txt

HB 133: "An Act relating to the oil and gas production tax, tax payments, and tax credits; relating to adjustments to the gross value at the point of production; and providing for an effective date."

00                             HOUSE BILL NO. 133                                                                          
01 "An Act relating to the oil and gas production tax, tax payments, and tax credits;                                      
02 relating to adjustments to the gross value at the point of production; and providing for                                
03 an effective date."                                                                                                     
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1. The uncodified law of the State of Alaska is amended by adding a new section                          
06 to read:                                                                                                                
07       SHORT TITLE. This Act may be known as the Fair Share for Alaska's Oil Act.                                        
08    * Sec. 2. AS 31.05.030(n) is amended to read:                                                                      
09            (n)  Upon request of the commissioner of revenue, the commission shall                                       
10       determine the commencement of regular production from a lease or property for                                     
11       purposes of AS 43.55.160(f) [AND (g)].                                                                            
12    * Sec. 3. AS 43.55.011(e) is amended to read:                                                                      
13            (e)  There is levied on the producer of oil or gas a tax for all oil and gas                                 
14       produced each calendar year from each lease or property in the state, less any oil and                            
01 gas the ownership or right to which is exempt from taxation or constitutes a                                            
02 landowner's royalty interest or for which a tax is levied by AS 43.55.014. Except as                                    
03 otherwise provided under (f), (j), [(k),] (o), and (p) of this section, for oil and gas                                 
04       produced                                                                                                          
05                 (1)  before January 1, 2014, the tax is equal to the sum of                                             
06                      (A)  the annual production tax value of the taxable oil and gas                                    
07            as calculated under AS 43.55.160(a)(1) multiplied by 25 percent; and                                         
08                      (B)  the sum, over all months of the calendar year, of the tax                                     
09            amounts determined under (g) of this section;                                                                
10 (2)  on and after January 1, 2014, and before January 1, 2018 [2022],                                               
11 the tax is equal to the annual production tax value of the taxable oil and gas as                                       
12       calculated under AS 43.55.160(a)(1) multiplied by 35 percent;                                                     
13 (3)  on and after January 1, 2018, and before January 1, 2022, the                                                  
14       tax for                                                                                                       
15 (A)  oil produced from leases or properties outside the Cook                                                        
16 Inlet sedimentary basin that do not include land north of 68 degrees North                                          
17 latitude is equal to the annual production tax value of the oil as calculated                                       
18            under AS 43.55.160(a)(1) multiplied by 35 percent;                                                       
19 (B)  oil produced from leases or properties in the Cook Inlet                                                       
20            sedimentary basin is equal to the sum of                                                                 
21 (i)  the annual production tax value of the taxable oil                                                             
22 as calculated under AS 43.55.160(a)(1) multiplied by 22.5 percent;                                                  
23                 and                                                                                                 
24 (ii)  the sum, over all the months of the calendar                                                                  
25                 year, of the amounts determined under (g) of this section;                                          
26 (C)  oil produced from leases or properties that include land                                                       
27            north of 68 degrees North latitude is equal to the sum of                                                
28 (i)  the annual production tax value of the taxable oil                                                             
29 as calculated under AS 43.55.160(a)(1) multiplied by 35 percent;                                                    
30                 and                                                                                                 
31 (ii)  the sum, over all the months of the calendar                                                                  
01                 year, of the amounts determined under (g) of this section;                                          
02                      (D)  gas is equal to the annual production tax value of the                                    
03            taxable gas as calculated under AS 43.55.160(a)(1) multiplied by 35                                      
04            percent;                                                                                                 
05                 (4)  on and after January 1, 2022, the tax for                                                      
06 (A)  oil produced from leases or properties outside the Cook                                                        
07 Inlet sedimentary basin that do not include land north of 68 degrees North                                          
08 latitude is equal to the annual production tax value of the taxable oil as                                          
09 calculated under AS 43.55.160(h)(1) [AS 43.55.160(h)] multiplied by 35                                              
10            percent;                                                                                                     
11 (B)  oil produced from leases or properties in the Cook Inlet                                                       
12            sedimentary basin is equal to the sum of                                                                 
13 (i)  the annual production tax value of the taxable oil                                                             
14 as calculated under AS 43.55.160(h)(1) multiplied by 22.5 percent;                                                  
15                 and                                                                                                 
16 (ii)  the sum, over all the months of the calendar                                                                  
17                 year, of the amounts determined under (g) of this section;                                          
18 (C)  oil produced from leases or properties that include land                                                       
19            north of 68 degrees North latitude is equal to the sum of                                                
20 (i)  the annual production tax value of the taxable oil                                                             
21 as calculated under AS 43.55.160(h)(1) multiplied by 35 percent;                                                    
22                 and                                                                                                 
23 (ii)  the sum, over all the months of the calendar                                                                  
24                 year, of the amounts determined under (g) of this section;                                          
25 (D) [(B)]  gas is equal to 13 percent of the gross value at the                                                     
26 point of production of the taxable gas; if the gross value at the point of                                              
27 production of gas produced from a lease or property is less than zero, that gross                                       
28 value at the point of production is considered zero for purposes of this                                                
29            subparagraph.                                                                                                
30    * Sec. 4. AS 43.55.011(f) is amended to read:                                                                      
31            (f)  The levy of tax under (e) of this section for                                                           
01 (1)  oil and gas produced before January 1, 2018 [JANUARY 1,                                                        
02 2022], from leases or properties that include land north of 68 degrees North latitude,                                  
03       other than gas subject to (o) of this section, may not be less than                                               
04 (A)  four percent of the gross value at the point of production                                                         
05 when the average price per barrel for Alaska North Slope crude oil for sale on                                          
06 the United States West Coast during the calendar year for which the tax is due                                          
07            is more than $25;                                                                                            
08 (B)  three percent of the gross value at the point of production                                                        
09 when the average price per barrel for Alaska North Slope crude oil for sale on                                          
10 the United States West Coast during the calendar year for which the tax is due                                          
11            is over $20 but not over $25;                                                                                
12 (C)  two percent of the gross value at the point of production                                                          
13 when the average price per barrel for Alaska North Slope crude oil for sale on                                          
14 the United States West Coast during the calendar year for which the tax is due                                          
15            is over $17.50 but not over $20;                                                                             
16 (D)  one percent of the gross value at the point of production                                                          
17 when the average price per barrel for Alaska North Slope crude oil for sale on                                          
18 the United States West Coast during the calendar year for which the tax is due                                          
19            is over $15 but not over $17.50; or                                                                          
20 (E)  zero percent of the gross value at the point of production                                                         
21 when the average price per barrel for Alaska North Slope crude oil for sale on                                          
22 the United States West Coast during the calendar year for which the tax is due                                          
23            is $15 or less; [AND]                                                                                        
24 (2)  gas [OIL] produced on and after January 1, 2018, and before                                                
25 January 1, 2022, from leases or properties that include land north of 68 degrees North                                  
26       latitude, other than gas subject to (o) of this section, may not be less than                                 
27 (A)  four percent of the gross value at the point of production                                                         
28 when the average price per barrel for Alaska North Slope crude oil for sale on                                          
29 the United States West Coast during the calendar year for which the tax is due                                          
30            is more than $25;                                                                                            
31 (B)  three percent of the gross value at the point of production                                                        
01 when the average price per barrel for Alaska North Slope crude oil for sale on                                          
02 the United States West Coast during the calendar year for which the tax is due                                          
03            is over $20 but not over $25;                                                                                
04 (C)  two percent of the gross value at the point of production                                                          
05 when the average price per barrel for Alaska North Slope crude oil for sale on                                          
06 the United States West Coast during the calendar year for which the tax is due                                          
07            is over $17.50 but not over $20;                                                                             
08 (D)  one percent of the gross value at the point of production                                                          
09 when the average price per barrel for Alaska North Slope crude oil for sale on                                          
10 the United States West Coast during the calendar year for which the tax is due                                          
11            is over $15 but not over $17.50; or                                                                          
12 (E)  zero percent of the gross value at the point of production                                                         
13 when the average price per barrel for Alaska North Slope crude oil for sale on                                          
14 the United States West Coast during the calendar year for which the tax is due                                          
15            is $15 or less;                                                                                          
16 (3)  oil produced on and after January 1, 2018, from leases or                                                      
17 properties that include land north of 68 degrees North latitude, other than oil                                     
18       subject to (4) of this subsection, may not be less than the greater of                                        
19                      (A)  the applicable percentage of gross value, as follows:                                     
20 (i)  10 percent of the gross value at the point of                                                                  
21 production when the average price per barrel for Alaska North                                                       
22 Slope crude oil for sale on the United States West Coast during the                                                 
23                 calendar year for which the tax is due is $90 or more;                                              
24 (ii)  nine percent of the gross value at the point of                                                               
25 production when the average price per barrel for Alaska North                                                       
26 Slope crude oil for sale on the United States West Coast during the                                                 
27 calendar year for which the tax is due is $82 or more but less than                                                 
