03/22/1993 05:00 PM House O&G

  HB 200:  OIL & GAS EXPLORATION INCENTIVE CREDITS                             
                                                                               
  Number 668                                                                   
                                                                               
  MR. EASON felt HB 200 encourages exploration in the state.                   
  He stated, "They are proposing that the new legislation                      
  would actually amend Title 41 because it is exploration                      
  incentive credit provision that we want to make for all land                 
  not just state land.  They are also proposing the process be                 
  changed somewhat.  Credits be available for the review for                   
  specific expiration be undertaken whether they be on state                   
  land, federal, or private lands.  It is not mandatory that                   
  we give the credit it would be discretionary by the                          
  Commissioner.  The rationale for selecting the different                     
  percentage participation is twofold, first although there                    
  may be very valuable information leading to the evaluation                   
  of state lands, private lands, under all circumstances, are                  
  more remote and data is therefore less applicable."                          
                                                                               
  TAPE 93-9, SIDE A                                                            
  Number 000                                                                   
                                                                               
  MR. LAPPI stated he does not think the state needs to be in                  
  the business of deciding what area should be supported as                    
  far as private exploration goes in the state, and that the                   
  industry needs to have the state participation financially                   
  or assisting them in deciding which program should be                        
  supported with state money.                                                  
                                                                               
  Number 028                                                                   
                                                                               
  REPRESENTATIVE G. DAVIS asked Mr. Eason if HB 200 was                        
  similar to MAPCO\Tesoro's proposal as far as the state                       
  assisting development.