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HB 3001: "An Act relating to adjustments to oil and gas production tax values based on a percentage of gross value at the point of production for oil and gas produced from leases or properties north of 68 degrees North latitude; relating to monthly installment payments of the oil and gas production tax; relating to the determinations of oil and gas production tax values; relating to oil and gas production tax credits including qualified capital credits for exploration, development, or production; making conforming amendments; and providing for an effective date."

00                             HOUSE BILL NO. 3001                                                                         
01 "An Act relating to adjustments to oil and gas production tax values based on a                                         
02 percentage of gross value at the point of production for oil and gas produced from leases                               
03 or properties north of 68 degrees North latitude; relating to monthly installment                                       
04 payments of the oil and gas production tax; relating to the determinations of oil and gas                               
05 production tax values; relating to oil and gas production tax credits including qualified                               
06 capital credits for exploration, development, or production; making conforming                                          
07 amendments; and providing for an effective date."                                                                       
08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
09    * Section 1. AS 43.55.011(e) is amended to read:                                                                   
10            (e)  There is levied on the producer of oil or gas a tax for all oil and gas                                 
11       produced each calendar year from each lease or property in the state, less any oil and                            
12       gas the ownership or right to which is exempt from taxation or constitutes a                                      
13       landowner's royalty interest. Except as otherwise provided under (f), (j), (k), and (o) of                        
01       this section, the tax is equal to the sum of                                                                      
02                 (1)  the annual production tax value of the taxable oil and gas as                                      
03       calculated under AS 43.55.160(a)(1), as adjusted by AS 43.55.162 if applicable,                               
04       multiplied by 25 percent; and                                                                                     
05                 (2)  the sum, over all months of the calendar year, of the tax amounts                                  
06       determined under (g) of this section.                                                                             
07    * Sec. 2. AS 43.55.011(g) is amended to read:                                                                      
08            (g)  For each month of the calendar year for which the producer's average                                    
09       monthly production tax value under AS 43.55.160(a)(2) per BTU equivalent barrel of                                
10       the taxable oil and gas is more than $30, the amount of tax for purposes of (e)(2) of                             
11       this section is determined by multiplying the monthly production tax value, as                                
12       adjusted by AS 43.55.162 if applicable, of the taxable oil and gas produced during                            
13       the month by the tax rate calculated as follows:                                                                  
14                 (1)  if the producer's average monthly production tax value per BTU                                     
15       equivalent barrel of the taxable oil and gas for the month is not more than $92.50, the                           
16       tax rate is 0.4 percent multiplied by the number that represents the difference between                           
17       that average monthly production tax value per BTU equivalent barrel and $30; or                                   
18                 (2)  if the producer's average monthly production tax value per BTU                                     
19       equivalent barrel of the taxable oil and gas for the month is more than $92.50, the tax                           
20       rate is the sum of 25 percent and the product of 0.1 percent multiplied by the number                             
21       that represents the difference between the average monthly production tax value per                               
22       BTU equivalent barrel and $92.50, except that the sum determined under this                                       
23       paragraph may not exceed 35 [50] percent.                                                                     
24    * Sec. 3. AS 43.55.020(a) is amended to read:                                                                      
25            (a)  For a calendar year, a producer subject to tax under AS 43.55.011                                   
26       [AS 43.55.011(e) - (i)] shall pay the tax as follows:                                                             
27                 (1)  an installment payment of the estimated tax levied by                                              
28       AS 43.55.011(e), net of any tax credits applied as allowed by law, is due for each                                
29       month of the calendar year on the last day of the following month; except as otherwise                            
30       provided under (2) of this subsection, the amount of the installment payment is the                               