28                 $90;                                                                                                
29 (iii)  eight percent of the gross value at the point of                                                             
30 production when the average price per barrel for Alaska North                                                       
31 Slope crude oil for sale on the United States West Coast during the                                                 
01 calendar year for which the tax is due is $74 or more but less than                                                 
02                 $82;                                                                                                
03 (iv)  seven percent of the gross value at the point of                                                              
04 production when the average price per barrel for Alaska North                                                       
05 Slope crude oil for sale on the United States West Coast during the                                                 
06 calendar year for which the tax is due is $66 or more but less than                                                 
07                 $74;                                                                                                
08 (v)  six percent of the gross value at the point of                                                                 
09 production when the average price per barrel for Alaska North                                                       
10 Slope crude oil for sale on the United States West Coast during the                                                 
11 calendar year for which the tax is due is $58 or more but less than                                                 
12                 $66;                                                                                                
13 (vi)  five percent of the gross value at the point of                                                               
14 production when the average price per barrel for Alaska North                                                       
15 Slope crude oil for sale on the United States West Coast during the                                                 
16 calendar year for which the tax is due is $50 or more but less than                                                 
17                 $58;                                                                                                
18 (vii)  four percent of the gross value at the point of                                                              
19 production when the average price per barrel for Alaska North                                                       
20 Slope crude oil for sale on the United States West Coast during the                                                 
21 calendar year for which the tax is due is $25 or more but less than                                                 
22                 $50;                                                                                                
23 (viii)  three percent of the gross value at the point of                                                            
24 production when the average price per barrel for Alaska North                                                       
25 Slope crude oil for sale on the United States West Coast during the                                                 
26                 calendar year for which the tax is due is less than $25; or                                         
27 (B)  22.5 percent of the annual production tax value of the                                                         
28            taxable oil, as calculated under AS 43.55.160(a); and                                                    
29 (4)  heavy oil produced on and after January 1, 2018, from leases                                                   
30 or properties that include land north of 68 degrees North latitude, may not be                                      
31       less than the greater of                                                                                      
01                      (A)  the applicable percentage of gross value, as follows:                                     
02 (i)  seven percent of the gross value at the point of                                                               
03 production when the average price per barrel for Alaska North                                                       
04 Slope crude oil for sale on the United States West Coast during the                                                 
05                 calendar year for which the tax is due is $90 or more;                                              
06 (ii)  six and one-half percent of the gross value at the                                                            
07 point of production when the average price per barrel for Alaska                                                    
08 North Slope crude oil for sale on the United States West Coast                                                      
09 during the calendar year for which the tax is due is $82 or more                                                    
10                 but less than $90;                                                                                  
11 (iii)  six percent of the gross value at the point of                                                               
12 production when the average price per barrel for Alaska North                                                       
13 Slope crude oil for sale on the United States West Coast during the                                                 
14 calendar year for which the tax is due is $74 or more but less than                                                 
15                 $82;                                                                                                
16 (iv)  five and one-half percent of the gross value at                                                               
17 the point of production when the average price per barrel for                                                       
18 Alaska North Slope crude oil for sale on the United States West                                                     
19 Coast during the calendar year for which the tax is due is $66 or                                                   
20                 more but less than $74;                                                                             
21 (v)  five percent of the gross value at the point of                                                                
22 production when the average price per barrel for Alaska North                                                       
23 Slope crude oil for sale on the United States West Coast during the                                                 
24 calendar year for which the tax is due is $58 or more but less than                                                 
25                 $66;                                                                                                
26 (vi)  four and one-half percent of the gross value at                                                               
27 the point of production when the average price per barrel for                                                       
28 Alaska North Slope crude oil for sale on the United States West                                                     
29 Coast during the calendar year for which the tax is due is $50 or                                                   
30                 more but less than $58;                                                                             
31 (vii)  four percent of the gross value at the point of                                                              
01                 production when the average price per barrel for Alaska North                                       
02                 Slope crude oil for sale on the United States West Coast during the                                 
03                 calendar year for which the tax is due is less than $50; or                                         
04                      (B)  22.5 percent of the annual production tax value of the                                    
05            taxable oil, as calculated under AS 43.55.160(a).                                                        
06    * Sec. 5. AS 43.55.011(g) is amended to read:                                                                      
07            (g)  For purposes of (e) of this section, the tax amount is determined as                                
08       follows:                                                                                                      
09                 (1)  before January 1, 2014, for [FOR] each month of a calendar year                                
10 [BEFORE 2014] for which the producer's average monthly production tax value under                                       
11 AS 43.55.160(a)(2) of a BTU equivalent barrel of the taxable oil and gas is more than                                   
12 $30, the amount of tax for purposes of (e)(1)(B) of this section is determined by                                       
13 multiplying the monthly production tax value of the taxable oil and gas produced                                        
14       during the month by the tax rate calculated as follows:                                                           
15 (A) [(1)]  if the producer's average monthly production tax                                                         
16 value of a BTU equivalent barrel of the taxable oil and gas for the month is not                                        
17 more than $92.50, the tax rate is 0.4 percent multiplied by the number that                                             
18 represents the difference between that average monthly production tax value of                                          
19            a BTU equivalent barrel and $30; or                                                                          
20 (B) [(2)]  if the producer's average monthly production tax value                                                   
21 of a BTU equivalent barrel of the taxable oil and gas for the month is more                                             
22 than $92.50, the tax rate is the sum of 25 percent and the product of 0.1 percent                                       
23 multiplied by the number that represents the difference between the average                                             
24 monthly production tax value of a BTU equivalent barrel and $92.50, except                                              
25 that the sum determined under this subparagraph [PARAGRAPH] may not                                                 
26            exceed 50 percent;                                                                                       
27 (2)  on or after January 1, 2018, and before January 1, 2022, for                                                   
28 each month of a calendar year for which the producer's production tax value                                         
29       under AS 43.55.160(a)(3) of a BTU equivalent barrel of the taxable oil is                                     
30 (A)  more than $70, the difference between the monthly                                                              
31 production tax value of a BTU equivalent barrel and $70 multiplied by the                                           
01 volume of oil produced by the producer for the month multiplied by 25                                               
02            percent;                                                                                                 
03 (B)  more than $60 but not more than $70, the difference                                                            
04 between the monthly production tax value of a BTU equivalent barrel and                                             
05 $60 multiplied by the volume of oil produced by the producer for the                                                
06            month multiplied by 20 percent;                                                                          
07 (C)  more than $50 but not more than $60, the difference                                                            
08 between the monthly production tax value of a BTU equivalent barrel and                                             
09 $50 multiplied by the volume of oil produced by the producer for the                                                
10            month multiplied by 15 percent;                                                                          
11 (D)  more than $40 but not more than $50, the difference                                                            
12 between the monthly production tax value of a BTU equivalent barrel and                                             
13 $40 multiplied by the volume of oil produced by the producer for the                                                
14            month multiplied by 10 percent;                                                                          
15 (3)  on or after January 1, 2022, for each month of a calendar year                                                 
16 for which the producer's production tax value under AS 43.55.160(h)(2) of a BTU                                     
17       equivalent barrel of the taxable oil is                                                                       
18 (A)  more than $70, the difference between the monthly                                                              
19 production tax value of a BTU equivalent barrel and $70 multiplied by the                                           
20 volume of oil produced by the producer for the month multiplied by 25                                               
21            percent;                                                                                                 
22 (B)  more than $60 but not more than $70, the difference                                                            
23 between the monthly production tax value of a BTU equivalent barrel and                                             
24 $60 multiplied by the volume of oil produced by the producer for the                                                
25            month multiplied by 20 percent;                                                                          
26 (C)  more than $50 but not more than $60, the difference                                                            
27 between the monthly production tax value of a BTU equivalent barrel and                                             
28 $50 multiplied by the volume of oil produced by the producer for the                                                
29            month multiplied by 15 percent;                                                                          
30 (D)  more than $40 but not more than $50, the difference                                                            
31 between the monthly production tax value of a BTU equivalent barrel and                                             
01            $40 multiplied by the volume of oil produced by the producer for the                                     
02            month multiplied by 10 percent.                                                                          
03    * Sec. 6. AS 43.55.011 is amended by adding new subsections to read:                                               
04            (q)  The department shall                                                                                    
05 (1)  adjust dollar amounts under (f)(3) and (4) of this section biennially                                              
06 for inflation from calendar year 2017 using the Consumer Price Index for all urban                                      
07 consumers for Anchorage compiled by the Bureau of Labor Statistics, United States                                       
08       Department of Labor, rounded to the nearest $.25 increment; and                                                   
09                 (2)  publish the adjusted amounts on the department's Internet website.                                 
