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HCS CSSB 138(RES): "An Act relating to the Alaska Gasline Development Corporation; relating to an in-state natural gas pipeline, an Alaska liquefied natural gas project, and associated funds; requiring state agencies and other entities to expedite reviews and actions related to natural gas pipelines and projects; making certain contracts by the Department of Natural Resources and the Department of Law not subject to the State Procurement Code; relating to the authorities and duties of the commissioner of natural resources relating to a North Slope natural gas project, oil and gas and gas only leases, and royalty gas and other gas received by the state including gas received as payment for the production tax on gas; relating to a report and recommendations by the commissioner of natural resources regarding the delivery and availability of North Slope natural gas in the state, including the identification of risks and recommendations for mitigation; relating to the tax on oil and gas production, on oil production, and on gas production; relating to the duties of the commissioner of revenue relating to a North Slope natural gas project and gas received as payment for tax; relating to confidential information and public record status of information provided to or in the custody of the Department of Natural Resources and the Department of Revenue; relating to apportionment factors of the Alaska Net Income Tax Act; amending the definition of gross value at the 'point of production' for gas for purposes of the oil and gas production tax; clarifying that the exploration incentive credit, the oil or gas producer education credit, and the film production tax credit may not be taken against the gas production tax paid in gas; relating to the oil or gas producer education credit; requiring the commissioner of revenue to provide a report to the legislature on financing options for state ownership and participation in a North Slope natural gas project; requesting the governor to establish an interim advisory board to advise the governor on municipal involvement in a North Slope natural gas project; relating to the development of a plan by the Alaska Energy Authority for developing infrastructure to deliver affordable energy to areas of the state that will not have direct access to a North Slope natural gas pipeline and a recommendation of a funding source for energy infrastructure development; establishing the Alaska affordable energy fund; requiring the commissioner of revenue to develop a plan and suggest legislation for municipalities, regional corporations, and residents of the state to acquire ownership interests in a North Slope natural gas pipeline project; relating to the duties of the Oil and Gas Competitiveness Review Board; making conforming amendments; and providing for an effective date."

00                HOUSE CS FOR CS FOR SENATE BILL NO. 138(RES)                                                             
01 "An Act relating to the Alaska Gasline Development Corporation; relating to an in-state                                 
02 natural gas pipeline, an Alaska liquefied natural gas project, and associated funds;                                    
03 requiring state agencies and other entities to expedite reviews and actions related to                                  
04 natural gas pipelines and projects; making certain contracts by the Department of                                       
05 Natural Resources and the Department of Law not subject to the State Procurement                                        
06 Code; relating to the authorities and duties of the commissioner of natural resources                                   
07 relating to a North Slope natural gas project, oil and gas and gas only leases, and royalty                             
08 gas and other gas received by the state including gas received as payment for the                                       
09 production tax on gas; relating to a report and recommendations by the commissioner                                     
10 of natural resources regarding the delivery and availability of North Slope natural gas                                 
11 in the state, including the identification of risks and recommendations for mitigation;                                 
12 relating to the tax on oil and gas production, on oil production, and on gas production;                                
01 relating to the duties of the commissioner of revenue relating to a North Slope natural                                 
02 gas project and gas received as payment for tax; relating to confidential information and                               
03 public record status of information provided to or in the custody of the Department of                                  
04 Natural Resources and the Department of Revenue; relating to apportionment factors of                                   
05 the Alaska Net Income Tax Act; amending the definition of gross value at the 'point of                                  
06 production' for gas for purposes of the oil and gas production tax; clarifying that the                                 
07 exploration incentive credit, the oil or gas producer education credit, and the film                                    
08 production tax credit may not be taken against the gas production tax paid in gas;                                      
09 relating to the oil or gas producer education credit; requiring the commissioner of                                     
10 revenue to provide a report to the legislature on financing options for state ownership                                 
11 and participation in a North Slope natural gas project; requesting the governor to                                      
12 establish an interim advisory board to advise the governor on municipal involvement in                                  
13 a North Slope natural gas project; relating to the development of a plan by the Alaska                                  
14 Energy Authority for developing infrastructure to deliver affordable energy to areas of                                 
15 the state that will not have direct access to a North Slope natural gas pipeline and a                                  
16 recommendation of a funding source for energy infrastructure development;                                               
17 establishing the Alaska affordable energy fund; requiring the commissioner of revenue                                   
18 to develop a plan and suggest legislation for municipalities, regional corporations, and                                
19 residents of the state to acquire ownership interests in a North Slope natural gas pipeline                             
20 project; relating to the duties of the Oil and Gas Competitiveness Review Board;                                        
21 making conforming amendments; and providing for an effective date."                                                     
22 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
23    * Section 1. AS 31.25.005 is amended to read:                                                                      
24            Sec. 31.25.005. Purpose. The corporation shall, for the benefit of the state, to                           
01       the fullest extent possible,                                                                                      
02                 (1)  develop and have primary responsibility for developing natural                                 
03       gas pipelines, an Alaska liquefied natural gas project, and other transportation                              
04       mechanisms to deliver natural gas in-state for the maximum benefit of the people                              
05       of the state;                                                                                                 
06                 (2)  when developing natural gas pipelines, an Alaska liquefied                                     
07       natural gas project, and other transportation mechanisms to deliver natural gas                               
08       in-state, provide economic benefits in the state, and revenue to the state;                                   
09                 (3)  assist the Department of Natural Resources and the                                             
10       Department of Revenue to maximize the value of the state's royalty natural gas,                               
11       natural gas delivered to the state as payment of tax, and other natural gas                                   
12       received by the state;                                                                                        
13                 (4)  advance an in-state natural gas pipeline as described in the July 1,                           
14       2011, project plan prepared under former AS 38.34.040 by the corporation while a                                  
15       subsidiary of the Alaska Housing Finance Corporation, with modifications determined                               
16       by the corporation to be appropriate to develop, finance, construct, and operate an in-                           
17       state natural gas pipeline in a safe, prudent, economical, and efficient manner, for the                          
18       purpose of making natural gas, including propane and other hydrocarbons associated                                
19       with natural gas other than oil, available to Fairbanks, the Southcentral region of the                           
20       state, and other communities in the state at the lowest rates possible;                                           
21                 (5)  advance an Alaska liquefied natural gas project by developing                                  
22       infrastructure and providing related services, including services related to                                  
23       transportation, liquefaction, a marine terminal, marketing, and commercial                                    
24       support; if the corporation provides a service under this paragraph to the state, a                           
25       public corporation or instrumentality of the state, a political subdivision of the                            
26       state, or another entity of the state, the corporation may not charge a fee for the                           
27       service in an amount greater than the amount necessary to reimburse the                                       
28       corporation for the cost of the service;                                                                      
29                 (6) [(2)]  endeavor to develop natural gas pipelines and other                                      
30       transportation mechanisms to deliver natural gas, including propane and other                                     
31       hydrocarbons associated with natural gas other than oil, to public utility and industrial                         
01       customers in areas of the state to which the natural gas, including propane and other                             
02       hydrocarbons associated with natural gas other than oil, may be delivered at                                      
03       commercially reasonable rates; and                                                                                
04                 (7) [(3)]  endeavor to develop natural gas pipelines and other                                      
05       transportation mechanisms that offer commercially reasonable rates for shippers and                               
06       access for shippers who produce natural gas, including propane and other                                          
07       hydrocarbons associated with natural gas other than oil, in the state.                                            
08    * Sec. 2. AS 31.25.010 is amended to read:                                                                         
09            Sec. 31.25.010. Structure. The Alaska Gasline Development Corporation is a                                 
10       public corporation and government instrumentality acting in the best interest of the                          
11       state for the purposes required by AS 31.25.005, located for administrative                                   
12       purposes in the Department of Commerce, Community, and Economic Development,                                      
13       but having a legal existence independent of and separate from the state. The                                      
14       corporation may not be terminated as long as it has bonds, notes, or other obligations                            
15       outstanding. The corporation may dissolve when no bonds, notes, or other obligations                              
16       of the corporation or a subsidiary of the corporation are outstanding and the                                     
17       corporation or a subsidiary of the corporation is no longer engaged in the                                        
18       development, financing, construction, or operation of an in-state natural gas pipeline                            
19       or an Alaska liquefied natural gas project. Upon termination of the corporation, its                          
20       rights and property pass to the state.                                                                            
21    * Sec. 3. AS 31.25.020(a) is amended to read:                                                                      
22            (a)  The corporation shall be governed by a board of directors consisting of                                 
23                 (1)  five public members; and                                                                           
24                 (2)  two individuals designated by the governor that are each the head                                  
25       of a principal department of the state, except that the commissioner of natural                                   
26       resources and the commissioner of revenue may not be designated to serve on the                                   
27       board [UNLESS THE PROJECT FOR WHICH A LICENSE IS ISSUED UNDER                                                     
28       AS 43.90 HAS BEEN ABANDONED OR IS NO LONGER RECEIVING THE                                                         
29       INDUCEMENTS IN AS 43.90.110(a) OR THE COMMISSIONER OF NATURAL                                                     
30       RESOURCES AND THE COMMISSIONER OF REVENUE ARE NO LONGER                                                           
31       SIGNATORIES ON A VALID CONTRACT UNDER AS 43.90].                                                                  
01    * Sec. 4. AS 31.25.020 is amended by adding a new subsection to read:                                              
02            (e)  A public member appointed by the governor under (b) of this section shall                               
03       be a citizen of the United States. Notwithstanding AS 39.05.100, a person appointed                               
04       under (b) of this section is not required to be or have been a registered voter in the                            
05       state and is not required to reside in the state.                                                                 
06    * Sec. 5. AS 31.25.040 is amended by adding new subsections to read:                                               
07            (c)  To the maximum extent practicable, the board shall                                                      
08                 (1)  maximize the efficient use of state resources; and                                                 
09                 (2)  establish appropriate separation within the corporation by                                         
10       separating personnel and functions, and by other means to the extent that separation                              
11       may be required by contract or applicable law for the purpose of screening and                                    
12       preventing the exchange of commercially sensitive information when developing an                                  
13       in-state natural gas pipeline, an Alaska liquefied natural gas project, and other                                 
14       transportation mechanisms to deliver natural gas in the state.                                                    
15            (d)  The board may appoint a program director for an Alaska liquefied natural                                
16       gas project. The board may appoint a separate program director for an in-state natural                            
17       gas pipeline as described in the July 1, 2011, project plan prepared under former                                 
18       AS 38.34.040 and defined in AS 31.25.390. A program director appointed under this                                 
19       section shall                                                                                                     
20                 (1)  serve at the pleasure of the board; and                                                            
21                 (2)  report to the executive director of the corporation.                                               
22    * Sec. 6. AS 31.25.050 is amended to read:                                                                         
23            Sec. 31.25.050. Legal counsel. Except as provided in (b) of this section, the                            
24       [THE] corporation shall retain legal counsel to advise the corporation in legal matters                           
25       and represent it in litigation.                                                                                   
26    * Sec. 7. AS 31.25.050 is amended by adding a new subsection to read:                                              
27            (b)  The attorney general shall                                                                              
28                 (1)  be the legal counsel for the corporation for legal services related to                             
29       the development of contracts and agreements by the corporation that relate to an                                  
30       Alaska liquefied natural gas project; and                                                                         
31                 (2)  consult with the corporation when procuring outside counsel for                                    
01       legal services for the corporation related to an Alaska liquefied natural gas project.                            
02    * Sec. 8. AS 31.25.080(a) is amended to read:                                                                      
03            (a)  In addition to other powers granted in this chapter, the corporation may                                
04                 (1)  determine the form of ownership and the operating structure of an                                  
05       in-state natural gas pipeline developed by the corporation and may enter into                                     
06       agreements with other persons for joint ownership, joint operation, or both of an in-                             
07       state natural gas pipeline or an Alaska liquefied natural gas project;                                        
08                 (2)  plan, finance, construct, develop, acquire, maintain, and operate a                                
09       pipeline system and other transportation mechanism, including pipelines, compressors,                             
10       storage facilities, and other related facilities, equipment, and works of public                                  
11       improvement, in the state to facilitate production, transportation, and delivery of                               
12       natural gas or other related natural resources to the point of consumption or to the                              
13       point of distribution for consumption;                                                                            
14                 (3)  lease or rent facilities, structures, and properties;                                              
15                 (4)  exercise the power of eminent domain and file a declaration of                                     
16       taking under AS 09.55.240 - 09.55.460 to acquire land or an interest in land that is                              
17       necessary for an in-state natural gas pipeline or an Alaska liquefied natural gas                             
18       project; the exercise of powers by the corporation under this paragraph may not                               
19       exceed the permissible exercise of the powers by the state;                                                       
20                 (5)  acquire, by purchase, lease, or gift, land, structures, real or personal                           
21       property, an interest in property, a right-of-way, a franchise, an easement, or other                             
22       interest in land, or an interest in or right to capacity in a pipeline system determined to                       
23       be necessary or convenient for the development, financing, construction, or operation                             
24       of an in-state natural gas pipeline project or an Alaska liquefied natural gas project                        
25       or part of an in-state natural gas pipeline project or an Alaska liquefied natural gas                        
26       project;                                                                                                      
27                 (6)  transfer or otherwise dispose of all or part of an in-state natural gas                            
28       pipeline project, an Alaska liquefied natural gas project, or [DEVELOPED BY                                   
29       THE CORPORATION OR TRANSFER OR OTHERWISE DISPOSE OF] an interest                                                  
30       in an asset of the corporation;                                                                                   
31                 (7)  elect to provide transportation of natural gas as a contract carrier,                              
01       common carrier, or otherwise;                                                                                     
02                 (8)  provide light, water, security, and other services for property of the                             
03       corporation;                                                                                                      
04                 (9)  conduct hearings to gather and develop data consistent with the                                    
05       purpose and powers of the corporation;                                                                            
06                 (10)  advocate for new pipeline capacity before the Federal Energy                                      
07       Regulatory Commission;                                                                                            
08                 (11)  make and execute agreements, contracts, and other instruments                                     
09       necessary or convenient in the exercise of the powers and functions of the corporation                            
10       under this chapter, including a contract with a person, firm, corporation, governmental                           
11       agency, or other entity;                                                                                          
12                 (12)  sue and be sued in its own name;                                                                  
13                 (13)  adopt an official seal;                                                                           
14                 (14)  adopt bylaws for the regulation of its affairs and the conduct of its                             
15       business and adopt regulations and policies in connection with the performance of its                             
16       functions and duties;                                                                                             
17                 (15)  employ fiscal consultants, engineers, attorneys, appraisers, and                                  
18       other consultants and employees that may, in the judgment of the corporation, be                                  
19       required and fix and pay their compensation from funds available to the corporation;                              
20                 (16)  procure insurance against a loss in connection with its operation;                                
21                 (17)  borrow money as provided in this chapter to carry out its                                         
22       corporate purposes and issue its obligations as evidence of borrowing;                                            
23                 (18)  include in a borrowing the amounts necessary to pay financing                                     
24       charges, to pay interest on the obligations, and to pay the interest, consultant, advisory,                       
25       and legal fees, and other expenses that are necessary or incident to the borrowing;                               
26                 (19)  receive, administer, and comply with the conditions and                                           
27       requirements of an appropriation, gift, grant, or donation of property or money;                                  
28                 (20)  do all acts and things necessary, convenient, or desirable to carry                               
29       out the powers expressly granted or necessarily implied in this chapter;                                          
30                 (21)  invest or reinvest, subject to its contracts with noteholders and                                 
31       bondholders, money or funds held by the corporation, including funds in the in-state                              
01       natural gas pipeline fund (AS 31.25.100) and the Alaska liquefied natural gas                                 
02       project fund (AS 31.25.110), in obligations or other securities or investments in                             
03       which banks or trust companies in the state may legally invest funds held in reserves                             
04       or sinking funds or funds not required for immediate disbursement, and in certificates                            
05       of deposit or time deposits secured by obligations of, or guaranteed by, the state or the                         
06       United States;                                                                                                    
07                 (22)  enter into, as it determines to be necessary or appropriate, any                                  
08       swap or hedge, cap, or other contract providing for payments based on levels of or                                
09       changes in interest rates or indices or in the cost or price of any commodity, supply, or                         
10       expense expected to be used or incurred in connection with the acquisition,                                       
11       construction, or operation of any facility or property owned, leased, or operated by the                          
12       corporation, or an option with respect to any of the foregoing;                                               
13                 (23)  except as provided in (g) of this section, acquire an ownership                               
14       or participation interest in an Alaska liquefied natural gas project, natural gas                             
15       treatment facilities, natural gas pipeline facilities, liquefaction facilities, marine                        
16       terminal facilities related to the infrastructure of an Alaska liquefied natural gas                          
17       project, an entity or joint venture that has an ownership interest in or is engaged                           
18       in the planning, financing, acquisition, maintenance, construction, and operation                             
19       of an Alaska liquefied natural gas project;                                                                   
20                 (24)  after consultation with the commissioner of revenue and the                                   
21       commissioner of natural resources, enter into contracts relating to an Alaska                                 
22       liquefied natural gas project, including contracts for services related to                                    
23       operation, marketing, transportation, gas treatment, marine terminal operation,                               
24       or liquefaction.                                                                                              
25    * Sec. 9. AS 31.25.080(e) is amended to read:                                                                      
26            (e)  If commitments to acquire firm transportation capacity for the in-state                             
27       natural gas pipeline are received in an open season conducted by the corporation, the                         
28       corporation shall, within 10 days after accepting and executing the written                                       
29       commitments received during the open season, report the results of the open season to                             
30       the president of the senate and the speaker of the house of representatives and inform                            
31       the public of the results of the open season through publication on the Internet website                          
01       of the corporation and in a press release or other announcement to the media. The                                 
02       results made public must include the name of each prospective shipper, the amount of                              
03       capacity allocated, and the period of the commitment. If the corporation determines                               
04       that the commitments received during the open season are not sufficient to permit the                             
05       corporation to continue the development or construction of the natural gas pipeline,                              
06       the corporation shall report that to the legislature within 30 days.                                              
07    * Sec. 10. AS 31.25.080 is amended by adding a new subsection to read:                                             
08            (g)  The power in (a)(23) of this section may not be exercised by an entity or                               
09       subsidiary of the corporation that is advancing the development an in-state natural gas                           
10       pipeline.                                                                                                         
11    * Sec. 11. AS 31.25.090 is amended by adding a new subsection to read:                                             
12            (i)  Subject to limitations on the disclosure of confidential information in (g)                             
13       and (h) of this section, the corporation shall provide to the commissioner of natural                             
14       resources and the commissioner of revenue access to information that is related to the                            
15       development of contracts under AS 38.05.020(b)(10) and (11).                                                      
16    * Sec. 12. AS 31.25.100 is amended to read:                                                                        
17            Sec. 31.25.100. In-state natural gas pipeline fund. The in-state natural gas                               
18       pipeline fund is established in the corporation and consists of money appropriated to                             
19       it. The corporation shall determine fund management and may contract with the                                     
20       Department of Revenue for fund management. Unless otherwise provided by law,                                      
21       money appropriated to the fund lapses into the general fund on the day this section is                            
