Legislature(2015 - 2016)

2016-05-18 Senate Journal

Full Journal pdf

2016-05-18                     Senate Journal                      Page 2836
HB 247                                                                                                                        
SENATE CS FOR 2d CS FOR HOUSE BILL NO. 247(FIN) "An Act                                                                         
relating to the exploration incentive credits; relating to the powers and                                                       
duties of the Alaska Oil and Gas Conservation Commission; relating                                                              
to interest applicable to delinquent tax; relating to the oil and gas                                                           
production tax, tax payments, and credits; relating to tax credit                                                               
certificates; relating to refunds for the gas storage facility tax credit,                                                      
the liquefied natural gas storage facility tax credit, and the qualified in-                                                    
state oil refinery infrastructure expenditures tax credit; relating to oil                                                      
and gas lease expenditures and production tax credits for municipal                                                             
entities; requiring a bond or cash deposit with a business license                                                              
application for an oil or gas business; and providing for an effective                                                          
date" was read the third time.                                                                                                  
                                                                                                                                
Senator Wielechowski moved that the bill be returned to second                                                                  
reading for the purpose of a specific amendment, that being                                                                     
Amendment No. 1. Without objection, the bill was returned to second                                                             
reading.                                                                                                                        
                                                                                                                                
President Meyer stated the bill will remain in second reading for all                                                           
amendments offered today. There being no objection, it was so                                                                   
ordered.                                                                                                                        
                                                                                                                                
Senator Wielechowski offered Amendment No. 1:                                                                                   
                                                                                                                                
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          Delete "workforce"                                                                                                
             Insert "employees, contractors, and subcontractors"                                                           
                                                                                                                                
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          Delete "was composed of"                                                                                          
          Insert "were"                                                                                                     
                                                                                                                                
Page 24, line 1:                                                                                                                
          Delete "workforce"                                                                                                    
          Insert "employees, contractors, and subcontractors"                                                                   
          Delete "was composed of"                                                                                              
          Insert "were"                                                                                                         
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2837
Senator Wielechowski moved for the adoption of Amendment No. 1.                                                                 
Senator Giessel objected.                                                                                                       
                                                                                                                                
Senator Coghill moved and asked unanimous consent President Meyer                                                               
be allowed to abstain from voting due to a conflict of interest.                                                                
Objections were heard and Senator Meyer was required to vote.                                                                   
                                                                                                                                
Senator Micciche moved and asked unanimous consent to abstain                                                                   
from voting due to a conflict of interest. Objections were heard and                                                            
Senator Micciche was required to vote.                                                                                          
                                                                                                                                
The question being: "Shall Amendment No. 1 be adopted?" The roll                                                                
was taken with the following result:                                                                                            
                                                                                                                                
SCS 2d CSHB 247(FIN)                                                                                                            
Second Reading                                                                                                                  
Amendment No. 1                                                                                                                 
                                                                                                                                
YEAS:  4   NAYS:  15   EXCUSED:  0   ABSENT:  1                                                                               
                                                                                                                                
Yeas:  Wielechowski, Egan, Ellis, Gardner                                                                                       
                                                                                                                                
Nays:  Bishop, Coghill, Costello, Dunleavy, Giessel, Hoffman,                                                                   
Huggins, Kelly, MacKinnon, Micciche, Olson, Stedman, Stevens,                                                                   
Stoltze, Meyer                                                                                                                  
                                                                                                                                
Absent:  McGuire                                                                                                                
                                                                                                                                
and so, Amendment No. 1 failed.                                                                                                 
                                                                                                                                
Senator Wielechowski offered Amendment No. 2:                                                                                   
                                                                                                                                