31       sum of the following amounts, less 1/12 of the tax credits that are allowed by law to be                          
01       applied against the tax levied by AS 43.55.011(e) for the calendar year, but the amount                           
02       of the installment payment may not be less than zero:                                                             
03                      (A)  for oil and gas not subject to AS 43.55.011(o) produced                                   
04            from leases or properties in the state outside the Cook Inlet sedimentary basin                              
05            [BUT NOT SUBJECT TO AS 43.55.011(o)], other than leases or properties                                        
06            subject to AS 43.55.011(f), the greater of                                                                   
07                           (i)  zero; or                                                                                 
08                           (ii)  the sum of 25 percent and the tax rate calculated for                                   
09                 the month under AS 43.55.011(g) multiplied by the remainder obtained                                    
10                 by subtracting 1/12 of the producer's adjusted lease expenditures for the                               
11                 calendar year of production under AS 43.55.165 and 43.55.170 that are                                   
12                 deductible for the leases or properties under AS 43.55.160 from the                                     
13                 gross value at the point of production of the oil and gas produced from                                 
14                 the leases or properties during the month for which the installment                                     
15                 payment is calculated;                                                                                  
16                      (B)  for oil and gas produced from leases or properties subject                                    
17            to AS 43.55.011(f), the greatest of                                                                          
18                           (i)  zero;                                                                                    
19                           (ii)  zero percent, one percent, two percent, three                                           
20                 percent, or four percent, as applicable, of the gross value at the point of                             
21                 production of the oil and gas produced from all leases or properties                                    
22                 during the month for which the installment payment is calculated; or                                    
23                           (iii)  the sum of 25 percent and the tax rate calculated for                                  
24                 the month under AS 43.55.011(g) multiplied by the remainder obtained                                    
25                 by subtracting 1/12 of the producer's adjusted lease expenditures for the                               
26                 calendar year of production under AS 43.55.165 and 43.55.170 that are                                   
27                 deductible for those leases or properties under AS 43.55.160 from the                                   
28                 gross value at the point of production of the oil and gas produced from                                 
29                 those leases or properties during the month for which the installment                                   
30                 payment is calculated; for oil and gas for which an adjustment to the                               
31                 monthly production tax value is made by AS 43.55.162(a) or (b),                                     
01                 the same adjustment is made to the remainder under this sub-                                        
02                 subparagraph;                                                                                       
03                      (C)  for oil and gas subject to AS 43.55.011(j), (k), or (o)                                   
04            produced from each lease or property [SUBJECT TO AS 43.55.011(j), (k), OR                                    
05            (o)], the greater of                                                                                         
06                           (i)  zero; or                                                                                 
07                           (ii)  the sum of 25 percent and the tax rate calculated for                                   
08                 the month under AS 43.55.011(g) multiplied by the remainder obtained                                    
09                 by subtracting 1/12 of the producer's adjusted lease expenditures for the                               
10                 calendar year of production under AS 43.55.165 and 43.55.170 that are                                   
11                 deductible under AS 43.55.160 for oil or gas, respectively, produced                                    
12                 from the lease or property from the gross value at the point of                                         
13                 production of the oil or gas, respectively, produced from the lease or                                  
14                 property during the month for which the installment payment is                                          
15                 calculated;                                                                                             
16                 (2)  an amount calculated under (1)(C) of this subsection for oil or gas                                
17       produced from a lease or property subject to AS 43.55.011(j), (k), or (o) may not                               
