04/25/2003 09:10 AM House FIN

 HOUSE BILL NO. 61                                                                                                              
                                                                                                                                
      An  Act  establishing  an exploration   and development                                                                   
      incentive  tax  credit   for  persons  engaged  in   the                                                                  
      exploration  for  and  development  of  less  than   150                                                                  
      barrels of oil or of  gas for sale and delivery  without                                                                  
      reference to  volume from  a lease  or property  in  the                                                                  
      state; and providing for an effective date.                                                                               
                                                                                                                                
Representative  Chenault MOVED  to  ADOPT Amendment  #1,  #23-                                                                  
LS0270\Q.4,  Chenoweth, 4/24/03.   (Copy on  File).   Co-Chair                                                                  
Williams OBJECTED for purposes of discussion.                                                                                   
                                                                                                                                
Representative  Chenault explained  that the  amendment  would                                                                  
address concerns voiced  by Representative Hawker at the  last                                                                  
meeting.  The new  language would establish the parameters  of                                                                  
when the tax credit can happen.                                                                                                 
                                                                                                                                
Co-Chair Williams WITHDREW his OBJECTION.                                                                                       
                                                                                                                                
There being NO further OBJECTION, Amendment #1 was adopted.                                                                     
                                                                                                                                
Representative  Chenault MOVED  to  ADOPT Amendment  #2,  #23-                                                                  
LS0270\Q.2,  Chenoweth, 4/24/03.   (Copy on  File).   Co-Chair                                                                  
Harris OBJECTED for purposes of discussion.                                                                                     
                                                                                                                                
Representative  Chenault  explained that  Amendment  #2  would                                                                  
address concerns regarding  "operators".  The amendment  would                                                                  
change the  current language  of "person"  to "operators"  and                                                                  
would  insert  language  on  Page  1,  Line  9:  "That  is  an                                                                  
operator or working interest owner directly".                                                                                   
                                                                                                                                
Co-Chair Harris WITHDREW his OBJECTION.                                                                                         
                                                                                                                                
There being NO further OBJECTION, Amendment #2 was adopted.                                                                     
                                                                                                                                
Representative  Chenault MOVED  to  adopt Amendment  #3,  #23-                                                                  
LS0270\Q.3,  Chenoweth, 4/24/03.   (Copy on  File).   Co-Chair                                                                  
Harris OBJECTED for purposes of discussion.                                                                                     
                                                                                                                                
Representative  Chenault explained that  Amendment #3  inserts                                                                  
new language at the  request of the Department.  The language                                                                   
would tie  the bill  in with  income tax  credit by inserting                                                                   
that language on Page  2, Line 7:  "In or before the tax  year                                                                  
in which the credit  is claimed through the date the reserves                                                                   
produce gas for sale and delivery".                                                                                             
                                                                                                                                
Co-Chair Harris WITHDREW his OBJECTION.                                                                                         
                                                                                                                                
There being NO further OBJECTION, Amendment #3 was adopted.                                                                     
                                                                                                                                
Representative Foster  MOVED to report CS  HB 61 (FIN) out  of                                                                  
Committee  with  individual   recommendations  and  with   the                                                                  
accompanying fiscal notes.                                                                                                      
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
CS  HB 61  (FIN) was  reported  out of  Committee with  a  "do                                                                  
pass"  recommendation and  with  zero fiscal  note #1  by  the                                                                  
Department of  Natural Resources  and zero fiscal  note #2  by                                                                  
the Department of Revenue.