Page 6, following line 11:                                                                                                      
     Insert a new bill section to read:                                                                                         
"* Sec. 14. AS 43.55.011(f) is amended to read:                                                                               
          (f)  The levy of tax under (e) of this section for                                                                    
              (1)  oil and gas produced before July 1, 2016                                                                 
     [JANUARY 1, 2022], from leases or properties that include land                                                             
     north of 68 degrees North latitude, other than gas subject to (o) of                                                       
     this section, may not be less than                                                                                         
                   (A)  four percent of the gross value at the point of                                                         
          production when the average price per barrel for Alaska North                                                         
          Slope crude oil for sale on the United States West Coast                                                              

2016-05-18                     Senate Journal                      Page 2838
          during the calendar year for which the tax is due is more than                                                        
          $25;                                                                                                                  
                   (B)  three percent of the gross value at the point of                                                        
          production when the average price per barrel for Alaska North                                                         
          Slope crude oil for sale on the United States West Coast                                                              
          during the calendar year for which the tax is due is over $20                                                         
          but not over $25;                                                                                                     
                   (C)  two percent of the gross value at the point of                                                          
          production when the average price per barrel for Alaska North                                                         
          Slope crude oil for sale on the United States West Coast                                                              
          during the calendar year for which the tax is due is over                                                             
          $17.50 but not over $20;                                                                                              
                   (D)  one percent of the gross value at the point of                                                          
          production when the average price per barrel for Alaska North                                                         
          Slope crude oil for sale on the United States West Coast                                                              
          during the calendar year for which the tax is due is over $15                                                         
          but not over $17.50; or                                                                                               
                   (E)  zero percent of the gross value at the point of                                                         
          production when the average price per barrel for Alaska North                                                         
          Slope crude oil for sale on the United States West Coast                                                              
          during the calendar year for which the tax is due is $15 or                                                           
          less; [AND]                                                                                                           
              (2)  oil and gas produced on and after July 1, 2016, and                                                  
     before January 1, 2022, from leases or properties that include land                                                    
     north of 68 degrees North latitude, other than gas subject to (o)                                                      
     of this section, may not be less than five percent of the gross                                                    
     value at the point of production; and                                                                                  
              (3)  oil produced on and after January 1, 2022, from                                                          
     leases or properties that include land north of 68 degrees                                                             
     North latitude may not be less than five percent of the gross                                                          
     value at the point of production                                                                                       
                   [(A)  FOUR PERCENT OF THE GROSS VALUE                                                                        
          AT THE POINT OF PRODUCTION WHEN THE                                                                                   
          AVERAGE PRICE PER BARREL FOR ALASKA NORTH                                                                             
          SLOPE CRUDE OIL FOR SALE ON THE UNITED                                                                                
          STATES WEST COAST DURING THE CALENDAR                                                                                 
          YEAR FOR WHICH THE TAX IS DUE IS MORE THAN                                                                            
          $25;                                                                                                                  
                                                                                                                                
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2839
                   (B)  THREE PERCENT OF THE GROSS VALUE                                                                        
          AT THE POINT OF PRODUCTION WHEN THE                                                                                   
          AVERAGE PRICE PER BARREL FOR ALASKA NORTH                                                                             
          SLOPE CRUDE OIL FOR SALE ON THE UNITED                                                                                
          STATES WEST COAST DURING THE CALENDAR                                                                                 
          YEAR FOR WHICH THE TAX IS DUE IS OVER $20 BUT                                                                         
          NOT OVER $25;                                                                                                         
                   (C)  TWO PERCENT OF THE GROSS VALUE AT                                                                       
          THE POINT OF PRODUCTION WHEN THE AVERAGE                                                                              
          PRICE PER BARREL FOR ALASKA NORTH SLOPE                                                                               
          CRUDE OIL FOR SALE ON THE UNITED STATES WEST                                                                          
          COAST DURING THE CALENDAR YEAR FOR WHICH                                                                              
          THE TAX IS DUE IS OVER $17.50 BUT NOT OVER $20;                                                                       
                   (D)  ONE PERCENT OF THE GROSS VALUE AT                                                                       
          THE POINT OF PRODUCTION WHEN THE AVERAGE                                                                              
          PRICE PER BARREL FOR ALASKA NORTH SLOPE                                                                               
          CRUDE OIL FOR SALE ON THE UNITED STATES WEST                                                                          
          COAST DURING THE CALENDAR YEAR FOR WHICH                                                                              
          THE TAX IS DUE IS OVER $15 BUT NOT OVER $17.50;                                                                       
          OR                                                                                                                    
                   (E)  ZERO PERCENT OF THE GROSS VALUE AT                                                                      
          THE POINT OF PRODUCTION WHEN THE AVERAGE                                                                              
          PRICE PER BARREL FOR ALASKA NORTH SLOPE                                                                               
          CRUDE OIL FOR SALE ON THE UNITED STATES WEST                                                                          
          COAST DURING THE CALENDAR YEAR FOR WHICH                                                                              
          THE TAX IS DUE IS $15 OR LESS]."                                                                                      
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 11, line 22:                                                                                                               
     Delete "or four percent"                                                                                                   
     Insert "[OR] four percent, or five percent"                                                                            
                                                                                                                                
