissioner of revenue to direct the disposition of                                                                     
       revenues received from gas delivered to the state and to                                                                 
       consult with the commissioner of natural resources on the                                                                
       custody and disposition of gas delivered to the state;                                                                   

2014-02-24                     Senate Journal                      Page 1751
       relating to the authority of the commissioner of natural                                                                 
       resources to propose modifications to existing state oil                                                                 
       and gas leases; making certain information provided to                                                                   
       the Department of Natural Resources and the Department                                                                   
       of Revenue exempt from inspection as a public record;                                                                    
       making certain tax information related to an election to                                                                 
       pay the gas production tax in gas exempt from tax                                                                        
       confidentiality provisions; relating to establishing under                                                               
       the oil and gas production tax a gross tax rate for the                                                                  
       production of gas after 2021; making the alternate                                                                       
       minimum tax on oil and gas produced north of 68                                                                          
       degrees North latitude after 2021 apply only to oil;                                                                     
       relating to apportionment factors of the Alaska Net                                                                      
       Income Tax Act; authorizing a producer's election to pay                                                                 
       the gas production tax in gas for certain gas and relating                                                               
       to the authorization; relating to monthly installment                                                                    
       payments of the oil and gas production tax; relating to                                                                  
       interest payments on monthly installment payments of                                                                     
       the oil and gas production tax; relating to settlements                                                                  
       between producers and royalty owners for oil and gas                                                                     
       production tax; relating to annual statements by                                                                         
       producers and explorers; relating to annual production                                                                   
       tax values; relating to lease expenditures; amending the                                                                 
       definition of gross value at the 'point of production' for                                                               
       gas for purposes of the oil and gas production tax; adding                                                               
       definitions related to natural gas terms; clarifying that                                                                
       credit may not be taken against the levy of the gas                                                                      
       production tax for gas paid in gas for purposes of the                                                                   
       exploration incentive credit, the oil or gas producer                                                                    
       education credit, and the film production tax credit;                                                                    
       requiring the commissioner of revenue to develop a plan                                                                  
       and suggest legislation for residents of the state to                                                                    
       acquire ownership interests in a North Slope natural gas                                                                 
       pipeline project; making conforming amendments; and                                                                      
       providing for an effective date."                                                                                        
                                                                                                                                
Signing do pass: Senator Giessel, Chair; Senator McGuire. Signing no                                                            
recommendation: Senators French, Micciche, Bishop, Fairclough.                                                                  
Signing amend: Senator Dyson.                                                                                                   
                                                                                                                                

2014-02-24                     Senate Journal                      Page 1752
The following previously published fiscal information applies:                                                                  
           Fiscal Note No. 1, Department of Commerce, Community and                                                            
      Economic Development                                                                                                      
           Fiscal Note No. 2, Department of Commerce, Community and                                                            
      Economic Development                                                                                                      
     Fiscal Note No. 3, Department of Natural Resources                                                                         
     Fiscal Note No. 4, Department of Revenue                                                                                   
                                                                                                                                
The bill was referred to the Finance Committee.