10 (r)  The amount of tax determined under (f) of this section may not be reduced                                          
11       by the application of a credit authorized under this chapter.                                                     
12    * Sec. 7. AS 43.55.014(b) is amended to read:                                                                      
13 (b)  A production tax levied by this section is equal to 13 percent of the gas                                          
14 otherwise taxable under AS 43.55.011(e)(4) [AS 43.55.011(e)(3)] produced from each                                  
15 oil and gas lease to which an effective election under (a) of this section applies, when                                
16 and as that gas is produced. The producer shall pay the tax in gas by delivering that 13                                
17       percent of the gas to the state at the point of production.                                                       
18    * Sec. 8. AS 43.55.020(a) is amended to read:                                                                      
19 (a)  For a calendar year, a producer subject to tax under AS 43.55.011 shall pay                                        
20       the tax as follows:                                                                                               
21 (1)  [FOR OIL AND GAS PRODUCED BEFORE JANUARY 1, 2014,                                                                  
22 AN INSTALLMENT PAYMENT OF THE ESTIMATED TAX LEVIED BY                                                                   
23 AS 43.55.011(e), NET OF ANY TAX CREDITS APPLIED AS ALLOWED BY                                                           
24 LAW, IS DUE FOR EACH MONTH OF THE CALENDAR YEAR ON THE LAST                                                             
25 DAY OF THE FOLLOWING MONTH; EXCEPT AS OTHERWISE PROVIDED                                                                
26 UNDER (2) OF THIS SUBSECTION, THE AMOUNT OF THE INSTALLMENT                                                             
27 PAYMENT IS THE SUM OF THE FOLLOWING AMOUNTS, LESS 1/12 OF THE                                                           
28 TAX CREDITS THAT ARE ALLOWED BY LAW TO BE APPLIED AGAINST                                                               
29 THE TAX LEVIED BY AS 43.55.011(e) FOR THE CALENDAR YEAR, BUT THE                                                        
30 AMOUNT OF THE INSTALLMENT PAYMENT MAY NOT BE LESS THAN                                                                  
31       ZERO:                                                                                                             
01 (A)  FOR OIL AND GAS NOT SUBJECT TO AS 43.55.011(o)                                                                     
02 OR (p) PRODUCED FROM LEASES OR PROPERTIES IN THE STATE                                                                  
03 OUTSIDE THE COOK INLET SEDIMENTARY BASIN, OTHER THAN                                                                    
04 LEASES OR PROPERTIES SUBJECT TO AS 43.55.011(f), THE GREATER                                                            
05            OF                                                                                                           
06                           (i)  ZERO; OR                                                                                 
07 (ii)  THE SUM OF 25 PERCENT AND THE TAX                                                                                 
08 RATE CALCULATED FOR THE MONTH UNDER AS 43.55.011(g)                                                                     
09 MULTIPLIED BY THE REMAINDER OBTAINED BY                                                                                 
10 SUBTRACTING 1/12 OF THE PRODUCER'S ADJUSTED LEASE                                                                       
11 EXPENDITURES FOR THE CALENDAR YEAR OF PRODUCTION                                                                        
12 UNDER AS 43.55.165 AND 43.55.170 THAT ARE DEDUCTIBLE                                                                    
13 FOR THE OIL AND GAS UNDER AS 43.55.160 FROM THE                                                                         
14 GROSS VALUE AT THE POINT OF PRODUCTION OF THE OIL                                                                       
15 AND GAS PRODUCED FROM THE LEASES OR PROPERTIES                                                                          
16 DURING THE MONTH FOR WHICH THE INSTALLMENT                                                                              
17                 PAYMENT IS CALCULATED;                                                                                  
18 (B)  FOR OIL AND GAS PRODUCED FROM LEASES OR                                                                            
19            PROPERTIES SUBJECT TO AS 43.55.011(f), THE GREATEST OF                                                       
20                           (i)  ZERO;                                                                                    
21 (ii)  ZERO PERCENT, ONE PERCENT, TWO                                                                                    
22 PERCENT, THREE PERCENT, OR FOUR PERCENT, AS                                                                             
23 APPLICABLE, OF THE GROSS VALUE AT THE POINT OF                                                                          
24 PRODUCTION OF THE OIL AND GAS PRODUCED FROM THE                                                                         
25 LEASES OR PROPERTIES DURING THE MONTH FOR WHICH                                                                         
26                 THE INSTALLMENT PAYMENT IS CALCULATED; OR                                                               
27 (iii)  THE SUM OF 25 PERCENT AND THE TAX                                                                                
28 RATE CALCULATED FOR THE MONTH UNDER AS 43.55.011(g)                                                                     
29 MULTIPLIED BY THE REMAINDER OBTAINED BY                                                                                 
30 SUBTRACTING 1/12 OF THE PRODUCER'S ADJUSTED LEASE                                                                       
31 EXPENDITURES FOR THE CALENDAR YEAR OF PRODUCTION                                                                        
01 UNDER AS 43.55.165 AND 43.55.170 THAT ARE DEDUCTIBLE                                                                    
02 FOR THE OIL AND GAS UNDER AS 43.55.160 FROM THE                                                                         
03 GROSS VALUE AT THE POINT OF PRODUCTION OF THE OIL                                                                       
04 AND GAS PRODUCED FROM THOSE LEASES OR PROPERTIES                                                                        
05 DURING THE MONTH FOR WHICH THE INSTALLMENT                                                                              
06                 PAYMENT IS CALCULATED;                                                                                  
07                      (C)  FOR OIL OR GAS SUBJECT TO AS 43.55.011(j), (k),                                               
08            OR (o), FOR EACH LEASE OR PROPERTY, THE GREATER OF                                                           
09                           (i)  ZERO; OR                                                                                 
10 (ii)  THE SUM OF 25 PERCENT AND THE TAX                                                                                 
11 RATE CALCULATED FOR THE MONTH UNDER AS 43.55.011(g)                                                                     
12 MULTIPLIED BY THE REMAINDER OBTAINED BY                                                                                 
13 SUBTRACTING 1/12 OF THE PRODUCER'S ADJUSTED LEASE                                                                       
14 EXPENDITURES FOR THE CALENDAR YEAR OF PRODUCTION                                                                        
15 UNDER AS 43.55.165 AND 43.55.170 THAT ARE DEDUCTIBLE                                                                    
16 UNDER AS 43.55.160 FOR THE OIL OR GAS, RESPECTIVELY,                                                                    
17 PRODUCED FROM THE LEASE OR PROPERTY FROM THE                                                                            
18 GROSS VALUE AT THE POINT OF PRODUCTION OF THE OIL                                                                       
19 OR GAS, RESPECTIVELY, PRODUCED FROM THE LEASE OR                                                                        
20 PROPERTY DURING THE MONTH FOR WHICH THE                                                                                 
21                 INSTALLMENT PAYMENT IS CALCULATED;                                                                      
22 (D)  FOR OIL AND GAS SUBJECT TO AS 43.55.011(p),                                                                        
23            THE LESSER OF                                                                                                
24 (i)  THE SUM OF 25 PERCENT AND THE TAX                                                                                  
25 RATE CALCULATED FOR THE MONTH UNDER AS 43.55.011(g)                                                                     
26 MULTIPLIED BY THE REMAINDER OBTAINED BY                                                                                 
27 SUBTRACTING 1/12 OF THE PRODUCER'S ADJUSTED LEASE                                                                       
28 EXPENDITURES FOR THE CALENDAR YEAR OF PRODUCTION                                                                        
29 UNDER AS 43.55.165 AND 43.55.170 THAT ARE DEDUCTIBLE                                                                    
30 FOR THE OIL AND GAS UNDER AS 43.55.160 FROM THE                                                                         
31 GROSS VALUE AT THE POINT OF PRODUCTION OF THE OIL                                                                       
01 AND GAS PRODUCED FROM THE LEASES OR PROPERTIES                                                                          
02 DURING THE MONTH FOR WHICH THE INSTALLMENT                                                                              
03                 PAYMENT IS CALCULATED, BUT NOT LESS THAN ZERO; OR                                                       
04 (ii)  FOUR PERCENT OF THE GROSS VALUE AT                                                                                
05 THE POINT OF PRODUCTION OF THE OIL AND GAS                                                                              
06 PRODUCED FROM THE LEASES OR PROPERTIES DURING THE                                                                       
07                 MONTH, BUT NOT LESS THAN ZERO;                                                                          
08 (2)  AN AMOUNT CALCULATED UNDER (1)(C) OF THIS                                                                          
09 SUBSECTION FOR OIL OR GAS SUBJECT TO AS 43.55.011(j), (k), OR (o) MAY                                                   
10 NOT EXCEED THE PRODUCT OBTAINED BY CARRYING OUT THE                                                                     
11 CALCULATION SET OUT IN AS 43.55.011(j)(1) OR (2) OR 43.55.011(o), AS                                                    
12 APPLICABLE, FOR GAS OR SET OUT IN AS 43.55.011(k) FOR OIL, BUT                                                          
13 SUBSTITUTING IN AS 43.55.011(j)(1)(A) OR (2)(A) OR 43.55.011(o), AS                                                     
14 APPLICABLE, THE AMOUNT OF TAXABLE GAS PRODUCED DURING THE                                                               
15 MONTH FOR THE AMOUNT OF TAXABLE GAS PRODUCED DURING THE                                                                 
16 CALENDAR YEAR AND SUBSTITUTING IN AS 43.55.011(k) THE AMOUNT                                                            
17 OF TAXABLE OIL PRODUCED DURING THE MONTH FOR THE AMOUNT OF                                                              
18       TAXABLE OIL PRODUCED DURING THE CALENDAR YEAR;                                                                    
19 (3)]  an installment payment of the estimated tax levied by                                                             
20 AS 43.55.011(i) for each lease or property is due for each month of the calendar year                                   
21 on the last day of the following month; the amount of the installment payment is the                                    
22       sum of                                                                                                            
23 (A)  the applicable tax rate for oil provided under                                                                     
24 AS 43.55.011(i), multiplied by the gross value at the point of production of the                                        
25 oil taxable under AS 43.55.011(i) and produced from the lease or property                                               
26            during the month; and                                                                                        
27 (B)  the applicable tax rate for gas provided under                                                                     
28 AS 43.55.011(i), multiplied by the gross value at the point of production of the                                        
29 gas taxable under AS 43.55.011(i) and produced from the lease or property                                               
30            during the month;                                                                                            
31 (2) [(4)]  any amount of tax levied by AS 43.55.011, net of any credits                                             
01 applied as allowed by law, that exceeds the total of the amounts due as installment                                     
02 payments of estimated tax is due on March 31 of the year following the calendar year                                    
03       of production;                                                                                                    
04 (3) [(5)]  for oil and gas produced on and after January 1, 2018                                                
05 [JANUARY 1, 2014], and before January 1, 2022, an installment payment of the                                            
06 estimated tax levied by AS 43.55.011(e), net of any tax credits applied as allowed by                                   
07 law, is due for each month of the calendar year on the last day of the following month;                                 
08 except as otherwise provided under (4) [(6)] of this subsection, the amount of the                                  
09 installment payment is the sum of the following amounts, less 1/12 of the tax credits                                   
10 that are allowed by law to be applied against the tax levied by AS 43.55.011(e) for the                                 
11       calendar year, but the amount of the installment payment may not be less than zero:                               
12 (A)  for oil and gas not subject to AS 43.55.011(o) or (p)                                                              
13 produced from leases or properties in the state outside the Cook Inlet                                                  
14 sedimentary basin, other than leases or properties subject to AS 43.55.011(f),                                          
15            the greater of                                                                                               
16                           (i)  zero; or                                                                                 
17 (ii)  35 percent multiplied by the remainder obtained by                                                                
18 subtracting 1/12 of the producer's adjusted lease expenditures for the                                                  
19 calendar year of production under AS 43.55.165 and 43.55.170 that are                                                   
20 deductible for the oil and gas under AS 43.55.160 from the gross value                                                  
21 at the point of production of the oil and gas produced from the leases or                                               
