04/12/2010 01:00 PM House RESOURCES

        SB 305-SEPARATE OIL & GAS PROD. TAX/ DEDUCTIONS                                                                     
                                                                                                                                
4:23:20 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON announced  that the next order of  business is CS                                                              
FOR SENATE  BILL NO.  305(FIN)(title am),  "An Act providing  that                                                              
the tax rate  applicable to the  production of oil as  the average                                                              
production  tax value  of  oil,  gas produced  in  the Cook  Inlet                                                              
sedimentary  basin, and  gas produced  outside of  the Cook  Inlet                                                              
sedimentary  basin  and used  in  the  state increases  above  $30                                                              
shall  be 0.4  percent multiplied  by the  number that  represents                                                              
the difference between  that average monthly production  tax value                                                              
and $30, or the  sum of 25 percent and the product  of 0.1 percent                                                              
multiplied by  the number that  represents the difference  between                                                              
that  average monthly  production  tax  value and  $92.50,  except                                                              
that the total  rate determined in the calculation  may not exceed                                                              
50 percent;  providing for an increase  in the rate of  tax on the                                                              
production of  gas as the  average production  tax value on  a BTU                                                              
equivalent  barrel  basis of  gas  produced  outside of  the  Cook                                                              
Inlet  sedimentary  basin and  not  used  in the  state  increases                                                              
above  $30; relating  to payments  of the oil  and gas  production                                                              
tax; relating to  availability of a portion of  the money received                                                              
from the  tax on oil and gas  production for appropriation  to the                                                              
community  revenue sharing  fund;  relating to  the allocation  of                                                              
lease  expenditures and  adjustments  to lease  expenditures;  and                                                              
providing for  an effective date."   [Before the committee  is HCS                                                              
CSSB 305, Version 26-LS1577\M, Bullock, 4/10/10.]                                                                               
                                                                                                                                
4:23:33 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  JOHNSON moved that  the committee  enter into  executive                                                              
session under  Uniform Rule  22(b)(1) and (3)  for the  purpose of                                                              
discussing  matters,  the  immediate   knowledge  of  which  would                                                              
adversely affect  the finances  of the  state government  and may,                                                              
by  law,  be  required  to  be  confidential.    He  directed  Rex                                                              
Shattuck,   Staff   to   Representative   Neuman,   Alaska   State                                                              
Legislature,  to remain  in the  executive session.   It was  then                                                              
noted that  [Attorney General  Dan Sullivan,  Department  of Law];                                                              
Tina  Kobayashi,  Chief  Assistant Attorney  General  -  Statewide                                                              
Section  Supervisor,  Oil, Gas  &  Mining Section,  Department  of                                                              
Law; and Jonathan  Katchen, Special Assistant Attorney,  Office of                                                              
the  Attorney General,  Department of  Law, would  also remain  in                                                              
the  executive   session.    The   committee  then   entered  into                                                              
executive session.                                                                                                              
                                                                                                                                
[Due  to technical  difficulties  no audio  is  available for  the                                                              
committee's  return from executive  session at  6:02 p.m.  and the                                                              
reconvening of the public meeting.]                                                                                             
                                                                                                                                
CO-CHAIR  JOHNSON  announced  the next  House  Resources  Standing                                                              
Committee meeting is scheduled for 9:00 a.m. on April 13, 2010.