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HB 13: Oil & Gas Valuation Methodology - Optional Procedure
2005 General Session
Sponsor: Rep. Roy Cohee (R-H35, Casper)

         HB 13 was what legislators like to call a very simple bill - usually meaning that the bill itself is short and sweet, but has far-reaching consequences.
         So it was with HB 13, which would have amended only one paragraph of the statutes pertaining to setting the taxable value of producer-processed natural gas (for more details, please refer to the bill description for HB 49).
         HB 13 would have deleted the portion of the existing law that allows a producer-processor taxpayer to veto the valuation method chosen by the Department of Revenue.
         Proponents of the bill pointed out that producer-processors of natural gas are the only taxpayers - even among mineral taxpayers - who are allowed to jointly select their own valuation method with the Department, and that this obvious inequity also gives this group of taxpayers too much power over the state.
         Industry lobbyists opposed the measure on the grounds that the Department of Revenue might "cherry-pick" a valuation method depending on how much tax revenue will be generated.
         The sponsor, former House Revenue Committee chairman and now Majority Floor Leader Roy Cohee, said he brought the bill in an effort to put some pressure on industry on the long-running dispute over producer-processed gas valuation.
         The bill failed in the House Revenue Committee, 3-6. The vote listed below is the House Revenue Committee vote. A YES vote means the representative wanted to remove the statutory right of natural gas companies to help select their own valuation methods. A NO vote means the representative did not want to remove this ability of natural gas producer-processors.
         Please refer to the bill description for HB 49 for further action on this issue.


House Revenue Committee HB 13
H 10 Rodney "Pete" Anderson (R - Laramie - chairman) Yes
H 47 Kurt Bucholz (R - Carbon/Albany) No
H 36 Gerald Gay (R - Natrona) No
H 59 Mary Meyer Gilmore (D - Natrona) Yes
H 37 Steve Harshman (R - Natrona) No
H 39 John Hastert (D - Sweetwater) Yes
H 55 David Miller (R - Fremont) No
H 9 Bryan Pedersen (R - Laramie) No
H 56 Tom Walsh (R - Natrona) No