02/24/2014 03:30 PM Senate RESOURCES
| Audio | Topic |
|---|---|
| Start | |
| SB138 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | HJR 26 | TELECONFERENCED | |
| *+ | SB 137 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| = | SB 138 | ||
ALASKA STATE LEGISLATURE
SENATE RESOURCES STANDING COMMITTEE
February 24, 2014
3:32 p.m.
MEMBERS PRESENT
Senator Cathy Giessel, Chair
Senator Fred Dyson, Vice Chair
Senator Peter Micciche
Senator Click Bishop
Senator Lesil McGuire
Senator Anna Fairclough
Senator Hollis French
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 138
"An Act relating to the purposes of the Alaska Gasline
Development Corporation to commissioner of natural resources on
the custody and disposition of gas delivered to the advance to
develop a large-diameter natural gas pipeline project, including
treatment state in kind; relating to the authority of the
commissioner of natural resources to and liquefaction
facilities; establishing the large-diameter natural gas pipeline
project propose modifications to existing state oil and gas
leases; making certain information fund; creating a subsidiary
related to a large-diameter natural gas pipeline project,
provided to the Department of Natural Resources and the
Department of Revenue including treatment and liquefaction
facilities; relating to the authority of the exempt from
inspection as a public record; making certain tax information
related to an commissioner of natural resources to negotiate
contracts related to North Slope natural election to pay the oil
and gas production tax in kind exempt from tax confidentiality
gas projects, to enter into confidentiality agreements in
support of contract negotiations provisions; relating to
establishing under the oil and gas production tax a gross tax
rate and implementation, and to take custody of gas delivered to
the state under an election for gas after 2021; making the
alternate minimum tax on oil and gas produced north of to pay
the oil and gas production tax in kind; relating to the sale,
exchange, or disposal 68 degrees North latitude after 2021 apply
only to oil; relating to apportionment factors of gas delivered
to the state under an election to pay the oil and gas production
tax in of the Alaska Net Income Tax Act; authorizing a
producer's election to pay the oil and kind; relating to the
duties of the commissioner of revenue to direct the disposition
of gas production tax in kind for certain gas and relating to
the authorization; relating to revenues received from gas
delivered to the state in kind and to consult with the 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."
- MOVED CSSB 138(RES) OUT OF COMMITTEE -
SENATE BILL NO. 137
"An Act extending the termination date of the Alaska Seismic
Hazards Safety Commission; and providing for an effective date."
- SCHEDULED BUT NOT HEARD
HOUSE JOINT RESOLUTION NO. 26
Urging the United States Congress to provide a means for
consistently and equitably sharing with all oil and gas
producing states adjacent to federal outer continental shelf
areas a portion of revenue generated from oil and gas
development on the outer continental shelf to ensure that those
states develop necessary infrastructure to support outer
continental shelf development and preserve environmental
integrity.
- SCHEDULED BUT NOT HEARD
PREVIOUS COMMITTEE ACTION
BILL: SB 138
SHORT TITLE: GAS PIPELINE; AGDC; OIL & GAS PROD. TAX
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
01/24/14 (S) READ THE FIRST TIME - REFERRALS
01/24/14 (S) RES, FIN
02/07/14 (S) RES AT 3:30 PM BUTROVICH 205
02/07/14 (S) Heard & Held
02/07/14 (S) MINUTE(RES)
02/10/14 (S) RES AT 3:30 PM BUTROVICH 205
02/10/14 (S) Heard & Held
02/10/14 (S) MINUTE(RES)
02/12/14 (S) RES WAIVED PUBLIC HEARING NOTICE, RULE
23
02/12/14 (S) RES AT 3:30 PM BUTROVICH 205
02/12/14 (S) Heard & Held
02/12/14 (S) MINUTE(RES)
02/13/14 (S) RES AT 8:00 AM BUTROVICH 205
02/13/14 (S) Heard & Held
02/13/14 (S) MINUTE(RES)
02/14/14 (S) RES AT 3:30 PM BUTROVICH 205
02/14/14 (S) Heard & Held
02/14/14 (S) MINUTE(RES)
02/19/14 (S) RES AT 3:30 PM BUTROVICH 205
02/19/14 (S) Heard & Held
02/19/14 (S) MINUTE(RES)
02/20/14 (S) RES AT 8:00 AM BUTROVICH 205
02/20/14 (S) Heard & Held
02/20/14 (S) MINUTE(RES)
02/21/14 (S) RES AT 8:00 AM BUTROVICH 205
02/21/14 (S) Heard & Held
02/21/14 (S) MINUTE(RES)
02/21/14 (S) RES AT 3:30 PM BUTROVICH 205
02/21/14 (S) Heard & Held
02/21/14 (S) MINUTE(RES)
02/24/14 (S) RES AT 8:00 AM BUTROVICH 205
WITNESS REGISTER
No witnesses to record
ACTION NARRATIVE
3:32:18 PM
CHAIR CATHY GIESSEL called the Senate Resources Standing
Committee meeting to order at 3:32 p.m. Present at the call to
order were Senators French, Bishop, McGuire, Micciche, and Chair
Giessel. Senator Fairclough joined the committee shortly after.
3:32:57 PM
SB 138-GAS PIPELINE; AGDC; OIL & GAS PROD. TAX
CHAIR GIESSEL announced CSSB 138(RES), version 28-GS2806\N, to
be up for consideration. She said Amendment 6 was adopted last
Friday and it corrects a drafting error on page 3 that had to do
with numbering. She asked if there was further discussion.
