00 SENATE CS FOR 2d CS FOR HOUSE BILL NO. 247(FIN) 01 "An Act relating to the exploration incentive credits; relating to the powers and duties 02 of the Alaska Oil and Gas Conservation Commission; relating to interest applicable to 03 delinquent tax; relating to the oil and gas production tax, tax payments, and credits; 04 relating to tax credit certificates; relating to refunds for the gas storage facility tax 05 credit, the liquefied natural gas storage facility tax credit, and the qualified in-state oil 06 refinery infrastructure expenditures tax credit; relating to oil and gas lease expenditures 07 and production tax credits for municipal entities; requiring a bond or cash deposit with 08 a business license application for an oil or gas business; and providing for an effective 09 date." 10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 11  * Section 1. AS 31.05.030 is amended by adding a new subsection to read: 12 (n) Upon request of the commissioner of revenue, the commission shall 01 (1) verify regular production for the purposes of AS 43.55.023(b) and 02 (l); and 03 (2) determine the commencement of regular production from a lease or 04 property for purposes of AS 43.55.160(f) and (g).  05  * Sec. 2. AS 38.05.036(a) is amended to read: 06 (a) The department may conduct audits regarding royalty and net profits under 07 oil and gas contracts, agreements, or leases under this chapter and regarding costs 08 related to exploration licenses entered into under AS 38.05.131 - 38.05.134 and 09 exploration incentive credits under this chapter [OR UNDER AS 41.09]. For purposes 10 of an audit under this section, 11 (1) the department may examine the books, papers, records, or 12 memoranda of a person regarding matters related to the audit; and 13 (2) the records and premises where a business is conducted shall be 14 open at all reasonable times for inspection by the department. 15  * Sec. 3. AS 38.05.036(b) is amended to read: 16 (b) The Department of Revenue may obtain from the department information 17 relating to royalty and net profits payments and to exploration incentive credits under 18 this chapter [OR UNDER AS 41.09], whether or not that information is confidential. 19 The Department of Revenue may use the information in carrying out its functions and 20 responsibilities under AS 43, and shall hold that information confidential to the extent 21 required by an agreement with the department or by AS 38.05.035(a)(8) [, 22 AS 41.09.010(d),] or AS 43.05.230. 23  * Sec. 4. AS 38.05.036(c) is amended to read: 24 (c) The department may obtain from the Department of Revenue all 25 information obtained under AS 43 relating to royalty and net profits and to exploration 26 incentive credits. The department may use the information for purposes of carrying out 27 its responsibilities and functions under this chapter [AND AS 41.09]. Information 28 made available to the department that was obtained under AS 43 is confidential and 29 subject to the provisions of AS 43.05.230. 30  * Sec. 5. AS 38.05.036(f) is amended to read: 31 (f) Except as otherwise provided in this section or in connection with official 01 investigations or proceedings of the department, it is unlawful for a current or former 02 officer, employee, or agent of the state to divulge information obtained by the 03 department as a result of an audit under this section that is required by an agreement 04 with the department or by AS 38.05.035(a)(8) [OR AS 41.09.010(d)] to be kept 05 confidential. 06  * Sec. 6. AS 38.05.036(g) is amended to read: 07 (g) Nothing in this section prohibits the publication of statistics in a manner 08 that maintains the confidentiality of information to the extent required by an 09 agreement with the department or by AS 38.05.035(a)(8) [OR AS 41.09.010(d)]. 10  * Sec. 7. AS 40.25.100(a) is amended to read: 11 (a) Information in the possession of the Department of Revenue that discloses 12 the particulars of the business or affairs of a taxpayer or other person, including 13 information under AS 38.05.020(b)(11) that is subject to a confidentiality agreement 14 under AS 38.05.020(b)(12), is not a matter of public record, except as provided in 15 AS 43.05.230(i) - (l) [AS 43.05.230(i) OR (k)] or for purposes of investigation and 16 law enforcement. The information shall be kept confidential except when its 17 production is required in an official investigation, administrative adjudication under 18 AS 43.05.405 - 43.05.499, or court proceeding. These restrictions do not prohibit the 19 publication of statistics presented in a manner that prevents the identification of 20 particular reports and items, prohibit the publication of tax lists showing the names of 21 taxpayers who are delinquent and relevant information that may assist in the collection 22 of delinquent taxes, or prohibit the publication of records, proceedings, and decisions 23 under AS 43.05.405 - 43.05.499. 24  * Sec. 8. AS 43.05.225 is amended to read: 25 Sec. 43.05.225. Interest. Unless otherwise provided, 26 (1) a delinquent tax [UNDER THIS TITLE,] 27 (A) under this title, before January 1, 2014, bears interest in 28 each calendar quarter at the rate of five percentage points above the annual rate 29 charged member banks for advances by the 12th Federal Reserve District as of 30 the first day of that calendar quarter, or at the annual rate of 11 percent, 31 whichever is greater, compounded quarterly as of the last day of that quarter; 01 [OR] 02 (B) under this title, on and after January 1, 2014, except as  03 provided in (C) of this paragraph, bears interest in each calendar quarter at 04 the rate of three percentage points above the annual rate charged member 05 banks for advances by the 12th Federal Reserve District as of the first day of 06 that calendar quarter;  07 (C) under AS 43.55, on and after January 1, 2017,  08 (i) for the first three years after a tax becomes  09 delinquent, bears interest in each calendar quarter at the rate of  10 seven percentage points above the annual rate charged member  11 banks for advances by the 12th Federal Reserve District as of the  12 first day of that calendar quarter, compounded quarterly as of the  13 last day of that quarter; and  14 (ii) after the first three years after a tax becomes  15 delinquent, does not bear interest; 16 (2) the interest rate is 12 percent a year for 17 (A) delinquent fees payable under AS 05.15.095(c); and 18 (B) unclaimed property that is not timely paid or delivered, as 19 allowed by AS 34.45.470(a). 20 * Sec. 9. AS 43.05.230 is amended by adding a new subsection to read: 21 (l) For tax credit certificates purchased by the department in the preceding 22 calendar year under AS 43.55.028, the department shall make the aggregate amount of 23 tax credits purchased under each statutory section or subsection, as applicable, 24 classified to prevent the identification of a particular taxpayer public by April 30 of 25 each year. 26  * Sec. 10. AS 43.20.046(e) is amended to read: 27 (e) Subject to the requirements in AS 43.55.028(j), the [THE] department 28 may use available money in the oil and gas tax credit fund established in AS 43.55.028 29 to make the refund applied for under (d) of this section in whole or in part if the 30 department finds that, [(1) THE CLAIMANT DOES NOT HAVE AN 31 OUTSTANDING LIABILITY TO THE STATE FOR UNPAID DELINQUENT 01 TAXES UNDER THIS TITLE; AND (2)] after application of all available tax credits, 02 the claimant's total tax liability under this chapter for the calendar year in which the 03 claim is made is zero. [IN THIS SUBSECTION, "UNPAID DELINQUENT TAX" 04 MEANS AN AMOUNT OF TAX FOR WHICH THE DEPARTMENT HAS ISSUED 05 AN ASSESSMENT THAT HAS NOT BEEN PAID AND, IF CONTESTED, HAS 06 NOT BEEN FINALLY RESOLVED IN THE TAXPAYER'S FAVOR.] 07  * Sec. 11. AS 43.20.047(e) is amended to read: 08 (e) Subject to the requirements in AS 43.55.028(j), the [THE] department 09 may use money available in the oil and gas tax credit fund established in AS 43.55.028 10 to make a refund or payment under (d) of this section in whole or in part if the 11 department finds that, [(1) THE CLAIMANT DOES NOT HAVE AN 12 OUTSTANDING LIABILITY TO THE STATE FOR UNPAID DELINQUENT 13 TAXES UNDER THIS TITLE; AND (2)] after application of all available tax credits, 14 the claimant's total tax liability under this chapter for the calendar year in which the 15 claim is made is zero. [IN THIS SUBSECTION, "UNPAID DELINQUENT TAX" 16 MEANS AN AMOUNT OF TAX FOR WHICH THE DEPARTMENT HAS ISSUED 17 AN ASSESSMENT THAT HAS NOT BEEN PAID AND, IF CONTESTED, HAS 18 NOT BEEN FINALLY RESOLVED IN THE TAXPAYER'S FAVOR.] 19  * Sec. 12. AS 43.20.053(a) is amended to read: 20 (a) A taxpayer that owns an in-state oil refinery whose primary function is the 21 manufacturing and sale of refined petroleum products to third parties in arm's length 22 transactions may apply a credit against the tax due under this chapter for a qualified 23 infrastructure expenditure incurred in the state. For [FOR] a tax year beginning after 24 December 31, 2014, and before January 1, 2017, the [JANUARY 1, 2020. THE] total 25 amount of credit a taxpayer may receive under this section may not exceed the lesser 26 of 40 percent of qualified infrastructure expenditures incurred in the state during the 27 tax year or $10,000,000 for each in-state refinery for which qualified expenditures are 28 incurred. For a tax year beginning after December 31, 2016, and before  29 January 1, 2018, the total amount of credit a taxpayer may receive under this  30 section may not exceed the lesser of 20 percent of qualified infrastructure  31 expenditures incurred in the state during the tax year or $5,000,000 for each in- 01 state refinery for which qualified expenditures are incurred.  