2013-02-28                     Senate Journal                      Page 0439
SB 21                                                                                                                         
The Resources Committee considered SENATE BILL NO. 21 "An                                                                       
Act relating to appropriations from taxes paid under the Alaska Net                                                             
Income Tax Act; relating to the oil and gas production tax rate;                                                                
relating to gas used in the state; relating to monthly installment                                                              
payments of the oil and gas production tax; relating to oil and gas                                                             
production tax credits for certain losses and expenditures; relating to                                                         
oil and gas production tax credit certificates; relating to                                                                     
nontransferable tax credits based on production; relating to the oil and                                                        
gas tax credit fund; relating to annual statements by producers and                                                             
explorers; relating to the determination of annual oil and gas                                                                  
production tax values including adjustments based on a percentage of                                                            
gross value at the point of production from certain leases or properties;                                                       
making conforming amendments; and providing for an effective date"                                                              
and recommended it be replaced with                                                                                             
                                                                                                                                
          CS FOR SENATE BILL NO. 21(RES) "An Act                                                                                
          relating to appropriations from taxes paid under the                                                                  
          Alaska Net Income Tax Act; providing a tax credit                                                                     
          against the corporation income tax for qualified oil                                                                  
          and gas service industry expenditures; relating to the                                                                
          oil and gas production tax rate; relating to gas used in                                                              
          the state; relating to monthly installment payments of                                                                
          the oil and gas production tax; relating to oil and gas                                                               
          production tax credits for certain losses and                                                                         
          expenditures; relating to oil and gas production tax                                                                  
          credit certificates; relating to nontransferable tax                                                                  

2013-02-28                     Senate Journal                      Page 0440
          credits based on production; relating to the oil and                                                                  
          gas tax credit fund; relating to annual statements by                                                                 
          producers and explorers; relating to the determination                                                                
          of annual oil and gas production tax value including                                                                  
          adjustments based on a percentage of gross value at                                                                   
          the point of production from certain leases or                                                                        
          properties; establishing the Oil and Gas Competitive                                                                  
          Review Board; making conforming amendments; and                                                                       
          providing for an effective date."                                                                                     
                                                                                                                                
and further recommended the adoption of the following Resources                                                                 
Committee Letter of Intent:                                                                                                     
                                                                                                                                
                               Letter of Intent                                                                                
                                                                                                                                
     It is the intent of the Legislature that Alaska's decline in oil                                                           
     production be arrested and reversed; and that the State                                                                    
     become competitive within its peer group in the global market                                                              
     of oil and gas resources.                                                                                                  
                                                                                                                                
     The legislature intends, through passage of SB 21, to: (1) put                                                             
     in place a system for the taxation of oil and gas that is fair,                                                            
     stable, predictable, durable, balanced, and free from                                                                      
     complexity across a wide range of oil prices; (2) promote a                                                                
     long-term, competitive, and vibrant oil and gas industry in the                                                            
     state; (3) acknowledge that the oil and gas industry plays an                                                              
     historic and crucial role in the state, providing revenue for and                                                          
     underpinning the resource-based economy of the state; (4)                                                                  
     attract the necessary capital investment from the industry to                                                              
     increase oil and gas production, increase the throughput of the                                                            
     Trans Alaska Pipeline System, incentivize the exploration and                                                              
     development of new oil, provide a bridge to production for the                                                             
     challenged and stranded oil and gas resources in the state,                                                                
     return the state to a leadership position in national domestic                                                             
     oil production, and ensure the prosperity of future generations                                                            
     of Alaskans; (5) reflect the policy determination that the                                                                 
     legislature chooses opportunity over decline.                                                                              
                                                                                                                                
Signing do pass: Senator Giessel, Chair; Senators McGuire, Dyson.                                                               
Signing do not pass: Senator French. Signing no recommendation:                                                                 
Senators Micciche, Bishop. Signing amend: Senator Fairclough.                                                                   
                                                                                                                                

2013-02-28                     Senate Journal                      Page 0441
The following fiscal information was published today:                                                                           
     Fiscal Note No. 3, Department of Revenue                                                                                   
     Fiscal Note No. 4, indeterminate, Department of Revenue                                                                    
     Fiscal Note No. 5, indeterminate, Department of Natural                                                                    
      Resources                                                                                                                 
                                                                                                                                
The bill was referred to the Finance Committee.