Page 13, lines 14 - 15:                                                                                                         
     Delete "zero percent, one percent, two percent, three percent, or                                                          
four percent, as applicable,"                                                                                                   
     Insert "five [ZERO] percent [, ONE PERCENT, TWO                                                                        
PERCENT, THREE PERCENT, OR FOUR PERCENT, AS                                                                                     
APPLICABLE,]"                                                                                                                   
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2840
Page 15, line 28:                                                                                                               
     Delete "AS 43.55.011(f)(1) or (2)"                                                                                         
     Insert "AS 43.55.011(f) [AS 43.55.011(f)(1) OR (2)]"                                                                   
                                                                                                                                
Page 15, lines 29 - 30:                                                                                                         
     Delete "AS 43.55.011(f)(1) and (2)"                                                                                        
     Insert "AS 43.55.011(f) [AS 43.55.011(f)(1) AND (2)]"                                                                  
                                                                                                                                
Page 16, following line 9:                                                                                                      
     Insert a new bill section to read:                                                                                         
   "* Sec. 19. AS 43.55 is amended by adding a new section to read:                                                           
          Sec. 43.55.022. Limitations on tax credits. (a)                                                                     
     Notwithstanding any contrary provision of this chapter, the                                                                
     application of tax credits under this chapter is subject to the                                                            
     limitations set out in this section.                                                                                       
          (b)  A tax credit or a fraction of a tax credit under                                                                 
     AS 43.55.023, 43.55.024, and 43.55.025 may not be subtracted in                                                            
     calculating an installment payment of estimated tax required under                                                         
     AS 43.55.020(a) if the resulting amount of the installment                                                                 
     payment would be less than the amount in                                                                                   
     AS 43.55.020(a)(5)(B)(ii) or 43.55.020(a)(7)(A)(ii), as applicable.                                                        
          (c) The total amount of tax credits under AS 43.55.023,                                                               
     43.55.024, and 43.55.025 that may be applied against a tax levied                                                          
     by AS 43.55.011(e) for a calendar year may not exceed the sum of                                                           
     the amount of the tax credits or fractions of tax credits that are                                                         
     allowed under (b) of this section to be subtracted in calculating the                                                      
     installment payments of estimated tax for each month in the                                                                
     calendar year."                                                                                                            
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 17, line 28:                                                                                                               
     Delete "sec. 19"                                                                                                           
     Insert "sec. 21"                                                                                                           
                                                                                                                                
Page 18, following line 25:                                                                                                     
     Insert a new bill section to read:                                                                                         
"* Sec. 23. AS 43.55.023(c) is amended to read:                                                                               
          (c)  A credit or portion of a credit under this section may not                                                       
     be used to reduce a person's tax liability under AS 43.55.011(e)                                                           
     for any calendar year below the amount calculated under                                                                

