05/12/1999 02:20 PM House FIN

SENATE BILL NO. 134                                                                                                             
                                                                                                                                
An Act authorizing the Alaska Oil and Gas Conservation                                                                          
Commission to determine the amount of and to collect a                                                                          
charge for operating wells subject to the commission's                                                                          
jurisdiction, and to allocate expenses of investigation                                                                         
and hearing, and repealing the oil and gas conservation                                                                         
tax; and providing for an effective date.                                                                                       
                                                                                                                                
Co-Chair Therriault MOVED to adopt Amendment #1.  [Copy on                                                                      
File].                                                                                                                          
                                                                                                                                
ROBERT MINTZ, (TESTIFIED VIA TELECONFERENCE), ASSISTANT                                                                         
ATTORNEY GENERAL, DEPARTMENT OF LAW, commented that the                                                                         
amendment addresses program receipts.  The bill guarantees                                                                      
that regulatory cost charge receipts would be treated as                                                                        
program receipts. He added, that there are other receipts                                                                       
addressed in Section 1, which should also be addressed with                                                                     
this formula.                                                                                                                   
                                                                                                                                
There being NO OBJECTION, Amendment #1 was adopted.                                                                             
                                                                                                                                
Co-Chair Therriault MOVED to adopt Amendment #2.  [Copy on                                                                      
File].                                                                                                                          
                                                                                                                                
Mr. Mintz explained that Amendment #2 would clarify cost                                                                        
charge related to regulatory wells.  Each charge is based on                                                                    
guaranteeing that the well is properly accounted for.                                                                           
                                                                                                                                
He continued, current language in Subsection A describes                                                                        
only wells with reference to one criterion. As currently                                                                        
written, the second criteria describes a person, not a well.                                                                    
To avoid confusion, the Department is suggesting that the                                                                       
language be written so that the criteria describes a well.                                                                      
There being NO OBJECTION, Amendment #2 was adopted.                                                                             
                                                                                                                                
Co-Chair Therriault MOVED to adopt Amendment #3.  [Copy on                                                                      
File].  Mr. Carter explained that language was added in the                                                                     
"spirit of compromise" with industry.  The amendment would                                                                      
obligate AOGCC to attend to all ratepayers within 30 days of                                                                    
their budget.                                                                                                                   
                                                                                                                                
Representative J. Davies questioned the estimated time,                                                                         
voicing concern that this element of the budget would be                                                                        
made public prior to the Governor submitting it.                                                                                
                                                                                                                                
Representative G. Davis questioned the number of other                                                                          
statutory receipts, which could begin to "snow-ball".  Mr.                                                                      
Carter pointed out that making the change would be "up to                                                                       
the will of the Committee".                                                                                                     
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:  Therriault                                                                                                           
OPPOSED: Austerman, Bunde, J. Davies, G. Davis,                                                                                 
Foster, Grussendorf, Moses, Williams, Mulder                                                                                    
                                                                                                                                
Representative Kohring was not present for the vote.                                                                            
                                                                                                                                
The MOTION FAILED (1-9).                                                                                                        
                                                                                                                                
SB 133 was HELD in Committee for further consideration.