Natural gas valuation. |
03LSO-0091.C1 |
FISCAL NOTE (HB0087)
|
FY 2005 |
FY 2006 |
|
NON-ADMINISTRATIVE IMPACT |
|
|
|
Anticipated Revenue Increase: |
|
|
|
BUDGET RESERVE ACCOUNT |
2,450,000 |
2,450,000 |
2,450,000 |
GENERAL FUND |
1,230,000 |
1,230,000 |
1,230,000 |
PERM. MINERAL TRUST FUND |
1,230,000 |
1,230,000 |
1,230,000 |
Source of revenue increase:
Severance taxes on natural gas production, due to changing valuation method for producer-processed natural gas from the proportionate profits method to a netback method.
Assumptions:
¨ Assume calendar year 2000 production levels for affected properties.
¨ Assume calendar year 2000 expenses for processing and transportation.
¨ Assume Standard and Poor’s “B” bond rating remains constant at 11.75 percent.
Prepared by: Dean Temte, LSO Phone: 777-78810
(information provided by Randy Bolles/Craig Grenvik, Dept of Revenue;
phone 777-5237)