Joint Minerals, Business and Economic Development Interim Committee Meeting Summary (October 7, 2002)

The Joint Minerals, Business and Economic Development Interim Committee met on October 7, 2002 in Casper.  The Committee revisited the coal valuation issues that were previously discussed at the May meeting.  The Committee received testimony from the Department of Revenue and the coal industry on cost classification and its impact under the Powder River Coal decision.  The Department still holds that lease bonus payments are direct costs, not indirect costs as held by the Wyoming Supreme Court.  The Committee also heard testimony regarding the point of valuation and the valuation floor for coal.  The Department has decided not to pursue legislation that would change the point of valuation at this time; and both the Department and industry have concluded that a statutory floor for coal is not needed.  The Committee received testimony on two draft bills.  The coal industry is opposed to any statutory change for valuation of non-arms length sales--intercompany/affiliate sales.  The Department testified in favor of the draft.  The Committee voted to adopt the draft as a Committee-sponsored bill.  A motion to adopt the alternative valuation method draft failed. 

The Committee heard testimony on Wyoming Business Council matters.  The Committee received testimony from the Wyoming Energy Commission regarding funding for the Wyoming Pipeline Authority.  The Committee received testimony on the natural gas price deferential and the need for additional pipeline capacity.  The Committee voted to have the Co-chairs contact the Governor on these issues of the WPA and the price deferential. The Committee voted to sponsor a bill to “clean up” the Wyoming Business Council annual report requirements and to also to sponsor a bill to fund the Wyoming Technology Business Center.  The Committee has completed its work for the 2002 interim. 

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