22       repealed. Interest and other income received on money in the fund shall be separately                             
23       accounted for and may be appropriated to the fund. The corporation may use money                                  
24       appropriated to the fund without further appropriation for the cost of managing the                               
25       fund and for the planning, financing, development, acquisition, maintenance,                                      
26       construction, and operation of the [AN] in-state natural gas pipeline described in                        
27       AS 31.25.005(4) and for the purposes in AS 31.25.005(4), (6), and (7).                                        
28    * Sec. 13. AS 31.25 is amended by adding a new section to read:                                                    
29            Sec. 31.25.110. Alaska liquefied natural gas project fund. The Alaska                                      
30       liquefied natural gas project fund is established in the corporation and consists of                              
31       money appropriated to it. The corporation shall determine fund management and may                                 
01       contract with the Department of Revenue for fund management. If money is                                          
02       appropriated to the fund to finance the cost of an Alaska liquefied natural gas project,                          
03       the corporation shall create an account in the fund for that purpose and hold the money                           
04       appropriated for that purpose in that account. Interest and other income received on                              
05       money in the fund shall be separately accounted for and may be appropriated to the                                
06       fund. The corporation may use money appropriated to the fund without further                                      
07       appropriation for the purpose of managing the fund, for purposes related to an Alaska                             
08       liquefied natural gas project, and for the purpose of transferring net revenue received                           
09       by the corporation related to equity interest, contracts, and other activities to the                             
10       appropriate fund of the state as determined by the commissioner of revenue in                                     
11       consultation with the commissioner of natural resources.                                                          
12    * Sec. 14. AS 31.25.120 is amended to read:                                                                        
13            Sec. 31.25.120. Creation of subsidiaries. The corporation may create                                       
14       subsidiary corporations for the purpose of developing, constructing, operating, and                               
15       financing in-state natural gas pipeline projects or other transportation mechanisms; for                          
16       the purpose of aiding in the development, construction, operation, and financing of in-                           
17       state natural gas pipeline projects; or for the purpose of acquiring [THE STATE'S                                 
18       ROYALTY SHARE OF NATURAL GAS,] natural gas from the North Slope, and                                              
19       natural gas from other regions of the state, including the state's outer continental shelf,                       
20       and making that natural gas available to markets in the state, including the delivery of                          
21       natural gas, including propane and other hydrocarbons associated with natural gas                                 
22       other than oil, to coastal communities in the state, or for export. Subject to the                            
23       limitations for the use of money appropriated to the in-state natural gas pipeline                            
24       fund (AS 31.25.100) and the Alaska liquefied natural gas project fund                                         
25       (AS 31.25.110), the [A SUBSIDIARY CORPORATION CREATED UNDER THIS                                              
26       SECTION MAY BE INCORPORATED UNDER AS 10.20.146 - 10.20.166. THE]                                                  
27       corporation may transfer assets of the corporation to a subsidiary created under this                             
28       section. A subsidiary created under this section may borrow money and issue bonds as                              
29       evidence of that borrowing and has all the powers of the corporation that the                                     
30       corporation grants to it. Unless otherwise provided by the corporation, the debts,                                
31       liabilities, and obligations of a subsidiary corporation created under this section are not                       
01       the debts, liabilities, or obligations of the corporation.                                                        
02    * Sec. 15. AS 31.25.140(c) is amended to read:                                                                     
03            (c)  To further ensure effective budgetary decision making by the legislature,                               
04       the board shall                                                                                                   
05                 (1)  annually review the corporation's assets, including the assets of the                              
06       in-state natural gas pipeline fund under AS 31.25.100 and the Alaska liquefied                                
07       natural gas project fund under AS 31.25.110, to determine whether assets of the                               
08       corporation exceed an amount required to fulfill the purposes of the corporation as                               
09       defined in this chapter; in making its review, the board shall determine whether, and to                          
10       what extent, assets in excess of the amount required to fulfill the purposes of the                               
11       corporation during the next fiscal year are available without                                                     
12                      (A)  breaching an agreement entered into by the corporation;                                       
13                      (B)  materially impairing the operations or financial integrity of                                 
14            the corporation; or                                                                                          
15                      (C)  materially affecting the ability of the corporation to fulfill                                
16            the purposes of the corporation as defined in this chapter;                                                  
17                 (2)  specifically identify in the corporation's assets the amounts that the                             
18       board believes are necessary to meet the requirements of (1)(C) of this subsection; and                           
19                 (3)  present to the legislature by January 10 of each year a complete                                   
20       accounting of all assets of the corporation, including assets of the in-state natural gas                         
21       pipeline fund under AS 31.25.100 and the Alaska liquefied natural gas project                                 
22       fund under AS 31.25.110, and a report of the review and determination made under                              
23       (1) and (2) of this subsection; the accounting shall be audited by an independent                                 
24       outside auditor.                                                                                                  
25    * Sec. 16. AS 31.25.390 is amended by adding a new paragraph to read:                                              
26                 (7)  "Alaska liquefied natural gas project" means a natural gas project                                 
27       as described in AS 31.25.005(5) that includes collectively, the Prudhoe Bay unit gas                              
28       transmission line, the Point Thomson unit gas transmission line, a gas pipeline, the gas                          
29       treatment plant, a liquefied natural gas plant, and a marine terminal; in this paragraph,                         
30                      (A)  "gas pipeline"                                                                                
31                           (i)  means the main natural gas pipeline from the outlet                                      
01                 flange of the gas treatment plant on the North Slope to the inlet flange                                
02                 of the liquefied natural gas plant located in the Southcentral region of                                
03                 the state, which shall have off-take points along the pipeline for                                      
04                 deliveries of gas in the state;                                                                         
05                           (ii)  does not include any gas lines downstream of any                                        
06                 off-take point between the gas treatment plant and the liquefied natural                                
07                 gas plant;                                                                                              
08                      (B)  "gas treatment plant" means those facilities and related                                      
09            activities required to receive natural gas from the Prudhoe Bay unit gas                                     
10            transmission line, the Point Thomson unit gas transmission line, and other                                   
11            facilities, treat the natural gas to pipeline specifications, dispose of or deliver                          
12            by-products, deliver liquid products for further transportation, and deliver                                 
13            treated natural gas for transportation through the gas pipeline;                                             
14                      (C)  "liquefied natural gas plant" means the facility for                                          
15            liquefying natural gas and includes structures, equipment, underlying land                                   
16            rights, other associated systems, storage, and facilities for off-loading liquefied                          
17            natural gas;                                                                                                 
18                      (D)  "marine terminal" means the terminal and those facilities                                     
19            required to receive liquefied natural gas from the boundary of the liquefied                                 
20            natural gas plant for marine transportation, including auxiliary vessels used in                             
21            the operation of the terminal;                                                                               
22                      (E)  "Point Thomson unit gas transmission line" means a natural                                    
23            gas transmission line from the outlet flange of the Point Thomson unit                                       
24            production facility to the inlet flange of the gas treatment plant; and                                      
25                      (F)  "Prudhoe Bay unit gas transmission line" means a natural                                      
26            gas transmission line from the outlet flange of the Prudhoe Bay unit central gas                             
27            facility to the inlet flange of the gas treatment plant.                                                     
28    * Sec. 17. AS 36.30.850(b) is amended by adding new paragraphs to read:                                            
29                 (47)  contracts for professional and technical services by the                                          
30       Department of Natural Resources to support the development of agreements and                                      
31       contracts under AS 38.05.020(b)(10) and (11);                                                                     
01                 (48)  contracts of the Department of Law developed with client                                          
02       participation for legal services related to an Alaska liquefied natural gas project as that                       
03       project is defined in AS 31.25.390, except that, to the extent practicable, the                                   
04       Department of Law shall use the procurement process under AS 36.30.320 with the                                   
05       participation of the client.                                                                                      
06    * Sec. 18. AS 37.05 is amended by adding a new section to article 6 to read:                                     
07            Sec. 37.05.610. Alaska affordable energy fund. (a) The Alaska affordable                                   
08       energy fund is created as a special account in the general fund. The fund consists of                             
09       the amount determined and deposited in the fund under (b) of this section and interest                            
10       earned on the fund balance. The purpose of the fund is to provide a source from which                             
11       the legislature may appropriate money to develop infrastructure to deliver energy to                              
12       areas of the state that are not expected to have or do not have direct access to a North                          
13       Slope natural gas pipeline.                                                                                       
14            (b)  The amount to be deposited in (a) of this section is 20 percent of the                                  
15       revenue received from the state's royalty gas transported in an Alaska liquefied natural                          
16       gas project that remains after the payment to the Alaska permanent fund under                                     
17       AS 37.13.010.                                                                                                     
18            (c)  The legislature may make appropriations from the Alaska affordable                                      
19       energy fund for the purpose described in (a) of this section.                                                     
20            (d)  Nothing in this section creates a dedicated fund.                                                       
21            (e)  In this section,                                                                                        
22                 (1)  "Alaska liquefied natural gas project" has the meaning given in                                    
23       AS 31.25.390;                                                                                                     
24                 (2)  "North Slope natural gas pipeline" has the meaning given in                                        
25       AS 42.06.630.                                                                                                     
26    * Sec. 19. AS 38.05.020(b) is amended to read:                                                                     
27            (b)  The commissioner may                                                                                    
28                 (1)  establish reasonable procedures and adopt reasonable regulations                                   
29       necessary to carry out this chapter and, whenever necessary, issue directives or orders                           
30       to the director to carry out specific functions and duties; regulations adopted by the                            
31       commissioner shall be adopted under AS 44.62 (Administrative Procedure Act);                                      
01       orders by the commissioner classifying land, issued after January 3, 1959, are not                                
02       required to be adopted under AS 44.62 (Administrative Procedure Act);                                             
03                 (2)  enter into agreements considered necessary to carry out the                                        
04       purposes of this chapter, including agreements with federal and state agencies;                                   
05                 (3)  review any order or action of the director;                                                        
06                 (4)  exercise the powers and do the acts necessary to carry out the                                     
07       provisions and objectives of this chapter;                                                                        
08                 (5)  notwithstanding the provisions of any other section of this chapter,                               
09       grant an extension of the time within which payments due on any exploration license,                              
10       lease, or sale of state land, minerals, or materials may be made, including payment of                            
11       rental and royalties, on a finding that compliance with the requirements is or was                                
12       prevented by reason of war, riots, or acts of God;                                                                
13                 (6)  classify tracts for agricultural uses;                                                             
14                 (7)  after consulting with the Board of Agriculture and Conservation                                    
15       (AS 03.09.010), waive, postpone, or otherwise modify the development requirements                                 
16       of a contract for the sale of agricultural land if                                                                
17                      (A)  the land is inaccessible by road; or                                                          
18                      (B)  transportation, marketing, and development costs render                                       
19            the required development uneconomic;                                                                         
20                 (8)  reconvey or relinquish land or an interest in land to the federal                                  
21       government if                                                                                                     
22                      (A)  the land is described in an amended application for an                                        
23            allotment under 43 U.S.C. 1617; and                                                                          
24                      (B)  the reconveyance or relinquishment is                                                         
25                           (i)  for the purposes provided in 43 U.S.C. 1617; and                                         
26                           (ii)  in the best interests of the state;                                                     
27                 (9)  lead and coordinate all matters relating to the state's review and                                 
28       authorization of resource development projects;                                                                   
29                 (10)  enter into commercial agreements with a duration of not more                                  
30       than two years for project services related to a North Slope natural gas project;                             
31                 (11)  in consultation with the commissioner of revenue, participate                                 
01       in the negotiation of agreements that include balancing, marketing, disposition of                            
02       natural gas, and offtake and contracts and development of terms for inclusion in                              
03       those proposed agreements and contracts associated with a North Slope natural                                 
04       gas project; an agreement or contract negotiated under this paragraph to which                                
05       the state is a party is not effective unless the legislature authorizes the governor                          
06       to execute the agreement or contract;                                                                         
07                 (12)  enter into confidentiality agreements to maintain the                                         
08       confidentiality of information related to contract negotiations and contract                                  
09       implementation associated with a North Slope natural gas project; information                                 
10       under those confidentiality agreements is not subject to AS 40.25 (Alaska Public                              
11       Records Act), except that                                                                                     
12                      (A)  the terms of a proposed contract that the commissioner                                    
13            presents to the legislature for the purpose of obtaining authorization for                               
14            the governor to execute are not confidential and must be made available to                               
15            the public at least 90 days before the proposed effective date for the terms;                            
16            and                                                                                                      
17                      (B)  the commissioner may share confidential information                                       
18            obtained under this paragraph with members of the legislature, their                                     
19            agents, and contractors on request under confidentiality agreements,                                     
20            either in committees held in executive session or with any member of the                                 
21            legislature individually;                                                                                
22                 (13)  consult with the Alaska Gasline Development Corporation in                                    
23       the development of agreements or contracts under (10) or (11) of this subsection                              
24       for project services related to a gas treatment plant, pipeline, liquefaction facility,                       
25       marine terminal, or marine transportation services necessary to transport                                     
26       natural gas to market;                                                                                        
27                 (14)  exercise the powers and do the acts necessary to carry out the                                
28       provisions and objectives of AS 43.90 that relate to this chapter.                                                
29    * Sec. 20. AS 38.05.020(b), as amended by sec. 19 of this Act, is amended to read:                                 
30            (b)  The commissioner may                                                                                    
31                 (1)  establish reasonable procedures and adopt reasonable regulations                                   
01       necessary to carry out this chapter and, whenever necessary, issue directives or orders                           
02       to the director to carry out specific functions and duties; regulations adopted by the                            
03       commissioner shall be adopted under AS 44.62 (Administrative Procedure Act);                                      
04       orders by the commissioner classifying land, issued after January 3, 1959, are not                                
05       required to be adopted under AS 44.62 (Administrative Procedure Act);                                             
06                 (2)  enter into agreements considered necessary to carry out the                                        
07       purposes of this chapter, including agreements with federal and state agencies;                                   
08                 (3)  review any order or action of the director;                                                        
09                 (4)  exercise the powers and do the acts necessary to carry out the                                     
10       provisions and objectives of this chapter;                                                                        
11                 (5)  notwithstanding the provisions of any other section of this chapter,                               
12       grant an extension of the time within which payments due on any exploration license,                              
13       lease, or sale of state land, minerals, or materials may be made, including payment of                            
14       rental and royalties, on a finding that compliance with the requirements is or was                                
15       prevented by reason of war, riots, or acts of God;                                                                
16                 (6)  classify tracts for agricultural uses;                                                             
17                 (7)  after consulting with the Board of Agriculture and Conservation                                    
18       (AS 03.09.010), waive, postpone, or otherwise modify the development requirements                                 
19       of a contract for the sale of agricultural land if                                                                
20                      (A)  the land is inaccessible by road; or                                                          
21                      (B)  transportation, marketing, and development costs render                                       
22            the required development uneconomic;                                                                         
23                 (8)  reconvey or relinquish land or an interest in land to the federal                                  
24       government if                                                                                                     
25                      (A)  the land is described in an amended application for an                                        
26            allotment under 43 U.S.C. 1617; and                                                                          
27                      (B)  the reconveyance or relinquishment is                                                         
28                           (i)  for the purposes provided in 43 U.S.C. 1617; and                                         
29                           (ii)  in the best interests of the state;                                                     
30                 (9)  lead and coordinate all matters relating to the state's review and                                 
31       authorization of resource development projects;                                                                   
01                 (10)  enter into commercial agreements with a duration of not more                                      
02       than two years for project services related to a North Slope natural gas project;                                 
03                 (11)  in consultation with the commissioner of revenue, participate in                                  
04       the negotiation of agreements that include balancing, marketing, disposition of natural                           
05       gas, and offtake and contracts and development of terms for inclusion in those                                    
06       proposed agreements and contracts associated with a North Slope natural gas project;                              
07       an agreement or contract negotiated under this paragraph to which the state is a party                            
08       is not effective unless the legislature authorizes the governor to execute the agreement                          
09       or contract;                                                                                                      
10                 (12)  enter into confidentiality agreements to maintain the                                             
11       confidentiality of information related to contract negotiations and contract                                      
12       implementation associated with a North Slope natural gas project; information under                               
13       those confidentiality agreements is not subject to AS 40.25 (Alaska Public Records                                
14       Act), except that                                                                                                 
15                      (A)  the terms of a proposed contract that the commissioner                                        
16            presents to the legislature for the purpose of obtaining authorization for the                               
17            governor to execute are not confidential and must be made available to the                                   
18            public at least 90 days before the proposed effective date for the terms; and                                
19                      (B)  the commissioner may share confidential information                                           
20            obtained under this paragraph with members of the legislature, their agents,                                 
21            and contractors on request under confidentiality agreements, either in                                       
22            committees held in executive session or with any member of the legislature                                   
23            individually;                                                                                                
24                 (13)  consult with the Alaska Gasline Development Corporation in the                                    
25       development of agreements or contracts under (10) or (11) of this subsection for                                  
26       project services related to a gas treatment plant, pipeline, liquefaction facility, marine                        
27       terminal, or marine transportation services necessary to transport natural gas to                                 
28       market;                                                                                                           
29                 (14)  in consultation with the commissioner of revenue, take                                        
30       custody of gas delivered to the state under AS 43.55.014(b) and manage the                                    
31       project services and disposition and sale of that gas;                                                        
01                 (15)  exercise the powers and do the acts necessary to carry out the                                
02       provisions and objectives of AS 43.90 that relate to this chapter.                                                
03    * Sec. 21. AS 38.05 is amended by adding a new section to read:                                                    
04            Sec. 38.05.023. Terms in an agreement or contract related to a North                                       
05       Slope natural gas project. (a) An agreement or contract in which the state or an agent                          
06       of the state is a party that is negotiated under AS 38.05.020(b)(11) must include a                               
07       requirement that, if the commissioner determines that the North Slope natural gas                                 
08       project is not making adequate progress toward a final investment decision, the state                             
09       shall have access to data developed under the agreement or contract in which the state                            
