HB 58 - OIL & GAS AUDITS                                                                                                      
                                                                                                                                
Number 1771                                                                                                                     
                                                                                                                                
CO-CHAIR MASEK announced that the  next order of business would be                                                              
HOUSE BILL  NO. 58, "An Act  relating to certain  audits regarding                                                              
oil and gas royalty and net profits  and to audits regarding costs                                                              
relating  to  exploration  incentive   credits  and  oil  and  gas                                                              
exploration licenses; and providing for an effective date."                                                                     
                                                                                                                                
KEVIN BANKS, Petroleum  Marketing Analyst, Division of  Oil & Gas,                                                              
Department   of    Natural   Resources   (DNR),    testified   via                                                              
teleconference  from Anchorage.    He said  he had  worked on  the                                                              
interagency project team that recommended  the transfer created by                                                              
HB 58,  and had  helped draft the  language of  the bill  with the                                                              
Department  of Revenue  and the Department  of  Law.  A  technical                                                              
bill,  HB  58  transfers  the authority  to  audit  royalties  and                                                              
revenues from net profits that are  created in the leases from the                                                              
Department of Revenue to the DNR;  in transferring that authority,                                                              
the  bill   also  imposes   on  DNR   staff  the   same  kind   of                                                              
confidentiality  requirements  that  now  govern  the  information                                                              
gathered in  audits conducted  by the Department  of Revenue.   He                                                              
explained  that  they are  recommending  HB 58  for  consideration                                                              
because of  the efficiencies  that it should  achieve for  DNR and                                                              
for the government.                                                                                                             
                                                                                                                                
Number 1961                                                                                                                     
                                                                                                                                
CO-CHAIR  MASEK agreed  that HB  58 is  a simple,  straightforward                                                              
transfer of authority from the Department  of Revenue to DNR.  She                                                              
closed public testimony on HB 58.                                                                                               
                                                                                                                                
REPRESENTATIVE COWDERY made a motion  to move HB 58 from committee                                                              
with individual  recommendations and the attached  fiscal note; he                                                              
asked for unanimous consent.  There  being no objection, HB 58 was                                                              
moved out the House Resources Standing Committee.