02  * Sec. 13. AS 43.20.053(e) is amended to read: 03 (e) Subject to the requirements in AS 43.55.028(j), the [THE] department 04 may use money available in the oil and gas tax credit fund established in AS 43.55.028 05 to make a refund or payment under (d) of this section in whole or in part if the 06 department finds that, 07 [(1) THE CLAIMANT DOES NOT HAVE AN OUTSTANDING 08 LIABILITY TO THE STATE FOR UNPAID DELINQUENT TAXES UNDER THIS 09 TITLE; AND 10 (2)] after application of all available tax credits, the claimant's total tax 11 liability under this chapter for the calendar year in which the claim is made is zero. 12  * Sec. 14. AS 43.55.011(j) is amended to read: 13 (j) For a calendar year [BEFORE 2022], the tax levied by (e) of this section 14 for gas produced from a lease or property in the Cook Inlet sedimentary basin may not 15 exceed 16 (1) for a lease or property that first commenced commercial production 17 of gas before April 1, 2006, the product obtained by multiplying (A) the amount of 18 taxable gas produced during the calendar year from the lease or property, times (B) the 19 average rate of tax that was imposed under this chapter for taxable gas produced from 20 the lease or property for the 12-month period ending on March 31, 2006, times (C) the 21 quotient obtained by dividing the total gross value at the point of production of the 22 taxable gas produced from the lease or property during the 12-month period ending on 23 March 31, 2006, by the total amount of that gas; 24 (2) for a lease or property that first commences commercial production 25 of gas after March 31, 2006, the product obtained by multiplying (A) the amount of 26 taxable gas produced during the calendar year from the lease or property, times (B) the 27 average rate of tax that was imposed under this chapter for taxable gas produced from 28 all leases or properties in the Cook Inlet sedimentary basin for the 12-month period 29 ending on March 31, 2006, times (C) the average prevailing value for gas delivered in 30 the Cook Inlet area for the 12-month period ending March 31, 2006, as determined by 31 the department under AS 43.55.020(f). 01  * Sec. 15. AS 43.55.011(k) is amended to read: 02 (k) For a calendar year [BEFORE 2022], the tax levied by (e) of this section 03 may not exceed one dollar per barrel of oil for oil produced from a lease or property 04 in the Cook Inlet sedimentary basin [MAY NOT EXCEED 05 (1) FOR A LEASE OR PROPERTY THAT FIRST COMMENCED 06 COMMERCIAL PRODUCTION OF OIL BEFORE APRIL 1, 2006, THE PRODUCT 07 OBTAINED BY MULTIPLYING (A) THE AMOUNT OF TAXABLE OIL 08 PRODUCED DURING THE CALENDAR YEAR FROM THE LEASE OR 09 PROPERTY, TIMES (B) THE AVERAGE RATE OF TAX THAT WAS IMPOSED 10 UNDER THIS CHAPTER FOR TAXABLE OIL PRODUCED FROM THE LEASE 11 OR PROPERTY FOR THE 12-MONTH PERIOD ENDING ON MARCH 31, 2006, 12 TIMES (C) THE QUOTIENT OBTAINED BY DIVIDING THE TOTAL GROSS 13 VALUE AT THE POINT OF PRODUCTION OF THE TAXABLE OIL PRODUCED 14 FROM THE LEASE OR PROPERTY DURING THE 12-MONTH PERIOD 15 ENDING ON MARCH 31, 2006, BY THE TOTAL AMOUNT OF THAT OIL; 16 (2) FOR A LEASE OR PROPERTY THAT FIRST COMMENCES 17 COMMERCIAL PRODUCTION OF OIL AFTER MARCH 31, 2006, THE 18 PRODUCT OBTAINED BY MULTIPLYING (A) THE AMOUNT OF TAXABLE 19 OIL PRODUCED DURING THE CALENDAR YEAR FROM THE LEASE OR 20 PROPERTY, TIMES (B) THE AVERAGE RATE OF TAX THAT WAS IMPOSED 21 UNDER THIS CHAPTER FOR TAXABLE OIL PRODUCED FROM ALL LEASES 22 OR PROPERTIES IN THE COOK INLET SEDIMENTARY BASIN FOR THE 12- 23 MONTH PERIOD ENDING ON MARCH 31, 2006, TIMES (C) THE AVERAGE 24 PREVAILING VALUE FOR OIL PRODUCED AND DELIVERED IN THE COOK 25 INLET AREA FOR THE 12-MONTH PERIOD ENDING ON MARCH 31, 2006, AS 26 DETERMINED BY THE DEPARTMENT UNDER AS 43.55.020(f)]. 27  * Sec. 16. AS 43.55.011(o) is amended to read: 28 (o) Notwithstanding other provisions of this section, for a calendar year 29 [BEFORE 2022], the tax levied under (e) of this section for each 1,000 cubic feet of 30 gas for gas produced from a lease or property outside the Cook Inlet sedimentary basin 31 and used in the state, other than gas subject to (p) of this section, may not exceed the 01 amount of tax for each 1,000 cubic feet of gas that is determined under (j)(2) of this 02 section. 03  * Sec. 17. AS 43.55.020(a) is amended to read: 04 (a) For a calendar year, a producer subject to tax under AS 43.55.011 shall pay 05 the tax as follows: 06 (1) for oil and gas produced before January 1, 2014, an installment 07 payment of the estimated tax levied by AS 43.55.011(e), net of any tax credits applied 08 as allowed by law, is due for each month of the calendar year on the last day of the 09 following month; except as otherwise provided under (2) of this subsection, the 10 amount of the installment payment is the sum of the following amounts, less 1/12 of 11 the tax credits that are allowed by law to be applied against the tax levied by 12 AS 43.55.011(e) for the calendar year, but the amount of the installment payment may 13 not be less than zero: 14 (A) for oil and gas not subject to AS 43.55.011(o) or (p) 15 produced from leases or properties in the state outside the cook inlet 16 sedimentary basin, other than leases or properties subject to AS 43.55.011(f), 17 the greater of 18 (i) zero; or 19 (ii) the sum of 25 percent and the tax rate calculated for 20 the month under AS 43.55.011(g) multiplied by the remainder obtained 21 by subtracting 1/12 of the producer's adjusted lease expenditures for the 22 calendar year of production under AS 43.55.165 and 43.55.170 that are 23 deductible for the oil and gas under AS 43.55.160 from the gross value 24 at the point of production of the oil and gas produced from the leases or 25 properties during the month for which the installment payment is 26 calculated; 27 (B) for oil and gas produced from leases or properties subject 28 to AS 43.55.011(f), the greatest of 29 (i) zero; 30 (ii) zero percent, one percent, two percent, three 31 percent, or four percent, as applicable, of the gross value at the point of 01 production of the oil and gas produced from the leases or properties 02 during the month for which the installment payment is calculated; or 03 (iii) the sum of 25 percent and the tax rate calculated for 04 the month under AS 43.55.011(g) multiplied by the remainder obtained 05 by subtracting 1/12 of the producer's adjusted lease expenditures for the 06 calendar year of production under AS 43.55.165 and 43.55.170 that are 07 deductible for the oil and gas under AS 43.55.160 from the gross value 08 at the point of production of the oil and gas produced from those leases 09 or properties during the month for which the installment payment is 10 calculated; 11 (C) for oil or gas subject to AS 43.55.011(j), (k), or (o), for 12 each lease or property, the greater of 13 (i) zero; or 14 (ii) the sum of 25 percent and the tax rate calculated for 15 the month under AS 43.55.011(g) multiplied by the remainder obtained 16 by subtracting 1/12 of the producer's adjusted lease expenditures for the 17 calendar year of production under AS 43.55.165 and 43.55.170 that are 18 deductible under AS 43.55.160 for the oil or gas, respectively, 19 produced from the lease or property from the gross value at the point of 20 production of the oil or gas, respectively, produced from the lease or 21 property during the month for which the installment payment is 22 calculated; 23 (D) for oil and gas subject to AS 43.55.011(p), the lesser of 24 (i) the sum of 25 percent and the tax rate calculated for 25 the month under AS 43.55.011(g) multiplied by the remainder obtained 26 by subtracting 1/12 of the producer's adjusted lease expenditures for the 27 calendar year of production under AS 43.55.165 and 43.55.170 that are 28 deductible for the oil and gas under AS 43.55.160 from the gross value 29 at the point of production of the oil and gas produced from the leases or 30 properties during the month for which the installment payment is 31 calculated, but not less than zero; or 01 (ii) four percent of the gross value at the point of 02 production of the oil and gas produced from the leases or properties 03 during the month, but not less than zero; 04 (2) an amount calculated under (1)(C) of this subsection for oil or gas 05 subject to AS 43.55.011(j), (k), or (o) may not exceed the product obtained by 06 carrying out the calculation set out in AS 43.55.011(j)(1) or (2) or 43.55.011(o), as 07 applicable, for gas or set out in AS 43.55.011(k)(1) or (2), as applicable, for oil, but 08 substituting in AS 43.55.011(j)(1)(A) or (2)(A) or 43.55.011(o), as applicable, the 09 amount of taxable gas produced during the month for the amount of taxable gas 10 produced during the calendar year and substituting in AS 43.55.011(k)(1)(A) or 11 (2)(A), as applicable, the amount of taxable oil produced during the month for the 12 amount of taxable oil produced during the calendar year; 13 (3) an installment payment of the estimated tax levied by 14 AS 43.55.011(i) for each lease or property is due for each month of the calendar year 15 on the last day of the following month; the amount of the installment payment is the 16 sum of 17 (A) the applicable tax rate for oil provided under 18 AS 43.55.011(i), multiplied by the gross value at the point of production of the 19 oil taxable under AS 43.55.011(i) and produced from the lease or property 20 during the month; and 21 (B) the applicable tax rate for gas provided under 22 AS 43.55.011(i), multiplied by the gross value at the point of production of the 23 gas taxable under AS 43.55.011(i) and produced from the lease or property 24 during the month; 25 (4) any amount of tax levied by AS 43.55.011, net of any credits 26 applied as allowed by law, that exceeds the total of the amounts due as installment 27 payments of estimated tax is due on March 31 of the year following the calendar year 28 of production; 29 (5) for oil and gas produced on and after January 1, 2014, and before 30 January 1, 2022, an installment payment of the estimated tax levied by 31 AS 43.55.011(e), net of any tax credits applied as allowed by law, is due for each 01 month of the calendar year on the last day of the following month; except as otherwise 02 provided under (6) of this subsection, the amount of the installment payment is the 03 sum of the following amounts, less 1/12 of the tax credits that are allowed by law to be 04 applied against the tax levied by AS 43.55.011(e) for the calendar year, but the amount 05 of the installment payment may not be less than zero: 06 (A) for oil and gas not