10       has directly participated financially. Access by the state to the data may not be on                              
11       terms that are more restrictive than the terms that are applicable for access by any                              
12       other party in the North Slope natural gas project.                                                               
13            (b)  A proposed agreement or contract associated with a North Slope natural                                  
14       gas project may not include a provision that changes a payment in lieu of property tax                            
15       on property that was previously taxable under AS 43.56.                                                           
16    * Sec. 22. AS 38.05.180(i) is amended to read:                                                                     
17            (i)  The commissioner may provide for the establishment of an exploration                                    
18       incentive credit system under which a lessee of state land drilling an exploratory well                           
19       on that land may earn credits based on [UPON] the footage drilled and the region in                           
20       which the well is situated. The commissioner may also provide for credits to be earned                            
21       by persons performing geophysical work on state land, if that work is performed                                   
22       during the two seasons immediately preceding an announced lease sale and on land                                  
23       included within the sale area and the geophysical information is made public                                      
24       following the sale. Credits may not exceed 50 percent of the cost of the drilling or                              
25       geophysical work. Credits may be used during a limited period established by the                                  
26       commissioner and may be assigned during that period. Credits may be applied against                               
27       (1) royalty and rental payments for oil and gas or for gas only payable to the state or                           
28       (2) taxes payable under AS 43.55.011 [AS 43.55]. A credit may not exceed 50 percent                           
29       of the payment toward which it is being applied. Amounts due the Alaska permanent                                 
30       fund (AS 37.13.010) shall be calculated before the application of credits under this                              
31       subsection.                                                                                                       
01    * Sec. 23. AS 38.05.180 is amended by adding new subsections to read:                                              
02            (hh)  Notwithstanding (j) of this section, the commissioner may propose                                      
03       modification to a lease from which a lessee has committed gas from that lease to a                                
04       North Slope natural gas project. A modification may be made under this subsection                                 
05       only after the commissioner makes the written determination under (ii) of this section                            
06       that the lease may be modified. If a modification is made, the modification shall be in                           
07       effect during the initial project term that has acquired the major permits required for                           
08       the work plan and budget considered by the commissioner in the written determination                              
09       under (ii) of this section. A modification under this subsection may                                              
10                 (1)  relate to switching between taking the state's royalty gas in value                                
11       and in-kind to ensure that the lessee, the state, or another person shall bear                                    
12       proportionate costs for treatment, transportation, and liquefaction to the state's royalty                        
13       gas, and the state's actions do not unreasonably interfere with the long-term marketing                           
14       of natural gas by the lessee, the state, or another person;                                                       
15                 (2)  provide a method for establishing a fair market value for each                                     
16       component of the state's royalty gas and appropriate adjustments to reflect fair market                           
17       deductions for reasonable costs for treatment, transportation, and liquefaction for the                           
18       state's royalty gas from the North Slope to the destination market; in this paragraph,                            
19       "reasonable costs for treatment, transportation, and liquefaction" may not be greater                             
20       than actual costs;                                                                                                
21                 (3)  modify net profit shares for oil and gas and sliding scale royalty                                 
22       rates for gas by establishing fixed royalty rates that yield a value to the state that the                        
23       commissioner determines to be not less than the value the state would have received                               
24       under the terms of the lease before a modification under this subsection.                                         
25            (ii)  Before making a modification to a lease under (hh) of this section, the                                
26       commissioner shall make a written determination that the lease may be modified. The                               
27       determination by the commissioner must be based on a clear and convincing showing                                 
28       by the lessee that                                                                                                
29                 (1)  the modification                                                                                   
30                      (A)  is in the best interests of the state; and                                                    
31                      (B)  will materially improve the likelihood of a successful North                                  
01            Slope natural gas project;                                                                                   
02                 (2)  the North Slope natural gas project has sufficient                                                 
03                      (A)  financial commitment for a work plan and budget                                               
04            necessary to support major permits and regulatory filings required by state and                              
05            federal agencies; and                                                                                        
06                      (B)  commitment of gas by lessees; and                                                             
07                 (3)  the lease will produce hydrocarbons that will be transported on the                                
08       North Slope natural gas project during the initial project term.                                                  
09    * Sec. 24. AS 38.05.180(hh), enacted by sec. 23 of this Act, is amended to read:                                   
10            (hh)  Notwithstanding (j) of this section, the commissioner may propose                                      
11       modification to a lease from which a lessee has committed gas from that lease to a                                
12       North Slope natural gas project. A modification may be made under this subsection                                 
13       only after the commissioner makes the written determination under (ii) of this section                            
14       that the lease may be modified. If a modification is made, the modification shall be in                           
15       effect during the initial project that has acquired the major permits required for the                            
16       work plan and budget considered by the commissioner in the written determination                                  
17       under (ii) of this section. A modification under this subsection may                                              
18                 (1)  relate to switching between taking the state's royalty gas in value                                
19       and in-kind to ensure that the lessee, the state, or another person shall bear                                    
20       proportionate costs for treatment, transportation, and liquefaction to the state's royalty                        
21       gas or gas delivered to the state under AS 43.55.014, and the state's actions do not                          
22       unreasonably interfere with the long-term marketing of natural gas by the lessee, the                             
23       state, or another person;                                                                                         
24                 (2)  provide a method for establishing a fair market value for each                                     
25       component of the state's royalty gas and appropriate adjustments to reflect fair market                           
26       deductions for reasonable costs for treatment, transportation, and liquefaction for the                           
27       state's royalty gas from the North Slope to the destination market; in this paragraph,                            
28       "reasonable costs for treatment, transportation, and liquefaction" may not be greater                             
29       than actual costs;                                                                                                
30                 (3)  modify net profit shares for oil and gas and sliding scale royalty                                 
31       rates for gas by establishing fixed royalty rates that yield a value to the state that the                        
01       commissioner determines to be not less than the value the state would have received                               
02       under the terms of the lease before a modification under this subsection.                                         
03    * Sec. 25. AS 38.05.182(a) is amended to read:                                                                     
04            (a)  Any royalty provided for in AS 38.05.135 - 38.05.181 may be taken in                                    
05       kind rather than in money if the commissioner determines that the taking in kind                                  
06       would be in the best interest of the state. However, royalties on oil and gas shall be                            
07       taken in kind unless the commissioner determines that the taking in money would be                                
08       in the best interest of the state. It is not in the best interest of the state to take                        
09       royalty on gas in money from a lessee transporting gas in the North Slope natural                             
10       gas project if the lessee has committed to dispose of or market the state's royalty                           
11       gas taken in kind on the same terms and conditions as the lessee markets or                                   
12       disposes of the lessee's gas.                                                                                 
13    * Sec. 26. AS 38.05.183(a) is amended to read:                                                                     
14            (a)  The sale, exchange, or other disposal of a mineral obtained by the state as a                           
15       royalty under AS 38.05.182, [OR] the sale, exchange, or other disposal in whole or in                             
16       part of a right to receive future mineral production under a state lease under this                               
17       chapter, or the sale, exchange, or other disposal of gas delivered to the state under                         
18       AS 43.55.014(b) shall be by competitive bid and the sale, exchange, or other disposal                         
19       made to the highest responsible bidder, except that competitive bidding is not required                           
20       when the commissioner, after prior written notice to the Alaska Royalty Oil and Gas                               
21       Development Advisory Board under AS 38.06.050, determines that the best interest of                               
22       the state does not require it or that no competition exists.                                                      
23    * Sec. 27. AS 38.05.183(c) is amended to read:                                                                     
24            (c)  If the commissioner determines that a sale, exchange, or other disposal of a                            
25       mineral obtained by the state as a royalty under AS 38.05.182, [OR] of a right to                             
26       receive future mineral production under a state lease under this chapter, or of gas                           
27       delivered to the state under AS 43.55.014(b) shall be made otherwise than by                                  
28       competitive bid, and the Alaska Royalty Oil and Gas Development Advisory Board                                    
29       has been notified in writing of that determination, the commissioner shall make public                            
30       in writing the specific findings and conclusions on [UPON] which that determination                           
31       is based.                                                                                                         
01    * Sec. 28. AS 38.05.183(d) is amended to read:                                                                     
02            (d)  Oil or gas taken in kind by the state as its royalty share or gas delivered to                      
03       the state under AS 43.55.014(b) may not be sold or otherwise disposed of for export                           
04       from the state until the commissioner determines that the [ROYALTY-IN-KIND] oil                                   
05       or gas is surplus to the present and projected intrastate domestic and industrial needs.                          
06       The commissioner shall make public, in writing, the specific findings and reasons on                              
07       which the determination is based.                                                                                 
08    * Sec. 29. AS 38.05.183(e) is amended to read:                                                                     
09            (e)  When a sale, exchange, or other disposal of oil or gas taken in kind by the                             
10       state as its royalty share, or a sale, exchange, or other disposal in whole or in part of a                       
11       right to receive future royalty oil or gas, under a state lease under this chapter is made                        
12       other than by competitive bid, or when a sale, exchange, or other disposal of gas                             
13       delivered to the state under AS 43.55.014(b) is made other than by competitive                                
14       bid, the sale, exchange, or other disposal shall be awarded by the commissioner to the                        
15       prospective buyer whose proposal offers the maximum benefits to citizens of the state.                            
16       The commissioner shall consider                                                                                   
17                 (1)  the cash value offered;                                                                            
18                 (2)  the projected effects of the sale, exchange, or other disposal on the                              
19       economy of the state;                                                                                             
20                 (3)  the projected benefits of refining or processing the oil or gas in the                             
21       state;                                                                                                            
22                 (4)  the ability of the prospective buyer to provide refined products or                                
23       by-products for distribution and sale in the state with price or supply benefits to the                           
24       citizens of the state; and                                                                                        
25                 (5)  the criteria listed in AS 38.06.070(a).                                                            
26    * Sec. 30. AS 38.05.965 is amended by adding new paragraphs to read:                                               
27                 (26)  "initial project term" means the duration sufficient to support an                                
28       investment decision by the sponsors of a North Slope natural gas project to permit                                
29       realization of a competitive economic return, to enable necessary financing, and to                               
30       support agreements for the sale of hydrocarbons transported on a North Slope natural                              
31       gas project;                                                                                                      
01                 (27)  "North Slope natural gas project" means a project to produce                                      
02       natural gas from state oil and gas and gas only leases that include land north of 68                              
03       degrees North latitude for transport in a gaseous state from the North Slope;                                   
04                 (28)  "project services" means services provided by a gas treatment                                     
05       plant, pipeline, liquefaction facility, or marine terminal, marine transportation                                 
06       services, or other services necessary to transport natural gas to market.                                         
07    * Sec. 31. AS 38.34.020(a) is amended to read:                                                                     
08            (a)  A state agency or entity conducting a review or taking action relating to a                         
09       project under AS 31.25 (Alaska Gasline Development Corporation) [THE IN-                                      
10       STATE NATURAL GAS PIPELINE PROJECT UNDER THIS CHAPTER] shall                                                      
11       expedite the review or action in a manner consistent with the timely completion of the                            
12       project.                                                                                                          
13    * Sec. 32. AS 38.34.020(b) is amended to read:                                                                     
14            (b)  Notwithstanding any contrary provision of law, a state agency or entity                                 
15       may not include in any project certificate, right-of-way, permit, or other authorization                          
16       a term or condition that is not required by law if the in-state gasline project                                   
17       coordinator determines that the term or condition would prevent or impair, in any                                 
18       significant respect, the expeditious construction and operation or expansion of a                             
19       project under AS 31.25 (Alaska Gasline Development Corporation) [THE IN-                                      
20       STATE NATURAL GAS PIPELINE PROJECT].                                                                              
21    * Sec. 33. AS 38.34.020(c) is amended to read:                                                                     
22            (c)  Unless required by law, a state agency or entity may not add to, amend, or                              
23       abrogate any certificate, right-of-way, permit, or other authorization if the in-state                            
24       gasline project coordinator determines that the action would prevent or impair, in any                            
25       significant respect, the expeditious construction, operation, or expansion of a project                       
26       under AS 31.25 (Alaska Gasline Development Corporation) [THE IN-STATE                                         
27       NATURAL GAS PIPELINE PROJECT].                                                                                    
28    * Sec. 34. AS 40.25.100(a) is amended to read:                                                                     
29            (a)  Information in the possession of the Department of Revenue that discloses                               
30       the particulars of the business or affairs of a taxpayer or other person, including                           
31       information under AS 38.05.020(b)(11) that is subject to a confidentiality                                    
01       agreement under AS 38.05.020(b)(12), is not a matter of public record, except as                              
02       provided in AS 43.05.230(i) or for purposes of investigation and law enforcement. The                             
03       information shall be kept confidential except when its production is required in an                               
04       official investigation, administrative adjudication under AS 43.05.405 - 43.05.499, or                            
05       court proceeding. These restrictions do not prohibit the publication of statistics                                
06       presented in a manner that prevents the identification of particular reports and items,                           
07       prohibit the publication of tax lists showing the names of taxpayers who are delinquent                           
08       and relevant information that may assist in the collection of delinquent taxes, or                                
09       prohibit the publication of records, proceedings, and decisions under AS 43.05.405 -                              
10       43.05.499.                                                                                                        
11    * Sec. 35. AS 40.25.100(a), as amended by sec. 34 of this Act, is amended to read:                                 
12            (a)  Information in the possession of the Department of Revenue that discloses                               
13       the particulars of the business or affairs of a taxpayer or other person, including                               
14       information under AS 38.05.020(b)(11) that is subject to a confidentiality agreement                              
15       under AS 38.05.020(b)(12), is not a matter of public record, except as provided in                                
16       AS 43.05.230(i) or (k) or for purposes of investigation and law enforcement. The                              
17       information shall be kept confidential except when its production is required in an                               
18       official investigation, administrative adjudication under AS 43.05.405 - 43.05.499, or                            
19       court proceeding. These restrictions do not prohibit the publication of statistics                                
20       presented in a manner that prevents the identification of particular reports and items,                           
21       prohibit the publication of tax lists showing the names of taxpayers who are delinquent                           
22       and relevant information that may assist in the collection of delinquent taxes, or                                
23       prohibit the publication of records, proceedings, and decisions under AS 43.05.405 -                              
24       43.05.499.                                                                                                        
25    * Sec. 36. AS 40.25.120(a) is amended to read:                                                                     
26            (a)  Every person has a right to inspect a public record in the state, including                             
27       public records in recorders' offices, except                                                                      
28                 (1)  records of vital statistics and adoption proceedings, which shall be                               
29       treated in the manner required by AS 18.50;                                                                       
30                 (2)  records pertaining to juveniles unless disclosure is authorized by                                 
31       law;                                                                                                              
01                 (3)  medical and related public health records;                                                         
02                 (4)  records required to be kept confidential by a federal law or                                       
03       regulation or by state law;                                                                                       
04                 (5)  to the extent the records are required to be kept confidential under                               
05       20 U.S.C. 1232g and the regulations adopted under 20 U.S.C. 1232g in order to secure                              
06       or retain federal assistance;                                                                                     
07                 (6)  records or information compiled for law enforcement purposes, but                                  
08       only to the extent that the production of the law enforcement records or information                              
09                      (A)  could reasonably be expected to interfere with enforcement                                    
10            proceedings;                                                                                                 
11                      (B)  would deprive a person of a right to a fair trial or an                                       
12            impartial adjudication;                                                                                      
13                      (C)  could reasonably be expected to constitute an unwarranted                                     
14            invasion of the personal privacy of a suspect, defendant, victim, or witness;                                
15                      (D)  could reasonably be expected to disclose the identity of a                                    
16            confidential source;                                                                                         
17                      (E)  would disclose confidential techniques and procedures for                                     
18            law enforcement investigations or prosecutions;                                                              
19                      (F)  would disclose guidelines for law enforcement                                                 
20            investigations or prosecutions if the disclosure could reasonably be expected to                             
21            risk circumvention of the law; or                                                                            
22                      (G)  could reasonably be expected to endanger the life or                                          
23            physical safety of an individual;                                                                            
24                 (7)  names, addresses, and other information identifying a person as a                                  
25       participant in the Alaska Higher Education Savings Trust under AS 14.40.802 or the                                
26       advance college tuition savings program under AS 14.40.803 - 14.40.817;                                           
27                 (8)  public records containing information that would disclose or might                                 
28       lead to the disclosure of a component in the process used to execute or adopt an                                  
29       electronic signature if the disclosure would or might cause the electronic signature to                           
30       cease being under the sole control of the person using it;                                                        
31                 (9)  reports submitted under AS 05.25.030 concerning certain                                            
01       collisions, accidents, or other casualties involving boats;                                                       
02                 (10)  records or information pertaining to a plan, program, or                                          
03       procedures for establishing, maintaining, or restoring security in the state, or to a                             
04       detailed description or evaluation of systems, facilities, or infrastructure in the state,                        
05       but only to the extent that the production of the records or information                                          
06                      (A)  could reasonably be expected to interfere with the                                            
07            implementation or enforcement of the security plan, program, or procedures;                                  
08                      (B)  would disclose confidential guidelines for investigations or                                  
09            enforcement and the disclosure could reasonably be expected to risk                                          
10            circumvention of the law; or                                                                                 
11                      (C)  could reasonably be expected to endanger the life or                                          
12            physical safety of an individual or to present a real and substantial risk to the                            
13            public health and welfare;                                                                                   
14                 (11)  the written notification regarding a proposed regulation provided                                 
15       under AS 24.20.105 to the Department of Law and the affected state agency and                                     
16       communications between the Legislative Affairs Agency, the Department of Law, and                                 
17       the affected state agency under AS 24.20.105;                                                                     
18                 (12)  records that are                                                                                  
19                      (A)  proprietary, privileged, or a trade secret in accordance with                                 
20            AS 43.90.150 or 43.90.220(e);                                                                                
21                      (B)  applications that are received under AS 43.90 until notice is                                 
22            published under AS 43.90.160;                                                                                
23                 (13)  information of the Alaska Gasline Development Corporation                                         
24       created under AS 31.25.010 or a subsidiary of the Alaska Gasline Development                                      
25       Corporation that is confidential by law or under a valid confidentiality agreement;                           
26                 (14)  information under AS 38.05.020(b)(11) that is subject to a                                    
27       confidentiality agreement under AS 38.05.020(b)(12).                                                          
28    * Sec. 37. AS 43.05.010 is amended to read:                                                                        