18       exceed the product obtained by carrying out the calculation set out in                                            
19       AS 43.55.011(j)(1) or (2) or 43.55.011(o), as applicable, for gas or set out in                                   
20       AS 43.55.011(k)(1) or (2), as applicable, for oil, but substituting in                                            
21       AS 43.55.011(j)(1)(A) or (2)(A) or 43.55.011(o), as applicable, the amount of taxable                             
22       gas produced during the month for the amount of taxable gas produced during the                                   
23       calendar year and substituting in AS 43.55.011(k)(1)(A) or (2)(A), as applicable, the                             
24       amount of taxable oil produced during the month for the amount of taxable oil                                     
25       produced during the calendar year;                                                                                
26                 (3)  an installment payment of the estimated tax levied by                                              
27       AS 43.55.011(i) for each lease or property is due for each month of the calendar year                             
28       on the last day of the following month; the amount of the installment payment is the                              
29       sum of                                                                                                            
30                      (A)  the applicable tax rate for oil provided under                                                
31            AS 43.55.011(i), multiplied by the gross value at the point of production of the                             
01            oil taxable under AS 43.55.011(i) and produced from the lease or property                                    
02            during the month; and                                                                                        
03                      (B)  the applicable tax rate for gas provided under                                                
04            AS 43.55.011(i), multiplied by the gross value at the point of production of the                             
05            gas taxable under AS 43.55.011(i) and produced from the lease or property                                    
06            during the month;                                                                                            
07                 (4)  any amount of tax levied by AS 43.55.011(e) or (i), net of any                                     
08       credits applied as allowed by law, that exceeds the total of the amounts due as                                   
09       installment payments of estimated tax is due on March 31 of the year following the                                
10       calendar year of production.                                                                                      
11    * Sec. 4. AS 43.55.023(a) is amended to read:                                                                      
12            (a)  A producer or explorer may take a tax credit for a qualified capital                                    
13       expenditure as follows:                                                                                           
14                 (1)  notwithstanding that a qualified capital expenditure may be a                                      
15       deductible lease expenditure for purposes of calculating the production tax value of oil                          
16       and gas under AS 43.55.160(a), unless a credit for that expenditure is taken under                                
17       AS 38.05.180(i), AS 41.09.010, AS 43.20.043, or AS 43.55.025, a producer or                                       
18       explorer that incurs a qualified capital expenditure may also elect to apply a tax credit                         
19       against a tax levied by AS 43.55.011(e) in the amount of 20 percent of that                                       
20       expenditure; [HOWEVER, NOT MORE THAN HALF OF THE TAX CREDIT MAY                                                   
21       BE APPLIED FOR A SINGLE CALENDAR YEAR;]                                                                           
22                 (2)  a producer or explorer may take a credit for a qualified capital                                   
23       expenditure incurred in connection with geological or geophysical exploration or in                               
24       connection with an exploration well only if the producer or explorer                                              
25                      (A)  agrees, in writing, to the applicable provisions of                                           
26            AS 43.55.025(f)(2); and                                                                                      
27                      (B)  submits to the Department of Natural Resources all data                                       
28            that would be required to be submitted under AS 43.55.025(f)(2).                                             
29    * Sec. 5. AS 43.55.023(d) is amended to read:                                                                      
30            (d)  Except as limited by (i) of this section, a person that is entitled to take a tax                       
31       credit under this section that wishes to transfer the unused credit to another person or                          
01       obtain a cash payment under AS 43.55.028 may apply to the department for a                                    
02       transferable tax credit certificate [CERTIFICATES]. An application under this                                 
03       subsection must be in a form prescribed by the department and must include                                        
04       supporting information and documentation that the department reasonably requires.                                 