subject to AS 43.55.011(o) or (p) 07 produced from leases or properties in the state outside the Cook Inlet 08 sedimentary basin, other than leases or properties subject to AS 43.55.011(f), 09 the greater of 10 (i) zero; or 11 (ii) 35 percent multiplied by the remainder obtained by 12 subtracting 1/12 of the producer's adjusted lease expenditures for the 13 calendar year of production under AS 43.55.165 and 43.55.170 that are 14 deductible for the oil and gas under AS 43.55.160 from the gross value 15 at the point of production of the oil and gas produced from the leases or 16 properties during the month for which the installment payment is 17 calculated; 18 (B) for oil and gas produced from leases or properties subject 19 to AS 43.55.011(f), the greatest of 20 (i) zero; 21 (ii) zero percent, one percent, two percent, three 22 percent, or four percent, as applicable, of the gross value at the point of 23 production of the oil and gas produced from the leases or properties 24 during the month for which the installment payment is calculated; or 25 (iii) 35 percent multiplied by the remainder obtained by 26 subtracting 1/12 of the producer's adjusted lease expenditures for the 27 calendar year of production under AS 43.55.165 and 43.55.170 that are 28 deductible for the oil and gas under AS 43.55.160 from the gross value 29 at the point of production of the oil and gas produced from those leases 30 or properties during the month for which the installment payment is 31 calculated, except that, for the purposes of this calculation, a reduction 01 from the gross value at the point of production may apply for oil and 02 gas subject to AS 43.55.160(f) or (g); 03 (C) for oil or gas subject to AS 43.55.011(j), (k), or (o), for 04 each lease or property, the greater of 05 (i) zero; or 06 (ii) 35 percent multiplied by the remainder obtained by 07 subtracting 1/12 of the producer's adjusted lease expenditures for the 08 calendar year of production under AS 43.55.165 and 43.55.170 that are 09 deductible under AS 43.55.160 for the oil or gas, respectively, 10 produced from the lease or property from the gross value at the point of 11 production of the oil or gas, respectively, produced from the lease or 12 property during the month for which the installment payment is 13 calculated; 14 (D) for oil and gas subject to AS 43.55.011(p), the lesser of 15 (i) 35 percent multiplied by the remainder obtained by 16 subtracting 1/12 of the producer's adjusted lease expenditures for the 17 calendar year of production under AS 43.55.165 and 43.55.170 that are 18 deductible for the oil and gas under AS 43.55.160 from the gross value 19 at the point of production of the oil and gas produced from the leases or 20 properties during the month for which the installment payment is 21 calculated, but not less than zero; or 22 (ii) four percent of the gross value at the point of 23 production of the oil and gas produced from the leases or properties 24 during the month, but not less than zero; 25 (6) an amount calculated under (5)(C) of this subsection for oil or gas 26 subject to AS 43.55.011(j), (k), or (o) may not exceed the product obtained by 27 carrying out the calculation set out in AS 43.55.011(j)(1) or (2) or 43.55.011(o), as 28 applicable, for gas or set out in AS 43.55.011(k)(1) or (2), as applicable, for oil, but 29 substituting in AS 43.55.011(j)(1)(A) or (2)(A) or 43.55.011(o), as applicable, the 30 amount of taxable gas produced during the month for the amount of taxable gas 31 produced during the calendar year and substituting in AS 43.55.011(k)(1)(A) or 01 (2)(A), as applicable, the amount of taxable oil produced during the month for the 02 amount of taxable oil produced during the calendar year; 03 (7) for oil and gas produced on or after January 1, 2022, an installment 04 payment of the estimated tax levied by AS 43.55.011(e), net of any tax credits applied 05 as allowed by law, is due for each month of the calendar year on the last day of the 06 following month; except as otherwise provided under (10) of this subsection, the 07 amount of the installment payment is the sum of the following amounts, less 1/12 of 08 the tax credits that are allowed by law to be applied against the tax levied by 09 AS 43.55.011(e) for the calendar year, but the amount of the installment payment may 10 not be less than zero: 11 (A) for oil produced from leases or properties that include land 12 north of 68 degrees North latitude, the greatest of 13 (i) zero; 14 (ii) zero percent, one percent, two percent, three 15 percent, or four percent, as applicable, of the gross value at the point of 16 production of the oil produced from the leases or properties during the 17 month for which the installment payment is calculated; or 18 (iii) 35 percent multiplied by the remainder obtained by 19 subtracting 1/12 of the producer's adjusted lease expenditures for the 20 calendar year of production under AS 43.55.165 and 43.55.170 that are 21 deductible for the oil under AS 43.55.160(h)(1) from the gross value at 22 the point of production of the oil produced from those leases or 23 properties during the month for which the installment payment is 24 calculated, except that, for the purposes of this calculation, a reduction 25 from the gross value at the point of production may apply for oil 26 subject to AS 43.55.160(f) or 43.55.160(f) and (g); 27 (B) for oil produced before or during the last calendar year 28 under AS 43.55.024(b) for which the producer could take a tax credit under 29 AS 43.55.024(a), from leases or properties in the state outside the Cook Inlet 30 sedimentary basin, no part of which is north of 68 degrees North latitude, other 31 than leases or properties subject to AS 43.55.011(o) or (p) [AS 43.55.011(p)], 01 the greater of 02 (i) zero; or 03 (ii) 35 percent multiplied by the remainder obtained by 04 subtracting 1/12 of the producer's adjusted lease expenditures for the 05 calendar year of production under AS 43.55.165 and 43.55.170 that are 06 deductible for the oil under AS 43.55.160(h)(2) from the gross value at 07 the point of production of the oil produced from the leases or properties 08 during the month for which the installment payment is calculated; 09 (C) for oil and gas produced from leases or properties subject 10 to AS 43.55.011(p), except as otherwise provided under (8) of this subsection, 11 the sum of 12 (i) 35 percent multiplied by the remainder obtained by 13 subtracting 1/12 of the producer's adjusted lease expenditures for the 14 calendar year of production under AS 43.55.165 and 43.55.170 that are 15 deductible for the oil under AS 43.55.160(h)(3) from the gross value at 16 the point of production of the oil produced from the leases or properties 17 during the month for which the installment payment is calculated, but 18 not less than zero; and 19 (ii) 13 percent of the gross value at the point of 20 production of the gas produced from the leases or properties during the 21 month, but not less than zero; 22 (D) for oil produced from leases or properties in the state, no 23 part of which is north of 68 degrees North latitude, other than leases or 24 properties subject to (B), [OR] (C), or (F) of this paragraph, the greater of 25 (i) zero; or 26 (ii) 35 percent multiplied by the remainder obtained by 27 subtracting 1/12 of the producer's adjusted lease expenditures for the 28 calendar year of production under AS 43.55.165 and 43.55.170 that are 29 deductible for the oil under AS 43.55.160(h)(4) from the gross value at 30 the point of production of the oil produced from the leases or properties 31 during the month for which the installment payment is calculated; 01 (E) for gas produced from each lease or property in the state, 02 other than a lease or property subject to AS 43.55.011(o) or (p) 03 [AS 43.55.011(p)], 13 percent of the gross value at the point of production of 04 the gas produced from the lease or property during the month for which the 05 installment payment is calculated, but not less than zero; 06 (F) for oil subject to AS 43.55.011(k), for each lease or  07 property, the greater of  08 (i) zero; or  09 (ii) 35 percent multiplied by the remainder obtained  10 by subtracting 1/12 of the producer's adjusted lease expenditures  11 for the calendar year of production under AS 43.55.165 and  12 43.55.170 that are deductible under AS 43.55.160 for the oil,  13 produced from the lease or property from the gross value at the  14 point of production of the oil, produced from the lease or property  15 during the month for which the installment payment is calculated;  16 (G) for gas subject to AS 43.55.011(j) or (o), for each lease  17 or property, the greater of  18 (i) zero; or  19 (ii) 13 percent of the gross value at the point of  20 production of the gas produced from the lease or property during  21 the month for which the installment payment is calculated; 22 (8) an amount calculated under (7)(C) of this subsection may not 23 exceed four percent of the gross value at the point of production of the oil and gas 24 produced from leases or properties subject to AS 43.55.011(p) during the month for 25 which the installment payment is calculated; 26 (9) for purposes of the calculation under (1)(B)(ii), (5)(B)(ii), and 27 (7)(A)(ii) of this subsection, the applicable percentage of the gross value at the point 28 of production is determined under AS 43.55.011(f)(1) or (2) but substituting the 29 phrase "month for which the installment payment is calculated" in AS 43.55.011(f)(1) 30 and (2) for the phrase "calendar year for which the tax is due";  31 (10) an amount calculated under (7)(F) or (G) of this subsection  01 for oil or gas subject to AS 43.55.011(j), (k), or (o) may not exceed the product  02 obtained by carrying out the calculation set out in AS 43.55.011(j)(1) or (2) or  03 43.55.011(o), as applicable, for gas, or set out in AS 43.55.011(k)(1) or (2), as  04 applicable, for oil, but substituting in AS 43.55.011(j)(1)(A) or (2)(A) or  05 43.55.011(o), as applicable, the amount of taxable gas produced during the month  06 for the amount of taxable gas produced during the calendar year and substituting  07 in AS 43.55.011(k)(1)(A) or (2)(A), as applicable, the amount of taxable oil  08 produced during the month for the amount of taxable oil produced during the  09 calendar year. ["] 10  * Sec. 18. AS 43.55.023(a) is amended to read: 11 (a) A producer or explorer may take a tax credit for a qualified capital 12 expenditure as follows: 13 (1) notwithstanding that a qualified capital expenditure may be a 14 deductible lease expenditure for purposes of calculating the production tax value of oil 15 and gas under AS 43.55.160(a), unless a credit for that expenditure is taken under 16 [AS 38.05.180(i), AS 41.09.010,] AS 43.20.043 [,] or AS 43.55.025, a producer or 17 explorer that incurs a qualified capital expenditure in the Cook Inlet sedimentary  18 basin may also elect to apply a tax credit against a tax levied by AS 43.55.011(e) in 19 the amount of 10 [20] percent of that expenditure; 20 (2) a producer or explorer may take a credit for a qualified capital 21 expenditure incurred in connection with geological or geophysical exploration or in 22 connection with an exploration well only if the producer or explorer 23 (A) agrees, in writing, to the applicable provisions of 24 AS 43.55.025(f)(2); and 25 (B) submits to the Department of Natural Resources all data 26 that would be required to be submitted under AS 43.55.025(f)(2) [; 27 (3) A CREDIT FOR A QUALIFIED CAPITAL EXPENDITURE 28 INCURRED TO EXPLORE FOR, DEVELOP, OR PRODUCE OIL OR GAS 29 DEPOSITS LOCATED NORTH OF 68 DEGREES NORTH LATITUDE MAY BE 30 TAKEN ONLY IF THE EXPENDITURE IS INCURRED BEFORE JANUARY 1, 31 2014]. 01  * Sec. 19. AS 43.55.023(b) is amended to read: 02 (b) Before January 1, 2014, a producer or explorer may elect to take a tax 03 credit in the amount of 25 percent of a carried-forward annual loss. For lease 04 expenditures incurred on and after January 1, 2014, and before January 1, 2016, to 05 explore for, develop, or produce oil or gas deposits located north of 68 degrees North 06 latitude, a producer or explorer may elect to take a tax credit in the amount of 45 07 percent of a carried-forward annual loss. For lease expenditures incurred on and after 08 January 1, 2016, to explore for, develop, or produce oil or gas deposits located north 09 of 68 degrees North latitude, a producer or explorer may elect to take a tax credit in 10 the amount of 35 percent of a carried-forward annual loss. For lease expenditures 11 incurred on or after January 1, 2014, and before January 1, 2017, to explore for, 12 develop, or produce oil or gas deposits located south of 68 degrees North latitude, a 13 producer or explorer may elect to take a tax credit in the amount of 25 percent of a 14 carried-forward annual loss. For lease expenditures incurred on or after January 1,  15 2017, to explore for, develop, or produce oil or gas deposits located in the Cook  16 Inlet sedimentary basin, a producer or explorer may elect to take a tax credit in  17 the amount of 15 percent of a carried-forward annual loss. A credit under this 18 subsection may be applied against a tax levied by AS 43.55.011(e). For purposes of 19 this subsection, 20 (1) a carried-forward annual loss is the amount of a producer's or 21 explorer's adjusted lease expenditures under AS 43.55.165 and 43.55.170 for a 22 previous calendar year that was not deductible in calculating production tax values for 23 that calendar year under AS 43.55.160;  24 (2) for lease expenditures incurred on or after January 1, 2017,  25 any reduction under AS 43.55.160(f) or (g) is added back to the calculation of  26 production tax values for that calendar year under AS 43.55.160 for the  27 determination of a carried-forward annual loss.  28  * Sec. 20. AS 43.55.023(b), as amended by sec. 19 of this Act, is amended to read: 29 (b) Before January 1, 2014, a producer or explorer may elect to take a tax 30 credit in the amount of 25 percent of a carried-forward annual loss. For lease 31 expenditures incurred on and after January 1, 2014, and before January 1, 2016, to 01 explore for, develop, or produce oil or gas deposits located north of 68 degrees North 02 latitude, a producer or explorer may elect to take a tax credit in the amount of 45 03 percent of a carried-forward annual loss. For lease expenditures incurred on and after 04 January 1, 2016, to explore for, develop, or produce oil or gas deposits located north 05 of 68 degrees North latitude, a producer or explorer may elect to take a tax credit in 06 the amount of 35 percent of a carried-forward annual loss. [FOR LEASE 07 EXPENDITURES INCURRED ON OR AFTER JANUARY 1, 2014, AND BEFORE 08 JANUARY 1, 2017, TO EXPLORE FOR, DEVELOP, OR PRODUCE OIL OR GAS 09 DEPOSITS LOCATED SOUTH OF 68 DEGREES NORTH LATITUDE, A 10 PRODUCER OR EXPLORER MAY ELECT TO TAKE A TAX CREDIT IN THE 11 AMOUNT OF 25 PERCENT OF A CARRIED-FORWARD ANNUAL LOSS. FOR 12 LEASE EXPENDITURES INCURRED ON OR AFTER JANUARY 1, 2017, TO 13 EXPLORE FOR, DEVELOP, OR PRODUCE OIL OR GAS DEPOSITS LOCATED 14 IN THE COOK INLET SEDIMENTARY BASIN, A PRODUCER OR EXPLORER 15 MAY ELECT TO TAKE A TAX CREDIT IN THE AMOUNT OF 15 PERCENT OF 16 A CARRIED-FORWARD ANNUAL LOSS.] A credit under this subsection may be 17 applied against a tax levied by AS 43.55.011(e). For purposes of this subsection, 18 (1) a carried-forward annual loss is the amount of a producer's or 19 explorer's adjusted lease expenditures under AS 43.55.165 and 43.55.170 for a 20 previous calendar year that was not deductible in calculating production tax values for 21 that calendar year under AS 43.55.160; 22 (2) for lease expenditures incurred on or after January 1, 2017, any 23 reduction under AS 43.55.160(f) or (g) is added back to the calculation of production 24 tax values for that calendar year under AS 43.55.160 for the determination of a 25 carried-forward annual loss. 26  * Sec. 21. AS 43.55.023(d) is amended to read: 27 (d) A person that is entitled to take a tax credit under this section that wishes 28 to transfer the unused credit to another person or obtain a cash payment under 29 AS 43.55.028 may apply to the department for a transferable tax credit certificate. An 30 application under this subsection must be in a form prescribed by the department and 31 must include supporting information and documentation that the department 01 reasonably requires. The department shall grant or deny an application, or grant an 02 application as to a lesser amount than that claimed and deny it as to the excess, not 03 later than 120 days after the latest of (1) March 31 of the year following the calendar 04 year in which the [QUALIFIED CAPITAL EXPENDITURE OR] carried-forward 05 annual loss for which the credit is claimed was incurred; (2) the date the statement 06 required under AS 43.55.030(a) or (e) was filed for the calendar year in which the 07 [QUALIFIED CAPITAL EXPENDITURE OR] carried-forward annual loss for which 08 the credit is claimed was incurred; or (3) the date the application was received by the 09 department. If, based on the information then available to it, the department is 10 reasonably satisfied that the applicant is entitled to a credit, the department shall issue 11 the applicant a transferable tax credit certificate for the amount of the credit. A 12 certificate issued under this subsection does not expire. 13  * Sec. 22. AS 43.55.023(e) is amended to read: 14 (e) A person to which a transferable tax credit certificate is issued under (d) of 15 this section may transfer the certificate to another person, and a transferee may further 16 transfer the certificate. Subject to the limitations set out in former (a) of this section  17 and (b) - (d) [(a) - (d)] of this section, and notwithstanding any action the department 18 may take with respect to the applicant under (g) of this section, the owner of a 19 certificate may apply the credit or a portion of the credit shown on the certificate only 20 against a tax levied by AS 43.55.011(e). However, a credit shown on a transferable tax 21 credit certificate may not be applied to reduce a transferee's total tax liability under 22 AS 43.55.011(e) for oil and gas produced during a calendar year to less than 80 23 percent of the tax that would otherwise be due without applying that credit. Any 24 portion of a credit not used under this subsection may be applied in a later period. 25  * Sec. 23. AS 43.55.023(l) is amended to read: 26 (l) A producer or explorer may apply for a tax credit for a well lease 27 expenditure incurred in the state south of 68 degrees North latitude after June 30, 28 2010, as follows: 29 (1) notwithstanding that a well lease expenditure incurred in the Cook  30 Inlet sedimentary basin [STATE SOUTH OF 68 DEGREES NORTH LATITUDE] 31 may be a deductible lease expenditure for purposes of calculating the production tax 01 value of oil and gas under AS 43.55.160(a), unless a credit for that expenditure is 02 taken under (a) of this section, [AS 38.05.180(i), AS 41.09.010,] AS 43.20.043, or 03 AS 43.55.025, a producer or explorer that incurs a well lease expenditure in the Cook  04 Inlet sedimentary basin [STATE SOUTH OF 68 DEGREES NORTH LATITUDE] 05 may elect to apply a tax credit against a tax levied by AS 43.55.011(e) in the amount 06 of 20 [40] percent of that expenditure [; A TAX CREDIT UNDER THIS 07 PARAGRAPH MAY BE APPLIED FOR A SINGLE CALENDAR YEAR]; 08 (2) a producer or explorer may take a credit for a well lease 09 expenditure incurred in the state south of 68 degrees North latitude in connection with 10 geological or geophysical exploration or in connection with an exploration well only if 11 the producer or explorer 12 (A) agrees, in writing, to the applicable provisions of 13 AS 43.55.025(f)(2); and 14 (B) submits to the Department of Natural Resources all data 15 that would be required to be submitted under AS 43.55.025(f)(2). 