03/22/2024 01:00 PM House RESOURCES

            HB 387-OIL & GAS TAX CREDIT: JACK-UP RIG                                                                        
                                                                                                                                
1:37:57 PM                                                                                                                    
                                                                                                                                
CHAIR MCKAY  announced that the  next order of business  would be                                                               
HOUSE BILL NO. 387, "An Act  relating to a tax credit for certain                                                               
oil and  gas equipment in  the Cook Inlet sedimentary  basin; and                                                               
providing for an effective date."   [Before the committee was the                                                               
proposed  committee  substitute  (CS)  for HB  387,  Version  33-                                                               
LS1282\S,  Nauman,  3/11/24,  adopted   as  a  working  draft  on                                                               
3/13/24.]                                                                                                                       
                                                                                                                                
1:38:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MEARS  moved to  adopt  Amendment  1 to  HB  387,                                                               
Version S, labeled 33-LS1282\S.2, Nauman, 3/14/24, which read:                                                                  
                                                                                                                                
     Page 1, line 2, following "basin;":                                                                                      
     Insert "repealing  certain credits against the  oil and                                                                  
     gas production tax;"                                                                                                     
                                                                                                                                
     Page 2, following line 11:                                                                                                 
     Insert a new bill section to read:                                                                                         
        "* Sec.  2. AS 43.55.025(a)(5) and  43.55.025(l) are                                                                
     repealed."                                                                                                                 
                                                                                                                                
     Renumber the following bill section accordingly.                                                                           
                                                                                                                                
CHAIR MCKAY objected for the purpose of discussion.                                                                             
                                                                                                                                
1:39:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MEARS explained that Amendment 1 would remove                                                                    
language referring to the previous program to prevent confusion.                                                                
                                                                                                                                
1:39:21 PM                                                                                                                    
                                                                                                                                
CHAIR MCKAY removed his objection.  There being no further                                                                      
objection, Amendment 1 was adopted.                                                                                             
                                                                                                                                
1:39:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MEARS moved to adopt Amendment 2 to HB 387,                                                                      
Version S, as amended, labeled 33-LS1282\S.3, Nauman, 3/14/24,                                                                  
which read:                                                                                                                     
                                                                                                                                
     Page 1, line 2, following "basin;":                                                                                      
     Insert "relating  to disclosure of  information related                                                                  
     to oil and gas production taxes;"                                                                                        
                                                                                                                                
     Page 1, following line 3:                                                                                                  
     Insert a new bill section to read:                                                                                         
        "* Section 1. AS 43.55.890 is amended to read:                                                                      
     Sec.   43.55.890.   Disclosure  of   tax   information.                                                                  
     Notwithstanding any contrary  provision of AS 40.25.100                                                                    
     or  AS 43.05.230,   [AND  REGARDLESS  OF   WHETHER  THE                                                                
     INFORMATION  IS  CONSIDERED  UNDER  AS 43.05.230(E)  TO                                                                    
     CONSTITUTE   STATISTICS  CLASSIFIED   TO  PREVENT   THE                                                                    
     IDENTIFICATION OF  PARTICULAR RETURNS OR  REPORTS,] the                                                                    
     department shall make  publicly available [MAY PUBLISH]                                                                
     the  following  information  under  this  chapter,  [IF                                                                    
     AGGREGATED   AMONG   THREE   OR   MORE   PRODUCERS   OR                                                                    
     EXPLORERS,] showing  by month  or calendar year  and by                                                                    
     lease or property, unit, or area of the state:                                                                             
     (1)  the amount of oil or gas production;                                                                                  
     (2)  the  amount of taxes levied under  this chapter or                                                                    
     paid under this chapter;                                                                                                   
     (3)  the effective tax rates under this chapter;                                                                           
     (4)   the gross  value of  oil or gas  at the  point of                                                                    
     production;                                                                                                                
     (5)  the transportation costs for oil or gas;                                                                              
     (6)   qualified  capital  expenditures,  as defined  in                                                                    
     AS 43.55.023;                                                                                                              
     (7)  exploration expenditures under AS 43.55.025;                                                                          
     (8)    production  tax  values  of  oil  or  gas  under                                                                    
     AS 43.55.160;                                                                                                              
     (9)  lease expenditures under AS 43.55.165;                                                                                
     (10)     adjustments   to   lease  expenditures   under                                                                    
     AS 43.55.170;                                                                                                              
     (11)  tax credits  applicable or potentially applicable                                                                    
     against taxes levied by this chapter."                                                                                     
                                                                                                                                
     Page 1, line 4:                                                                                                            
     Delete "Section 1"                                                                                                       
     Insert "Sec. 2"                                                                                                          
                                                                                                                                
     Renumber the following bill section accordingly.                                                                           
                                                                                                                                
     Page 2, following line 11:                                                                                                 
     Insert a new bill section to read:                                                                                         
        "*  Sec.  3. The  uncodified  law  of the  State  of                                                                
     Alaska is amended by adding a new section to read:                                                                         
     APPLICABILITY. AS 43.55.890,  as amended  by sec.  1 of                                                                    
     this Act, applies to information  collected on or after                                                                    
     the effective date of sec. 1 of this Act."                                                                                 
                                                                                                                                
     Renumber the following bill section accordingly.                                                                           
                                                                                                                                
CHAIR MCKAY objected for the purpose of discussion.                                                                             
                                                                                                                                
1:39:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MEARS explained that Amendment 2 would require                                                                   
more fiscal accountability for the performance of jack-up rigs.                                                                 
                                                                                                                                
1:40:41 PM                                                                                                                    
                                                                                                                                
CHAIR MCKAY  noted that  he opposed Amendment  2 because  he does                                                               
not see  how disclosure of  oil and  gas tax information  has any                                                               
relation to  the proposed  bill.   He then  stated that  he would                                                               
remove his objection "for the sake of discussion."                                                                              
                                                                                                                                
1:41:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCCABE objected.                                                                                                 
                                                                                                                                
A roll  call vote  was taken.   Representatives Dibert  and Mears                                                               
voted  in   favor  of  Amendment  2.     Representatives  McCabe,                                                               
Rauscher,  Wright,  and  McKay  voted  against  it.    Therefore,                                                               
Amendment 2 failed to be adopted by a vote of 2-4.                                                                              
                                                                                                                                
1:42:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  RAUSCHER moved  to report  CSHB 387,  Version 33-                                                               
LS1282\S,  Nauman, 3/11/24,  as  amended, out  of committee  with                                                               
individual  recommendations and  the  accompanying fiscal  notes.                                                               
There being no  objection, CSHB 387(RES) was reported  out of the                                                               
House Resources Standing Committee.