29            Sec. 43.05.010. Duties of commissioner. The commissioner of revenue shall                                  
30                 (1)  exercise general supervision and direct the activities of the                                      
31       Department of Revenue;                                                                                            
01                 (2)  supervise the fiscal affairs and responsibilities of the department;                               
02                 (3)  prescribe uniform rules for investigations and hearings;                                           
03                 (4)  keep a record of all departmental proceedings, record and file all                                 
04       bonds, and assume custody of returns, reports, papers, and documents of the                                       
05       department;                                                                                                       
06                 (5)  adopt a seal and affix it to each order, process, or certificate issued                            
07       by the commissioner;                                                                                              
08                 (6)  keep a record of each order, process, and certificate issued by the                                
09       commissioner, and keep the record open to public inspection at all reasonable times;                              
10                 (7)  hold hearings and investigations necessary for the administration of                               
11       state tax and revenue laws;                                                                                       
12                 (8)  except as provided in AS 43.05.405 - 43.05.499 and in                                              
13       AS 44.64.030, hear and determine appeals of a matter within the jurisdiction of the                               
14       Department of Revenue and enter orders on the appeals that are final unless reversed                              
15       or modified by the courts;                                                                                        
16                 (9)  issue subpoenas to require the attendance of witnesses and the                                     
17       production of necessary books, papers, documents, correspondence, and other things;                               
18                 (10)  order the taking of depositions before a person competent to                                      
19       administer oaths;                                                                                                 
20                 (11)  administer oaths and take acknowledgments;                                                        
21                 (12)  request the attorney general for rulings on the interpretation of the                             
22       tax and revenue laws administered by the department;                                                              
23                 (13)  call upon the attorney general to institute actions for recovery of                               
24       unpaid taxes, fees, excises, additions to tax, penalties, and interest;                                           
25                 (14)  issue warrants for the collection of unpaid tax penalties and                                     
26       interest and take all steps necessary and proper to enforce full and complete                                     
27       compliance with the tax, license, excise, and other revenue laws of the state;                                    
28                 (15)  report to the legislature before February 15 of each year the total                               
29       amount of contributions reported and the total amount of credit claimed during the                                
30       previous calendar year under AS 43.20.014, AS 43.55.019, AS 43.56.018,                                            
31       AS 43.65.018, AS 43.75.018, and AS 43.77.045;                                                                 
01                 (16)  consult with the commissioner of natural resources on                                         
02       negotiation of contracts and development of terms for inclusion in proposed                                   
03       contracts associated with a North Slope natural gas project.                                                  
04    * Sec. 38. AS 43.05.010, as amended by sec. 37 of this Act, is amended to read:                                    
05            Sec. 43.05.010. Duties of commissioner. The commissioner of revenue shall                                  
06                 (1)  exercise general supervision and direct the activities of the                                      
07       Department of Revenue;                                                                                            
08                 (2)  supervise the fiscal affairs and responsibilities of the department;                               
09                 (3)  prescribe uniform rules for investigations and hearings;                                           
10                 (4)  keep a record of all departmental proceedings, record and file all                                 
11       bonds, and assume custody of returns, reports, papers, and documents of the                                       
12       department;                                                                                                       
13                 (5)  adopt a seal and affix it to each order, process, or certificate issued                            
14       by the commissioner;                                                                                              
15                 (6)  keep a record of each order, process, and certificate issued by the                                
16       commissioner, and keep the record open to public inspection at all reasonable times;                              
17                 (7)  hold hearings and investigations necessary for the administration of                               
18       state tax and revenue laws;                                                                                       
19                 (8)  except as provided in AS 43.05.405 - 43.05.499 and in                                              
20       AS 44.64.030, hear and determine appeals of a matter within the jurisdiction of the                               
21       Department of Revenue and enter orders on the appeals that are final unless reversed                              
22       or modified by the courts;                                                                                        
23                 (9)  issue subpoenas to require the attendance of witnesses and the                                     
24       production of necessary books, papers, documents, correspondence, and other things;                               
25                 (10)  order the taking of depositions before a person competent to                                      
26       administer oaths;                                                                                                 
27                 (11)  administer oaths and take acknowledgments;                                                        
28                 (12)  request the attorney general for rulings on the interpretation of the                             
29       tax and revenue laws administered by the department;                                                              
30                 (13)  call upon the attorney general to institute actions for recovery of                               
31       unpaid taxes, fees, excises, additions to tax, penalties, and interest;                                           
01                 (14)  issue warrants for the collection of unpaid tax penalties and                                     
02       interest and take all steps necessary and proper to enforce full and complete                                     
03       compliance with the tax, license, excise, and other revenue laws of the state;                                    
04                 (15)  report to the legislature before February 15 of each year the total                               
05       amount of contributions reported and the total amount of credit claimed during the                                
06       previous calendar year under AS 43.20.014, AS 43.55.019, AS 43.56.018,                                            
07       AS 43.65.018, AS 43.75.018, and AS 43.77.045;                                                                     
08                 (16)  consult with the commissioner of natural resources on negotiation                                 
09       of contracts and development of terms for inclusion in proposed contracts associated                              
10       with a North Slope natural gas project;                                                                       
11                 (17)  direct the disposition of revenue received from gas delivered                                 
12       to the state under AS 43.55.014(b) by entering into agreements with the                                       
13       commissioner of natural resources related to the management of the custody and                                
14       disposition of gas delivered to the state under AS 43.55.014(b).                                              
15    * Sec. 39. AS 43.05.230 is amended by adding a new subsection to read:                                             
16            (k)  The name of each person that the department has allowed to make an                                      
17       election under AS 43.55.014(a) and the amount of gas produced from each lease or                                  
18       property to which an effective election under AS 43.55.014 applies is public                                      
19       information.                                                                                                      
20    * Sec. 40. AS 43.20.144(d) is amended to read:                                                                     
21            (d)  The sales factor of a taxpayer subject to this section is a fraction,                                   
22                 (1)  the numerator of which is the sum of the following for the tax                                     
23       period:                                                                                                           
24                      (A)  the tariffs allowed and received by or for the taxpayer for                                   
25            transporting oil or gas by pipeline in this state, regardless of whether the tariffs                         
26            are paid by third parties or by entities within the taxpayer's consolidated                                  
27            business; and                                                                                                
28                      (B)  the total sales of the taxpayer in this state, determined in                                  
29            accordance with AS 43.19 (Multistate Tax Compact), but excluding                                             
30                           (i)  those sales already included in the tariffs described                                
31                 in (A) of this paragraph;                                                                               
01                           (ii)  constructive sales or deemed sales of natural gas                                   
02                 delivered to the state as payment of tax under an election made by                                  
03                 the taxpayer under AS 43.55.014;                                                                    
04                           (iii)  fees, allowed and received, that are paid                                          
05                 between entities within the consolidated business of the taxpayer                                   
06                 for transporting the taxpayer's natural gas; and                                                    
07                 (2)  the denominator of which is the sum of the following for the tax                                   
08       period:                                                                                                           
09                      (A)  the tariffs allowed and received by or for the taxpayer's                                     
10            consolidated business for transporting oil or gas by pipeline everywhere,                                    
11            regardless of whether the tariffs are paid by third parties or by entities within                            
12            the taxpayer's consolidated business; and                                                                    
13                      (B)  the total sales of the taxpayer's consolidated business                                       
14            everywhere, determined in accordance with AS 43.19 (Multistate Tax                                           
15            Compact), but excluding                                                                                      
16                           (i)  those sales already included in the tariffs described                                
17                 in (A) of this paragraph;                                                                           
18                           (ii)  constructive sales or deemed sales of natural gas                                   
19                 delivered to the state as payment of tax under an election made by                                  
20                 the taxpayer under AS 43.55.014 or delivered in another tax                                         
21                 jurisdiction under a law comparable to AS 43.55.014;                                                
22                           (iii)  fees, allowed and received, that are paid                                          
23                 between entities within the consolidated business of the taxpayer                                   
24                 for transporting the taxpayer's natural gas.                                                        
25    * Sec. 41. AS 43.20.144(f) is amended to read:                                                                     
26            (f)  The extraction factor of a taxpayer subject to this section is a fraction,                              
27                 (1)  the numerator of which is the sum of the following for the tax                                     
28       period:                                                                                                           
29                      (A)  the number of barrels of the taxpayer's oil (net of royalty to                                
30            an unrelated party) produced from or allocated to leases or properties of the                                
31            taxpayer in this state; and                                                                                  
01                      (B)  one-sixth of the number of Mcf of the taxpayer's gas,                                     
02            excluding reinjected gas but including gas subject to an election under                                  
03            AS 43.55.014, (net of royalty to an unrelated party) produced from or allocated                          
04            to leases or properties of the taxpayer in this state [, EXCLUDING                                           
05            REINJECTED GAS]; and                                                                                         
06                 (2)  the denominator of which is the sum of the following for the tax                                   
07       period:                                                                                                           
08                      (A)  the number of barrels of oil of the taxpayer's consolidated                                   
09            business (net of royalty to an unrelated party) produced from or allocated to                                
10            leases or properties of the taxpayer's consolidated business everywhere; and                                 
11                      (B)  one-sixth of the number of Mcf of gas, excluding                                          
12            reinjected gas but including gas subject to an election under AS 43.55.014,                              
13            of the taxpayer's consolidated business (net of royalty to an unrelated party)                               
14            produced from or allocated to leases or properties of the taxpayer's                                         
15            consolidated business everywhere [, EXCLUDING REINJECTED GAS].                                               
16    * Sec. 42. AS 43.55.011(e) is amended to read:                                                                     
17            (e)  There is levied on the producer of oil or gas a tax for all oil and gas                                 
18       produced each calendar year from each lease or property in the state, less any oil and                            
19       gas the ownership or right to which is exempt from taxation or constitutes a                                      
20       landowner's royalty interest or for which a tax is levied by AS 43.55.014. Except as                          
21       otherwise provided under (f), (j), (k), (o), and (p) of this section, for oil and gas                         
22       produced                                                                                                      
23                 (1)  before January 1, 2014, the tax is equal to the sum of                                             
24                      (A)  the annual production tax value of the taxable oil and gas                                    
25            as calculated under AS 43.55.160(a)(1) multiplied by 25 percent; and                                         
26                      (B)  the sum, over all months of the calendar year, of the tax                                     
27            amounts determined under (g) of this section;                                                                
28                 (2)  on and after January 1, 2014, and before January 1, 2022, the tax                              
29       is equal to the annual production tax value of the taxable oil and gas as calculated                              
30       under AS 43.55.160(a)(1) multiplied by 35 percent;                                                            
31                 (3)  on and after January 1, 2022, the tax for                                                      
01                      (A)  oil is equal to the annual production tax value of the                                    
02            taxable oil as calculated under AS 43.55.160(h) multiplied by 35 percent;                                
03                      (B)  gas is equal to 13 percent of the gross value at the point                                
04            of production of the taxable gas; if the gross value at the point of                                     
05            production of gas produced from a lease or property is less than zero, that                              
06            gross value at the point of production is considered zero for purposes of                                
07            this subparagraph.                                                                                       
08    * Sec. 43. AS 43.55.011(f) is amended to read:                                                                     
09            (f)  The levy of tax under (e) of this section for                                                       
10                 (1)  oil and gas produced before January 1, 2022, from leases or                                
11       properties that include land north of 68 degrees North latitude, other than [OIL                              
12       AND GAS PRODUCTION SUBJECT TO (i) OF THIS SECTION AND] gas subject                                                
13       to (o) of this section, may not be less than                                                                      
14                      (A) [(1)]  four percent of the gross value at the point of                                     
15            production when the average price per barrel for Alaska North Slope crude oil                                
16            for sale on the United States West Coast during the calendar year for which the                              
17            tax is due is more than $25;                                                                                 
18                      (B) [(2)]  three percent of the gross value at the point of                                    
19            production when the average price per barrel for Alaska North Slope crude oil                                
20            for sale on the United States West Coast during the calendar year for which the                              
21            tax is due is over $20 but not over $25;                                                                     
22                      (C) [(3)]  two percent of the gross value at the point of                                      
23            production when the average price per barrel for Alaska North Slope crude oil                                
24            for sale on the United States West Coast during the calendar year for which the                              
25            tax is due is over $17.50 but not over $20;                                                                  
26                      (D) [(4)]  one percent of the gross value at the point of                                      
27            production when the average price per barrel for Alaska North Slope crude oil                                
28            for sale on the United States West Coast during the calendar year for which the                              
29            tax is due is over $15 but not over $17.50; or                                                               
30                      (E) [(5)]  zero percent of the gross value at the point of                                     
31            production when the average price per barrel for Alaska North Slope crude oil                                
01            for sale on the United States West Coast during the calendar year for which the                              
02            tax is due is $15 or less; and                                                                           
03                 (2)  oil produced on and after January 1, 2022, from leases or                                      
04       properties that include land north of 68 degrees North latitude, may not be less                              
05       than                                                                                                          
06                      (A)  four percent of the gross value at the point of                                           
07            production when the average price per barrel for Alaska North Slope                                      
08            crude oil for sale on the United States West Coast during the calendar                                   
09            year for which the tax is due is more than $25;                                                          
10                      (B)  three percent of the gross value at the point of                                          
11            production when the average price per barrel for Alaska North Slope                                      
12            crude oil for sale on the United States West Coast during the calendar                                   
13            year for which the tax is due is over $20 but not over $25;                                              
14                      (C)  two percent of the gross value at the point of production                                 
15            when the average price per barrel for Alaska North Slope crude oil for                                   
16            sale on the United States West Coast during the calendar year for which                                  
17            the tax is due is over $17.50 but not over $20;                                                          
18                      (D)  one percent of the gross value at the point of production                                 
19            when the average price per barrel for Alaska North Slope crude oil for                                   
20            sale on the United States West Coast during the calendar year for which                                  
21            the tax is due is over $15 but not over $17.50; or                                                       
22                      (E)  zero percent of the gross value at the point of                                           
23            production when the average price per barrel for Alaska North Slope                                      
24            crude oil for sale on the United States West Coast during the calendar                                   
25            year for which the tax is due is $15 or less.                                                            
26    * Sec. 44. AS 43.55 is amended by adding a new section to read:                                                    
27            Sec. 43.55.014. Payment in gas of tax for gas. (a) For gas produced on and                                 
28       after January 1, 2022, other than gas described in (e) of this section, the department                            
29       shall allow a producer to make an election, under regulations adopted by the                                      
30       department, to pay in gas the production tax levied by this section in lieu of the tax                            
31       otherwise levied for the gas by AS 43.55.011(e). An election under this subsection                                
01       applies only to gas produced from oil and gas leases modified under AS 38.05.180(hh)                              
02       from which the commissioner of natural resources has determined to take royalty gas                               
03       in kind under AS 38.05.182.                                                                                       
04            (b)  A production tax levied by this section is equal to 13 percent of the gas                               
05       otherwise taxable under AS 43.55.011(e)(3) produced from each oil and gas lease to                                
06       which an effective election under (a) of this section applies, when and as that gas is                            
07       produced. The producer shall pay the tax in gas by delivering that 13 percent of the                              
08       gas to the state at the point of production.                                                                      
09            (c)  The Department of Natural Resources shall manage under                                                  
10       AS 38.05.020(b)(14) the custody and disposition of gas delivered to the state under (b)                           
11       of this section.                                                                                                  
12            (d)  An assessment under AS 43.05.245 against a producer for an                                              
13       underpayment of a tax levied by this section may be made in terms of an amount of                                 
14       gas or an amount of money, as determined under regulations adopted by the                                         
15       department. If the assessment is made in terms of money, the amount for a month of                                
16       production for an oil and gas lease subject to an effective election under (a) of this                            
17       section is the product of the number of units of gas by which the producer's delivery to                          
18       the state was less than the amount required by (b) of this section, multiplied by the                             
19       gross value at the point of production for each unit of the gas other than gas that was                           
20       not subject to tax or gas that was delivered to the state under (b) of this section. The                          
21       department may allow a credit or refund under AS 43.05.275 for an overpayment of a                                
22       tax levied by this section that may be issued in the form of gas or money, as                                     
23       determined under regulations adopted by the department. If the refund is allowed in                               
24       terms of money, the amount of the credit or refund for a month of production for an oil                           
25       and gas lease subject to an effective election under (a) of this section is the product of                        
26       the number of units of gas by which the producer's delivery to the state was more than                            
27       the amount required under (b) of this section, multiplied by the gross value at the point                         
28       of production for each unit of the gas other than gas that was not subject to tax or gas                          
29       that was delivered to the state under (b) of this section. Interest that is determined as a                       
30       percentage of the amount of a tax underpayment or overpayment and a penalty that is                               
31       a percentage of the amount of a tax underpayment are calculated as a percentage of the                            
01       amount of money determined in this subsection. An amount of gas that was less than                                
02       the amount required to be delivered to the state under (b) of this section or an amount                           
03       of gas that was more than the amount required to be delivered to the state under (b) of                           
04       this section that is adjusted as provided by a gas balancing agreement to which the                               
05       state is a party under AS 38.05.020(b)(11) is not subject to assessment under                                     
06       AS 43.05.245 or a credit or refund under AS 43.05.275. In this subsection, "unit"                                 
07       means a unit of measurement for gas identified by the department under regulations                                
08       adopted by the department and may be expressed as 1,000 cubic feet, 1,000,000                                     
09       British thermal units, or another appropriate unit of measurement specified by the                                
10       department under regulations adopted by the department.                                                           
11            (e)  This section does not apply to gas                                                                      
12                 (1)  flared, released, or allowed to escape and, under AS 43.55.020(e),                                 
13       considered as gas produced from a lease or property for the purpose of AS 43.55.011 -                             
14       43.55.180; or                                                                                                     
15                 (2)  used in the operation of a lease or property in the state in drilling                              
16       for or producing oil or gas, or for repressuring and, under AS 43.55.020(e), considered                           
17       as gas produced from a lease or property for the purpose of AS 43.55.011 - 43.55.180.                             