16  * Sec. 24. AS 43.55.024(i) is amended to read: 17 (i) A producer may apply against the producer's tax liability for the calendar 18 year under AS 43.55.011(e) a tax credit of $5 for each barrel of oil taxable under 19 AS 43.55.011(e) that receives a reduction in the gross value at the point of  20 production under [MEETS ONE OR MORE OF THE CRITERIA IN] 21 AS 43.55.160(f) or (g) and that is produced during a calendar year after December 31, 22 2013. A tax credit authorized by this subsection may not reduce a producer's tax 23 liability for a calendar year under AS 43.55.011(e) below zero. 24  * Sec. 25. AS 43.55.024(j) is amended to read: 25 (j) A producer may apply against the producer's tax liability for the calendar 26 year under AS 43.55.011(e) a tax credit in the amount specified in this subsection for 27 each barrel of oil taxable under AS 43.55.011(e) that does not receive a reduction in  28 the gross value at the point of production under [MEET ANY OF THE CRITERIA 29 IN] AS 43.55.160(f) or (g) and that is produced during a calendar year after 30 December 31, 2013, from leases or properties north of 68 degrees North latitude. A tax 31 credit under this subsection may not reduce a producer's tax liability for a calendar 01 year under AS 43.55.011(e) below the amount calculated under AS 43.55.011(f). The 02 amount of the tax credit for a barrel of taxable oil subject to this subsection produced 03 during a month of the calendar year is 04 (1) $8 for each barrel of taxable oil if the average gross value at the 05 point of production for the month is less than $80 a barrel; 06 (2) $7 for each barrel of taxable oil if the average gross value at the 07 point of production for the month is greater than or equal to $80 a barrel, but less than 08 $90 a barrel; 09 (3) $6 for each barrel of taxable oil if the average gross value at the 10 point of production for the month is greater than or equal to $90 a barrel, but less than 11 $100 a barrel; 12 (4) $5 for each barrel of taxable oil if the average gross value at the 13 point of production for the month is greater than or equal to $100 a barrel, but less 14 than $110 a barrel; 15 (5) $4 for each barrel of taxable oil if the average gross value at the 16 point of production for the month is greater than or equal to $110 a barrel, but less 17 than $120 a barrel; 18 (6) $3 for each barrel of taxable oil if the average gross value at the 19 point of production for the month is greater than or equal to $120 a barrel, but less 20 than $130 a barrel; 21 (7) $2 for each barrel of taxable oil if the average gross value at the 22 point of production for the month is greater than or equal to $130 a barrel, but less 23 than $140 a barrel; 24 (8) $1 for each barrel of taxable oil if the average gross value at the 25 point of production for the month is greater than or equal to $140 a barrel, but less 26 than $150 a barrel; 27 (9) zero if the average gross value at the point of production for the 28 month is greater than or equal to $150 a barrel. 29  * Sec. 26. AS 43.55.028(a) is amended to read: 30 (a) The oil and gas tax credit fund is established as a separate fund of the state. 31 The purpose of the fund is to purchase transferable tax credit certificates issued under 01 AS 43.55.023 and production tax credit certificates issued under AS 43.55.025 and to 02 pay refunds and payments claimed under AS 43.20.046 or [,] 43.20.047 [, OR 03 43.20.053]. 04  * Sec. 27. AS 43.55.028(e) is amended to read: 05 (e) The department, on the written application of a person to whom a 06 transferable tax credit certificate has been issued under AS 43.55.023(d) or former 07 AS 43.55.023(m) or to whom a production tax credit certificate has been issued under 08 AS 43.55.025(f), may use available money in the oil and gas tax credit fund to 09 purchase, in whole or in part, the certificate. The department may not purchase a  10 total of more than $70,000,000 in tax credit certificates from a person in a  11 calendar year. Before purchasing a certificate or part of a certificate, [IF] the 12 department shall find [FINDS] that 13 (1) the calendar year of the purchase is not earlier than the first 14 calendar year for which the credit shown on the certificate would otherwise be allowed 15 to be applied against a tax; 16 (2) the application is not the result of the division of a single entity  17 into multiple entities that would reasonably be expected to apply as a single entity  18 if the $70,000,000 limitation in this subsection did not exist [APPLICANT DOES 19 NOT HAVE AN OUTSTANDING LIABILITY TO THE STATE FOR UNPAID 20 DELINQUENT TAXES UNDER THIS TITLE]; 21 (3) the applicant's total tax liability under AS 43.55.011(e), after 22 application of all available tax credits, for the calendar year in which the application is 23 made is zero; 24 (4) the applicant's average daily production of oil and gas taxable 25 under AS 43.55.011(e) during the calendar year preceding the calendar year in which 26 the application is made was not more than 50,000 BTU equivalent barrels; and 27 (5) the purchase is consistent with this section and regulations adopted 28 under this section. 29  * Sec. 28. AS 43.55.028(g) is amended to read: 30 (g) The department shall [MAY] adopt regulations to carry out the purposes 31 of this section, including standards and procedures to allocate available money among 01 applications for purchases under this chapter and claims for refunds and payments 02 under AS 43.20.046, 43.20.047, or 43.20.053 when the total amount of the 03 applications for purchase and claims for refund exceed the amount of available money 04 in the fund. The regulations adopted by the department 05 (1) may not, when allocating available money in the fund under this 06 section, distinguish an application for the purchase of a credit certificate issued under 07 former AS 43.55.023(m) or a claim for a refund or payment under AS 43.20.046, 08 43.20.047, or 43.20.053;  09 (2) must grant a preference to an applicant if at least 75 percent of  10 the applicant's workforce in the state in the previous calendar year was  11 composed of resident workers; in this paragraph, "resident worker" has the  12 meaning given in AS 43.40.092(b);  13 (3) must provide for the purchase of the amount equal to the first  14 50 percent of the credit repurchase limit per person under (e) of this section at a  15 rate of 100 percent of the value of the certificate or portion of the certificate  16 requested to be purchased and the amount equal to the next 50 percent of the  17 credit repurchase limit per person under (e) of this section at a rate of 75 percent  18 of the value of the certificate or portion of the certificate requested to be  19 purchased. 20  * Sec. 29. AS 43.55.028(g), as amended by sec. 28 of this Act, is amended to read: 21 (g) The department shall adopt regulations to carry out the purposes of this 22 section, including standards and procedures to allocate available money among 23 applications for purchases under this chapter and claims for refunds and payments 24 under AS 43.20.046 or [,] 43.20.047 [, OR 43.20.053] when the total amount of the 25 applications for purchase and claims for refund exceed the amount of available money 26 in the fund. The regulations adopted by the department 27 (1) may not, when allocating available money in the fund under this 28 section, distinguish an application for the purchase of a credit certificate issued under 29 former AS 43.55.023(m) or a claim for a refund or payment under AS 43.20.046 or [,] 30 43.20.047 [, OR 43.20.053]; 31 (2) must grant a preference to an applicant if at least 75 percent of the 01 applicant's workforce in the state in the previous calendar year was composed of 02 resident workers; in this paragraph, "resident worker" has the meaning given in 03 AS 43.40.092(b); 04 (3) must provide for the purchase of the amount equal to the first 50 05 percent of the credit repurchase limit per person under (e) of this section at a rate of 06 100 percent of the value of the certificate or portion of the certificate requested to be 07 purchased and the amount equal to the next 50 percent of the credit repurchase limit 08 per person under (e) of this section at a rate of 75 percent of the value of the certificate 09 or portion of the certificate requested to be purchased. 10  * Sec. 30. AS 43.55.028 is amended by adding a new subsection to read: 11 (j) If an applicant or claimant has an outstanding liability to the state directly 12 related to the applicant's or claimant's oil or gas exploration, development, or 13 production and the department has not previously reduced the amount paid to that 14 applicant or claimant for a certificate or refund because of that outstanding liability, 15 the department may purchase only that portion of a certificate or pay only that portion 16 of a refund that exceeds the outstanding liability. After notifying the applicant or 17 claimant, the department may apply the amount by which the department reduced its 18 purchase of a certificate or payment for a refund because of an outstanding liability to 19 satisfy the outstanding liability. Satisfaction of an outstanding liability under this 20 subsection does not affect the applicant's ability to contest that liability. The 21 department may enter into contracts or agreements with another department to which 22 the outstanding liability is owed. In this subsection, "outstanding liability" means an 23 amount of tax, interest, penalty, fee, rental, royalty, or other charge for which the state 24 has issued a demand for payment that has not been paid when due and, if contested, 25 has not been finally resolved against the state. 26  * Sec. 31. AS 43.55.029(a) is amended to read: 27 (a) An explorer or producer that has applied for a production tax credit under 28 former AS 43.55.023(a) [, (b),] or (l) or under AS 43.55.023(b) or 43.55.025(a) may 29 make a present assignment of the production tax credit certificate expected to be 30 issued by the department to a third-party assignee. The assignment may be made either 31 at the time the application is filed with the department or not later than 30 days after 01 the date of filing with the department. Once a notice of assignment in compliance with 02 this section is filed with the department, the assignment is irrevocable and cannot be 03 modified by the explorer or producer without the written consent of the assignee 04 named in the assignment. If a production tax credit certificate is issued to the explorer 05 or producer, the notice of assignment remains effective and shall be filed with the 06 department by the explorer or producer together with any application for the 07 department to purchase the certificate under AS 43.55.028(e). 