22 properties during the month for which the installment payment is                                                        
23                 calculated;                                                                                             
24 (B)  for oil and gas produced from leases or properties subject                                                         
25            to AS 43.55.011(f), the greatest of                                                                          
26                           (i)  zero;                                                                                    
27 (ii)  the percentages applicable under AS 43.55.011(f)                                                              
28 [ZERO PERCENT, ONE PERCENT, TWO PERCENT, THREE                                                                          
29 PERCENT, OR FOUR PERCENT, AS APPLICABLE,] of the gross                                                                  
30 value at the point of production or the production tax value, as                                                    
31 applicable, of the oil and gas produced from the leases or properties                                               
01                 during the month for which the installment payment is calculated; or                                    
02 (iii)  the sum of the amount calculated for the month                                                               
03 under AS 43.55.011(g), as applicable, and 35 percent multiplied by                                                  
04 the remainder obtained by subtracting 1/12 of the producer's adjusted                                                   
05 lease expenditures for the calendar year of production under                                                            
06 AS 43.55.165 and 43.55.170 that are deductible for the oil and gas                                                      
07 under AS 43.55.160 from the gross value at the point of production of                                                   
08 the oil and gas produced from those leases or properties during the                                                     
09 month for which the installment payment is calculated, except that, for                                                 
10 the purposes of this calculation, a reduction from the gross value at the                                               
11 point of production may apply for oil and gas subject to                                                                
12                 AS 43.55.160(f) [OR (g)];                                                                               
13 (C)  for [OIL OR] gas subject to AS 43.55.011(j) [, (k),] or (o),                                                       
14            for each lease or property, the greater of                                                                   
15                           (i)  zero; or                                                                                 
16 (ii)  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 under AS 43.55.160 for the [OIL OR] gas [,                                                                   
20 RESPECTIVELY,] produced from the lease or property from the gross                                                       
21 value at the point of production of the [OIL OR] gas [,                                                                 
22 RESPECTIVELY,] produced from the lease or property during the                                                           
23                 month for which the installment payment is calculated;                                                  
24                      (D)  for oil and gas subject to AS 43.55.011(p), the lesser of                                     
25 (i)  35 percent multiplied by the remainder obtained by                                                                 
26 subtracting 1/12 of the producer's adjusted lease expenditures for the                                                  
27 calendar year of production under AS 43.55.165 and 43.55.170 that are                                                   
28 deductible for the oil and gas under AS 43.55.160 from the gross value                                                  
29 at the point of production of the oil and gas produced from the leases or                                               
30 properties during the month for which the installment payment is                                                        
31                 calculated, but not less than zero; or                                                                  
01                           (ii)  four percent of the gross value at the point of                                         
02                 production of the oil and gas produced from the leases or properties                                    
03                 during the month, but not less than zero;                                                               
04                      (E)  for oil produced from leases or properties in the Cook                                    
05            Inlet sedimentary basin, the greater of                                                                  
06                           (i)  zero; or                                                                             
07 (ii)  the sum of the amount calculated for the month                                                                
08 under AS 43.55.011(g), as applicable, and 22.5 percent multiplied                                                   
09 by the remainder obtained by subtracting 1/12 of the producer's                                                     
10 adjusted lease expenditures for the calendar year of production                                                     
11 under AS 43.55.165 and 43.55.170 that are deductible for the oil                                                    
12 under AS 43.55.160 from the gross value at the point of production                                                  
13 of the oil produced from those leases or properties during the                                                      
14                 month for which the installment payment is calculated;                                              
15 (4) [(6)]  an amount calculated under (3)(C) [(5)(C)] of this subsection                                        
16 for [OIL OR] gas subject to AS 43.55.011(j) [, (k),] or (o) may not exceed the product                                  
17 obtained by carrying out the calculation set out in AS 43.55.011(j)(1) or (2) or                                        
18 43.55.011(o), as applicable, [FOR GAS OR SET OUT IN AS 43.55.011(k) FOR                                                 
19 OIL,] but substituting in AS 43.55.011(j)(1)(A) or (2)(A) or 43.55.011(o), as                                           
20 applicable, the amount of taxable gas produced during the month for the amount of                                       
21 taxable gas produced during the calendar year [AND SUBSTITUTING IN                                                      
22 AS 43.55.011(k) THE AMOUNT OF TAXABLE OIL PRODUCED DURING THE                                                           
23 MONTH FOR THE AMOUNT OF TAXABLE OIL PRODUCED DURING THE                                                                 
24       CALENDAR YEAR];                                                                                                   
25 (5) [(7)]  for oil and gas produced on or after January 1, 2022, an                                                 
26 installment payment of the estimated tax levied by AS 43.55.011(e), net of any tax                                      
27 credits applied as allowed by law, is due for each month of the calendar year on the                                    
28 last day of the following month; except as otherwise provided under (8) [(10)] of this                              
29 subsection, the amount of the installment payment is the sum of the following                                           
30 amounts, less 1/12 of the tax credits that are allowed by law to be applied against the                                 
31 tax levied by AS 43.55.011(e) for the calendar year, but the amount of the installment                                  
01       payment may not be less than zero:                                                                                
02                      (A)  for oil produced from leases or properties subject to                                         
03            AS 43.55.011(f), the greatest of                                                                             
04                           (i)  zero;                                                                                    
05 (ii)  the percentages applicable under AS 43.55.011(f)                                                              
06 [ZERO PERCENT, ONE PERCENT, TWO PERCENT, THREE                                                                          
07 PERCENT, OR FOUR PERCENT, AS APPLICABLE,] of the gross                                                                  
08 value at the point of production or the production tax value, as                                                    
09 applicable, of the oil produced from the leases or properties during the                                            
10                 month for which the installment payment is calculated; or                                               
11 (iii)  the sum of the amount calculated for the month                                                               
12 under AS 43.55.011(g), as applicable, and 35 percent multiplied by                                                  
13 the remainder obtained by subtracting 1/12 of the producer's adjusted                                                   
14 lease expenditures for the calendar year of production under                                                            
15 AS 43.55.165 and 43.55.170 that are deductible for the oil under                                                        
16 AS 43.55.160(h)(1)(A) [AS 43.55.160(h)(1)] from the gross value at                                                  
17 the point of production of the oil produced from those leases or                                                        
18 properties during the month for which the installment payment is                                                        
19 calculated, except that, for the purposes of this calculation, a reduction                                              
20 from the gross value at the point of production may apply for oil                                                       
21                 subject to AS 43.55.160(f) [OR 43.55.160(f) AND (g)];                                                   
22 (B)  for oil produced before or during the last calendar year                                                           
23 under AS 43.55.024(b) for which the producer could take a tax credit under                                              
24 AS 43.55.024(a), from leases or properties in the state outside the Cook Inlet                                          
25 sedimentary basin, no part of which is north of 68 degrees North latitude, other                                        
26            than leases or properties subject to AS 43.55.011(o) or (p), the greater of                                  
27                           (i)  zero; or                                                                                 
28 (ii)  35 percent multiplied by the remainder obtained by                                                                
29 subtracting 1/12 of the producer's adjusted lease expenditures for the                                                  
30 calendar year of production under AS 43.55.165 and 43.55.170 that are                                                   
31 deductible for the oil under AS 43.55.160(h)(1)(B)                                                                  
01 [AS 43.55.160(h)(2)] from the gross value at the point of production of                                                 
02 the oil produced from the leases or properties during the month for                                                     
03                 which the installment payment is calculated;                                                            
04 (C)  for oil and gas produced from leases or properties subject                                                         
05 to AS 43.55.011(p), except as otherwise provided under (6) [(8)] of this                                            
06            subsection, the sum of                                                                                       
07 (i)  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 for the oil under AS 43.55.160(h)(1)(C)                                                                  
11 [AS 43.55.160(h)(3)] from the gross value at the point of production of                                                 
12 the oil produced from the leases or properties during the month for                                                     
13                 which the installment payment is calculated, but not less than zero; and                                
14 (ii)  13 percent of the gross value at the point of                                                                     
15 production of the gas produced from the leases or properties during the                                                 
16                 month, but not less than zero;                                                                          
17 (D)  for oil produced from leases or properties in the state, no                                                        
18 part of which is north of 68 degrees North latitude, other than leases or                                               
19            properties subject to (B), (C), or (F) of this paragraph, the greater of                                     
20                           (i)  zero; or                                                                                 
21 (ii)  35 percent multiplied by the remainder obtained by                                                                
22 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 under AS 43.55.160(h)(1)(D)                                                                  
25 [AS 43.55.160(h)(4)] from the gross value at the point of production of                                                 
26 the oil produced from the leases or properties during the month for                                                     
27                 which the installment payment is calculated;                                                            
28 (E)  for gas produced from each lease or property in the state                                                          
29 outside the Cook Inlet sedimentary basin, other than a lease or property subject                                        
30 to AS 43.55.011(o) or (p), 13 percent of the gross value at the point of                                                
31 production of the gas produced from the lease or property during the month for                                          
01            which the installment payment is calculated, but not less than zero;                                         
02                      (F)  for oil produced from leases or properties in the Cook                                    
03            Inlet sedimentary basin [SUBJECT TO AS 43.55.011(k)], for each lease or                                  
04            property, the greater of                                                                                     
05                           (i)  zero; or                                                                                 
06 (ii)  the sum of the amount calculated for the month                                                                
07 under AS 43.55.011(g), as applicable, and 22.5 [35] percent                                                         
08 multiplied by the remainder obtained by subtracting 1/12 of the                                                         
09 producer's adjusted lease expenditures for the calendar year of                                                         
10 production under AS 43.55.165 and 43.55.170 that are deductible under                                                   