18    * Sec. 45. AS 43.55.019(a) is amended to read:                                                                     
19            (a)  A producer of oil or gas is allowed a credit against the tax levied by                              
20       AS 43.55.011(e) [DUE UNDER THIS CHAPTER] for cash contributions accepted for                                  
21                 (1)  direct instruction, research, and educational support purposes,                                    
22       including library and museum acquisitions, and contributions to endowment, by an                                  
23       Alaska university foundation or by a nonprofit, public or private, Alaska two-year or                             
24       four-year college accredited by a regional accreditation association;                                             
25                 (2)  secondary school level vocational education courses, programs, and                                 
26       facilities by a school district in the state;                                                                     
27                 (3)  vocational education courses, programs, equipment, and facilities                              
28       by a state-operated vocational technical education and training school, a nonprofit                           
29       regional training center recognized by the Department of Labor and Workforce                                  
30       Development, and an apprenticeship program in the state that is registered with                               
31       the United States Department of Labor under 29 U.S.C. 50 - 50b (National                                      
01       Apprenticeship Act);                                                                                          
02                 (4)  a facility or an annual intercollegiate sports tournament by a                                     
03       nonprofit, public or private, Alaska two-year or four-year college accredited by a                                
04       regional accreditation association;                                                                               
05                 (5)  Alaska Native cultural or heritage programs and educational                                        
06       support, including mentoring and tutoring, provided by a nonprofit agency for public                              
07       school staff and for students who are in grades kindergarten through 12 in the state;                             
08                 (6)  education, research, rehabilitation, and facilities by an institution                              
09       that is located in the state and that qualifies as a coastal ecosystem learning center                            
10       under the Coastal America Partnership established by the federal government; and                                  
11                 (7)  the Alaska higher education investment fund under AS 37.14.750.                                    
12    * Sec. 46. AS 43.55.019(a), as amended by sec. 21, ch. 92, SLA 2010, sec. 14, ch. 7,                               
13 FSSLA 2011, sec. 17, ch. 74, SLA 2012, and sec. 45 of this Act, is amended to read:                                     
14            (a)  A producer of oil or gas is allowed a credit against the tax levied by                              
15       AS 43.55.011(e) due under this chapter for cash contributions accepted                                        
16                 (1)  for direct instruction, research, and educational support purposes,                                
17       including library and museum acquisitions, and contributions to endowment, by an                                  
18       Alaska university foundation or by a nonprofit, public or private, Alaska two-year or                             
19       four-year college accredited by a regional accreditation association;                                             
20                 (2)  for secondary school level vocational education courses, programs,                                 
21       and facilities by a school district in the state;                                                                 
22                 (3)  for vocational education courses, programs, equipment, and                                     
23       facilities by a state-operated vocational technical education and training school, a                      
24       nonprofit regional training center recognized by the Department of Labor and                                  
25       Workforce Development, and an apprenticeship program in the state that is                                     
26       registered with the United States Department of Labor under 29 U.S.C. 50 - 50b                                
27       (National Apprenticeship Act); and                                                                            
28                 (4)  for the Alaska higher education investment fund under                                              
29       AS 37.14.750.                                                                                                     
30    * Sec. 47. AS 43.55.019(e) is amended to read:                                                                     
31            (e)  The credit under this section may not reduce a person's tax liability under                             
01       AS 43.55.011(e) [THIS CHAPTER] to below zero for any tax year. An unused credit                               
02       or portion of a credit not used under this section for a tax year may not be sold, traded,                        
03       transferred, or applied in a subsequent tax year.                                                                 
04    * Sec. 48. AS 43.55.020(a) is amended to read:                                                                     
05            (a)  For a calendar year, a producer subject to tax under AS 43.55.011 shall pay                             
06       the tax as follows:                                                                                               
07                 (1)  for oil and gas produced before January 1, 2014, an installment                                
08       payment of the estimated tax levied by AS 43.55.011(e), net of any tax credits applied                            
09       as allowed by law, is due for each month of the calendar year on the last day of the                              
10       following month; except as otherwise provided under (2) of this subsection, the                                   
11       amount of the installment payment is the sum of the following amounts, less 1/12 of                               
12       the tax credits that are allowed by law to be applied against the tax levied by                                   
13       AS 43.55.011(e) for the calendar year, but the amount of the installment payment may                              
14       not be less than zero:                                                                                            
15                      (A)  for oil and gas not subject to AS 43.55.011(o) or (p)                                         
16            produced from leases or properties in the state outside the Cook Inlet                                       
17            sedimentary basin, other than leases or properties subject to AS 43.55.011(f),                               
18            the greater of                                                                                               
19                           (i)  zero; or                                                                                 
20                           (ii)  the sum of 25 percent and the tax rate calculated for                                   
21                 the month under AS 43.55.011(g) multiplied by the remainder obtained                                    
22                 by subtracting 1/12 of the producer's adjusted lease expenditures for the                               
23                 calendar year of production under AS 43.55.165 and 43.55.170 that are                                   
24                 deductible for the oil and gas under AS 43.55.160 from the gross value                                  
25                 at the point of production of the oil and gas produced from the leases or                               
26                 properties during the month for which the installment payment is                                        
27                 calculated;                                                                                             
28                      (B)  for oil and gas produced from leases or properties subject                                    
29            to AS 43.55.011(f), the greatest of                                                                          
30                           (i)  zero;                                                                                    
31                           (ii)  zero percent, one percent, two percent, three                                           
01                 percent, or four percent, as applicable, 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 for which the installment payment is calculated; or                                    
04                           (iii)  the sum of 25 percent and the tax rate calculated for                                  
05                 the month under AS 43.55.011(g) multiplied by the remainder obtained                                    
06                 by subtracting 1/12 of the producer's adjusted lease expenditures for the                               
07                 calendar year of production under AS 43.55.165 and 43.55.170 that are                                   
08                 deductible for the oil and gas under AS 43.55.160 from the gross value                                  
09                 at the point of production of the oil and gas produced from those leases                                
10                 or properties during the month for which the installment payment is                                     
11                 calculated;                                                                                             
12                      (C)  for oil or gas subject to AS 43.55.011(j), (k), or (o), for                                   
13            each lease or property, the greater of                                                                       
14                           (i)  zero; or                                                                                 
15                           (ii)  the sum of 25 percent and the tax rate calculated for                                   
16                 the month under AS 43.55.011(g) multiplied by the remainder obtained                                    
17                 by subtracting 1/12 of the producer's adjusted lease expenditures for the                               
18                 calendar year of production under AS 43.55.165 and 43.55.170 that are                                   
19                 deductible under AS 43.55.160 for the oil or gas, respectively,                                         
20                 produced from the lease or property from the gross value at the point of                                
21                 production of the oil or gas, respectively, produced from the lease or                                  
22                 property during the month for which the installment payment is                                          
23                 calculated;                                                                                             
24                      (D)  for oil and gas subject to AS 43.55.011(p), the lesser of                                     
25                           (i)  the sum of 25 percent and the tax rate calculated for                                    
26                 the month under AS 43.55.011(g) multiplied by the remainder obtained                                    
27                 by 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 and gas under AS 43.55.160 from the gross value                                  
30                 at the point of production of the oil and gas produced from the leases or                               
31                 properties during the month for which the installment payment is                                        
01                 calculated, but not less than zero; or                                                                  
02                           (ii)  four percent of the gross value at the point of                                         
03                 production of the oil and gas produced from the leases or properties                                    
04                 during the month, but not less than zero;                                                               
05                 (2)  an amount calculated under (1)(C) of this subsection for oil or gas                                
06       subject to AS 43.55.011(j), (k), or (o) may not exceed the product obtained by                                    
07       carrying out the calculation set out in AS 43.55.011(j)(1) or (2) or 43.55.011(o), as                             
08       applicable, for gas or set out in AS 43.55.011(k)(1) or (2), as applicable, for oil, but                          
09       substituting in AS 43.55.011(j)(1)(A) or (2)(A) or 43.55.011(o), as applicable, the                               
10       amount of taxable gas produced during the month for the amount of taxable gas                                     
11       produced during the calendar year and substituting in AS 43.55.011(k)(1)(A) or                                    
12       (2)(A), as applicable, the amount of taxable oil produced during the month for the                                
13       amount of taxable oil produced during the calendar year;                                                          
14                 (3)  an installment payment of the estimated tax levied by                                              
15       AS 43.55.011(i) for each lease or property is due for each month of the calendar year                             
16       on the last day of the following month; the amount of the installment payment is the                              
17       sum of                                                                                                            
18                      (A)  the applicable tax rate for oil provided under                                                
19            AS 43.55.011(i), multiplied by the gross value at the point of production of the                             
20            oil taxable under AS 43.55.011(i) and produced from the lease or property                                    
21            during the month; and                                                                                        
22                      (B)  the applicable tax rate for gas provided under                                                
23            AS 43.55.011(i), multiplied by the gross value at the point of production of the                             
24            gas taxable under AS 43.55.011(i) and produced from the lease or property                                    
25            during the month;                                                                                            
26                 (4)  any amount of tax levied by AS 43.55.011, net of any credits                                       
27       applied as allowed by law, that exceeds the total of the amounts due as installment                               
28       payments of estimated tax is due on March 31 of the year following the calendar year                              
29       of production;                                                                                                    
30                 (5)  for oil and gas produced on and after January 1, 2014, and before                          
31       January 1, 2022, an installment payment of the estimated tax levied by                                        
01       AS 43.55.011(e), net of any tax credits applied as allowed by law, is due for each                                
02       month of the calendar year on the last day of the following month; except as otherwise                            
03       provided under (6) of this subsection, the amount of the installment payment is the                               
04       sum of the following amounts, less 1/12 of the tax credits that are allowed by law to be                          
05       applied against the tax levied by AS 43.55.011(e) for the calendar year, but the amount                           
06       of the installment payment may not be less than zero:                                                             
07                      (A)  for oil and gas not subject to AS 43.55.011(o) or (p)                                         
08            produced from leases or properties in the state outside the Cook Inlet                                       
09            sedimentary basin, other than leases or properties subject to AS 43.55.011(f),                               
10            the greater of                                                                                               
11                           (i)  zero; or                                                                                 
12                           (ii)  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 and gas under AS 43.55.160 from the gross value                                  
16                 at the point of production of the oil and gas produced from the leases or                               
17                 properties during the month for which the installment payment is                                        
18                 calculated;                                                                                             
19                      (B)  for oil and gas produced from leases or properties subject                                    
20            to AS 43.55.011(f), the greatest of                                                                          
21                           (i)  zero;                                                                                    
22                           (ii)  zero percent, one percent, two percent, three                                           
23                 percent, or four percent, as applicable, of the gross value at the point of                             
24                 production of the oil and gas produced from the leases or properties                                    
25                 during the month for which the installment payment is calculated; or                                    
26                           (iii)  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 and gas under AS 43.55.160 from the gross value                                  
30                 at the point of production of the oil and gas produced from those leases                                
31                 or properties during the month for which the installment payment is                                     
01                 calculated, except that, for the purposes of this calculation, a reduction                              
02                 from the gross value at the point of production may apply for oil and                                   
03                 gas subject to AS 43.55.160(f) or (g);                                                                  
04                      (C)  for oil or gas subject to AS 43.55.011(j), (k), or (o), for                                   
05            each lease or property, the greater of                                                                       
06                           (i)  zero; or                                                                                 
07                           (ii)  35 percent multiplied by the remainder obtained by                                      
08                 subtracting 1/12 of the producer's adjusted lease expenditures for the                                  
09                 calendar year of production under AS 43.55.165 and 43.55.170 that are                                   
10                 deductible under AS 43.55.160 for the oil or gas, respectively,                                         
11                 produced from the lease or property from the gross value at the point of                                
12                 production of the oil or gas, respectively, produced from the lease or                                  
13                 property during the month for which the installment payment is                                          
14                 calculated;                                                                                             
15                      (D)  for oil and gas subject to AS 43.55.011(p), the lesser of                                     
16                           (i)  35 percent multiplied by the remainder obtained by                                       
17                 subtracting 1/12 of the producer's adjusted lease expenditures for the                                  
18                 calendar year of production under AS 43.55.165 and 43.55.170 that are                                   
19                 deductible for the oil and gas under AS 43.55.160 from the gross value                                  
20                 at the point of production of the oil and gas produced from the leases or                               
21                 properties during the month for which the installment payment is                                        
22                 calculated, but not less than zero; or                                                                  
23                           (ii)  four percent of the gross value at the point of                                         
24                 production of the oil and gas produced from the leases or properties                                    
25                 during the month, but not less than zero;                                                               
26                 (6)  an amount calculated under (5)(C) of this subsection for oil or gas                                
27       subject to AS 43.55.011(j), (k), or (o) may not exceed the product obtained by                                    
28       carrying out the calculation set out in AS 43.55.011(j)(1) or (2) or 43.55.011(o), as                             
29       applicable, for gas or set out in AS 43.55.011(k)(1) or (2), as applicable, for oil, but                          
30       substituting in AS 43.55.011(j)(1)(A) or (2)(A) or 43.55.011(o), as applicable, the                               
31       amount of taxable gas produced during the month for the amount of taxable gas                                     
01       produced during the calendar year and substituting in AS 43.55.011(k)(1)(A) or                                    
02       (2)(A), as applicable, the amount of taxable oil produced during the month for the                                
03       amount of taxable oil produced during the calendar year;                                                      
04                 (7)  for oil and gas produced on or after January 1, 2022, an                                       
05       installment payment of the estimated tax levied by AS 43.55.011(e), net of any tax                            
06       credits applied as allowed by law, is due for each month of the calendar year on                              
07       the last day of the following month; the amount of the installment payment is the                             
08       sum of the following amounts, less 1/12 of the tax credits that are allowed by law                            
09       to be applied against the tax levied by AS 43.55.011(e) for the calendar year, but                            
10       the amount of the installment payment may not be less than zero:                                              
11                      (A)  for oil produced from leases or properties that include                                   
12            land 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                                  
16                 point of production of the oil produced from the leases or                                          
17                 properties during the month for which the installment payment is                                    
18                 calculated; or                                                                                      
19                           (iii)  35 percent multiplied by the remainder obtained                                    
20                 by subtracting 1/12 of the producer's adjusted lease expenditures                                   
21                 for the calendar year of production under AS 43.55.165 and                                          
22                 43.55.170 that are deductible for the oil under AS 43.55.160(h)(1)                                  
23                 from the gross value at the point of production of the oil produced                                 
24                 from those leases or properties during the month for which the                                      
25                 installment payment is calculated, except that, for the purposes of                                 
26                 this calculation, a reduction from the gross value at the point of                                  
27                 production may apply for oil subject to AS 43.55.160(f) or                                          
28                 43.55.160(f) and (g);                                                                               
29                      (B)  for oil produced before or during the last calendar year                                  
30            under AS 43.55.024(b) for which the producer could take a tax credit                                     
31            under AS 43.55.024(a), from leases or properties in the state outside the                                
01            Cook Inlet sedimentary basin, no part of which is north of 68 degrees                                    
02            North latitude, other than leases or properties subject to AS 43.55.011(p),                              
03            the greater of                                                                                           
04                           (i)  zero; or                                                                             
05                           (ii)  35 percent multiplied by the remainder obtained                                     
06                 by subtracting 1/12 of the producer's adjusted lease expenditures                                   
07                 for the calendar year of production under AS 43.55.165 and                                          
08                 43.55.170 that are deductible for the oil under AS 43.55.160(h)(2)                                  
09                 from the gross value at the point of production of the oil produced                                 
10                 from the leases or properties during the month for which the                                        
