Brief⁽¹⁾

S.B. 348 would amend a section of current law that permits the disclosure of oil and gas production statistics to county appraisers and to other state agencies which administer and collect conservation or other taxes and fees imposed on or measured by mineral production. The bill would outline the types of information which may be disclosed:

• volumes of production by well name;



• well number;



• operator's name and identification number assigned by the State Corporation Commission;



• lease name;



• leasehold property description;



• county of production or zone of production;



• name of purchaser and purchaser's tax identification number assigned by the Department of Revenue;



• name of transporter;



• field code number or lease code;



• tax period;



• exempt production volumes by well name or lease; and



• any combination of the above information.

The bill would become effective upon publication in the Kansas Register.

Background

According to testimony, the bill was drafted as a cooperative effort between attorneys for the Corporation Commission and the Kansas Department of Revenue. During the hearing on the bill, a spokesperson from the Corporation Commission testified that the bill would assure that certain oil and gas production data reported on producers' tax returns and license applications would be available to all oil and gas producers and to reporting services who compile and publish the information for the industry. The testimony also indicated that the bill would clarify and confirm the authority of state agencies to continue to disclose oil and gas production data by location and producer. Testimony indicated that access to this information was vital to the growth and development of the oil and gas industry in Kansas. Also testifying in support of the bill were representatives of the Kansas Independent Oil and Gas Association, the Kansas Petroleum Council, and IHS Energy Group. There were no opponents to the bill.

The Senate Committee on Energy and Natural Resources amended the bill to change the effective date of the bill to the Kansas Register and also made one other technical amendment.

The fiscal note on the bill indicates that the Department of Revenue and the State Corporation Commission have not yet responded to requests for information on the bill.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html