08  * Sec. 32. AS 43.55.030(a) is amended to read: 09 (a) A producer that produces oil or gas from a lease or property in the state 10 during a calendar year, whether or not any tax payment is due under AS 43.55.020(a) 11 for that oil or gas, shall file with the department on March 31 of the following year a 12 statement, under oath, in a form prescribed by the department, giving, with other 13 information required, the following: 14 (1) a description of each lease or property from which oil or gas was 15 produced, by name, legal description, lease number, or accounting codes assigned by 16 the department; 17 (2) the names of the producer and, if different, the person paying the 18 tax, if any; 19 (3) the gross amount of oil and the gross amount of gas produced from 20 each lease or property, separately identifying the gross amount of gas produced from 21 each oil and gas lease to which an effective election under AS 43.55.014(a) applies, 22 the amount of gas delivered to the state under AS 43.55.014(b), and the percentage of 23 the gross amount of oil and gas owned by the producer; 24 (4) the gross value at the point of production of the oil and of the gas 25 produced from each lease or property owned by the producer and the costs of 26 transportation of the oil and gas; 27 (5) the name of the first purchaser and the price received for the oil and 28 for the gas, unless relieved from this requirement in whole or in part by the 29 department; 30 (6) the producer's qualified capital expenditures, [AS DEFINED IN 31 AS 43.55.023,] other lease expenditures under AS 43.55.165, and adjustments or other 01 payments or credits under AS 43.55.170; 02 (7) the production tax values of the oil and gas under AS 43.55.160(a) 03 or of the oil under AS 43.55.160(h), as applicable; 04 (8) any claims for tax credits to be applied; and 05 (9) calculations showing the amounts, if any, that were or are due 06 under AS 43.55.020(a) and interest on any underpayment or overpayment. 07  * Sec. 33. AS 43.55.030(e) is amended to read: 08 (e) An explorer or producer that incurs a lease expenditure under 09 AS 43.55.165 or receives a payment or credit under AS 43.55.170 during a calendar 10 year but does not produce oil or gas from a lease or property in the state during the 11 calendar year shall file with the department, on March 31 of the following year, a 12 statement, under oath, in a form prescribed by the department, giving, with other 13 information required, the following: 14 (1) the explorer's or producer's qualified capital expenditures, [AS 15 DEFINED IN AS 43.55.023,] other lease expenditures under AS 43.55.165, and 16 adjustments or other payments or credits under AS 43.55.170; and 17 (2) if the explorer or producer receives a payment or credit under 18 AS 43.55.170, calculations showing whether the explorer or producer is liable for a 19 tax under AS 43.55.160(d) or 43.55.170(b) and, if so, the amount. 20  * Sec. 34. AS 43.55.160(f) is amended to read: 21 (f) On and after January 1, 2014, in the calculation of an annual production tax 22 value of a producer under (a)(1)(A) or (h)(1) of this section, the gross value at the 23 point of production of oil or gas produced from a lease or property north of 68 degrees 24 North latitude meeting one or more of the following criteria is reduced by 20 percent: 25 (1) the oil or gas is produced from a lease or property that does not contain a lease that 26 was within a unit on January 1, 2003; (2) the oil or gas is produced from a 27 participating area established after December 31, 2011, that is within a unit formed 28 under AS 38.05.180(p) before January 1, 2003, if the participating area does not 29 contain a reservoir that had previously been in a participating area established before 30 December 31, 2011; (3) the oil or gas is produced from acreage that was added to an 31 existing participating area by the Department of Natural Resources on and after 01 January 1, 2014, and the producer demonstrates to the department that the volume of 02 oil or gas produced is from acreage added to an existing participating area. This 03 subsection does not apply to gas produced before 2022 that is used in the state or to 04 gas produced on and after January 1, 2022. For oil and gas first produced from a  05 lease or property after December 31, 2016, a reduction allowed under this  06 subsection applies from the date of commencement of regular production of oil  07 and gas from that lease or property and expires after three years, consecutive or  08 nonconsecutive, in which the average annual price per barrel for Alaska North  09 Slope crude oil for sale on the United States West Coast is more than $70 or after  10 seven years, whichever occurs first. For oil and gas first produced from a lease  11 or property before January 1, 2017, a reduction allowed under this subsection  12 expires on the earlier of January 1, 2023, or January 1 following three years,  13 consecutive or nonconsecutive, in which the average annual price per barrel for  14 Alaska North Slope crude oil for sale on the United States West Coast is more  15 than $70. The Alaska Oil and Gas Conservation Commission shall determine the  16 commencement of regular production of oil and gas for purposes of this section. 17 A reduction under this subsection may not reduce the gross value at the point of 18 production below zero. In this subsection, "participating area" means a reservoir or 19 portion of a reservoir producing or contributing to production as approved by the 20 Department of Natural Resources. 21  * Sec. 35. AS 43.55.160(g) is amended to read: 22 (g) On and after January 1, 2014, in addition to the reduction under (f) of this 23 section, in the calculation of an annual production tax value of a producer under 24 (a)(1)(A) or (h)(1) of this section, the gross value at the point of production of oil or 25 gas produced from a lease or property north of 68 degrees North latitude that does not 26 contain a lease that was within a unit on January 1, 2003, is reduced by 10 percent if 27 the oil or gas is produced from a unit made up solely of leases that have a royalty 28 share of more than 12.5 percent in amount or value of the production removed or sold 29 from the lease as determined under AS 38.05.180(f). This subsection does not apply if 30 the royalty obligation for one or more of the leases in the unit has been reduced to 12.5 31 percent or less under AS 38.05.180(j) for all or part of the calendar year for which the 01 annual production tax value is calculated. This subsection does not apply to gas 02 produced before 2022 that is used in the state or to gas produced on and after 03 January 1, 2022. For oil or gas first produced after December 31, 2016, a  04 reduction allowed under this subsection applies to oil or gas produced from a  05 lease or property for the first seven years after the commencement of regular  06 production of oil or gas from that lease or property. For oil or gas first produced  07 before January 1, 2017, a reduction allowed under this subsection for a lease or  08 property expires January 1, 2023. The Alaska Oil and Gas Conservation  09 Commission shall determine the commencement of regular production for  10 purposes of this subsection. A reduction under this subsection may not reduce the 11 gross value at the point of production below zero.  12  * Sec. 36. AS 43.55.165(a) is amended to read: 13 (a) For [EXCEPT AS PROVIDED IN (j) AND (k) OF THIS SECTION, 14 FOR] purposes of this chapter, a producer's lease expenditures for a calendar year are 15 (1) costs, other than items listed in (e) of this section, that are 16 (A) incurred by the producer during the calendar year after 17 March 31, 2006, to explore for, develop, or produce oil or gas deposits located 18 within the producer's leases or properties in the state or, in the case of land in 19 which the producer does not own an operating right, operating interest, or 20 working interest, to explore for oil or gas deposits within other land in the 21 state; and 22 (B) allowed by the department by regulation, based on the 23 department's determination that the costs satisfy the following three 24 requirements: 25 (i) the costs must be incurred upstream of the point of 26 production of oil and gas; 27 (ii) the costs must be ordinary and necessary costs of 28 exploring for, developing, or producing, as applicable, oil or gas 29 deposits; and 30 (iii) the costs must be direct costs of exploring for, 31 developing, or producing, as applicable, oil or gas deposits; and 01 (2) a reasonable allowance for that calendar year, as determined under 02 regulations adopted by the department, for overhead expenses that are directly related 03 to exploring for, developing, or producing, as applicable, the oil or gas deposits. 