11                 installment payment is calculated;                                                                  
12                      (C)  for oil and gas produced from leases or properties                                        
13            subject to AS 43.55.011(p), except as otherwise provided under (8) of this                               
14            subsection, the sum of                                                                                   
15                           (i)  35 percent multiplied by the remainder obtained                                      
16                 by subtracting 1/12 of the producer's adjusted lease expenditures                                   
17                 for the calendar year of production under AS 43.55.165 and                                          
18                 43.55.170 that are deductible for the oil under AS 43.55.160(h)(3)                                  
19                 from the gross value at the point of production of the oil produced                                 
20                 from the leases or properties during the month for which the                                        
21                 installment payment is calculated, but not less than zero; and                                      
22                           (ii)  13 percent of the gross value at the point of                                       
23                 production of the gas produced from the leases or properties                                        
24                 during the month, but not less than zero;                                                           
25                      (D)  for oil produced from leases or properties in the state,                                  
26            no part of which is north of 68 degrees North latitude, other than leases or                             
27            properties subject to (B) or (C) of this paragraph, the greater of                                       
28                           (i)  zero; or                                                                             
29                           (ii)  35 percent multiplied by the remainder obtained                                     
30                 by subtracting 1/12 of the producer's adjusted lease expenditures                                   
31                 for the calendar year of production under AS 43.55.165 and                                          
01                 43.55.170 that are deductible for the oil under AS 43.55.160(h)(4)                                  
02                 from the gross value at the point of production of the oil produced                                 
03                 from the leases or properties during the month for which the                                        
04                 installment payment is calculated;                                                                  
05                      (E)  for gas produced from each lease or property in the                                       
06            state, other than a lease or property subject to AS 43.55.011(p), 13 percent                             
07            of the gross value at the point of production of the gas produced from the                               
08            lease or property during the month for which the installment payment is                                  
09            calculated, but not less than zero;                                                                      
10                 (8)  an amount calculated under (7)(C) of this subsection may not                                   
11       exceed four percent of the gross value at the point of production of the oil and gas                          
12       produced from leases or properties subject to AS 43.55.011(p) during the month                                
13       for which the installment payment is calculated;                                                              
14                 (9)  for purposes of the calculation under (1)(B)(ii), (5)(B)(ii), and                              
15       (7)(A)(ii) of this subsection, the applicable percentage of the gross value at the                            
16       point of production is determined under AS 43.55.011(f)(1) or (2) but substituting                            
17       the phrase "month for which the installment payment is calculated" in                                         
18       AS 43.55.011(f)(1) and (2) for the phrase "calendar year for which the tax is                                 
19       due."                                                                                                         
20    * Sec. 49. AS 43.55.020(g) is amended to read:                                                                     
21            (g)  Notwithstanding any contrary provision of AS 43.05.225,                                                 
22                 (1)  before January 1, 2014, an unpaid amount of an installment                                         
23       payment required under (a)(1) - (3) of this section that is not paid when due bears                               
24       interest (A) at the rate provided for an underpayment under 26 U.S.C. 6621 (Internal                              
25       Revenue Code), as amended, compounded daily, from the date the installment                                        
26       payment is due until March 31 following the calendar year of production, and (B) as                               
27       provided for a delinquent tax under AS 43.05.225 after that March 31; interest accrued                            
28       under (A) of this paragraph that remains unpaid after that March 31 is treated as an                              
29       addition to tax that bears interest under (B) of this paragraph; an unpaid amount of tax                          
30       due under (a)(4) of this section that is not paid when due bears interest as provided for                         
31       a delinquent tax under AS 43.05.225;                                                                              
01                 (2)  on and after January 1, 2014, an unpaid amount of an installment                                   
02       payment required under (a)(3), (5), [OR] (6), or (7) of this section that is not paid                         
03       when due bears interest (A) at the rate provided for an underpayment under 26 U.S.C.                              
04       6621 (Internal Revenue Code), as amended, compounded daily, from the date the                                     
05       installment payment is due until March 31 following the calendar year of production,                              
06       and (B) as provided for a delinquent tax under AS 43.05.225 after that March 31;                                  
07       interest accrued under (A) of this paragraph that remains unpaid after that March 31 is                           
08       treated as an addition to tax that bears interest under (B) of this paragraph; an unpaid                          
09       amount of tax due under (a)(4) of this section that is not paid when due bears interest                           
10       as provided for a delinquent tax under AS 43.05.225.                                                              
11    * Sec. 50. AS 43.55.020(h) is amended to read:                                                                     
12            (h)  Notwithstanding any contrary provision of AS 43.05.280,                                                 
13                 (1)  an overpayment of an installment payment required under (a)(1),                                
14       (2), (3), (5), (6), or (7) [(a)(1) - (3), (5) OR (6)] of this section bears interest at the rate              
15       provided for an overpayment under 26 U.S.C. 6621 (Internal Revenue Code), as                                      
16       amended, compounded daily, from the later of the date the installment payment is due                              
17       or the date the overpayment is made, until the earlier of                                                         
18                      (A)  the date it is refunded or is applied to an underpayment; or                                  
19                      (B)  March 31 following the calendar year of production;                                           
20                 (2)  except as provided under (1) of this subsection, interest with                                     
21       respect to an overpayment is allowed only on any net overpayment of the payments                                  
22       required under (a) of this section that remains after the later of March 31 following the                         
23       calendar year of production or the date that the statement required under                                         
24       AS 43.55.030(a) is filed;                                                                                         
25                 (3)  interest is allowed under (2) of this subsection only from a date that                             
26       is 90 days after the later of March 31 following the calendar year of production or the                           
27       date that the statement required under AS 43.55.030(a) is filed; interest is not allowed                          
28       if the overpayment was refunded within the 90-day period;                                                         
29                 (4)  interest under (2) and (3) of this subsection is paid at the rate and in                           
30       the manner provided in AS 43.05.225(1).                                                                           
31    * Sec. 51. AS 43.55.020(l) is amended to read:                                                                     
01            (l)  For oil and gas produced on [ON] and after January 1, 2014, and before                          
02       January 1, 2022, in making settlement with the royalty owner for oil and gas that is                          
03       taxable under AS 43.55.011, the producer may deduct the amount of the tax paid on                                 
04       taxable royalty oil and gas, or may deduct taxable royalty oil or gas equivalent in                               
05       value at the time the tax becomes due to the amount of the tax paid. If the total                                 
06       deductions of installment payments of estimated tax for a calendar year exceed the                                
07       actual tax for that calendar year, the producer shall, before April 1 of the following                            
08       year, refund the excess to the royalty owner. Unless otherwise agreed between the                                 
09       producer and the royalty owner, the amount of the tax paid under AS 43.55.011(e) on                               
10       taxable royalty oil and gas for a calendar year, other than oil and gas the ownership or                          
11       right to which constitutes a landowner's royalty interest, is considered to be the gross                          
12       value at the point of production of the taxable royalty oil and gas produced during the                           
13       calendar year multiplied by a figure that is a quotient, in which                                                 
14                 (1)  the numerator is the producer's total tax liability under                                          
15       AS 43.55.011(e)(2) [AS 43.55.011(e)] for the calendar year of production; and                                 
16                 (2)  the denominator is the total gross value at the point of production                                
17       of the oil and gas taxable under AS 43.55.011(e) produced by the producer from all                                
18       leases and properties in the state during the calendar year.                                                      
19    * Sec. 52. AS 43.55.020 is amended by adding a new subsection to read:                                             
20            (m)  For oil and gas produced on and after January 1, 2022, in making                                        
21       settlement with the royalty owner for oil and gas that is taxable under AS 43.55.011,                             
22       the producer may deduct the amount of the tax paid on taxable royalty oil and gas, or                             
23       may deduct taxable royalty oil or gas equivalent in value at the time the tax becomes                             
24       due to the amount of the tax paid. If the total deductions of installment payments of                             
25       estimated tax for a calendar year exceed the actual tax for that calendar year, the                               
26       producer shall, before April 1 of the following year, refund the excess to the royalty                            
27       owner. In making settlement with the royalty owner for gas that is taxable under                                  
28       AS 43.55.014, the producer may deduct the amount of the gas paid as in kind tax on                                
29       taxable royalty gas or may deduct the gross value at the point of production of the gas                           
30       paid as in-kind tax on taxable royalty gas. Unless otherwise agreed between the                                   
31       producer and the royalty owner, the amount of the tax paid under AS 43.55.011(e) on                               
01       taxable royalty oil for a calendar year, other than oil the ownership or right to which                           
02       constitutes a landowner's royalty interest, is considered to be the gross value at the                            
03       point of production of the taxable royalty oil produced during the calendar year                                  
04       multiplied by a figure that is a quotient, in which                                                               
05                 (1)  the numerator is the producer's total tax liability under                                          
06       AS 43.55.011(e)(3)(A) for the calendar year of production; and                                                    
07                 (2)  the denominator is the total gross value at the point of production                                
08       of the oil taxable under AS 43.55.011(e) produced by the producer from all leases and                             
09       properties in the state during the calendar year.                                                                 
10    * Sec. 53. AS 43.55.030(a) is amended to read:                                                                     
11            (a)  A producer that produces oil or gas from a lease or property in the state                               
12       during a calendar year, whether or not any tax payment is due under AS 43.55.020(a)                               
13       for that oil or gas, shall file with the department on March 31 of the following year a                           
14       statement, under oath, in a form prescribed by the department, giving, with other                                 
15       information required, the following:                                                                              
16                 (1)  a description of each lease or property from which oil or gas was                                  
17       produced, by name, legal description, lease number, or accounting codes assigned by                               
18       the department;                                                                                                   
19                 (2)  the names of the producer and, if different, the person paying the                                 
20       tax, if any;                                                                                                      
21                 (3)  the gross amount of oil and the gross amount of gas produced from                                  
22       each lease or property, separately identifying the gross amount of gas produced                               
23       from each oil and gas lease to which an effective election under AS 43.55.014(a)                              
24       applies, the amount of gas delivered to the state under AS 43.55.014(b), and the                              
25       percentage of the gross amount of oil and gas owned by the producer;                                              
26                 (4)  the gross value at the point of production of the oil and of the gas                               
27       produced from each lease or property owned by the producer and the costs of                                       
28       transportation of the oil and gas;                                                                                
29                 (5)  the name of the first purchaser and the price received for the oil and                             
30       for the gas, unless relieved from this requirement in whole or in part by the                                     
31       department;                                                                                                       
01                 (6)  the producer's qualified capital expenditures, as defined in                                       
02       AS 43.55.023, other lease expenditures under AS 43.55.165, and adjustments or other                               
03       payments or credits under AS 43.55.170;                                                                           
04                 (7)  the production tax values of the oil and gas under AS 43.55.160(a)                             
05       or of the oil under AS 43.55.160(h), as applicable [AS 43.55.160];                                            
06                 (8)  any claims for tax credits to be applied; and                                                      
07                 (9)  calculations showing the amounts, if any, that were or are due                                     
08       under AS 43.55.020(a) and interest on any underpayment or overpayment.                                            
09    * Sec. 54. AS 43.55.160(a) is amended to read:                                                                     
10            (a)  For oil and gas produced before January 1, 2022, except [EXCEPT] as                                 
11       provided in (b), (f), and (g) of this section, for the purposes of                                                
12                 (1)  AS 43.55.011(e)(1) and (2) [AS 43.55.011(e)], the annual                                       
13       production tax value of taxable oil, gas, or oil and gas produced during a calendar year                          
14       in a category for which a separate annual production tax value is required to be                                  
15       calculated under this paragraph is the gross value at the point of production of that oil,                        
16       gas, or oil and gas taxable under AS 43.55.011(e), less the producer's lease                                      
17       expenditures under AS 43.55.165 for the calendar year applicable to the oil, gas, or oil                          
18       and gas in that category produced by the producer during the calendar year, as                                    
19       adjusted under AS 43.55.170; a separate annual production tax value shall be                                      
20       calculated for                                                                                                    
21                      (A)  oil and gas produced from leases or properties in the state                                   
22            that include land north of 68 degrees North latitude, other than gas produced                                
23            before 2022 and used in the state;                                                                           
24                      (B)  oil and gas produced from leases or properties in the state                                   
25            outside the Cook Inlet sedimentary basin, no part of which is north of 68                                    
26            degrees North latitude and that qualifies for a tax credit under AS 43.55.024(a)                             
27            and (b); this subparagraph does not apply to                                                                 
28                           (i)  gas produced before 2022 and used in the state; or                                       
29                           (ii)  oil and gas subject to AS 43.55.011(p);                                                 
30                      (C)  oil produced before 2022 from each lease or property in the                                   
31            Cook Inlet sedimentary basin;                                                                                
01                      (D)  gas produced before 2022 from each lease or property in                                       
02            the Cook Inlet sedimentary basin;                                                                            
03                      (E)  gas produced before 2022 from each lease or property in                                       
04            the state outside the Cook Inlet sedimentary basin and used in the state, other                              
05            than gas subject to AS 43.55.011(p);                                                                         
06                      (F)  oil and gas subject to AS 43.55.011(p) produced from                                          
07            leases or properties in the state;                                                                           
08                      (G)  oil and gas produced from leases or properties in the state                                   
09            no part of which is north of 68 degrees North latitude, other than oil or gas                                
10            described in (B), (C), (D), (E), or (F) of this paragraph;                                                   
11                 (2)  AS 43.55.011(g), for oil and gas produced before January 1, 2014,                                  
12       the monthly production tax value of the taxable                                                                   
13                      (A)  oil and gas produced during a month from leases or                                            
14            properties in the state that include land north of 68 degrees North latitude is the                          
15            gross value at the point of production of the oil and gas taxable under                                      
16            AS 43.55.011(e) and produced by the producer from those leases or properties,                                
17            less 1/12 of the producer's lease expenditures under AS 43.55.165 for the                                    
18            calendar year applicable to the oil and gas produced by the producer from                                    
19            those leases or properties, as adjusted under AS 43.55.170; this subparagraph                                
20            does not apply to gas subject to AS 43.55.011(o);                                                            
21                      (B)  oil and gas produced during a month from leases or                                            
22            properties in the state outside the Cook Inlet sedimentary basin, no part of                                 
23            which is north of 68 degrees North latitude, is the gross value at the point of                              
24            production of the oil and gas taxable under AS 43.55.011(e) and produced by                                  
25            the producer from those leases or properties, less 1/12 of the producer's lease                              
26            expenditures under AS 43.55.165 for the calendar year applicable to the oil and                              
27            gas produced by the producer from those leases or properties, as adjusted under                              
28            AS 43.55.170; this subparagraph does not apply to gas subject to                                             
29            AS 43.55.011(o);                                                                                             
30                      (C)  oil produced during a month from a lease or property in the                                   
31            Cook Inlet sedimentary basin is the gross value at the point of production of                                
01            the oil taxable under AS 43.55.011(e) and produced by the producer from that                                 
02            lease or property, less 1/12 of the producer's lease expenditures under                                      
03            AS 43.55.165 for the calendar year applicable to the oil produced by the                                     
04            producer from that lease or property, as adjusted under AS 43.55.170;                                        
05                      (D)  gas produced during a month from a lease or property in                                       
06            the Cook Inlet sedimentary basin is the gross value at the point of production                               
07            of the gas taxable under AS 43.55.011(e) and produced by the producer from                                   
08            that lease or property, less 1/12 of the producer's lease expenditures under                                 
09            AS 43.55.165 for the calendar year applicable to the gas produced by the                                     
10            producer from that lease or property, as adjusted under AS 43.55.170;                                        
11                      (E)  gas produced during a month from a lease or property                                          
12            outside the Cook Inlet sedimentary basin and used in the state is the gross                                  
13            value at the point of production of that gas taxable under AS 43.55.011(e) and                               
14            produced by the producer from that lease or property, less 1/12 of the                                       
15            producer's lease expenditures under AS 43.55.165 for the calendar year                                       
16            applicable to that gas produced by the producer from that lease or property, as                              
17            adjusted under AS 43.55.170.                                                                                 
18    * Sec. 55. AS 43.55.160(e) is amended to read:                                                                     
19            (e)  Any adjusted lease expenditures under AS 43.55.165 and 43.55.170 that                                   
20       would otherwise be deductible by a producer in a calendar year but whose deduction                                
21       would cause an annual production tax value calculated under (a)(1) or (h) of this                             
22       section of taxable oil or gas produced during the calendar year to be less than zero                              
23       may be used to establish a carried-forward annual loss under AS 43.55.023(b).                                     