11 AS 43.55.160 for the oil produced from the lease or property from the                                                   
12 gross value at the point of production of the oil produced from the lease                                               
13 or property during the month for which the installment payment is                                                       
14                 calculated;                                                                                             
15 (G)  for gas subject to AS 43.55.011(j) or (o), for each lease or                                                       
16            property, the greater of                                                                                     
17                           (i)  zero; or                                                                                 
18 (ii)  13 percent of the gross value at the point of                                                                     
19 production of the gas produced from the lease or property during the                                                    
20                 month for which the installment payment is calculated;                                                  
21 (6) [(8)]  an amount calculated under (5)(C) [(7)(C)] of this subsection                                        
22 may not exceed four percent of the gross value at the point of production of the oil and                                
23 gas produced from leases or properties subject to AS 43.55.011(p) during the month                                      
24       for which the installment payment is calculated;                                                                  
25 (7) [(9)]  for purposes of the calculation under (3)(B)(ii) and (5)(A)(ii)                                      
26 [(1)(B)(ii), (5)(B)(ii), AND (7)(A)(ii)] of this subsection, the applicable percentage of                               
27 the gross value at the point of production or the production tax value is determined                                
28 under AS 43.55.011(f) [AS 43.55.011(f)(1) OR (2)] but substituting the phrase "month                                
29 for which the installment payment is calculated" in AS 43.55.011(f)                                                 
30       [AS 43.55.011(f)(1) AND (2)] for the phrase "calendar year for which the tax is due";                             
31 (8) [(10)]  an amount calculated under (5)(G) [(7)(F) OR (G)] of this                                           
01 subsection for [OIL OR] gas subject to AS 43.55.011(j) [, (k),] or (o) may not exceed                                   
02 the product obtained by carrying out the calculation set out in AS 43.55.011(j)(1) or                                   
03 (2) or 43.55.011(o), as applicable, [FOR GAS, OR SET OUT IN AS 43.55.011(k)                                             
04 FOR OIL,] but substituting in AS 43.55.011(j)(1)(A) or (2)(A) or 43.55.011(o), as                                       
05 applicable, the amount of taxable gas produced during the month for the amount of                                       
06       taxable gas produced during the calendar year;                                                                
07 (9)  for purposes of the calculation under (3)(B)(ii) or (5)(A)(ii) of                                              
08 this subsection, a credit under this chapter may not be applied to reduce an                                        
09 installment payment to less than the applicable percentages under                                                   
10 AS 43.55.011(f) [AND SUBSTITUTING IN AS 43.55.011(k) THE AMOUNT OF                                                  
11 TAXABLE OIL PRODUCED DURING THE MONTH FOR THE AMOUNT OF                                                                 
12       TAXABLE OIL PRODUCED DURING THE CALENDAR YEAR].                                                                   
13    * Sec. 9. AS 43.55.020(g) is amended to read:                                                                      
14            (g)  Notwithstanding any contrary provision of AS 43.05.225,                                                 
15 (1)  [BEFORE JANUARY 1, 2014, AN UNPAID AMOUNT OF AN                                                                    
16 INSTALLMENT PAYMENT REQUIRED UNDER (a)(1) - (3) OF THIS SECTION                                                         
17 THAT IS NOT PAID WHEN DUE BEARS INTEREST (A) AT THE RATE                                                                
18 PROVIDED FOR AN UNDERPAYMENT UNDER 26 U.S.C. 6621 (INTERNAL                                                             
19 REVENUE CODE), AS AMENDED, COMPOUNDED DAILY, FROM THE DATE                                                              
20 THE INSTALLMENT PAYMENT IS DUE UNTIL MARCH 31 FOLLOWING THE                                                             
21 CALENDAR YEAR OF PRODUCTION, AND (B) AS PROVIDED FOR A                                                                  
22 DELINQUENT TAX UNDER AS 43.05.225 AFTER THAT MARCH 31;                                                                  
23 INTEREST ACCRUED UNDER (A) OF THIS PARAGRAPH THAT REMAINS                                                               
24 UNPAID AFTER THAT MARCH 31 IS TREATED AS AN ADDITION TO TAX                                                             
25 THAT BEARS INTEREST UNDER (B) OF THIS PARAGRAPH; AN UNPAID                                                              
26 AMOUNT OF TAX DUE UNDER (a)(4) OF THIS SECTION THAT IS NOT PAID                                                         
27 WHEN DUE BEARS INTEREST AS PROVIDED FOR A DELINQUENT TAX                                                                
28       UNDER AS 43.05.225;                                                                                               
29 (2)]  on and after January 1, 2014, an unpaid amount of an installment                                                  
30 payment required under (a)(1), (3), (4), or (5) [(a)(3), (5), (6), OR (7)] of this section                          
31       that is not paid when due bears interest                                                                          
01 (A)  at the rate provided for an underpayment under 26 U.S.C.                                                           
02 6621 (Internal Revenue Code), as amended, compounded daily, from the date                                               
03 the installment payment is due until March 31 following the calendar year of                                            
04            production;  [,] and                                                                                     
05 (B)  as provided for a delinquent tax under AS 43.05.225 after                                                          
06 that March 31; interest accrued under (A) of this paragraph that remains unpaid                                         
07 after that March 31 is treated as an addition to tax that bears interest under (B)                                      
08            of this paragraph;                                                                                           
09 (2)  an unpaid amount of tax due under (a)(2) [(a)(4)] of this section                                          
10 that is not paid when due bears interest as provided for a delinquent tax under                                         
11       AS 43.05.225.                                                                                                     
12    * Sec. 10. AS 43.55.020(h) is amended to read:                                                                     
13            (h)  Notwithstanding any contrary provision of AS 43.05.280,                                                 
14 (1)  an overpayment of an installment payment required under (a)(1),                                                
15 (3), (4), or (5) [(a)(1), (2), (3), (5), (6), OR (7)] of this section bears interest at the rate                    
16 provided for an overpayment under 26 U.S.C. 6621 (Internal Revenue Code), as                                            
17 amended, compounded daily, from the later of the date the installment payment is due                                    
18       or the date the overpayment is made, until the earlier of                                                         
19                      (A)  the date it is refunded or is applied to an underpayment; or                                  
20                      (B)  March 31 following the calendar year of production;                                           
21 (2)  except as provided under (1) of this subsection, interest with                                                     
22 respect to an overpayment is allowed only on any net overpayment of the payments                                        
23 required under (a) of this section that remains after the later of March 31 following the                               
24 calendar year of production or the date that the statement required under                                               
25       AS 43.55.030(a) is filed;                                                                                         
26 (3)  interest is allowed under (2) of this subsection only from a date that                                             
27 is 90 days after the later of March 31 following the calendar year of production or the                                 
28 date that the statement required under AS 43.55.030(a) is filed; interest is not allowed                                
29       if the overpayment was refunded within the 90-day period;                                                         
30 (4)  interest under (2) and (3) of this subsection is paid at the rate and in                                           
31       the manner provided in AS 43.05.225(1).                                                                           
01    * Sec. 11. AS 43.55.020(i) is amended to read:                                                                     
02 (i)  Notwithstanding any contrary provision of AS 43.05.225 or (g) or (h) of                                            
03 this section, if the amount of a tax payment, including an installment payment, due                                     
04 under (a)(1) and (2) [(a)(1) - (4)] of this section is affected by the retroactive                                  
05 application of a regulation adopted under this chapter, the department shall determine                                  
06 whether the retroactive application of the regulation caused an underpayment or an                                      
07 overpayment of the amount due and adjust the interest due on the affected payment as                                    
08       follows:                                                                                                          
09 (1)  if an underpayment of the amount due occurred, the department                                                      
10 shall waive interest that would otherwise accrue for the underpayment before the first                                  
11 day of the second month following the month in which the regulation became                                              
12       effective, if                                                                                                     
13 (A)  the department determines that the producer's                                                                      
14 underpayment resulted because the regulation was not in effect when the                                                 
15            payment was due; and                                                                                         
16 (B)  the producer demonstrates that it made a good faith                                                                
17 estimate of its tax obligation in light of the regulations then in effect when the                                      
18            payment was due and paid the estimated tax;                                                                  
19 (2)  if an overpayment of the amount due occurred and the department                                                    
20 determines that the producer's overpayment resulted because the regulation was not in                                   
21 effect when the payment was due, the obligation for a refund for the overpayment does                                   
22       not begin to accrue interest earlier than the following, as applicable:                                           
23 (A)  except as otherwise provided under (B) of this paragraph,                                                          
24 the first day of the second month following the month in which the regulation                                           
25            became effective;                                                                                            
26 (B)  90 days after an amended statement under AS 43.55.030(a)                                                           
27 and an application to request a refund of production tax paid is filed, if the                                          
28 overpayment was for a period for which an amended statement under                                                       
29 AS 43.55.030(a) was required to be filed before the regulation became                                                   
30            effective.                                                                                                   
31    * Sec. 12. AS 43.55.020(k) is amended to read:                                                                     
01 (k)  For oil and gas produced 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) [AS 43.55.011(e)(2)] 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. 13. AS 43.55.020(l) is amended to read:                                                                     
20 (l)  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)(4)(A) - (C) [AS 43.55.011(e)(3)(A)] for the calendar year of                                        
07       production; and                                                                                                   
08 (2)  the denominator is the total gross value at the point of production                                                
09 of the oil taxable under AS 43.55.011(e) produced by the producer from all leases and                                   
10       properties in the state during the calendar year.                                                                 
11    * Sec. 14. AS 43.55.023(b) is amended to read:                                                                     
12 (b)  Before January 1, 2014, a producer or explorer may elect to take a tax                                             
13 credit in the amount of 25 percent of a carried-forward annual loss. For lease                                          
14 expenditures incurred on and after January 1, 2014, and before January 1, 2016, to                                      
15 explore for, develop, or produce oil or gas deposits located north of 68 degrees North                                  
16 latitude, a producer or explorer may elect to take a tax credit in the amount of 45                                     
17 percent of a carried-forward annual loss. For lease expenditures incurred on and after                                  
18 January 1, 2016, to explore for, develop, or produce oil or gas deposits located north                                  
19 of 68 degrees North latitude, a producer or explorer may elect to take a tax credit in                                  
20 the amount of 35 percent of a carried-forward annual loss. For lease expenditures                                       
21 incurred on or after January 1, 2014, and before January 1, 2017, to explore for,                                       
22 develop, or produce oil or gas deposits located south of 68 degrees North latitude, a                                   
23 producer or explorer may elect to take a tax credit in the amount of 25 percent of a                                    
24 carried-forward annual loss. For lease expenditures incurred on or after January 1,                                     
25 2017, to explore for, develop, or produce oil or gas deposits located south of 68                                       
26 degrees North latitude, a producer or explorer may elect to take a tax credit in the                                    
