HB 223-TAX & ROYALTY FOR CERTAIN GAS                                                                          
                                                                                                                                
2:47:17 PM                                                                                                                    
                                                                                                                                
CHAIR MCKAY  announced that the  next order of business  would be                                                               
HOUSE BILL  NO. 223,"An  Act relating to  the production  tax and                                                               
royalty  rates on  certain gas;  and providing  for an  effective                                                               
date."                                                                                                                          
                                                                                                                                
2:47:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  RAUSCHER moved  to adopt  the proposed  committee                                                               
substitute  (CS)   for  HB  223,  Version   33-LS0886\S,  Nauman,                                                               
2/10/24, as a working document.                                                                                                 
                                                                                                                                
CHAIR MCKAY objected for purposes of discussion.                                                                                
                                                                                                                                
2:47:45 PM                                                                                                                    
                                                                                                                                
ED   KING,  Staff,   Representative  Tom   McKay,  Alaska   State                                                               
Legislature, explained  the purpose  of the  committee substitute                                                               
for HB  223 was to combine  the governor's royalty bill  with the                                                               
bill sponsor's ideas and reviewed  those changes.  The summary of                                                               
changes  [included  in the  committee  packet],  read as  follows                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     House Bill 223                                                                                                             
     Cook Inlet Royalty Reduction                                                                                               
     Summary of Changes from Version B to S                                                                                     
                                                                                                                                
     Change 1: A new bill section 1 was added to expand the                                                                     
     commissioner's list of required actions.                                                                                   
                                                                                                                                
     Change  2:  The  new subsection  AS  38.05.180(mm)  was                                                                    
     expanded to include oil and provide more clarity.                                                                          
     (Previous bill section 2, CS page 8 beginning line 27)                                                                     
                                                                                                                                
     Change  3:  Another  subsection, AS  38.05.180(nn)  was                                                                    
     added to provide a definition for "new gas."                                                                               
     (CS page 9 beginning line 7)                                                                                               
                                                                                                                                
     Change  4: The  provisions relating  to production  tax                                                                    
     reduction were removed.                                                                                                    
     (Previous bill sections 3-6)                                                                                               
                                                                                                                                
     Change 5: A  new bill section was added  to include the                                                                    
     calculation of prevailing market  value for natural gas                                                                    
     to the Commissioner of Revenue's duties.                                                                                   
     (CS page 9 beginning line 22)                                                                                              
                                                                                                                                
     Change 6:  Transition language  was added  to authorize                                                                    
     the   commissioner  to   modify  lease   agreements  to                                                                    
     incorporate the changes made by this bill.                                                                                 
     (CS page 9 beginning line 25)                                                                                              
                                                                                                                                
     Change 7:  The January 1,  2025 effective date  for the                                                                    
     production tax  related bill  sections became  moot and                                                                    
     were deleted.                                                                                                              
                                                                                                                                
2:49:47 PM                                                                                                                    
                                                                                                                                
CHAIR MCKAY said he would extend the amendment deadline on HB                                                                   
223.                                                                                                                            
                                                                                                                                
CHAIR MCKAY removed his objection to the motion to adopt the                                                                    
proposed CS.  There being no further objection, Version S was                                                                   
before the committee as a working document.                                                                                     
                                                                                                                                
CHAIR MCKAY announced that HB 223 was held over.