24       However, the department shall provide by regulation a method to ensure that, for a                                
25       period for which a producer's tax liability is limited by AS 43.55.011(j), (k), (o), or                           
26       (p), any adjusted lease expenditures under AS 43.55.165 and 43.55.170 that would                                  
27       otherwise be deductible by a producer for that period but whose deduction would                                   
28       cause a production tax value calculated under (a)(1)(C), (D), (E), [OR] (F), or (h)(3)                        
29       of this section to be less than zero are accounted for as though the adjusted lease                               
30       expenditures had first been used as deductions in calculating the production tax values                           
31       of oil or gas subject to any of the limitations under AS 43.55.011(j), (k), (o), or (p) that                      
01       have positive production tax values so as to reduce the tax liability calculated without                          
02       regard to the limitation to the maximum amount provided for under the applicable                                  
03       provision of AS 43.55.011(j), (k), (o), or (p). Only the amount of those adjusted lease                           
04       expenditures remaining after the accounting provided for under this subsection may be                             
05       used to establish a carried-forward annual loss under AS 43.55.023(b). In this                                    
06       subsection, "producer" includes "explorer."                                                                       
07    * Sec. 56. AS 43.55.160(f) is amended to read:                                                                     
08            (f)  On and after January 1, 2014, in the calculation of an annual production tax                            
09       value of a producer under (a)(1)(A) or (h)(1) [(a)(1)] of this section, the gross value at                    
10       the point of production of oil or gas produced from a lease or property north of 68                               
11       degrees North latitude meeting one or more of the following criteria is reduced by 20                             
12       percent: (1) the oil or gas is produced from a lease or property that does not contain a                          
13       lease that was within a unit on January 1, 2003; (2) the oil or gas is produced from a                            
14       participating area established after December 31, 2011, that is within a unit formed                              
15       under AS 38.05.180(p) before January 1, 2003, if the participating area does not                                  
16       contain a reservoir that had previously been in a participating area established before                           
17       December 31, 2011; (3) the oil or gas is produced from acreage that was added to an                               
18       existing participating area by the Department of Natural Resources on and after                                   
19       January 1, 2014, and the producer demonstrates to the department that the volume of                               
20       oil or gas produced is from acreage added to an existing participating area. This                                 
21       subsection does not apply to gas produced before 2022 that is used in the state or to                         
22       gas produced on and after January 1, 2022. A reduction under this subsection may                              
23       not reduce the gross value at the point of production below zero. In this subsection,                             
24       "participating area" means a reservoir or portion of a reservoir producing or                                     
25       contributing to production as approved by the Department of Natural Resources.                                    
26    * Sec. 57. AS 43.55.160(g) is amended to read:                                                                     
27            (g)  On and after January 1, 2014, in addition to the reduction under (f) of this                            
28       section, in the calculation of an annual production tax value of a producer under                                 
29       (a)(1)(A) or (h)(1) [(a)(1)] of this section, the gross value at the point of production of                   
30       oil or gas produced from a lease or property north of 68 degrees North latitude that                          
31       does not contain a lease that was within a unit on January 1, 2003, is reduced by 10                              
01       percent if the oil or gas is produced from a unit made up solely of leases that have a                            
02       royalty share of more than 12.5 percent in amount or value of the production removed                              
03       or sold from the lease as determined under AS 38.05.180(f). This subsection does not                              
04       apply if the royalty obligation for one or more of the leases in the unit has been                                
05       reduced to 12.5 percent or less under AS 38.05.180(j) for all or part of the calendar                             
06       year for which the annual production tax value is calculated. This subsection does not                            
07       apply to gas produced before 2022 that is used in the state or to gas produced on and                         
08       after January 1, 2022. A reduction under this subsection may not reduce the gross                             
09       value at the point of production below zero.                                                                      
10    * Sec. 58. AS 43.55.160 is amended by adding a new subsection to read:                                             
11            (h)  For oil produced on and after January 1, 2022, except as provided in (b),                               
12       (f), and (g) of this section, for the purposes of AS 43.55.011(e)(3), the annual                                  
13       production tax value of oil taxable under AS 43.55.011(e) produced by a producer                                  
14       during a calendar year                                                                                            
15                 (1)  from leases or properties in the state that include land north of 68                               
16       degrees North latitude is the gross value at the point of production of that oil, less the                        
17       producer's lease expenditures under AS 43.55.165 for the calendar year incurred to                                
18       explore for, develop, or produce oil and gas deposits located in the state north of 68                            
19       degrees North latitude or located in leases or properties in the state that include land                          
20       north of 68 degrees North latitude, as adjusted under AS 43.55.170;                                               
21                 (2)  before or during the last calendar year under AS 43.55.024(b) for                                  
22       which the producer could take a tax credit under AS 43.55.024(a), from leases or                                  
23       properties in the state outside the Cook Inlet sedimentary basin, no part of which is                             
24       north of 68 degrees North latitude, other than leases or properties subject to                                    
25       AS 43.55.011(p), is the gross value at the point of production of that oil, less the                              
26       producer's lease expenditures under AS 43.55.165 for the calendar year incurred to                                
27       explore for, develop, or produce oil and gas deposits located in the state outside the                            
28       Cook Inlet sedimentary basin and south of 68 degrees North latitude, other than oil                               
29       and gas deposits located in a lease or property that includes land north of 68 degrees                            
30       North latitude or that is subject to AS 43.55.011(p) or, before January 1, 2027, from                             
31       which commercial production has not begun, as adjusted under AS 43.55.170;                                        
01                 (3)  from leases or properties subject to AS 43.55.011(p) is the gross                                  
02       value at the point of production of that oil, less the producer's lease expenditures under                        
03       AS 43.55.165 for the calendar year incurred to explore for, develop, or produce oil and                           
04       gas deposits located in leases or properties subject to AS 43.55.011(p) or, before                                
05       January 1, 2027, located in leases or properties in the state outside the Cook Inlet                              
06       sedimentary basin, no part of which is north of 68 degrees North latitude from which                              
07       commercial production has not begun, as adjusted under AS 43.55.170;                                              
08                 (4)  from leases or properties in the state no part of which is north of 68                             
09       degrees North latitude, other than leases or properties subject to (2) or (3) of this                             
10       subsection, is the gross value at the point of production of that oil less the producer's                         
11       lease expenditures under AS 43.55.165 for the calendar year incurred to explore for,                              
12       develop, or produce oil and gas deposits located in the state south of 68 degrees North                           
13       latitude, other than oil and gas deposits located in a lease or property in the state that                        
14       includes land north of 68 degrees North latitude, and excluding lease expenditures that                           
15       are deductible under (2) or (3) of this subsection or would be deductible under (2) or                            
16       (3) of this subsection if not prohibited by (b) of this section, as adjusted under                                
17       AS 43.55.170.                                                                                                     
18    * Sec. 59. AS 43.55.165(e) is amended to read:                                                                     
19            (e)  For purposes of this section, lease expenditures do not include                                         
20                 (1)  depreciation, depletion, or amortization;                                                          
21                 (2)  oil or gas royalty payments, production payments, lease profit                                     
22       shares, or other payments or distributions of a share of oil or gas production, profit, or                        
23       revenue, except that a producer's lease expenditures applicable to oil and gas produced                           
24       from a lease issued under AS 38.05.180(f)(3)(B), (D), or (E) include the share of net                             
25       profit paid to the state under that lease;                                                                        
26                 (3)  taxes based on or measured by net income;                                                          
27                 (4)  interest or other financing charges or costs of raising equity or debt                             
28       capital;                                                                                                          
29                 (5)  acquisition costs for a lease or property or exploration license;                                  
30                 (6)  costs arising from fraud, wilful misconduct, gross negligence,                                     
31       violation of law, or failure to comply with an obligation under a lease, permit, or                               
01       license issued by the state or federal government;                                                                
02                 (7)  fines or penalties imposed by law;                                                                 
03                 (8)  costs of arbitration, litigation, or other dispute resolution activities                           
04       that involve the state or concern the rights or obligations among owners of interests in,                         
05       or rights to production from, one or more leases or properties or a unit;                                         
06                 (9)  costs incurred in organizing a partnership, joint venture, or other                                
07       business entity or arrangement;                                                                                   
08                 (10)  amounts paid to indemnify the state; the exclusion provided by                                    
09       this paragraph does not apply to the costs of obtaining insurance or a surety bond from                           
10       a third-party insurer or surety;                                                                                  
11                 (11)  surcharges levied under AS 43.55.201 or 43.55.300;                                                
12                 (12)  an expenditure otherwise deductible under (b) of this section that                                
13       is a result of an internal transfer, a transaction with an affiliate, or a transaction                            
14       between related parties, or is otherwise not an arm's length transaction, unless the                              
15       producer establishes to the satisfaction of the department that the amount of the                                 
16       expenditure does not exceed the fair market value of the expenditure;                                             
17                 (13)  an expenditure incurred to purchase an interest in any corporation,                               
18       partnership, limited liability company, business trust, or any other business entity,                             
19       whether or not the transaction is treated as an asset sale for federal income tax                                 
20       purposes;                                                                                                         
21                 (14)  a tax levied under AS 43.55.011 or 43.55.014;                                                 
22                 (15)  costs incurred for dismantlement, removal, surrender, or                                          
23       abandonment of a facility, pipeline, well pad, platform, or other structure, or for the                           
24       restoration of a lease, field, unit, area, tract of land, body of water, or right-of-way in                       
25       conjunction with dismantlement, removal, surrender, or abandonment; a cost is not                                 
26       excluded under this paragraph if the dismantlement, removal, surrender, or                                        
27       abandonment for which the cost is incurred is undertaken for the purpose of replacing,                            
28       renovating, or improving the facility, pipeline, well pad, platform, or other structure;                          
29                 (16)  costs incurred for containment, control, cleanup, or removal in                                   
30       connection with any unpermitted release of oil or a hazardous substance and any                                   
31       liability for damages imposed on the producer or explorer for that unpermitted release;                           
01       this paragraph does not apply to the cost of developing and maintaining an oil                                    
02       discharge prevention and contingency plan under AS 46.04.030;                                                     
03                 (17)  costs incurred to satisfy a work commitment under an exploration                                  
04       license under AS 38.05.132;                                                                                       
05                 (18)  that portion of expenditures, that would otherwise be qualified                                   
06       capital expenditures, as defined in AS 43.55.023, incurred during a calendar year that                            
07       are less than the product of $0.30 multiplied by the total taxable production from each                           
08       lease or property, in BTU equivalent barrels, during that calendar year, except that,                             
09       when a portion of a calendar year is subject to this provision, the expenditures and                              
10       volumes shall be prorated within that calendar year;                                                              
11                 (19)  costs incurred for repair, replacement, or deferred maintenance of                                
12       a facility, a pipeline, a structure, or equipment, other than a well, that results in or is                       
13       undertaken in response to a failure, problem, or event that results in an unscheduled                             
14       interruption of, or reduction in the rate of, oil or gas production; or costs incurred for                        
15       repair, replacement, or deferred maintenance of a facility, a pipeline, a structure, or                           
16       equipment, other than a well, that is undertaken in response to, or is otherwise                                  
17       associated with, an unpermitted release of a hazardous substance or of gas; however,                              
18       costs under this paragraph that would otherwise constitute lease expenditures under (a)                           
19       and (b) of this section may be treated as lease expenditures if the department                                    
20       determines that the repair or replacement is solely necessitated by an act of war, by an                          
21       unanticipated grave natural disaster or other natural phenomenon of an exceptional,                               
22       inevitable, and irresistible character, the effects of which could not have been                                  
23       prevented or avoided by the exercise of due care or foresight, or by an intentional or                            
24       negligent act or omission of a third party, other than a party or its agents in privity of                        
25       contract with, or employed by, the producer or an operator acting for the producer, but                           
26       only if the producer or operator, as applicable, exercised due care in operating and                              
27       maintaining the facility, pipeline, structure, or equipment, and took reasonable                                  
28       precautions against the act or omission of the third party and against the consequences                           
29       of the act or omission; in this paragraph,                                                                        
30                      (A)  "costs incurred for repair, replacement, or deferred                                          
31            maintenance of a facility, a pipeline, a structure, or equipment" includes costs                             
01            to dismantle and remove the facility, pipeline, structure, or equipment that is                              
02            being replaced;                                                                                              
03                      (B)  "hazardous substance" has the meaning given in                                                
04            AS 46.03.826;                                                                                                
05                      (C)  "replacement" includes renovation or improvement;                                             
06                 (20)  costs incurred to construct, acquire, or operate a refinery or crude                              
07       oil topping plant, regardless of whether the products of the refinery or topping plant                            
08       are used in oil or gas exploration, development, or production operations; however, if                            
09       a producer owns a refinery or crude oil topping plant that is located on or near the                              
10       premises of the producer's lease or property in the state and that processes the                                  
11       producer's oil produced from that lease or property into a product that the producer                              
12       uses in the operation of the lease or property in drilling for or producing oil or gas, the                       
13       producer's lease expenditures include the amount calculated by subtracting from the                               
14       fair market value of the product used the prevailing value, as determined under                                   
15       AS 43.55.020(f), of the oil that is processed;                                                                    
16                 (21)  costs of lobbying, public relations, public relations advertising, or                             
17       policy advocacy.                                                                                                  
18    * Sec. 60. AS 43.55.900(10) is amended to read:                                                                    
19                 (10)  "gas processing plant" means a facility that                                                      
20                      (A)  extracts and recovers liquid hydrocarbons from a gaseous                                      
21            mixture of hydrocarbons by gas processing; and                                                               
22                      (B)  is located upstream of the inlet of any pipeline                                      
23            transporting gas to a gas treatment plant and upstream of the inlet of any gas                       
24            pipeline system transporting gas to a market;                                                                
25    * Sec. 61. AS 43.55.900(20) is amended to read:                                                                    
26                 (20)  "point of production" means                                                                       
27                      (A)  for oil, the automatic custody transfer meter or device                                       
28            through which the oil enters into the facilities of a carrier pipeline or other                              
29            transportation carrier in a condition of pipeline quality; in the absence of an                              
30            automatic custody transfer meter or device, "point of production" means the                                  
31            mechanism or device to measure the quantity of oil that has been approved by                                 
01            the department for that purpose, through which the oil is tendered and accepted                              
02            in a condition of pipeline quality into the facilities of a carrier pipeline or other                        
03            transportation carrier or into a field topping plant;                                                        
04                      (B)  for gas [, OTHER THAN GAS DESCRIBED IN (C) OF                                                 
05            THIS PARAGRAPH,] that is                                                                                     
06                           (i)  not subjected to or recovered by mechanical                                              
07                 separation or run through a gas processing plant, the farthest upstream                             
08                 of the first point where the gas is accurately metered, the inlet of any                      
09                 pipeline transporting the gas to a gas treatment plant, or the inlet                                
10                 of any gas pipeline system transporting the gas to a market;                                        
11                           (ii)  subjected to or recovered by mechanical separation                                      
12                 but not run through a gas processing plant, the farthest upstream of                                
13                 the first point where the gas is accurately metered after completion of                             
14                 mechanical separation, the inlet of any pipeline transporting the gas                             
15                 after completion of mechanical separation to a gas treatment plant,                                 
16                 or the inlet of any gas pipeline system transporting the gas after                                  
17                 mechanical separation to a market;                                                                  
18                           (iii)  run through a gas processing plant, the farthest                                   
19                 upstream of the first point where the gas is accurately metered                                     
20                 downstream of the gas processing plant, the inlet of any pipeline                               
21                 downstream of the gas processing plant transporting the gas to a                                    
22                 gas treatment plant, or the inlet of any gas pipeline system                                        
23                 downstream of the gas processing plant transporting the gas to a                                    
24                 market [;                                                                                           
25                      (C)  FOR GAS RUN THROUGH AN INTEGRATED GAS                                                         
26            PROCESSING PLANT AND GAS TREATMENT FACILITY THAT DOES                                                        
27            NOT ACCURATELY METER THE GAS AFTER THE GAS PROCESSING                                                        
28            AND BEFORE THE GAS TREATMENT, THE FIRST POINT WHERE GAS                                                      
29            PROCESSING IS COMPLETED OR WHERE GAS TREATMENT BEGINS,                                                       
30            WHICHEVER IS FURTHER UPSTREAM];                                                                            
31    * Sec. 62. AS 43.55.900 is amended by adding a new paragraph to read:                                              
01                 (25)  "gas treatment plant" means a facility that performs gas treatment,                               
02       regardless of whether the facility also performs gas processing.                                                  
03    * Sec. 63. AS 43.90.900(18) is amended to read:                                                                    
04                 (18)  "point of production" has the meaning given in AS 43.55.900 as                                
05       that section read on June 8, 2007;                                                                            
06    * Sec. 64. AS 43.98.030(c) is amended to read:                                                                     
07            (c)  A taxpayer acquiring a transferable tax credit certificate may use the credit                           
08       or a portion of the credit to offset taxes imposed under AS 21.09.210, AS 21.66.110,                              