05       The department shall grant or deny an application, or grant an application as to a lesser                         
06       amount than that claimed and deny it as to the excess, not later than 120 days after the                          
07       latest of (1) March 31 of the year following the calendar year in which the qualified                             
08       capital expenditure, well lease expenditure, or carried-forward annual loss for which                         
09       the credit is claimed was incurred; (2) the date the statement required under                                     
10       AS 43.55.030(a) or (e) was filed for the calendar year in which the qualified capital                             
11       expenditure, well lease expenditure, or carried-forward annual loss for which the                             
12       credit is claimed was incurred; or (3) the date the application was received by the                               
13       department. If, based on the information then available to it, the department is                                  
14       reasonably satisfied that the applicant is entitled to a credit, the department shall issue                       
15       the applicant a [TWO] transferable tax credit certificate for [CERTIFICATES,                              
16       EACH FOR HALF OF] the amount of the credit. [THE CREDIT SHOWN ON ONE                                              
17       OF THE TWO CERTIFICATES IS AVAILABLE FOR IMMEDIATE USE. THE                                                       
18       CREDIT SHOWN ON THE SECOND OF THE TWO CERTIFICATES MAY NOT                                                        
19       BE APPLIED AGAINST A TAX FOR A CALENDAR YEAR EARLIER THAN                                                         
20       THE CALENDAR YEAR FOLLOWING THE CALENDAR YEAR IN WHICH                                                            
21       THE CERTIFICATE IS ISSUED, AND THE CERTIFICATE MUST CONTAIN A                                                     
22       CONSPICUOUS STATEMENT TO THAT EFFECT.] A certificate issued under this                                            
23       subsection does not expire.                                                                                       
24    * Sec. 6. AS 43.55.023(g) is amended to read:                                                                      
25            (g)  The issuance of a transferable tax credit certificate under (d) of this                             
26       section or former (m) of this section or the purchase of a certificate under                              
27       AS 43.55.028 does not limit the department's ability to later audit a tax credit claim to                         
28       which the certificate relates or to adjust the claim if the department determines, as a                           
29       result of the audit, that the applicant was not entitled to the amount of the credit for                          
30       which the certificate was issued. The tax liability of the applicant under                                        
31       AS 43.55.011(e) and 43.55.017 - 43.55.180 is increased by the amount of the credit                                
01       that exceeds that to which the applicant was entitled, or the applicant's available valid                         
02       outstanding credits applicable against the tax levied by AS 43.55.011(e) are reduced                              
03       by that amount. If the applicant's tax liability is increased under this subsection, the                          
04       increase bears interest under AS 43.05.225 from the date the transferable tax credit                              
05       certificate was issued. For purposes of this subsection, an applicant that is an explorer                         
06       is considered a producer subject to the tax levied by AS 43.55.011(e).                                            
07   * Sec. 7. AS 43.55.023(l) is amended to read:                                                                       
08            (l)  A producer or explorer may apply for a tax credit for a well lease                                      
09       expenditure incurred in the state [SOUTH OF 68 DEGREES NORTH LATITUDE]                                            
10       after December 31, 2012 [JUNE 30, 2010], as follows:                                                          
11                 (1)  notwithstanding that a well lease expenditure incurred in the state                                
12       [SOUTH OF 68 DEGREES NORTH LATITUDE] may be a deductible lease                                                    
13       expenditure for purposes of calculating the production tax value of oil and gas under                             
14       AS 43.55.160(a), unless a credit for that expenditure is taken under (a) of this section,                         
15       AS 38.05.180(i), AS 41.09.010, AS 43.20.043, or AS 43.55.025, a producer or                                       
16       explorer that incurs a well lease expenditure in the state [SOUTH OF 68 DEGREES                                   
17       NORTH LATITUDE] may elect to apply a tax credit against a tax levied by                                           
18       AS 43.55.011(e) in the amount of 40 percent of that expenditure; [A TAX CREDIT                                    
19       UNDER THIS PARAGRAPH MAY BE APPLIED FOR A SINGLE CALENDAR                                                         
20       YEAR;]                                                                                                            
21                 (2)  a producer or explorer may take a credit for a well lease                                          
22       expenditure incurred in the state [SOUTH OF 68 DEGREES NORTH LATITUDE] in                                         
23       connection with geological or geophysical exploration or in connection with an                                    
24       exploration well only if the producer or explorer                                                                 
25                      (A)  agrees, in writing, to the applicable provisions of                                           
26            AS 43.55.025(f)(2); and                                                                                      
27                      (B)  submits to the Department of Natural Resources all data                                       
28            that would be required to be submitted under AS 43.55.025(f)(2).                                             