04  * Sec. 37. AS 43.55.165(e) is amended to read: 05 (e) For purposes of this section, lease expenditures do not include 06 (1) depreciation, depletion, or amortization; 07 (2) oil or gas royalty payments, production payments, lease profit 08 shares, or other payments or distributions of a share of oil or gas production, profit, or 09 revenue, except that a producer's lease expenditures applicable to oil and gas produced 10 from a lease issued under AS 38.05.180(f)(3)(B), (D), or (E) include the share of net 11 profit paid to the state under that lease; 12 (3) taxes based on or measured by net income; 13 (4) interest or other financing charges or costs of raising equity or debt 14 capital; 15 (5) acquisition costs for a lease or property or exploration license; 16 (6) costs arising from fraud, wilful misconduct, gross negligence, 17 violation of law, or failure to comply with an obligation under a lease, permit, or 18 license issued by the state or federal government; 19 (7) fines or penalties imposed by law; 20 (8) costs of arbitration, litigation, or other dispute resolution activities 21 that involve the state or concern the rights or obligations among owners of interests in, 22 or rights to production from, one or more leases or properties or a unit; 23 (9) costs incurred in organizing a partnership, joint venture, or other 24 business entity or arrangement; 25 (10) amounts paid to indemnify the state; the exclusion provided by 26 this paragraph does not apply to the costs of obtaining insurance or a surety bond from 27 a third-party insurer or surety; 28 (11) surcharges levied under AS 43.55.201 or 43.55.300; 29 (12) an expenditure otherwise deductible under (b) of this section that 30 is a result of an internal transfer, a transaction with an affiliate, or a transaction 31 between related parties, or is otherwise not an arm's length transaction, unless the 01 producer establishes to the satisfaction of the department that the amount of the 02 expenditure does not exceed the fair market value of the expenditure; 03 (13) an expenditure incurred to purchase an interest in any corporation, 04 partnership, limited liability company, business trust, or any other business entity, 05 whether or not the transaction is treated as an asset sale for federal income tax 06 purposes; 07 (14) a tax levied under AS 43.55.011 or 43.55.014; 08 (15) costs incurred for dismantlement, removal, surrender, or 09 abandonment of a facility, pipeline, well pad, platform, or other structure, or for the 10 restoration of a lease, field, unit, area, tract of land, body of water, or right-of-way in 11 conjunction with dismantlement, removal, surrender, or abandonment; a cost is not 12 excluded under this paragraph if the dismantlement, removal, surrender, or 13 abandonment for which the cost is incurred is undertaken for the purpose of replacing, 14 renovating, or improving the facility, pipeline, well pad, platform, or other structure; 15 (16) costs incurred for containment, control, cleanup, or removal in 16 connection with any unpermitted release of oil or a hazardous substance and any 17 liability for damages imposed on the producer or explorer for that unpermitted release; 18 this paragraph does not apply to the cost of developing and maintaining an oil 19 discharge prevention and contingency plan under AS 46.04.030; 20 (17) costs incurred to satisfy a work commitment under an exploration 21 license under AS 38.05.132; 22 (18) that portion of expenditures, that would otherwise be qualified 23 capital expenditures, [AS DEFINED IN AS 43.55.023,] incurred during a calendar 24 year that are less than the product of $0.30 multiplied by the total taxable production 25 from each lease or property, in BTU equivalent barrels, during that calendar year, 26 except that, when a portion of a calendar year is subject to this provision, the 27 expenditures and volumes shall be prorated within that calendar year; 28 (19) costs incurred for repair, replacement, or deferred maintenance of 29 a facility, a pipeline, a structure, or equipment, other than a well, that results in or is 30 undertaken in response to a failure, problem, or event that results in an unscheduled 31 interruption of, or reduction in the rate of, oil or gas production; or costs incurred for 01 repair, replacement, or deferred maintenance of a facility, a pipeline, a structure, or 02 equipment, other than a well, that is undertaken in response to, or is otherwise 03 associated with, an unpermitted release of a hazardous substance or of gas; however, 04 costs under this paragraph that would otherwise constitute lease expenditures under (a) 05 and (b) of this section may be treated as lease expenditures if the department 06 determines that the repair or replacement is solely necessitated by an act of war, by an 07 unanticipated grave natural disaster or other natural phenomenon of an exceptional, 08 inevitable, and irresistible character, the effects of which could not have been 09 prevented or avoided by the exercise of due care or foresight, or by an intentional or 10 negligent act or omission of a third party, other than a party or its agents in privity of 11 contract with, or employed by, the producer or an operator acting for the producer, but 12 only if the producer or operator, as applicable, exercised due care in operating and 13 maintaining the facility, pipeline, structure, or equipment, and took reasonable 14 precautions against the act or omission of the third party and against the consequences 15 of the act or omission; in this paragraph, 16 (A) "costs incurred for repair, replacement, or deferred 17 maintenance of a facility, a pipeline, a structure, or equipment" includes costs 18 to dismantle and remove the facility, pipeline, structure, or equipment that is 19 being replaced; 20 (B) "hazardous substance" has the meaning given in 21 AS 46.03.826; 22 (C) "replacement" includes renovation or improvement; 23 (20) costs incurred to construct, acquire, or operate a refinery or crude 24 oil topping plant, regardless of whether the products of the refinery or topping plant 25 are used in oil or gas exploration, development, or production operations; however, if 26 a producer owns a refinery or crude oil topping plant that is located on or near the 27 premises of the producer's lease or property in the state and that processes the 28 producer's oil produced from that lease or property into a product that the producer 29 uses in the operation of the lease or property in drilling for or producing oil or gas, the 30 producer's lease expenditures include the amount calculated by subtracting from the 31 fair market value of the product used the prevailing value, as determined under 01 AS 43.55.020(f), of the oil that is processed; 02 (21) costs of lobbying, public relations, public relations advertising, or 03 policy advocacy. 04  * Sec. 38. AS 43.55.165(f) is amended to read: 05 (f) For purposes of AS 43.55.023(b) [AS 43.55.023(a) AND (b)] and only as 06 to expenditures incurred to explore for an oil or gas deposit located within land in 07 which an explorer does not own a working interest, the term "producer" in this section 08 includes "explorer." 09  * Sec. 39. AS 43.55.170(c) is amended to read: 10 (c) For purposes of AS 43.55.023(b) [AS 43.55.023(a) AND (b)] and only as 11 to expenditures incurred to explore for an oil or gas deposit located within land in 12 which an explorer does not own a working interest, the term "producer" in this section 13 includes "explorer." 14  * Sec. 40. AS 43.55.890 is amended to read: 15 Sec. 43.55.890. Disclosure of tax information. Notwithstanding any contrary 16 provision of AS 40.25.100, and regardless of whether the information is considered 17 under AS 43.05.230(e) to constitute statistics classified to prevent the identification of 18 particular returns or reports, the department may publish the following information 19 under this chapter, if aggregated among three or more producers or explorers, showing 20 by month or calendar year and by lease or property, unit, or area of the state: 21 (1) the amount of oil or gas production; 22 (2) the amount of taxes levied under this chapter or paid under this 23 chapter; 24 (3) the effective tax rates under this chapter; 25 (4) the gross value of oil or gas at the point of production; 26 (5) the transportation costs for oil or gas; 27 (6) qualified capital expenditures [, AS DEFINED IN AS 43.55.023]; 28 (7) exploration expenditures under AS 43.55.025; 29 (8) production tax values of oil or gas under AS 43.55.160; 30 (9) lease expenditures under AS 43.55.165; 31 (10) adjustments to lease expenditures under AS 43.55.170; 01 (11) tax credits applicable or potentially applicable against taxes levied 02 by this chapter. 03  * Sec. 41. AS 43.55.895(b) is amended to read: 04 (b) A municipal entity subject to taxation because of this section 05 (1) is eligible for [ALL] tax credits proportionate to its production  06 taxable under AS 43.55.011(e); and  07 (2) shall allocate its lease expenditures in proportion to its  08 production taxable under AS 43.55.011(e) [UNDER THIS CHAPTER TO THE 09 SAME EXTENT AS ANY OTHER PRODUCER]. 10 * Sec. 42. AS 43.55.900 is amended by adding new paragraphs to read: 11 (26) "qualified capital expenditure" 12 (A) means, except as otherwise provided in (B) of this 13 paragraph, an expenditure that is a lease expenditure under AS 43.55.165 and 14 is 15 (i) incurred for geological or geophysical exploration; 16 (ii) treated as a capitalized expenditure under 26 U.S.C. 17 (Internal Revenue Code), as amended, regardless of elections made 18 under 26 U.S.C. 263(c) (Internal Revenue Code), as amended, and is 19 treated as a capitalized expenditure for federal income tax reporting 20 purposes by the person incurring the expenditure; or 21 (iii) treated as a capitalized expenditure under 26 U.S.C. 22 (Internal Revenue Code), as amended, regardless of elections made 23 under 26 U.S.C. 263(c) (Internal Revenue Code), as amended, and is 24 eligible to be deducted as an expense under 26 U.S.C. 263(c) (Internal 25 Revenue Code), as amended; 26 (B) does not include an expenditure incurred to acquire an asset 27 the cost of previously acquiring which was a lease expenditure under 28 AS 43.55.165 or would have been a lease expenditure under AS 43.55.165 if it 29 had been incurred after March 31, 2006, or that has previously been placed in 30 service in the state; an expenditure to acquire an asset is not excluded under 31 this subparagraph if not more than an immaterial portion of the asset meets a 01 description under this subparagraph; for purposes of this subparagraph, "asset" 02 includes geological, geophysical, and well data and interpretations; 03 (27) "regular production" has the meaning given in AS 31.05.170. 04  * Sec. 43. AS 43.70 is amended by adding new sections to read: 05 Sec. 43.70.025. Bond or cash deposit required for an oil or gas business. (a) 06 At the time of applying for a license under this chapter, an applicant engaged in the 07 business of oil or gas exploration, development, or production shall file a surety bond 08 in the amount of $250,000 running to the state, conditioned upon the applicant's 09 promise to pay all 10 (1) taxes and contributions due the state and political subdivisions; 11 (2) persons furnishing labor or material or renting or supplying 12 equipment to the applicant; and 13 (3) amounts that may be adjudged against the applicant because of 14 negligent or improper work or breach of contract while engaged in the business of oil 15 or gas exploration, development, or production. 