2016-05-18                     Senate Journal                      Page 2841
     AS 43.55.011(f) [ZERO], and any unused credit or portion of a                                                          
     credit not used under this subsection may be applied in a later                                                            
     calendar year."                                                                                                            
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 20, following line 15:                                                                                                     
     Insert new bill sections to read:                                                                                          
"* Sec. 27. AS 43.55.024(f) is amended to read:                                                                               
          (f)  A tax credit authorized by (a) of this section may not be                                                        
     applied to reduce a producer's tax liability for any calendar year                                                         
     under AS 43.55.011(e) on oil and gas produced from leases or                                                               
     properties outside the Cook Inlet sedimentary basin, no part of                                                            
     which is north of 68 degrees North latitude, below the amount                                                          
     calculated under AS 43.55.011(f) [ZERO].                                                                               
   * Sec. 28. AS 43.55.024(g) is amended to read:                                                                             
          (g)  A tax credit authorized by (c) of this section may not be                                                        
     applied to reduce a producer's tax liability for any calendar year                                                         
     under AS 43.55.011(e) below the amount calculated under                                                                
     AS 43.55.011(f) [ZERO]."                                                                                               
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 20, line 23:                                                                                                               
     Delete "zero"                                                                                                              
     Insert "the amount calculated under AS 43.55.011(f) [ZERO]"                                                            
                                                                                                                                
Page 21, following line 28:                                                                                                     
     Insert new bill sections to read:                                                                                          
"* Sec. 31. AS 43.55.025(i) is amended to read:                                                                               
          (i)  For a production tax credit under this section,                                                                  
              (1)  a credit may not be applied to reduce a taxpayer's tax                                                       
     liability under AS 43.55.011(e) below the amount calculated                                                            
     under AS 43.55.011(f) [ZERO] for a calendar year; and                                                                  
              (2)  an amount of the production tax credit in excess of                                                          
     the amount that may be applied for a calendar year under this                                                              
     subsection may be carried forward and applied against the                                                                  
     taxpayer's tax liability under AS 43.55.011(e) in one or more later                                                        
     calendar years.                                                                                                            
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2842
   * Sec. 32. AS 43.55.025 is amended by adding a new subsection to                                                           
read:                                                                                                                           
          (q)  A credit or portion of a credit under this section may not                                                       
     be used to reduce a person's tax liability under AS 43.55.011(e)                                                           
     for any calendar year below the amount calculated under                                                                    
     AS 43.55.011(f)."                                                                                                          
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 23, line 20:                                                                                                               
     Delete "sec. 28"                                                                                                           
     Insert "sec. 35"                                                                                                           
                                                                                                                                
Page 26, following line 19:                                                                                                     
     Insert a new bill section to read:                                                                                         
"* Sec. 41. AS 43.55.150 is amended by adding a new subsection to                                                             
read:                                                                                                                           
          (d)  The gross value at the point of production may not be less                                                       
     than zero."                                                                                                                
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 35, line 21:                                                                                                               
     Delete "sec. 27"                                                                                                           
     Insert "sec. 34"                                                                                                           
                                                                                                                                
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     Delete "sec. 30"                                                                                                           
     Insert "sec. 37"                                                                                                           
                                                                                                                                
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     Delete "sec. 29"                                                                                                           
     Insert "sec. 36"                                                                                                           
                                                                                                                                
Page 35, line 25:                                                                                                               
     Delete "27, 29, and 30"                                                                                                    
     Insert "34, 36, and 37"                                                                                                    
                                                                                                                                
                                                                                                                                
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2843
Page 35, line 26:                                                                                                               
     Delete "sec. 15"                                                                                                           
     Insert "sec. 16"                                                                                                           
                                                                                                                                
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     Delete "sec. 15"                                                                                                           
     Insert "sec. 16"                                                                                                           
                                                                                                                                
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     Delete "sec. 45"                                                                                                           
     Insert "sec. 53"                                                                                                           
                                                                                                                                