29    * Sec. 8. AS 43.55.023(n) is amended to read:                                                                      
30            (n)  For the purposes of (l) [AND (m)] of this section, a well lease expenditure                             
31       incurred in the state [SOUTH OF 68 DEGREES NORTH LATITUDE] is a lease                                             
01       expenditure that is                                                                                               
02                 (1)  directly related to an exploration well, a stratigraphic test well, a                              
03       producing well, or an injection well other than a disposal well, located in the state                             
04       [SOUTH OF 68 DEGREES NORTH LATITUDE], if the expenditure is a qualified                                           
05       capital expenditure and an intangible drilling and development cost authorized under                              
06       26 U.S.C. (Internal Revenue Code), as amended, and 26 C.F.R. 1.612-4, regardless of                               
07       the elections made under 26 U.S.C. 263(c); in this paragraph, an expenditure directly                             
08       related to a well includes an expenditure for well sidetracking, well deepening, well                             
09       completion or recompletion, or well workover, regardless of whether the well is or has                            
10       been a producing well; or                                                                                         
11                 (2)  an expense for seismic work conducted within the boundaries of a                                   
12       production or exploration unit.                                                                                   
13    * Sec. 9. AS 43.55.028(e) is amended to read:                                                                      
14            (e)  The department, on the written application of a person to whom a                                        
15       transferable tax credit certificate has been issued under AS 43.55.023(d) or former                           
16       AS 43.55.023(m) [(m)] or to whom a production tax credit certificate has been issued                          
17       under AS 43.55.025(f), may use available money in the oil and gas tax credit fund to                              
18       purchase, in whole or in part, the certificate if the department finds that                                       
19                 (1)  the calendar year of the purchase is not earlier than the first                                    
20       calendar year for which the credit shown on the certificate would otherwise be allowed                            
21       to be applied against a tax;                                                                                      
22                 (2)  [REPEALED                                                                                          
23                 (3)  REPEALED                                                                                           
24                 (4)]  the applicant does not have an outstanding liability to the state for                             
25       unpaid delinquent taxes under this title;                                                                         
26                 (3) [(5)]  the applicant's total tax liability under AS 43.55.011(e), after                         
27       application of all available tax credits, for the calendar year in which the application is                       
28       made is zero;                                                                                                     
29                 (4) [(6)]  the applicant's average daily production of oil and gas taxable                          
30       under AS 43.55.011(e) during the calendar year preceding the calendar year in which                               
31       the application is made was not more than 50,000 BTU equivalent barrels; and                                      
01                 (5) [(7)]  the purchase is consistent with this section and regulations                             
02       adopted under this section.                                                                                       
03    * Sec. 10. AS 43.55.028(g) is amended to read:                                                                     
04            (g)  The department may adopt regulations to carry out the purposes of this                                  
05       section, including standards and procedures to allocate available money among                                     
06       applications for purchases under this chapter and claims for refunds under                                        
07       AS 43.20.046 when the total amount of the applications for purchase and claims for                                
08       refund exceed the amount of available money in the fund. The regulations adopted by                               
09       the department may not, when allocating available money in the fund under this                                    
10       section, distinguish an application for the purchase of a credit certificate issued under                         
11       former AS 43.55.023(m) or a claim for refund under AS 43.20.046.                                              
12    * Sec. 11. AS 43.55.160(a) is repealed and reenacted to read:                                                      
13            (a)  Except as provided in (b) of this section and AS 43.55.162, for the                                     
14       purposes of                                                                                                       
15                 (1)  AS 43.55.011(e), the annual production tax value of taxable oil,                                   
16       gas, or oil and gas subject to this paragraph produced by a producer during a calendar                            
17       year is equal to the gross value at the point of production of that oil, gas, or oil and                          
18       gas, respectively, taxable under AS 43.55.011(e), less the producer's lease                                       
19       expenditures under AS 43.55.165 for the calendar year that are applicable to the oil,                             
20       gas, or oil and gas, as applicable, in that category produced by the producer, as                                 