09       AS 43.20, AS 43.55.011 [AS 43.55], AS 43.56, AS 43.65, AS 43.75, and AS 43.77.                                
10       Except as provided in (e) of this section, any portion of the credit not used may be                              
11       used at a later period or transferred under (b) of this section.                                                  
12    * Sec. 65. AS 43.98.050 is amended to read:                                                                        
13            Sec. 43.98.050. Duties. The duties of the board include the following:                                     
14                 (1)  establish and maintain a salient collection of information related to                              
15       oil and gas exploration, development, and production in the state and related to tax                              
16       structures, rates, and credits in other regions with oil and gas resources;                                       
17                 (2)  review historical, current, and potential levels of investment in the                              
18       state's oil and gas sector;                                                                                       
19                 (3)  identify factors that affect investment in oil and gas exploration,                                
20       development, and production in the state, including tax structure, rates, and credits;                            
21       royalty requirements; infrastructure; workforce availability; and regulatory                                      
22       requirements;                                                                                                     
23                 (4)  review the competitive position of the state to attract and maintain                               
24       investment in the oil and gas sector in the state as compared to the competitive                                  
25       position of other regions with oil and gas resources;                                                             
26                 (5)  in order to facilitate the work of the board, establish procedures to                              
27       accept and keep confidential information that is beneficial to the work of the board,                             
28       including the creation of a secure data room and confidentiality agreements to be                                 
29       signed by individuals having access to confidential information;                                                  
30                 (6)  make written findings and recommendations to the Alaska State                                      
31       Legislature before                                                                                                
01                      (A)  January 31, 2015, or as soon thereafter as practicable,                                       
02            regarding                                                                                                    
03                           (i)  changes to the state's regulatory environment and                                        
04                 permitting structure that would be conducive to encouraging increased                                   
05                 investment while protecting the interests of the people of the state and                                
06                 the environment;                                                                                        
07                           (ii)  the status of the oil and gas industry labor pool in                                    
08                 the state and the effectiveness of workforce development efforts by the                                 
09                 state;                                                                                                  
10                           (iii)  the status of the oil-and-gas-related infrastructure                                   
11                 of the state, including a description of infrastructure deficiencies; and                               
12                           (iv)  the competitiveness of the state's fiscal oil and gas                                   
13                 tax regime when compared to other regions of the world;                                                 
14                      (B)  January 15, 2017, regarding                                                               
15                           (i)  the state's tax structure and rates on oil and gas                                   
16                 produced south of 68 degrees North latitude;                                                        
17                           (ii)  a tax structure that takes into account the unique                                  
18                 economic circumstances for each oil and gas producing area south                                    
19                 of 68 degrees North latitude;                                                                       
20                           (iii)  a reduction in the gross value at the point of                                     
21                 production for oil and gas produced south of 68 degrees North                                       
22                 latitude that is similar to the reduction in gross value at the point of                            
23                 production in AS 43.55.160(f) and (g);                                                              
24                           (iv)  other incentives for oil and gas production south                                   
25                 of 68 degrees North latitude;                                                                       
26                      (C)  January 31, 2021, or as soon thereafter as practicable,                                   
27            regarding                                                                                                    
28                           (i)  changes to the state's fiscal regime that would be                                       
29                 conducive to increased and ongoing long-term investment in and                                          
30                 development of the state's oil and gas resources;                                                       
31                           (ii)  alternative means for increasing the state's ability to                                 
01                 attract and maintain investment in and development of the state's oil                                   
02                 and gas resources; and                                                                                  
03                           (iii)  a review of the current effectiveness and future                                       
04                 value of any provisions of the state's oil and gas tax laws that are                                    
05                 expiring in the next five years.                                                                        
06    * Sec. 66. AS 31.25.080(f) is repealed.                                                                            
07    * Sec. 67. The uncodified law of the State of Alaska is amended by adding a new section to                         
08 read:                                                                                                                   
09       REPORT AND RECOMMENDATIONS BY THE COMMISSIONER OF                                                                 
10 NATURAL RESOURCES ON THE DELIVERY AND AVAILABILITY OF NORTH                                                             
11 SLOPE NATURAL GAS IN THE STATE; IDENTIFICATION OF RISKS AND                                                             
12 RECOMMENDATIONS FOR MITIGATION. (a) The commissioner of natural resources in                                            
13 consultation with the Alaska Gasline Development Corporation shall prepare and make                                     
14 available to the legislature a report on a plan and alternatives to make North Slope natural gas                        
15 available for delivery and use in the state. The report must address                                                    
16            (1)  the means by which North Slope natural gas may be delivered for use in                                  
17 the state;                                                                                                              
18            (2)  the anticipated benefits, risks, and liabilities to the state associated with the                       
19 sale by the state to utilities and other customers in the state of natural gas received by the state                    
20 as royalty in kind or as payment of tax;                                                                                
21            (3)  the effect and consequences, including the fiscal effect and liability to third                         
22 parties, of the state's transport of a reduced amount of natural gas south of an in-state delivery                      
23 point or underutilizing capacity in a liquefied natural gas plant; and                                                  
24            (4)  other issues the commissioner of natural resources determines are relevant                              
25 to the delivery and use of North Slope natural gas in the state and should be considered by the                         
26 legislature.                                                                                                            
27       (b)  In conjunction with the report in (a) of this section, the commissioner of natural                           
28 resources shall recommend the means for eliminating or minimizing the risks and liabilities                             
29 identified in the report.                                                                                               
30       (c)  The commissioner of natural resources shall make the report and                                              
31 recommendations required by this section available to the legislature on or before the date a                           
01 firm transportation services agreement in a North Slope natural gas project to which the state                          
02 is a party is submitted to the legislature for approval.                                                                
03       (d)  In this section, "North Slope natural gas project" has the meaning given in                                  
04 AS 38.05.965, as amended by sec. 30 of this Act.                                                                        
05    * Sec. 68. The uncodified law of the State of Alaska is amended by adding a new section to                         
06 read:                                                                                                                   
07       REQUESTING THE GOVERNOR TO ESTABLISH AN INTERIM ADVISORY                                                          
08 BOARD. (a) The legislature requests the governor to establish an interim advisory board                                 
09 under AS 44.19.028 to advise the governor on municipal involvement in a North Slope                                     
10 natural gas project. Members of the advisory board may include representatives of                                       
11 municipalities, the commissioner of natural resources, the commissioner of revenue,                                     
12 representatives of oil and gas and gas only lessees on the North Slope, and representatives of                          
13 other persons expected to be directly involved in the development of a North Slope natural                              
14 gas project.                                                                                                            
15       (b)  The advisory board shall review available information, hold public meetings, and                             
16 provide annual reports by December 15 of each year to the governor that include                                         
17            (1)  the potential impact and benefits of new infrastructure for North Slope                                 
18 natural gas development, whether designed to provide natural gas for in-state sale or for                               
19 export, or both, on communities in the state, including consideration of tax structure under                            
20 AS 29.45 and AS 43.56, and consideration of other payments before construction of new                                   
21 infrastructure associated with North Slope natural gas development;                                                     
22            (2)  recommendations for changes to the oil and gas exploration, production,                                 
23 and pipeline transportation property taxes under AS 43.56 related to infrastructure for                                 
24 commercialization of natural gas that would facilitate development of a major natural gas                               
25 project and mitigate financial impacts to communities affected by development of a North                                
26 Slope natural gas project;                                                                                              
27            (3)  recommendations for changes to AS 29.45.080 related to the                                              
28 commercialization of natural gas that would facilitate development of a North Slope natural                             
29 gas project and mitigate financial impacts to communities affected by a North Slope natural                             
30 gas project;                                                                                                            
31            (4)  recommendations for legislative or other options to minimize the financial                              
01 impact to communities in proximity to North Slope natural gas project infrastructure during                             
02 construction of a natural gas pipeline and associated infrastructure; and                                               
03            (5)  recommendations on the impact and benefits to communities not in                                        
04 proximity to a North Slope natural gas project.                                                                         
05       (c)  In this section, "North Slope natural gas project" has the meaning given in                                  
06 AS 38.05.965, as amended by sec. 30 of this Act.                                                                        
07    * Sec. 69. The uncodified law of the State of Alaska is amended by adding a new section to                         
08 read:                                                                                                                   
09       PLAN AND RECOMMENDATIONS TO THE LEGISLATURE ON                                                                    
10 INFRASTRUCTURE NEEDED TO DELIVER AFFORDABLE ENERGY TO AREAS IN                                                          
11 THE STATE THAT DO NOT HAVE DIRECT ACCESS TO A NORTH SLOPE NATURAL                                                       
12 GAS PIPELINE. (a) The Alaska Energy Authority, in consultation with the Alaska Gasline                                  
13 Development Corporation, the Alaska Industrial Development and Export Authority, and the                                
14 Department of Revenue, shall develop a plan for developing infrastructure to deliver more                               
15 affordable energy to areas of the state that are not expected to have direct access to a North                          
16 Slope natural gas pipeline. The plan must identify ownership options, different energy                                  
17 sources, including fossil fuels, hydro projects, tidal, and other alternative energy sources, and                       
18 describe and recommend the means for generating, delivering, receiving, and storing energy                              
19 in the most cost-efficient manner. For those citizens for whom there is no economically viable                          
20 infrastructure available, the plan must recommend the means for directly underwriting the                               
21 energy costs of the citizens to make their energy costs more affordable. The Alaska Energy                              
22 Authority may consider the development of regional energy systems that can receive and store                            
23 bulk fuel in quantity and distribute that fuel as needed within the region.                                             
24       (b)  The Alaska Energy Authority, in consultation with the Department of Revenue,                                 
25 shall recommend a plan for funding the design, development, and construction of the required                            
26 infrastructure and may identify a source of rent, royalty, income, or tax received by the state                         
27 that may be appropriated by the legislature to implement the plan.                                                      
28       (c)  The Alaska Energy Authority shall provide the plan and suggested legislation for                             
29 the design, development, construction, and financing of the required infrastructure to the                              
30 legislature before January 1, 2017.                                                                                     
31    * Sec. 70. The uncodified law of the State of Alaska is amended by adding a new section to                         
01 read:                                                                                                                   
02       DEVELOPMENT OF A PLAN FOR MUNICIPALITIES, REGIONAL                                                                
03 CORPORATIONS, AND RESIDENTS TO PARTICIPATE IN THE OWNERSHIP OF A                                                        
04 NORTH SLOPE NATURAL GAS PIPELINE; IDENTIFICATION OF AND REPORT ON                                                       
05 FINANCING OPTIONS FOR STATE OWNERSHIP AND PARTICIPATION IN A                                                            
06 NORTH SLOPE NATURAL GAS PROJECT. (a) The commissioner of revenue shall identify                                         
07 and report to the legislature on a range of financing options for state acquisition of an                               
08 ownership interest and participation in a North Slope natural gas project. The report must                              
09 include a description of the risk associated with each option and the effect of each option on                          
10 the bonding capacity and bond rating of the state. In this subsection, "North Slope natural gas                         
11 project" has the meaning given in AS 38.05.965, as amended by sec. 30 of this Act.                                      
12       (b)  The commissioner shall make an interim draft of the report described in (a) of this                          
13 section available to the legislature on the first day of the First Regular Session of the Twenty-                       
14 Ninth Alaska State Legislature, and a final report at the time the commissioner of natural                              
15 resources submits the first agreement or contract to the legislature for approval under                                 
16 AS 38.05.020(b)(11), enacted by sec. 19 of this Act.                                                                    
17       (c)  At the time the commissioner of natural resources submits the first agreement or                             
18 contract to the legislature for approval under AS 38.05.020(b)(11), enacted by sec. 19 of this                          
19 Act, the commissioner of revenue shall present a plan and suggested legislation to allow a                              
20 municipality, regional corporation, or resident of the state to participate as a co-owner in a                          
21 North Slope natural gas pipeline. The plan must include the recommendations and analysis by                             
22 the commissioner as to                                                                                                  
23            (1)  the means by which a municipality, regional corporation, or resident may                                
24 invest in the North Slope natural gas pipeline; for a resident, the means may include providing                         
25 an option to designate an amount of a permanent fund dividend to be deducted for the                                    
26 investment;                                                                                                             
27            (2)  whether the ownership interest in a North Slope natural gas pipeline should                             
28 be acquired from the portion of a North Slope natural gas pipeline acquired by the state,                               
29 through the purchase of stock in a publicly traded corporation that invests in a North Slope                            
30 natural gas pipeline, or some other means;                                                                              
31            (3)  the means for providing notice to a municipality, regional corporation, or                              
01 resident receiving an ownership interest that explains the type of ownership interest and the                           
02 rights and obligations related to that ownership interest;                                                              
03            (4)  whether the ownership interest received by a municipality, regional                                     
04 corporation, or resident may be transferred or assigned to another person and the means for                             
05 transferring the interest;                                                                                              
06            (5)  the means by which the proportional share of a dividend or other income                                 
07 may be distributed to a municipality, regional corporation, resident, or transferee of an interest                      
08 if the municipality, regional corporation, or resident receives an ownership interest acquired                          
09 by the state in a North Slope natural gas pipeline and the state receives a dividend or other                           
10 income from its ownership interest, and whether the payment should be subject to interest if                            
11 not timely distributed;                                                                                                 
12            (6)  the means by which the commissioner may identify a publicly traded                                      
13 corporation that has an ownership interest in a North Slope natural gas pipeline that is subject                        
14 to investment by a municipality, regional corporation, or a resident under the proposed plan;                           
15            (7)  the means by which an individual may qualify as a resident for purposes of                              
16 investing in an ownership interest;                                                                                     
17            (8)  whether the ownership interest held by a municipality, regional                                         
18 corporation, or resident would be subject to project assessments;                                                       
19            (9)  how cash calls for the project and the expansion of the project would be                                
20 managed;                                                                                                                
21            (10)  the income tax consequences to the holder of an ownership interest,                                    
22 including the timing and recognition of income related to the ownership interest, including                             
23 differentiating income related to the ownership interest from the receipt of dividends or other                         
24 distributions;                                                                                                          
25            (11)  the risk that the receipt of a benefit from the project by a person other                              
26 than the state would make income received from the project by the state subject to federal                              
27 income tax; and                                                                                                         
28            (12)  constitutional issues that may be implicated by restricting ownership                                  
29 interests under the plan to residents and municipalities in the state.                                                  
30       (d)  In this section,                                                                                             
31            (1)  "municipality" has the meaning given in AS 01.10.060;                                                   
01            (2)  "North Slope natural gas pipeline" means a natural gas pipeline project that                            
02 transports natural gas produced in the state north of 68 degrees North latitude to a market in                          
03 the state or to tidewater for export from the state including a facility in the state for liquefying                    
04 natural gas for transport;                                                                                              
05            (3)  "regional corporation" means a regional corporation organized under 43                                  
06 U.S.C. 1606(a) as amended.                                                                                              
07    * Sec. 71. The uncodified law of the State of Alaska is amended by adding a new section to                         
08 read:                                                                                                                   
09       LEGISLATIVE BRIEFINGS. Before the first flow of gas in a North Slope natural gas                                  
10 project developed under the authority of this Act, the parties to the project shall, at least once                      
11 every four months, provide briefings to interested legislators, legislative staff, and legislative                      
12 consultants on the progress of a North Slope natural gas project developed under the authority                          
13 of this Act. A briefing under this section must be accompanied by a written report provided by                          
14 the Department of Natural Resources of the amount of money the state may be obligated to                                
15 pay a third party under an agreement or contract under AS 38.05.020(b)(10) or (11) if a North                           
16 Slope natural gas project is terminated before the first flow of gas in the project.                                    
17    * Sec. 72. The uncodified law of the State of Alaska is amended by adding a new section to                         
18 read:                                                                                                                   
19       TRANSITION: REGULATIONS. The Department of Revenue and the Department of                                          
20 Natural Resources may adopt regulations to implement this Act. The regulations take effect                              
21 under AS 44.62 (Administrative Procedure Act), but not before the effective date of the                                 
22 provisions of this Act being implemented.                                                                               
23    * Sec. 73. Sections 1 - 19, 22, 23, 30 - 34, 36, 37, 45, 47, and 63 - 72 of this Act take effect                   
24 immediately under AS 01.10.070(c).                                                                                      
25    * Sec. 74. Section 46 of this Act takes effect January 1, 2021.                                                    
26    * Sec. 75. Except as provided in secs. 73 and 74 of this Act, this Act takes effect January 1,                     
27 2015.