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     Delete "secs. 26 and 29"                                                                                                   
     Insert "secs. 33 and 36"                                                                                                   
                                                                                                                                
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     Delete "sec. 45"                                                                                                           
     Insert "sec. 53"                                                                                                           
                                                                                                                                
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     Delete "sec. 45"                                                                                                           
     Insert "sec. 53"                                                                                                           
                                                                                                                                
Page 36, line 7:                                                                                                                
     Delete "secs. 26 and 29"                                                                                                   
     Insert "secs. 33 and 36"                                                                                                   
                                                                                                                                
Page 36, line 8:                                                                                                                
     Delete "sec. 45"                                                                                                           
     Insert "sec. 53"                                                                                                           
                                                                                                                                
Page 36, line 10:                                                                                                               
     Delete "sec. 45"                                                                                                           
     Insert "sec. 53"                                                                                                           
                                                                                                                                
Page 36, line 12:                                                                                                               
     Delete "sec. 45"                                                                                                           
     Insert "sec. 53"                                                                                                           
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2844
Page 36, lines 16 - 17:                                                                                                         
     Delete "sec. 45"                                                                                                           
     Insert "sec. 53"                                                                                                           
                                                                                                                                
Page 36, line 17:                                                                                                               
     Delete "secs. 21 and 22"                                                                                                   
     Insert "secs. 24 and 25"                                                                                                   
                                                                                                                                
Page 36, line 18:                                                                                                               
     Delete "sec. 31"                                                                                                           
     Insert "sec. 38"                                                                                                           
     Delete "sec. 38"                                                                                                           
     Insert "sec. 46"                                                                                                           
                                                                                                                                
Page 36, line 19:                                                                                                               
     Delete "sec. 39"                                                                                                           
     Insert "sec. 47"                                                                                                           
                                                                                                                                
Page 36, line 21:                                                                                                               
     Delete "sec. 45"                                                                                                           
     Insert "sec. 53"                                                                                                           
                                                                                                                                
Page 36, line 24:                                                                                                               
     Delete "sec. 45"                                                                                                           
     Insert "sec. 53"                                                                                                           
                                                                                                                                
Page 36, line 26:                                                                                                               
     Delete "sec. 45"                                                                                                           
     Insert "sec. 53"                                                                                                           
                                                                                                                                
Page 36, line 29:                                                                                                               
     Delete "sec. 45"                                                                                                           
     Insert "sec. 53"                                                                                                           
                                                                                                                                
Page 37, line 1:                                                                                                                
     Delete "sec. 45"                                                                                                           
     Insert "sec. 53"                                                                                                           
                                                                                                                                
                                                                                                                                
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2845
Page 37, lines 2 - 3:                                                                                                           
     Delete "sec. 45"                                                                                                           
     Insert "sec. 53"                                                                                                           
                                                                                                                                
Page 37, line 7:                                                                                                                
     Delete "sec. 20"                                                                                                           
     Insert "sec. 22"                                                                                                           
                                                                                                                                
Page 37, line 8:                                                                                                                
     Delete "sec. 20"                                                                                                           
     Insert "sec. 22"                                                                                                           
                                                                                                                                
Page 37, line 12:                                                                                                               
     Delete "sec. 20"                                                                                                           
     Insert "sec. 22"                                                                                                           
                                                                                                                                
Page 37, line 16:                                                                                                               
     Delete "sec. 36"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 37, line 17:                                                                                                               
     Delete "sec. 45"                                                                                                           
     Insert "sec. 53"                                                                                                           
                                                                                                                                
Page 37, line 20:                                                                                                               
     Delete "sec. 45"                                                                                                           
     Insert "sec. 53"                                                                                                           
                                                                                                                                
Page 38, line 15:                                                                                                               
     Delete "Sections 51 and 52"                                                                                                
     Insert "Sections 59 and 60"                                                                                                
                                                                                                                                
