04/05/2002 08:06 AM House O&G

                    ALASKA STATE LEGISLATURE                                                                                  
             HOUSE SPECIAL COMMITTEE ON OIL AND GAS                                                                           
                         April 5, 2002                                                                                          
                           8:06 a.m.                                                                                            
                                                                                                                                
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
OVERVIEW: OIL & GAS INCENTIVES                                                                                                  
                                                                                                                                
TAPES                                                                                                                         
                                                                                                                                
02-20, SIDE(S) A & B                                                                                                            
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
REPRESENTATIVE HUGH FATE,  Vice Chair, called the  meeting of the                                                               
House Special  Committee on  Oil and  Gas to  order at  8:06 a.m.                                                               
[For the  minutes on HB 302,  see the 9:15 a.m.  minutes for this                                                               
date.]                                                                                                                          
                                                                                                                                
PRESENT                                                                                                                       
                                                                                                                                
Members  present  were  Representatives  Fate,  Dyson,  Chenault,                                                               
Kohring,  and  Guess.   Excused  were  Representatives  Ogan  and                                                               
Joule.                                                                                                                          
                                                                                                                                
SUMMARY OF INFORMATION                                                                                                        
                                                                                                                                
MARK  MYERS,  Director, Division  of  Oil  & Gas,  Department  of                                                               
Natural  Resources, gave  a presentation  and  offered a  handout                                                               
discussing  types   of  incentives   in  general   -  exploration                                                               
incentive  credits   (with  a  reference  to   HB  307),  royalty                                                               
reduction,  the  discovery  royalty   program,  and  the  shallow                                                               
natural gas leasing program.   He discussed what is working, what                                                               
is  not,  what  should  be  eliminated,  and  what  needs  to  be                                                               
improved.                                                                                                                       
                                                                                                                                
WILSON  CONDON, Commissioner,  Department of  Revenue, offered  a                                                               
general  discussion  of  tax  issues,  including  incentives  and                                                               
disincentives.   [No handout  was provided.]   Included  were the                                                               
basic  tax rate;  the  economic limiting  factor  (ELF); lack  of                                                               
recognition in  the taxing structure for  a competitive situation                                                               
in new  investments; and  firms that make  money here  and invest                                                               
elsewhere versus firms that make money here and invest here.                                                                    
                                                                                                                                
ANNOUNCEMENTS                                                                                                                 
                                                                                                                                
There were no announcements.                                                                                                    
                                                                                                                                
COMMITTEE ACTION                                                                                                              
                                                                                                                                
The committee took no action.                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
VICE  CHAIR FATE  called  an at-ease  at 9:00  a.m.  in order  to                                                               
prepare for the  hearing on legislation.  [For the  minutes on HB
, see the 9:15 a.m. minutes for this date.]                                                                                  
                                                                                                                                
NOTE:   The meeting was  recorded and handwritten log  notes were                                                               
taken.  A  copy of the tape(s)  and log notes may  be obtained by                                                               
contacting the  House Records  Office at  State Capitol,  Room 3,                                                               
Juneau,  Alaska   99801 (mailing  address),  (907) 465-2214,  and                                                               
after  adjournment of  the second  session  of the  Twenty-Second                                                               
Alaska  State Legislature  this  information may  be obtained  by                                                               
contacting the Legislative Reference Library at (907) 465-3808.