27 amount of 15 percent of a carried-forward annual loss, except that a credit for lease                                   
28 expenditures incurred to explore for, develop, or produce oil or gas deposits located in                                
29 the Cook Inlet sedimentary basin may only be taken if the expenditure is incurred                                       
30 before January 1, 2018. A credit under this subsection may be applied against a tax                                     
31       levied by AS 43.55.011(e). For purposes of this subsection,                                                       
01 (1)  a carried-forward annual loss is the amount of a producer's or                                                     
02 explorer's adjusted lease expenditures under AS 43.55.165 and 43.55.170 for a                                           
03 previous calendar year that was not deductible in calculating production tax values for                                 
04       that calendar year under AS 43.55.160;                                                                            
05 (2)  for lease expenditures incurred on or after January 1, 2017, any                                                   
06 reduction under AS 43.55.160(f) [OR (g)] is added back to the calculation of                                            
07 production tax values for that calendar year under AS 43.55.160 for the determination                                   
08       of a carried-forward annual loss.                                                                                 
09    * Sec. 15. AS 43.55.024(i) is amended to read:                                                                     
10 (i)  A producer may apply against the producer's tax liability for the calendar                                         
11 year under AS 43.55.011(e) a tax credit of $5 for each barrel of oil taxable under                                      
12 AS 43.55.011(e) that receives a reduction in the gross value at the point of production                                 
13 under AS 43.55.160(f) [OR (g)] and that is produced during a calendar year after                                        
14 December 31, 2013. [A TAX CREDIT AUTHORIZED BY THIS SUBSECTION                                                          
15 MAY NOT REDUCE A PRODUCER'S TAX LIABILITY FOR A CALENDAR                                                                
16       YEAR UNDER AS 43.55.011(e) BELOW ZERO.]                                                                           
17    * Sec. 16. AS 43.55.024(j) is amended to read:                                                                     
18 (j)  A producer may apply against the producer's tax liability for the calendar                                         
19 year under AS 43.55.011(e) a tax credit in the amount specified in this subsection for                                  
20 each barrel of oil taxable under AS 43.55.011(e) that does not receive a reduction in                                   
21 the gross value at the point of production under AS 43.55.160(f) [OR (g)] and that is                                   
22 produced during a calendar year after December 31, 2013, from leases or properties                                      
23 north of 68 degrees North latitude. [A TAX CREDIT UNDER THIS SUBSECTION                                                 
24 MAY NOT REDUCE A PRODUCER'S TAX LIABILITY FOR A CALENDAR                                                                
25 YEAR UNDER AS 43.55.011(e) BELOW THE AMOUNT CALCULATED UNDER                                                            
26 AS 43.55.011(f).] The amount of the tax credit for a barrel of taxable oil subject to this                              
27       subsection produced during a month of the calendar year is                                                        
28 (1)  $8 for each barrel of taxable oil if the average gross value at the                                                
29       point of production for the month is less than $80 a barrel;                                                      
30 (2)  $7 for each barrel of taxable oil if the average gross value at the                                                
31 point of production for the month is greater than or equal to $80 a barrel, but less than                               
01       $90 a barrel;                                                                                                     
02                 (3)  $6 for each barrel of taxable oil if the average gross value at the                                
03       point of production for the month is greater than or equal to $90 a barrel, but less than                         
04       $100 a barrel;                                                                                                    
05                 (4)  $5 for each barrel of taxable oil if the average gross value at the                                
06       point of production for the month is greater than or equal to $100 a barrel, but less                             
07       than $110 a barrel;                                                                                               
08                 (5)  $4 for each barrel of taxable oil if the average gross value at the                                
09       point of production for the month is greater than or equal to $110 a barrel, but less                             
10       than $120 a barrel;                                                                                               
11 (6)  $3 for each barrel of taxable oil if the average gross value at the                                                
12 point of production for the month is greater than or equal to $120 a barrel, but less                                   
13       than $130 a barrel;                                                                                               
14 (7)  $2 for each barrel of taxable oil if the average gross value at the                                                
15 point of production for the month is greater than or equal to $130 a barrel, but less                                   
16       than $140 a barrel;                                                                                               
17 (8)  $1 for each barrel of taxable oil if the average gross value at the                                                
18 point of production for the month is greater than or equal to $140 a barrel, but less                                   
19       than $150 a barrel;                                                                                               
20 (9)  zero if the average gross value at the point of production for the                                                 
21       month is greater than or equal to $150 a barrel.                                                                  
22    * Sec. 17. AS 43.55.160(a) is amended to read:                                                                     
23 (a)  For oil and gas produced before January 1, 2022, except as provided in (b)                                         
24       and [,] (f) [, AND (g)] of this section, for the purposes of                                                  
25 (1)  AS 43.55.011(e)(1) - (3) [AS 43.55.011(e)(1) AND (2)], the annual                                              
26 production tax value of taxable oil, gas, or oil and gas produced during a calendar year                                
27 in a category for which a separate annual production tax value is required to be                                        
28 calculated under this paragraph is the gross value at the point of production of that oil,                              
29 gas, or oil and gas taxable under AS 43.55.011(e), less the producer's lease                                            
30 expenditures under AS 43.55.165 for the calendar year applicable to the oil, gas, or oil                                
31 and gas in that category produced by the producer during the calendar year, as                                          
01       adjusted under AS 43.55.170; a separate annual production tax value shall be                                      
02       calculated for                                                                                                    
03                      (A)  oil and gas produced from leases or properties in the state                                   
04            that include land north of 68 degrees North latitude, other than gas produced                                
05            before 2022 and used in the state;                                                                           
06 (B)  oil and gas produced from leases or properties in the state                                                        
07 outside the Cook Inlet sedimentary basin, no part of which is north of 68                                               
08 degrees North latitude and that qualifies for a tax credit under AS 43.55.024(a)                                        
09            and (b); this subparagraph does not apply to                                                                 
10                           (i)  gas produced before 2022 and used in the state; or                                       
11                           (ii)  oil and gas subject to AS 43.55.011(p);                                                 
12 (C)  oil produced before 2022 from each lease or property in the                                                        
13            Cook Inlet sedimentary basin;                                                                                
14 (D)  gas produced before 2022 from each lease or property in                                                            
15            the Cook Inlet sedimentary basin;                                                                            
16 (E)  gas produced before 2022 from each lease or property in                                                            
17 the state outside the Cook Inlet sedimentary basin and used in the state, other                                         
18            than gas subject to AS 43.55.011(p);                                                                         
19 (F)  oil and gas subject to AS 43.55.011(p) produced from                                                               
20            leases or properties in the state;                                                                           
21 (G)  oil and gas produced from leases or properties in the state                                                        
22 no part of which is north of 68 degrees North latitude, other than oil or gas                                           
23            described in (B), (C), (D), (E), or (F) of this paragraph;                                                   
24 (2)  AS 43.55.011(g)(1) [AS 43.55.011(g)], for oil and gas produced                                                 
25       before January 1, 2014, the monthly production tax value of the taxable                                           
26 (A)  oil and gas produced during a month from leases or                                                                 
27 properties in the state that include land north of 68 degrees North latitude is the                                     
28 gross value at the point of production of the oil and gas taxable under                                                 
29 AS 43.55.011(e) and produced by the producer from those leases or properties,                                           
30 less 1/12 of the producer's lease expenditures under AS 43.55.165 for the                                               
31 calendar year applicable to the oil and gas produced by the producer from                                               
01 those leases or properties, as adjusted under AS 43.55.170; this subparagraph                                           
02            does not apply to gas subject to AS 43.55.011(o);                                                            
03 (B)  oil and gas produced during a month from leases or                                                                 
04 properties in the state outside the Cook Inlet sedimentary basin, no part of                                            
05 which is north of 68 degrees North latitude, is the gross value at the point of                                         
06 production of the oil and gas taxable under AS 43.55.011(e) and produced by                                             
07 the producer from those leases or properties, less 1/12 of the producer's lease                                         
08 expenditures under AS 43.55.165 for the calendar year applicable to the oil and                                         
09 gas produced by the producer from those leases or properties, as adjusted under                                         
10 AS 43.55.170; this subparagraph does not apply to gas subject to                                                        
11            AS 43.55.011(o);                                                                                             
12 (C)  oil produced during a month from a lease or property in the                                                        
13 Cook Inlet sedimentary basin is the gross value at the point of production of                                           
14 the oil taxable under AS 43.55.011(e) and produced by the producer from that                                            
15 lease or property, less 1/12 of the producer's lease expenditures under                                                 
16 AS 43.55.165 for the calendar year applicable to the oil produced by the                                                
17            producer from that lease or property, as adjusted under AS 43.55.170;                                        
18 (D)  gas produced during a month from a lease or property in                                                            
19 the Cook Inlet sedimentary basin is the gross value at the point of production                                          
20 of the gas taxable under AS 43.55.011(e) and produced by the producer from                                              
21 that lease or property, less 1/12 of the producer's lease expenditures under                                            
22 AS 43.55.165 for the calendar year applicable to the gas produced by the                                                
23            producer from that lease or property, as adjusted under AS 43.55.170;                                        
24 (E)  gas produced during a month from a lease or property                                                               
25 outside the Cook Inlet sedimentary basin and used in the state is the gross                                             
26 value at the point of production of that gas taxable under AS 43.55.011(e) and                                          
27 produced by the producer from that lease or property, less 1/12 of the                                                  
28 producer's lease expenditures under AS 43.55.165 for the calendar year                                                  
29 applicable to that gas produced by the producer from that lease or property, as                                         
30            adjusted under AS 43.55.170;                                                                             
31 (3)  AS 43.55.011(g)(2), for oil produced on or after January 1,                                                    
01       2018, the monthly production tax value of the taxable                                                         
02 (A)  oil produced during a month from leases or properties                                                          
03 in the state that include land north of 68 degrees North latitude is the                                            
04 gross value at the point of production of the oil taxable under                                                     
05 AS 43.55.011(e) and produced by the producer from those leases or                                                   
06 properties, less 1/12 of the producer's lease expenditures under                                                    
07 AS 43.55.165 for the calendar year applicable to the oil produced by the                                            