Page 38, line 16:                                                                                                               
       Delete "Sections 20 - 22, 26, 29, 31 - 33, 36 - 40, 45, 47 - 50"                                                        
     Insert "Sections 22, 24, 25, 33, 36, 38 - 40, 44 - 48, 53, 55 - 58"                                                       
                                                                                                                                
Page 38, line 17:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 50"                                                                                                           
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2846
Page 38, line 18:                                                                                                               
     Delete "secs. 53 and 54"                                                                                                   
     Insert "secs. 61 and 62"                                                                                                   
                                                                                                                                
Senator Wielechowski moved for the adoption of Amendment No. 2.                                                                 
Senator MacKinnon objected.                                                                                                     
                                                                                                                                
The question being: "Shall Amendment No. 2 be adopted?" The roll                                                                
was taken with the following result:                                                                                            
                                                                                                                                
SCS 2d CSHB 247(FIN)                                                                                                            
Second Reading                                                                                                                  
Amendment No. 2                                                                                                                 
                                                                                                                                
YEAS:  4   NAYS:  16   EXCUSED:  0   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Egan, Ellis, Gardner, Wielechowski                                                                                       
                                                                                                                                
Nays:  Bishop, Coghill, Costello, Dunleavy, Giessel, Hoffman,                                                                   
Huggins, Kelly, MacKinnon, McGuire, Micciche, Olson, Stedman,                                                                   
Stevens, Stoltze, Meyer                                                                                                         
                                                                                                                                
and so, Amendment No. 2 failed.                                                                                                 
                                                                                                                                
Senator Wielechowski offered Amendment No. 3:                                                                                   
                                                                                                                                
Page 17, line 1, through page 18, line 25:                                                                                      
     Delete all material and insert:                                                                                            
"* Sec. 19. AS 43.55.023(b) is amended to read:                                                                               
          (b)  Before January 1, 2014, a producer or explorer may elect                                                         
     to take a tax credit in the amount of 25 percent of a carried-                                                             
     forward annual loss. For lease expenditures incurred on and after                                                          
     January 1, 2014, and before January 1, 2016, to explore for,                                                               
     develop, or produce oil or gas deposits located north of 68 degrees                                                        
     North latitude, a producer or explorer may elect to take a tax credit                                                      
     in the amount of 45 percent of a carried-forward annual loss. For                                                          
     lease expenditures incurred during calendar year 2016 [ON                                                              
     AND AFTER JANUARY 1, 2016,] to explore for, develop, or                                                                    
     produce oil or gas deposits located north of 68 degrees North                                                              
     latitude, a producer or explorer may elect to take a tax credit in the                                                     
     amount of 35 percent of a carried-forward annual loss. For lease                                                       
     expenditures incurred north of 68 degrees North latitude, a                                                            

