00                            HOUSE BILL NO. 300                                                                          
01 "An Act repealing the economic limit factor as it applies to oil; and providing for an                                  
02 effective date."                                                                                                        
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 43.55.011(a) is amended to read:                                                                  
05            (a)  There is levied upon the producer of oil a tax for all oil produced from                                
06       each lease or property in the state, less any oil the ownership or right to which is                              
07       exempt from taxation.  The tax is equal to either the percentage-of-value amount                                  
08       calculated under (b) of this section or the cents-per-barrel amount calculated under (c)                          
09       of this section, whichever is greater [, MULTIPLIED BY THE ECONOMIC LIMIT                                         
10       FACTOR DETERMINED FOR THE OIL PRODUCTION OF THE LEASE OR                                                          
11       PROPERTY UNDER AS 43.55.013].  If the amounts calculated under (b) and (c) of                                     
12       this section are equal, the amount calculated under (b) of this section shall be treated                          
13       as if it were the greater for purposes of this section.                                                           
14    * Sec. 2.  AS 43.55.013(j) is amended to read:                                                                     

01            (j)  The department may aggregate two or more leases or properties, or                                   
02       portions of them [(OR PORTIONS OF THEM)], for purposes of determining                                         
03       economic limit factors under this section and applying them to [AS 43.55.011 OR]                                  
04       AS 43.55.016, when economically interdependent [OIL OR] gas production                                            
05       operations are not confined to a single lease or property.  The department may also                               
06       segregate a lease or property into two or more parts, for purposes of determining                                 
07       economic limit factors under this section and applying them under [AS 43.55.011 OR]                               
08       AS 43.55.016, when two or more economically independent [OIL OR] gas production                                   
09       operations are being conducted on it [, OR WHEN OLD CRUDE OIL IS                                                  
10       PRODUCED FROM THE SAME LEASE OR PROPERTY AS OTHER OIL].                                                           
11    * Sec. 3.  AS 43.55.013 is amended by adding a new subsection to read:                                             
12            (l)  An economic limit factor does not apply to oil produced from a lease or                                 
13       property situated in the state.                                                                                   
14    * Sec. 4.  AS 43.55.013(b) and 43.55.013(d) are repealed.                                                          
15    * Sec. 5.  This Act takes effect July 1, 2003.