SENATE BILL NO. 114                                                                                                           
                                                                                                                                
     "An Act establishing an income  tax on certain entities                                                                    
     producing  or transporting  oil  or gas  in the  state;                                                                    
     relating  to  the  oil  and  gas  production  tax;  and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
1:36:13 PM                                                                                                                    
                                                                                                                                
Co-Chair  Olson relayed  that  there  was invited  testimony                                                                    
scheduled  for the  bill the  following week.  The committee                                                                    
would consider a new Committee Substitute (CS).                                                                                 
                                                                                                                                
1:36:52 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:36:56 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair   Stedman  MOVED   to   ADOPT  proposed   committee                                                                    
substitute  for  SB  114, Work  Draft  33-LS0641\R  (Nauman,                                                                    
4/25/23).                                                                                                                       
                                                                                                                                
Co-Chair Olson OBJECTED for discussion.                                                                                         
                                                                                                                                
1:37:32 PM                                                                                                                    
                                                                                                                                
KEN  ALPER,  STAFF,  SENATOR   DONNY  OLSON,  discussed  the                                                                    
changes in the  proposed CS. He recalled  that the committee                                                                    
had adopted a  CS two weeks previously that  had removed the                                                                    
ring-fencing provision. He identified  that there had been a                                                                    
technical issue that had been  brought to light by industry,                                                                    
which he wanted  to clarify. He drew attention  to Section 4                                                                    
on Page  3 of the  bill; which was  a provision of  the bill                                                                    
brought forward by the sponsor  that indicated that the per-                                                                    
barrel credit  earned on  a field should  only be  usable to                                                                    
the extent the  company was reinvesting capital  in the same                                                                    
field.                                                                                                                          
                                                                                                                                
Mr. Alper  made note of  the word "unit"  on line 30  of the                                                                    
new CS and  explained that the previous version  of the bill                                                                    
had the  words  lease or  property.  He detailed  that there                                                                    
had been concern  that the language could  be interpreted to                                                                    
mean  that companies  had to  spend  the money  on the  same                                                                    
lease or participating area, while  the sponsors  intent was                                                                    
that the spending could be anywhere  on the unit and be able                                                                    
to use all the per-barrel  credits earned from production on                                                                    
the unit.                                                                                                                       
                                                                                                                                
Co-Chair  Olson  WITHDREW  his  objection.  There  being  NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
SB  114  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
1:39:30 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:41:23 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Olson handed the gavel to Co-Chair Stedman.