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Sponsor seeks 3% statutory royalty for Kitchen Lights unit; DNR projects modest foregone revenue starting 2032
Summary
Rep. Zach Fields introduced HB 271 to codify a 3% royalty for the Kitchen Lights unit; DNR said the fiscal note shows no new administrative expense but projects foregone state revenue beginning in FY2032 (about $2.6M half‑year, roughly $5.2M in FY2033) and will provide further multi‑year projections on request.
Rep. Zach Fields said House Bill 2 71 would put in statute an indefinite 3% royalty rate for the Kitchen Lights unit — the same rate the Department of Natural Resources implemented administratively — arguing statutory certainty would encourage capital investment and sustain production in Cook Inlet. “Puts in statute, an indefinite royalty rate of 3% for the kitchen lights unit,” Fields said.
Ryan Fitzpatrick, commercial manager in DNR’s Division of Oil and Gas, briefed the committee on the fiscal note and modeling. He said the fiscal note reflects “no additional incremental expenses in administering this particular…
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