16 (b) In lieu of the surety bond required under this section, the applicant may 17 file with the commissioner a cash deposit or other negotiable security acceptable to the 18 commissioner in the amount of $250,000. 19 (c) The bond required by this section remains in effect until cancelled by 20 action of the surety, the principal, or if the commissioner finds that the business is 21 producing oil or gas in commercial quantities, by the commissioner. 22 Sec. 43.70.028. Claims against an oil or gas business. (a) A person having a 23 claim against a person required to file a surety bond under AS 43.70.025 because of 24 the failure to pay a liability described in AS 43.70.025(a) may bring suit upon the 25 bond. A copy of the complaint shall be served by registered or certified mail on the 26 commissioner at the time suit is filed, and the commissioner shall maintain a record, 27 available for public inspection, of all suits commenced. This service on the 28 commissioner shall constitute service on the surety, and the commissioner shall 29 transmit the complaint or a copy of it to the surety within 72 hours after it is received. 30 The surety on the bond is not liable in an aggregate amount in excess of that named in 31 the bond, but if claims pending at any one time exceed the amount of the bond, the 01 claims shall be satisfied from the bond in the following order: 02 (1) labor, including employee benefits; 03 (2) taxes and contributions due the state, city, and borough, in that 04 order; 05 (3) material and equipment; 06 (4) claims for negligent or improper work or breach of contract; 07 (5) repair of public facilities. 08 (b) If a judgment is entered against a cash deposit, the commissioner, upon 09 receipt of a certified copy of a final judgment, shall pay the judgment from the amount 10 of the deposit in accordance with the priorities set out in (a) of this section. 11 (c) An action described in (a) of this section may not be commenced on the 12 bond more than three years after the cancellation of the bond. 13 * Sec. 44. AS 38.05.180(i); AS 41.09.010, 41.09.020, 41.09.030, 41.09.090; 14 AS 43.20.053(j)(4); and AS 43.55.011(m) are repealed January 1, 2017. 15  * Sec. 45. AS 43.20.053; AS 43.55.023(a), 43.55.023(l), 43.55.023(n), 43.55.023(o), 16 43.55.028(i), 43.55.075(d)(1), 43.55.165(j), and 43.55.165(k) are repealed January 1, 2018. 17  * Sec. 46. The uncodified law of the State of Alaska is amended by adding a new section to 18 read: 19 APPLICABILITY. (a) AS 43.20.046(e), as amended by sec. 10 of this Act, 20 AS 43.20.047(e), as amended by sec. 11 of this Act, AS 43.20.053(e), as amended by sec. 13 21 of this Act, AS 43.55.028(e), as amended by sec. 27 of this Act, AS 43.55.028(j), as amended 22 by sec. 30 of this Act, and regulations related to a tax credit certificate purchase preference for 23 applicants with a workforce of resident workers and tax credit purchase rates, adopted under 24 AS 43.55.028(g), as amended by sec. 29 of this Act, apply to a purchase applied for on or 25 after the effective date of secs. 10, 11, 13, 27, 29, and 30 of this Act. 26 (b) AS 43.55.011(k), as amended by sec. 15 of this Act, applies to oil produced after 27 the effective date of sec. 15 of this Act. 28  * Sec. 47. The uncodified law of the State of Alaska is amended by adding a new section to 29 read: 30 TRANSITION: QUALIFIED IN-STATE OIL REFINERY INFRASTRUCTURE 31 EXPENDITURES TAX CREDIT. (a) Notwithstanding the repeal of AS 43.20.053 by sec. 45 01 of this Act and the amendments to AS 43.55.028(a) and (g) by secs. 26 and 29 of this Act, a 02 taxpayer who incurs a qualified infrastructure expenditure before the repeal of AS 43.20.053 03 by sec. 45 of this Act that qualifies for a qualified in-state oil refinery infrastructure 04 expenditures tax credit under AS 43.20.053 may apply for a tax credit under AS 43.20.053, as 05 that section read the day before the repeal of AS 43.20.053 by sec. 45 of this Act, apply for a 06 refund or payment under AS 43.55.028(a) and (g), as those sections read the day before the 07 effective date of secs. 26 and 29 of this Act, carry forward a credit subject to the limitations of 08 AS 43.20.053, as that section read the day before the repeal of AS 43.20.053 by sec. 45 of this 09 Act, or be subject to additional tax liability under AS 43.20.053, as that section read the day 10 before the repeal of AS 43.20.053 by sec. 45 of this Act. 11 (b) The Department of Revenue may continue to apply and enforce AS 43.20.053, as 12 that section read the day before the repeal of AS 43.20.053 by sec. 45 of this Act. 13  * Sec. 48. The uncodified law of the State of Alaska is amended by adding a new section to 14 read: 15 TRANSITION: QUALIFIED CAPITAL EXPENDITURES AND WELL LEASE 16 EXPENDITURES. (a) Notwithstanding the repeal of AS 43.55.023(a), (l), (n), and (o) by sec. 17 45 of this Act, and the amendments to AS 43.55.023(d) and (e) by secs. 21 and 22 of this Act, 18 AS 43.55.029(a) by sec. 31 of this Act, AS 43.55.165(f) by sec. 38 of this Act, and 19 AS 43.55.170(c) by sec. 39 of this Act, a taxpayer who incurs 20 (1) a qualified capital expenditure before the repeal of AS 43.55.023(a) and 21 (o) by sec. 45 of this Act that qualifies for a qualified capital expenditure credit under 22 AS 43.55.023(a) and (o) may apply for a credit or transferable tax credit certificate under 23 AS 43.55.023 and assign the tax credit under AS 43.55.029, as those sections read on the day 24 before the repeal of AS 43.55.023(a) and (o) by sec. 45 of this Act; 25 (2) a well lease expenditure before the repeal of AS 43.55.023(l) and (n) by 26 sec. 45 of this Act that qualifies for a well lease expenditure credit under AS 43.55.023(l) and 27 (n) may apply for a credit or transferable tax credit certificate under AS 43.55.023 and assign 28 the tax credit under AS 43.55.029, as those sections read on the day before the repeal of 29 AS 43.55.023(l) and (n) by sec. 45 of this Act. 30 (b) The Department of Revenue may continue to apply and enforce AS 43.55.023(a), 31 (l), (n), and (o) and AS 43.55.029, as those sections read on the day before the repeal of 01 AS 43.55.023(a), (l), (n), and (o) by sec. 45 of this Act, for qualified capital expenditures and 02 well lease expenditures incurred before the repeal of AS 43.55.023(a), (l), (n), and (o) by sec. 03 45 of this Act. 04  * Sec. 49. The uncodified law of the State of Alaska is amended by adding a new section to 05 read: 06 TRANSITION: CARRY FORWARD ANNUAL NET OPERATING LOSS CREDIT. 07 Notwithstanding the amendment of AS 43.55.023(b) by sec. 20 of this Act, a taxpayer who 08 incurs a carried-forward annual loss before the effective date of sec. 20 of this Act that 09 qualifies for a carried-forward annual loss credit under AS 43.55.023(b) may apply for a 10 credit or tax credit certificate under AS 43.55.023(d) and assign the tax credit under 11 AS 43.55.029, subject to the requirements of AS 43.55.160(d) and (e), as those sections read 12 on the day before the effective date of sec. 20 of this Act. 13  * Sec. 50. The uncodified law of the State of Alaska is amended by adding a new section to 14 read: 15 TRANSITION: LEASE EXPENDITURES FOR A CALENDAR YEAR AFTER 16 2006 AND BEFORE 2010. Notwithstanding AS 43.55.165(a), as amended by sec. 36 of this 17 Act, and the repeal of AS 43.55.165(j) and (k) by sec. 45 of this Act, AS 43.55.165(j) and (k) 18 apply to a producer's total lease expenditures for a calendar year after 2006 and before 2010 19 under AS 43.55.165, as that section read on the day before the repeal of AS 43.55.165(j) and 20 (k) by sec. 45 of this Act. 21 * Sec. 51. The uncodified law of the State of Alaska is amended by adding a new section to 22 read: 23 TRANSITION: REGULATIONS. The Department of Revenue, the Department of 24 Natural Resources, the Department of Commerce, Community, and Economic Development, 25 and the Alaska Oil and Gas Conservation Commission may adopt regulations necessary to 26 implement the changes made by this Act. The regulations take effect under AS 44.62 27 (Administrative Procedure Act), but not before the effective date of the law implemented by 28 the regulation. The Department of Revenue shall adopt regulations governing the use of tax 29 credits under AS 43.55 for a calendar year for which the applicable tax credit provisions of 30 AS 43.55 differ as between parts of the year as a result of this Act. 31 * Sec. 52. The uncodified law of the State of Alaska is amended by adding a new section to 01 read: 02 TRANSITION: RETROACTIVITY OF REGULATIONS. Notwithstanding any 03 contrary provision of AS 44.62.240, 04 (1) if the Department of Revenue expressly designates in a regulation that the 05 regulation applies retroactively, a regulation adopted by the Department of Revenue to 06 implement, interpret, make specific, or otherwise carry out this Act may apply retroactively to 07 the effective date of the law implemented by the regulation; 08 (2) if the Department of Natural Resources expressly designates in the 09 regulation that the regulation applies retroactively, a regulation adopted by the Department of 10 Natural Resources to implement, interpret, make specific, or otherwise carry out the statutory 11 amendments in this Act affecting the administration of oil and gas leases issued under 12 AS 38.05.180(f)(3)(B), (D), or (E), to the extent the regulation relates to the treatment of oil 13 and gas production taxes in determining net profits under those leases, may apply 14 retroactively to the effective date of the law implemented by the regulation. 15 * Sec. 53. Sections 51 and 52 of this Act take effect immediately under AS 01.10.070(c). 16  * Sec. 54. Sections 20 - 22, 26, 29, 31 - 33, 36 - 40, 45, 47 - 50, and AS 43.55.900(26), 17 added by sec. 42 of this Act, take effect January 1, 2018. 18 * Sec. 55. Except as provided in secs. 53 and 54 of this Act, this Act takes effect January 1, 19 2017.