2016-05-18                     Senate Journal                      Page 2847
     producer may elect to take a tax credit in the amount of 32                                                            
     percent of a carried-forward annual loss incurred during                                                               
     calendar year 2017 or 2018; 29 percent of a carried-forward                                                            
     annual loss incurred during calendar year 2019 or 2020; 26                                                             
     percent of a carried-forward annual loss incurred during                                                               
     calendar year 2021 or 2022; and 25 percent of a carried-                                                               
     forward annual loss incurred after calendar year 2022. For                                                             
     lease expenditures incurred on or after January 1, 2014, and                                                           
     before January 1, 2018, to explore for, develop, or produce oil or                                                     
     gas deposits located south of 68 degrees North latitude, a producer                                                        
     or explorer may elect to take a tax credit in the amount of 25                                                             
     percent of a carried-forward annual loss. For lease expenditures                                                       
     incurred after December 31, 2017, to explore for, develop, or                                                          
     produce oil or gas deposits located south of 68 degrees North                                                          
     latitude and outside of the Cook Inlet sedimentary basin, a                                                            
     producer may elect to take a tax credit in the amount of 25                                                            
     percent of a carried-forward annual loss. A credit under this                                                          
     subsection for an expenditure incurred after December 31,                                                              
     2016, is subject to the requirements of (q) of this section. A                                                         
     credit under this subsection may be applied against a tax levied by                                                        
     AS 43.55.011(e). For purposes of this subsection,                                                                          
              (1)  a carried-forward annual loss is the amount of a                                                         
     producer's or explorer's adjusted lease expenditures under                                                                 
     AS 43.55.165 and 43.55.170 for a previous calendar year that was                                                           
     not deductible in calculating production tax values for that                                                               
     calendar year under AS 43.55.160;                                                                                      
              (2)  for lease expenditures incurred after                                                                    
     December 31, 2016, any reduction under AS 43.55.160(f) or (g)                                                          
     is added back to the calculation of production tax values for                                                          
     that calendar year under AS 43.55.160 for the determination                                                            
     of a carried-forward annual loss."                                                                                     
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 20, following line 15:                                                                                                     
     Insert a new bill section to read:                                                                                         
"* Sec. 23. AS 43.55.023 is amended by adding a new subsection to                                                             
read:                                                                                                                           
          (q)  For a calendar year after December 31, 2016, to qualify                                                          
     for a credit under (b) of this section,                                                                                    

2016-05-18                     Senate Journal                      Page 2848
              (1)  the producer incurring the expenditure may not have                                                          
     an average daily production of more than 15,000 BTU equivalent                                                             
     barrels a day in the state during the calendar year in which the                                                           
     expenditure is incurred;                                                                                                   
              (2)  the expenditure must be incurred for a lease                                                                
                   (A)  from which the state receives a royalty under                                                           
          AS 38.05 or federal law and in a unit under a unit plan of                                                            
          development approved by the commissioner of natural                                                                   
          resources as consistent with AS 38.05.180 or by the                                                                   
          applicable federal agency; and                                                                                        
                   (B)  in which the producer has a working interest;                                                           
          and                                                                                                                   
              (3)  if the unit is in the Cook Inlet sedimentary basin, the                                                      
     producer incurring the expenditure must have produced oil or gas                                                           
     in the Cook Inlet sedimentary basin before January 1, 2017."                                                               
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 36, line 17:                                                                                                               
     Delete "secs. 21 and 22"                                                                                                   
     Insert "secs. 20 and 21"                                                                                                   
                                                                                                                                
Page 37, lines 4 - 12:                                                                                                          
     Delete all material.                                                                                                       
                                                                                                                                
Page 38, line 15:                                                                                                               
     Delete "Sections 51 and 52"                                                                                                
     Insert "Sections 50 and 51"                                                                                                
                                                                                                                                
Page 38, line 16:                                                                                                               
     Delete "20 - 22"                                                                                                           
     Insert "20, 21"                                                                                                            
     Delete "47 - 50"                                                                                                           
     Insert "47 - 49"                                                                                                           
                                                                                                                                
Page 38, line 18:                                                                                                               
     Delete "secs. 53 and 54"                                                                                                   
 Insert "secs. 52 and 53"                                                                                                       
                                                                                                                                
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2849
Senator Wielechowski moved for the adoption of Amendment No. 3.                                                                 
Senator Giessel objected.                                                                                                       
                                                                                                                                
The question being: "Shall Amendment No. 3 be adopted?" The roll                                                                
was taken with the following result:                                                                                            
                                                                                                                                
SCS 2d CSHB 247(FIN)                                                                                                            
Second Reading                                                                                                                  
Amendment No. 3                                                                                                                 
                                                                                                                                
YEAS:  4   NAYS:  16   EXCUSED:  0   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Egan, Ellis, Gardner, Wielechowski                                                                                       
                                                                                                                                