08            producer from those leases or properties, as adjusted under AS 43.55.170;                                
09 (B)  oil produced during a month from leases or properties                                                          
10 in the Cook Inlet sedimentary basin is the gross value at the point of                                              
11 production of the oil taxable under AS 43.55.011(e) and produced by the                                             
12 producer from those leases or properties, less 1/12 of the producer's lease                                         
13 expenditures under AS 43.55.165 for the calendar year applicable to the                                             
14 oil produced by the producer from those leases or properties, as adjusted                                           
15            under AS 43.55.170.                                                                                    
16    * Sec. 18. AS 43.55.160(c) is amended to read:                                                                     
17 (c)  Notwithstanding any contrary provision of AS 43.55.150, for purposes of                                            
18 calculating a monthly production tax value under (a)(2) or (3) of this section, the gross                           
19 value at the point of production of the oil or oil and gas is calculated under regulations                          
20 adopted by the department that provide for using an appropriate monthly share of the                                    
21       producer's costs of transportation for the calendar year.                                                         
22    * Sec. 19. AS 43.55.160(e) is amended to read:                                                                     
23 (e)  Any adjusted lease expenditures under AS 43.55.165 and 43.55.170 that                                              
24 would otherwise be deductible by a producer in a calendar year but whose deduction                                      
25 would cause an annual production tax value calculated under (a)(1) or (h)(1) [(h)] of                               
26 this section of taxable oil or gas produced during the calendar year to be less than zero                               
27 may be used to establish a carried-forward annual loss under AS 43.55.023(b).                                           
28 However, the department shall provide by regulation a method to ensure that, for a                                      
29 period for which a producer's tax liability is limited by AS 43.55.011(j), [(k),] (o), or                               
30 (p), any adjusted lease expenditures under AS 43.55.165 and 43.55.170 that would                                        
31 otherwise be deductible by a producer for that period but whose deduction would                                         
01 cause a production tax value calculated under (a)(1)(C), (D), (E), or (F), or (h)(1)(C)                             
02 [(h)(3)] of this section to be less than zero are accounted for as though the adjusted                                  
03 lease expenditures had first been used as deductions in calculating the production tax                                  
04 values of oil or gas subject to any of the limitations under AS 43.55.011(j), [(k),] (o),                               
05 or (p) that have positive production tax values so as to reduce the tax liability                                       
06 calculated without regard to the limitation to the maximum amount provided for under                                    
07 the applicable provision of AS 43.55.011(j), [(k),] (o), or (p). Only the amount of                                     
08 those adjusted lease expenditures remaining after the accounting provided for under                                     
09 this subsection may be used to establish a carried-forward annual loss under                                            
10       AS 43.55.023(b). In this subsection, "producer" includes "explorer."                                              
11    * Sec. 20. AS 43.55.160(f) is amended to read:                                                                     
12 (f)  On and after January 1, 2014, in the calculation of an annual production tax                                       
13 value of a producer under (a)(1)(A) or (h)(1)(A) [(h)(1)] of this section, the gross                                
14 value at the point of production of oil or gas produced from a lease or property north                                  
15 of 68 degrees North latitude meeting one or more of the following criteria is reduced                                   
16 by 20 percent: (1) the oil or gas is produced from a lease or property that does not                                    
17 contain a lease that was within a unit on January 1, 2003; (2) the oil or gas is produced                               
18 from a participating area established after December 31, 2011, that is within a unit                                    
19 formed under AS 38.05.180(p) before January 1, 2003, if the participating area does                                     
20 not contain a reservoir that had previously been in a participating area established                                    
21 before December 31, 2011; (3) the oil or gas is produced from acreage that was added                                    
22 to an existing participating area by the Department of Natural Resources on and after                                   
23 January 1, 2014, and the producer demonstrates to the department that the volume of                                     
24 oil or gas produced is from acreage added to an existing participating area. This                                   
25 subsection does not apply to oil produced from a field that produces an average                                     
26 of more than 50,000 barrels a day during a calendar year. This subsection does not                                  
27 apply to gas produced before 2022 that is used in the state or to gas produced on and                                   
28 after January 1, 2022. Except as otherwise provided under this subsection [FOR                                      
29 OIL AND GAS FIRST PRODUCED FROM A LEASE OR PROPERTY AFTER                                                               
30 DECEMBER 31, 2016], a reduction allowed under this subsection applies from the                                          
31 date of commencement of regular production of oil and gas from that lease or property                                   
01 and expires after three years, consecutive or nonconsecutive, in which the average                                      
02 annual price per barrel for Alaska North Slope crude oil for sale on the United States                                  
03 West Coast is more than $70 or after five [SEVEN] years, whichever occurs first. For                                
04 heavy oil [AND GAS] first produced from a lease or property on and after                                        
05 January 1, 2018 [BEFORE JANUARY 1, 2017], a reduction allowed under this                                            
06 subsection expires on [THE EARLIER OF JANUARY 1, 2023, OR] January 1                                                    
07 following five [THREE] years, consecutive or nonconsecutive, in which the average                                   
08 annual price per barrel for Alaska North Slope crude oil for sale on the United States                                  
09 West Coast is more than $70. The Alaska Oil and Gas Conservation Commission shall                                       
10 determine the commencement of regular production of oil and gas for purposes of this                                    
11 subsection. A reduction under this subsection may not reduce the gross value at the                                     
12 point of production below zero. In this subsection, "participating area" means a                                        
13 reservoir or portion of a reservoir producing or contributing to production as approved                                 
14       by the Department of Natural Resources.                                                                           
15    * Sec. 21. AS 43.55.160(h) is amended to read:                                                                     
16 (h)  For oil produced on and after January 1, 2022, except as provided in (b)                                           
17       and  [,] (f) [, AND (g)] of this section, for the purposes of                                                 
18 (1)  AS 43.55.011(e)(4) [AS 43.55.011(e)(3)], the annual production                                                 
19 tax value of oil taxable under AS 43.55.011(e) produced by a producer during a                                          
20       calendar year                                                                                                     
21 (A) [(1)]  from leases or properties in the state that include land                                                 
22 north of 68 degrees North latitude is the gross value at the point of production                                        
23 of that oil, less the producer's lease expenditures under AS 43.55.165 for the                                          
24 calendar year incurred to explore for, develop, or produce oil and gas deposits                                         
25 located in the state north of 68 degrees North latitude or located in leases or                                         
26 properties in the state that include land north of 68 degrees North latitude, as                                        
27            adjusted under AS 43.55.170;                                                                                 
28 (B) [(2)]  before or during the last calendar year under                                                            
29 AS 43.55.024(b) for which the producer could take a tax credit under                                                    
30 AS 43.55.024(a), from leases or properties in the state outside the Cook Inlet                                          
31 sedimentary basin, no part of which is north of 68 degrees North latitude, other                                        
01 than leases or properties subject to AS 43.55.011(p), is the gross value at the                                         
02 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                                         
04 oil and gas deposits located in the state outside the Cook Inlet sedimentary                                            
05 basin and south of 68 degrees North latitude, other than oil and gas deposits                                           
06 located in a lease or property that includes land north of 68 degrees North                                             
07 latitude or that is subject to AS 43.55.011(p) or, before January 1, 2027, from                                         
08            which commercial production has not begun, as adjusted under AS 43.55.170;                                   
09 (C) [(3)]  from leases or properties subject to AS 43.55.011(p)                                                     
10 is the gross value at the point of production of that oil, less the producer's lease                                    
11 expenditures under AS 43.55.165 for the calendar year incurred to explore for,                                          
12 develop, or produce oil and gas deposits located in leases or properties subject                                        
13 to AS 43.55.011(p) or, before January 1, 2027, located in leases or properties                                          
14 in the state outside the Cook Inlet sedimentary basin, no part of which is north                                        
15 of 68 degrees North latitude from which commercial production has not begun,                                            
16            as adjusted under AS 43.55.170;                                                                              
17 (D) [(4)]  from leases or properties in the state no part of which                                                  
18 is north of 68 degrees North latitude, other than leases or properties subject to                                       
19 (B) or (C) of this paragraph [(2) OR (3) OF THIS SUBSECTION], is the                                                
20 gross value at the point of production of that oil less the producer's lease                                            
21 expenditures under AS 43.55.165 for the calendar year incurred to explore for,                                          
22 develop, or produce oil and gas deposits located in the state south of 68                                               
23 degrees North latitude, other than oil and gas deposits located in a lease or                                           
24 property in the state that includes land north of 68 degrees North latitude, and                                        
25 excluding lease expenditures that are deductible under (B) or (C) of this                                           
26 paragraph [(2) OR (3) OF THIS SUBSECTION] or would be deductible                                                    
27 under (B) or (C) of this paragraph [(2) OR (3) OF THIS SUBSECTION] if                                               
28 not prohibited by (b) of this section, as adjusted under AS 43.55.170; a                                                
29            separate annual production tax value shall be calculated for                                                 
30 (i) [(A)]  oil produced from each lease or property in the                                                          
31                 Cook Inlet sedimentary basin;                                                                           
01 (ii) [(B)]  oil produced from each lease or property                                                                
02 outside the Cook Inlet sedimentary basin, no part of which is north of                                                  
03 68 degrees North latitude, other than leases or properties subject to (C)                                           
04                 of this paragraph;                                                                                  
05 (2)  AS 43.55.011(g)(3), the monthly production tax value of the                                                    
06       taxable                                                                                                       
07 (A)  oil produced during a month from leases or properties                                                          
08 in the state that include land north of 68 degrees North latitude is the                                            
09 gross value at the point of production of the oil taxable under                                                     
10 AS 43.55.011(e) and produced by the producer from those leases or                                                   
11 properties, less 1/12 of the producer's lease expenditures under                                                    
12 AS 43.55.165 for the calendar year applicable to the oil produced by the                                            
13            producer from those leases or properties, as adjusted under AS 43.55.170;                                
14 (B)  oil produced during a month from leases or properties                                                          
15 in the Cook Inlet sedimentary basin is the gross value at the point of                                              
16 production of the oil taxable under AS 43.55.011(e) and produced by the                                             
17 producer from those leases or properties, less 1/12 of the producer's lease                                         
18 expenditures under AS 43.55.165 for the calendar year applicable to the                                             
19 oil and gas produced by the producer from those leases or properties, as                                            
20            adjusted under AS 43.55.170 [(3) OF THIS SUBSECTION].                                                    
21    * Sec. 22. AS 43.55.900 is amended by adding a new paragraph to read:                                              
22                 (27)  "heavy oil" means oil with an API gravity of less than 18 degrees.                                
