***Adopted***

AMENDMENT No. 1 PROPOSED TO

                             Committee Sub. for HB NO. 771

                             By Representative(s) Hudson

     AMEND by inserting the following language after line 156:

    

     "(8)  Notwithstanding any other provision of this section to the contrary, the exemptions from taxation and reduced rates of assessment provided under this section shall not apply to oil produced from a well for which drilling or re-entry commences on or after July 1, 2004, and for which three-dimensional seismic or other seismic exploration is used in connection with the production of such oil unless the person proposing to perform three-dimensional seismic or other seismic exploration provides at least seven (7) days notice before beginning such seismic exploration operations.  Such notice shall be provided, as nearly as practicable, in accordance with the provisions of Section 53-3-11(3)." 

     AMEND further by inserting the following language after lines 303 and 453:  

     "(9)  Notwithstanding any other provision of this section to the contrary, the exemptions from taxation and reduced rates of assessment provided under this section shall not apply to gas produced from a well for which drilling or re-entry commences on or after July 1, 2004, and for which three-dimensional seismic or other seismic exploration is used in connection with the production of such gas unless the person proposing to perform three-dimensional seismic or other seismic exploration provides at least seven (7) days notice before beginning such seismic exploration operations.  Such notice shall be provided, as nearly as practicable, in accordance with the provisions of Section 53-3-11(3)." 

     AMEND further the title to conform.