05/04/2005 05:00 PM House OIL & GAS

HB 297-OIL& GAS EXPLORATION CREDIT & LEASE TERMS                                                                              
                                                                                                                                
5:06:55 PM                                                                                                                    
                                                                                                                                
CHAIR KOHRING announced that the  only order of business would be                                                               
HOUSE  BILL   NO.  297  "An   Act  extending  and   amending  the                                                               
requirements applicable  to the  credit that  may be  claimed for                                                               
certain oil and  gas exploration expenses incurred  in Cook Inlet                                                               
against oil and gas properties  production (severance) taxes, and                                                               
amending the  credit against those taxes  for certain exploration                                                               
expenditures from  other leases or  properties in the  state and,                                                               
conditionally, for  exploration expenditures  made in  the Alaska                                                               
Peninsula competitive oil and gas  area wide lease sale area; and                                                               
providing  for an  effective date."   He  said that  HB 297  is a                                                               
reincarnation  of  House  Bill  71, which  provides  back  up  to                                                               
provide the tax  credits the industry feels they need.   He added                                                               
that  this legislation  is also  important to  the administration                                                               
because they brought HB 71  before House Special Committee on Oil                                                               
and Gas  as basically  the centerpiece of  their efforts  to help                                                               
encourage Bristol Bay development.                                                                                              
                                                                                                                                
5:07:09 PM                                                                                                                    
                                                                                                                                
CHARISSE MILLET,  Staff to  Representative Kohring,  Alaska State                                                               
Legislature,  presented  HB  297   on  behalf  of  House  Special                                                               
Committee on  Oil and Gas, sponsor.   She relayed that  HB 297 is                                                               
the  exact same  legislation as  HB 71  which was  passed out  of                                                               
House Finance.  The final version  is to provide credits south of                                                               
the Brooks  Range, excluding the Arctic  National Wildlife Refuge                                                               
(ANWR).                                                                                                                         
                                                                                                                                
5:07:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SAMUELS   made  a   motion  to   adopt  committee                                                               
substitute  (CS)  for  HB  297  (O&G),  Version  G,  24-LS0998\G,                                                               
Chenoweth, 5/3/05.   There  being no objection,  CS HB  297 (O&G)                                                               
was before the committee.                                                                                                       
                                                                                                                                
REPRESENTATIVE  SAMUELS  moved to  report  CSHB  297(O&G) out  of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal note.   There being no objection, CSHB  297(O&G) was moved                                                               
out of House Special Committee on Oil and Gas.