21       adjusted under AS 43.55.170; this paragraph applies to                                                            
22                      (A)  oil and gas produced during the first 10 consecutive years                                    
23            after the start of sustained production or during the first 10 consecutive years                             
24            of sustained production after the effective date of this section, whichever is                               
25            later, from leases or properties north of 68 degrees North latitude that were not,                           
26            as of January 1, 2008, either within a unit or in commercial production, other                               
27            than gas produced before 2022 and used in the state;                                                         
28                      (B)  oil and gas not subject to (A) of this paragraph produced                                     
29            from leases or properties north of 68 degrees North latitude other than gas                                  
30            produced before 2022 and used in the state;                                                                  
31                      (C)  oil and gas produced from leases or properties in the state                                   
01            outside the Cook Inlet sedimentary basin, no part of which is north of 68                                    
02            degrees North latitude; this subparagraph does not apply to gas produced                                     
03            before 2022 and used in the state;                                                                           
04                      (D)  oil produced before 2022 from a lease or property in the                                      
05            Cook Inlet sedimentary basin;                                                                                
06                      (E)  gas produced before 2022 from a lease or property in the                                      
07            Cook Inlet sedimentary basin;                                                                                
08                      (F)  gas produced before 2022 from a lease or property in the                                      
09            state outside the Cook Inlet sedimentary basin and used in the state;                                        
10                      (G)  oil and gas produced from a lease or property, no part of                                     
11            which is north of 68 degrees North latitude, other than oil or gas described in                              
12            (C), (D), (E), or (F) of this paragraph;                                                                     
13                 (2)  AS 43.55.011(g), the monthly production tax value of taxable oil,                                  
14       gas, or oil and gas produced by a producer during a calendar month, for which a                                   
15       separate production tax value is required to be calculated under this paragraph, is                               
16       equal to the gross value at the point of production of that oil, gas, or oil and gas,                             
17       respectively, taxable under AS 43.55.011(e), less 1/12 of the producer's lease                                    
18       expenditures under AS 43.55.165 for the calendar year that are applicable to the oil,                             
19       gas, or oil and gas, respectively, in that category produced by the producer during the                           
20       calendar month, as adjusted under AS 43.55.170; a separate monthly production tax                                 
21       value must be calculated for each category of oil, gas, or oil and gas for which a                                
22       separate annual production tax value is required to be calculated under (1) of this                               
23       subsection.                                                                                                       
24    * Sec. 12. AS 43.55.160(e) is amended to read:                                                                     
25            (e)  Any adjusted lease expenditures under AS 43.55.165 and 43.55.170 that                                   
26       would otherwise be deductible by a producer in a calendar year but whose deduction                                
27       would cause an annual production tax value calculated under (a)(1) of this section of                             
28       taxable oil or gas produced during the calendar year to be less than zero may be used                             
29       to establish a carried-forward annual loss under AS 43.55.023(b). However, the                                    
30       department shall provide by regulation a method to ensure that, for a period for which                            
31       a producer's tax liability is limited by AS 43.55.011(j), (k), or (o), any adjusted lease                         
01       expenditures under AS 43.55.165 and 43.55.170 that would otherwise be deductible                                  
02       by a producer for that period but whose deduction would cause a production tax value                              
03       calculated under (a)(1)(D), (E), or (F) [(a)(1)(C), (D), OR (E)] of this section to be                        
04       less than zero are accounted for as though the adjusted lease expenditures had first                              
05       been used as deductions in calculating the production tax values of oil or gas subject to                         
06       any of the limitations under AS 43.55.011(j), (k), or (o) that have positive production                           
07       tax values so as to reduce the tax liability calculated without regard to the limitation to                       
08       the maximum amount provided for under the applicable provision of AS 43.55.011(j),                                
09       (k), or (o). Only the amount of those adjusted lease expenditures remaining after the                             
10       accounting provided for under this subsection may be used to establish a carried-                                 
11       forward annual loss under AS 43.55.023(b). In this subsection, "producer" includes                                
12       "explorer."                                                                                                       
13    * Sec. 13. AS 43.55 is amended by adding a new section to read:                                                    
