HB1149: requiring a royalty on the price of natural gas conveyed by pipeline intended for use in a foreign country.

HB 1149 - AS INTRODUCED

2016 SESSION

16-2306

06/09

HOUSE BILL 1149

AN ACT requiring a royalty on the price of natural gas conveyed by pipeline intended for use in a foreign country.

SPONSORS: Rep. McConnell, Ches. 12; Rep. Flanagan, Hills. 26; Rep. Coffey, Hills. 25; Rep. Emerson, Ches. 11; Rep. Byron, Hills. 20; Rep. B. Tilton, Ches. 12

COMMITTEE: Science, Technology and Energy

ANALYSIS

This bill requires utilities and pipeline companies to pay a royalty on certain pipelines intended for or sold for use in a foreign country.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

16-2306

06/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Sixteen

AN ACT requiring a royalty on the price of natural gas conveyed by pipeline intended for use in a foreign country.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Paragraphs; Acquisition of Property or Rights; By Pipeline Companies. Amend RSA 371:15 by inserting after paragraph VI the following new paragraphs:

VII.(a) Any utility or pipeline company shall pay, in addition to any damages paid pursuant to this section, a royalty of at least 12.5 per cent of the wholesale price of natural gas conveyed on any pipeline subject to this section that is intended for use in, or otherwise sold for use in, a foreign country.

(b) Deductions from the royalty of any taxes, fees, or costs, including but not limited to post production costs, are prohibited.

(c) In this paragraph, "post production costs" refer to any and all costs incurred in and associated with processing and transporting oil, natural gas, or gas of any other designation from the point the gas is brought to the surface to the point the gas enters the commercial market, an interstate transmission system, or the system's point of use. These costs shall include, but are not limited to, gathering, storing, separating, treating, dehydrating, compressing, processing, transporting, or marketing, oil, natural gas, gas, or any other designation, and the proportional costs of separating and marketing ethane, propane, butane, and other complex hydrocarbons.

VIII. The royalty under paragraph VII shall be deposited on a quarterly basis into a fund created by the utility or related pipeline entity and, no later than 3 months after deposit into the fund, be divided and distributed to all persons owning property that was taken by the company under this section based on the pro rata proportion of the length of pipelines located on their property to the overall length of pipeline taken under this section.

2 Effective Date. This act shall take effect 60 days after its passage.