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.