14            Sec. 43.55.162. Reduction of production tax value for certain oil and gas.                                 
15       (a) For purposes of AS 43.55.011(e)(1) and (2), the annual production tax value for a                             
16       calendar year under AS 43.55.160(a)(1) and the monthly production tax value for a                                 
17       month under AS 43.55.160(a)(2) of oil and gas produced during the first 10                                        
18       consecutive years after the start of sustained production or during the first 10                                  
19       consecutive years after the effective date of this section, whichever is later, from                              
20       leases or properties north of 68 degrees North latitude that were not, as of January 1,                           
21       2008, either within a unit or in commercial production, are reduced by 30 percent of                              
22       the gross value at the point of production of that oil and gas produced from those                                
23       leases or properties during the calendar year or during the month respectively.                                   
24            (b)  For purposes of AS 43.55.011(e)(2), the monthly production tax value for                                
25       a month of oil and gas produced from leases or properties north of 68 degrees North                               
26       latitude, other than oil and gas subject to (a) of this section, is reduced by 40 percent of                      
27       the gross value at the point of production of that oil and gas produced during the                                
28       month from those leases or properties.                                                                            
29            (c)  The annual and monthly production tax value may not be reduced under                                    
30       this section below zero.                                                                                          
31            (d)  The tax rate under AS 43.55.011(g) shall be determined before the                                       
01       application of the reduction provided by this section.                                                            
02            (e)  This section does not apply to gas produced before 2022 and used in the                                 
03       state.                                                                                                            
04            (f)  If the annual or monthly gross value at the point of production is zero or                              
05       below, an adjustment is not made under this section.                                                              
06    * Sec. 14. AS 43.55.023(m) is repealed.                                                                            
07    * Sec. 15. The uncodified law of the State of Alaska is amended by adding a new section to                         
08 read:                                                                                                                   
09       APPLICABILITY. (a) Sections 7 and 8 of this Act apply to expenditures incurred                                    
10 after December 31, 2012.                                                                                                
11       (b)  Sections 1 - 3 and 11 - 13 of this Act apply to oil, gas, or oil and gas produced                            
12 after December 31, 2012.                                                                                                
13       (c)  Sections 4 - 6 of this Act apply to expenditures incurred after December 31, 2011.                           
14    * Sec. 16. The uncodified law of the State of Alaska is amended by adding a new section to                         
15 read:                                                                                                                   
16       RETROACTIVITY. Sections 4 - 6, 9, 10, and 14 of this Act are retroactive to                                       
17 January 1, 2012.                                                                                                        
18    * Sec. 17. The uncodified law of the State of Alaska is amended by adding a new section to                         
19 read:                                                                                                                   
20       TRANSITION: REGULATIONS. The Department of Revenue may adopt regulations                                          
21 to implement this Act. The regulations take effect under AS 44.62 (Administrative Procedure                             
22 Act), but not before the effective date of the provision of this Act implemented by the                                 
23 regulations.                                                                                                            
24    * Sec. 18. The uncodified law of the State of Alaska is amended by adding a new section to                         
25 read:                                                                                                                   
26       REVISOR'S INSTRUCTION. If HCS CSSB 23(RLS) am H passed by the Twenty-                                             
27 Seventh Alaska State Legislature becomes law, the revisor of statutes shall give preference to                          
28 this Act if a conflict arises among provisions when consolidating these Acts into the Alaska                            
29 Statutes.                                                                                                               
30    * Sec. 19. Sections 1 - 3, 7, 8, and 11 - 13 of this Act take effect January 1, 2013.                              
31    * Sec. 20. Except as provided in sec. 19 of this Act, this Act takes effect immediately under                      
01 AS 01.10.070(c).