3:33:24 PM
SENATOR DYSON joined the committee.
SENATOR MICCICHE reminded people that the members will keep an
eye on this bill as it moves through the other committees,
especially the Finance Committee. He thanked the chair for her
leadership.
3:34:03 PM
SENATOR DYSON said he made what some viewed as critical remarks
last Friday about organized labor and was visited by a number of
them afterwards. He was told that the unions that used to have
an internal rule that said they couldn't hire qualified Alaskans
as long as people were on the books in the Lower 48, but that
provision had gone away. He was also assured that virtually all
of the construction unions in this state are very enthusiastic
about this pipeline going forward and they don't believe there
will be any labor problems or anybody excluded from getting
work.
SENATOR BISHOP echoed Senator Micciche's comments and
congratulated the chair on doing a good job of keeping the
committee on task.
3:35:51 PM
SENATOR FAIRCLOUGH said this is as close as they have ever been
to a natural gas pipeline in terms of alignment and getting an
equity share, but Alaskans need to be willing to take on the
risks and those need to be understood as much as possible. She
said this is just the first step should they agree with the
conditions outlined in the project. What is before them and
getting ready to exit from the Resources Committee is at least a
partial understanding and she wanted it on the record that she
would be a "no recommendation," because she will see SB 138
again in the Finance Committee and wants to really understand
the taxing issue.
She said they had had good conversations about some of the risks
that are still out there and some base lines that she would like
to see incorporated into this bill when it's pointing towards
royalty leases and the floor and was wondering if other language
should be considered for the "floor." She wanted to continue
keeping an open mind about that percentage knowing that it's
related to our equity share and that that will put more on the
table for Alaskans as they choose to analyze whether the gross
tax is equal to what our tolerance is for the risk on future
capital cash calls from the state.
3:38:53 PM
CHAIR GIESSEL said she looked at this project as a legacy that
can be left for generations to come; it's a megaproject that
will provide affordable energy for Alaskans and the opportunity
to transmit natural gas all over the state. The jobs during
construction will be tremendous for all Alaskans who are fit,
willing, and ready to take them. They have talked about
diversifying the economy, and affordable energy is what brings
private sector diversification to an economy - like Iceland's
aluminum processing industry that has transformed that country,
because of their low cost energy. Alaska can do the same thing
and this is an opportunity to do that.
She said they had looked at a lot of details in this bill, but
many other elements, like fiscal issues, need a further look.
They heard a lot about payment in lieu of taxes for local
municipalities and concerns expressed about the creation of a
subsidiary, but she was fully confident that the Finance
Committee would dig into those topics.
3:40:57 PM
SENATOR DYSON moved to report CSSB 138, version 28-GS2806\N as
amended, from committee with attached fiscal notes and
individual recommendations. There were no objections and CSSB
138(RES) moved from the Senate Resources Standing Committee.
3:41:59 PM
CHAIR GIESSEL, finding no other business to come before the
Senate Resources Standing Committee adjourned the meeting at
3:41 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HJR 26 vs N.pdf |
SRES 2/24/2014 3:30:00 PM |
HJR 26 |
| HJR 26 Sponsor Statement.pdf |
SRES 2/24/2014 3:30:00 PM |
HJR 26 |
| HJR 26 Fiscal Note - LAA.pdf |
SRES 2/24/2014 3:30:00 PM SRES 2/26/2014 3:30:00 PM |
HJR 26 |
| HJR 26 OCS States Letter.pdf |
SRES 2/24/2014 3:30:00 PM |
HJR 26 |
| HJR 26 BPC Revenue Sharing 101.pdf |
SRES 2/24/2014 3:30:00 PM |
HJR 26 |
| HJR 26 FAIR Act (S.1273).pdf |
SRES 2/24/2014 3:30:00 PM |
HJR 26 |
| HJR 26 FAIR Act Summary.pdf |
SRES 2/24/2014 3:30:00 PM |
HJR 26 |
| HJR 26 Mayor Brower Testimony.pdf |
SRES 2/24/2014 3:30:00 PM |
HJR 26 |
| HJR 26 Energy Council Policy Statement.pdf |
SRES 2/24/2014 3:30:00 PM SRES 2/26/2014 3:30:00 PM |
HJR 26 |
| HJR 26 Supp Letter RDC 20140221.pdf |
SRES 2/24/2014 3:30:00 PM SRES 2/26/2014 3:30:00 PM |
HJR 26 |
| SB 137 vs A.pdf |
SRES 2/24/2014 3:30:00 PM SRES 2/26/2014 3:30:00 PM |
SB 137 |
| SB 137 Sponsor Statement.pdf |
SRES 2/24/2014 3:30:00 PM SRES 2/26/2014 3:30:00 PM |
SB 137 |
| SB 137 Fiscal Note.pdf |
SRES 2/24/2014 3:30:00 PM SRES 2/26/2014 3:30:00 PM |
SB 137 |
| SB 137 Annual Report 2013.pdf |
SRES 2/24/2014 3:30:00 PM SRES 2/26/2014 3:30:00 PM |
SB 137 |
| SB 137 ASHSC Strategic Plan.pdf |
SRES 2/24/2014 3:30:00 PM SRES 2/26/2014 3:30:00 PM |
SB 137 |
| SB 137 Supp Letter RobertScher 20140204.pdf |
SRES 2/24/2014 3:30:00 PM SRES 2/26/2014 3:30:00 PM |
SB 137 |
| SB 138 Supp Letter DavidSpringgate 20140223.pdf |
SRES 2/24/2014 3:30:00 PM |
SB 21 |