23    * Sec. 23. AS 43.98.050 is amended to read:                                                                        
24            Sec. 43.98.050. Duties. The duties of the board include the following:                                     
25 (1)  establish and maintain a salient collection of information related to                                              
26 oil and gas exploration, development, and production in the state and related to tax                                    
27       structures, rates, and credits in other regions with oil and gas resources;                                       
28 (2)  review historical, current, and potential levels of investment in the                                              
29       state's oil and gas sector;                                                                                       
30 (3)  identify factors that affect investment in oil and gas exploration,                                                
31 development, and production in the state, including tax structure, rates, and credits;                                  
01       royalty requirements; infrastructure; workforce availability; and regulatory                                      
02       requirements;                                                                                                     
03                 (4)  review the competitive position of the state to attract and maintain                               
04       investment in the oil and gas sector in the state as compared to the competitive                                  
05       position of other regions with oil and gas resources;                                                             
06 (5)  in order to facilitate the work of the board, establish procedures to                                              
07 accept and keep confidential information that is beneficial to the work of the board,                                   
08 including the creation of a secure data room and confidentiality agreements to be                                       
09       signed by individuals having access to confidential information;                                                  
10 (6)  make written findings and recommendations to the Alaska State                                                      
11       Legislature before                                                                                                
12 (A)  January 31, 2015, or as soon thereafter as practicable,                                                            
13            regarding                                                                                                    
14 (i)  changes to the state's regulatory environment and                                                                  
15 permitting structure that would be conducive to encouraging increased                                                   
16 investment while protecting the interests of the people of the state and                                                
17                 the environment;                                                                                        
18 (ii)  the status of the oil and gas industry labor pool in                                                              
19 the state and the effectiveness of workforce development efforts by the                                                 
20                 state;                                                                                                  
21 (iii)  the status of the oil-and-gas-related infrastructure                                                             
22                 of the state, including a description of infrastructure deficiencies; and                               
23 (iv)  the competitiveness of the state's fiscal oil and gas                                                             
24                 tax regime when compared to other regions of the world;                                                 
25                      (B)  January 15, 2017, regarding                                                                   
26 (i)  the state's tax structure and rates on oil and gas                                                                 
27                 produced south of 68 degrees North latitude;                                                            
28 (ii)  a tax structure that takes into account the unique                                                                
29 economic circumstances for each oil and gas producing area south of                                                     
30                 68 degrees North latitude;                                                                              
31 (iii)  a reduction in the gross value at the point of                                                                   
01                 production for oil and gas produced south of 68 degrees North latitude                                  
02                 that is similar to the reduction in gross value at the point of production                              
03                 in AS 43.55.160(f) and former AS 43.55.160(g) [(g)];                                                
04                           (iv)  other incentives for oil and gas production south of                                    
05                 68 degrees North latitude;                                                                              
06                      (C)  January 31, 2021, or as soon thereafter as practicable,                                       
07            regarding                                                                                                    
08                           (i)  changes to the state's fiscal regime that would be                                       
09                 conducive to increased and ongoing long-term investment in and                                          
10                 development of the state's oil and gas resources;                                                       
11 (ii)  alternative means for increasing the state's ability to                                                           
12 attract and maintain investment in and development of the state's oil                                                   
13                 and gas resources; and                                                                                  
14 (iii)  a review of the current effectiveness and future                                                                 
15 value of any provisions of the state's oil and gas tax laws that are                                                    
16                 expiring in the next five years.                                                                        
17    * Sec. 24. AS 43.55.011(k) and  43.55.160(g) are repealed.                                                         
18    * Sec. 25. The uncodified law of the State of Alaska is amended by adding a new section to                         
19 read:                                                                                                                   
20 APPLICABILITY. The limitations on the use of tax credits in AS 43.55.011(r), added                                      
21 by sec. 6 of this Act, and the adjustment to the calculation of a tax payment under                                     
22 AS 43.55.020(a)(9), added by sec. 8 of this Act, apply to credits applied to reduce a tax                               
23 liability for a tax year starting on or after the effective date of secs. 6 and 8 of this Act.                          
24    * Sec. 26. The uncodified law of the State of Alaska is amended by adding a new section to                         
25 read:                                                                                                                   
26 TRANSITION: REDUCTIONS IN THE GROSS VALUE AT THE POINT OF                                                               
27 PRODUCTION. Notwithstanding AS 43.55.160(f), as amended by sec. 20 of this Act, and the                                 
28 repeal of AS 43.55.160(g) by sec. 24 of this Act, the gross value at the point of production                            
29 may be reduced under AS 43.55.160(f) or (g) or 43.55.160(f) and (g), as those subsections                               
30 read on the day before the effective date of secs. 20 and 24 of this Act, for oil or gas produced                       
31 before the effective date of secs. 20 and 24 of this Act.                                                               
01    * Sec. 27. The uncodified law of the State of Alaska is amended by adding a new section to                         
02 read:                                                                                                                   
03       TRANSITION: PAYMENT OF TAX; FILING. (a) Notwithstanding the amendments                                            
04 to AS 43.55.020 by secs. 8 - 13 of this Act,                                                                            
05 (1)  a person subject to tax under AS 43.55 that is required to make one or                                             
06 more installment payments of estimated tax or other payments of tax under AS 43.55.020 for                              
07 production before the effective date of secs. 8 - 13 of this Act shall pay the tax under                                
08 AS 43.55.020, as that section read on the day before the effective date of secs. 8 - 13 of this                         
09 Act;                                                                                                                    
10 (2)  an unpaid amount of an installment payment required under AS 43.55.020                                             
11 for production before the effective date of secs. 8 - 13 of this Act that is not paid when due                          
12 bears interest under AS 43.55.020, as that section read on the day before the effective date of                         
13 secs. 8 - 13 of this Act;                                                                                               
14 (3)  an overpayment of an installment payment required under AS 43.55.020                                               
15 for production before the effective date of secs. 8 - 13 of this Act bears interest under                               
16 AS 43.55.020, as that section read on the day before the effective date of secs. 8 - 13 of this                         
17 Act.                                                                                                                    
18 (b)  The Department of Revenue may continue to apply and enforce AS 43.55.020, as                                       
19 that section read on the day before the effective date of secs. 8 - 13 of this Act, for a tax or                        
20 installment payment for production before the effective date of secs. 8 - 13 of this Act.                               
21    * Sec. 28. The uncodified law of the State of Alaska is amended by adding a new section to                         
22 read:                                                                                                                   
23 TRANSITION: PRODUCTION TAX. Notwithstanding the repeal of AS 43.55.011(k)                                               
24 by sec. 24 of this Act and the amendments to AS 43.55.011(e) and (f) by secs. 3 and 4 of this                           
25 Act and 43.55.160 by secs. 17 - 21 of this Act, for oil and gas produced before the repeal of                           
26 AS 43.55.011(k) by sec. 24 of this Act, the production tax and production tax value of that oil                         
27 and gas shall be determined under AS 43.55.011 and 43.55.160, as those sections read on the                             
28 day before the repeal of AS 43.55.011(k) by sec. 24 of this Act and the amendments to                                   
29 AS 43.55.011 by secs. 3 and 4 of this Act and AS 43.55.160 by secs. 17 - 21 of this Act.                                
30    * Sec. 29. This Act takes effect January 1, 2018.