Nays:  Coghill, Costello, Dunleavy, Giessel, Hoffman, Huggins,                                                                  
Kelly, MacKinnon, McGuire, Micciche, Olson, Stedman, Stevens,                                                                   
Stoltze, Bishop, Meyer                                                                                                          
                                                                                                                                
and so, Amendment No. 3 failed.                                                                                                 
                                                                                                                                
Senator Wielechowski offered Amendment No. 4:                                                                                   
                                                                                                                                
Page 11, line 2, following "(6)":                                                                                               
          Insert "and (11)"                                                                                                 
                                                                                                                                
Page 13, line 6, following "(10)":                                                                                          
          Insert "and (11)"                                                                                                 
                                                                                                                                
Page 16, line 9, following "year":                                                                                          
          Insert ";                                                                                                         
                             (11)  after December 31, 2016, for the                                                         
          purposes of a calculation under (5) or (7) of this                                                                
          subsection, a reduction resulting from a credit under                                                             
          AS 43.55.024(j) may not be                                                                                        
                                      (A)  applied to reduce an                                                             
                   installment payment to less than the applicable                                                          
                   percentage under AS 43.55.011(f); or                                                                     
                                      (B)  less than the amount of the                                                      
                   credit accrued for the month for which the                                                               
                   installment payment is due"                                                                              
                                                                                                                                
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2850
Page 21, line 1, following "AS 43.55.011(f).":                                                                                  
          Insert "The total amount of a tax credit under this                                                               
subsection may not, for a calendar year, exceed the sum of the                                                              
reductions resulting from this subsection from installment                                                                  
payments under AS 43.55.020(a) for the year."                                                                               
                                                                                                                                
Senator Wielechowski moved for the adoption of Amendment No. 4.                                                                 
Senator Giessel objected.                                                                                                       
                                                                                                                                
The question being: "Shall Amendment No. 4 be adopted?" The roll                                                                
was taken with the following result:                                                                                            
                                                                                                                                
SCS 2d CSHB 247(FIN)                                                                                                            
Second Reading                                                                                                                  
Amendment No. 4                                                                                                                 
                                                                                                                                
YEAS:  4   NAYS:  16   EXCUSED:  0   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Egan, Ellis, Gardner, Wielechowski                                                                                       
                                                                                                                                
Nays:  Costello, Dunleavy, Giessel, Hoffman, Huggins, Kelly,                                                                    
MacKinnon, McGuire, Micciche, Olson, Stedman, Stevens, Stoltze,                                                                 
Bishop, Coghill, Meyer                                                                                                          
                                                                                                                                
and so, Amendment No. 4 failed.                                                                                                 
                                                                                                                                
Senator Wielechowski offered Amendment No. 5:                                                                                   
                                                                                                                                
Page 26, following line 19:                                                                                                     
          Insert a new bill section to read:                                                                                    
"* Sec. 34. AS 43.55.150 is amended by adding a new subsection to                                                             
read:                                                                                                                           
                   (d)  The gross value at the point of production may                                                          
          not be less than zero."                                                                                               
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 35, line 31:                                                                                                               
          Delete "sec. 45"                                                                                                      
          Insert "sec. 46"                                                                                                      
                                                                                                                                
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2851
Page 36, line 3:                                                                                                                
          Delete "sec. 45"                                                                                                      
          Insert "sec. 46"                                                                                                      
                                                                                                                                
Page 36, line 5:                                                                                                                
          Delete "sec. 45"                                                                                                      
          Insert "sec. 46"                                                                                                      
                                                                                                                                
Page 36, line 8:                                                                                                                
          Delete "sec. 45"                                                                                                      
          Insert "sec. 46"                                                                                                      
                                                                                                                                
Page 36, line 10:                                                                                                               
          Delete "sec. 45"                                                                                                      
          Insert "sec. 46"                                                                                                      
                                                                                                                                
Page 36, line 12:                                                                                                               
          Delete "sec. 45"                                                                                                      
          Insert "sec. 46"                                                                                                      
                                                                                                                                
Page 36, lines 16 - 17:                                                                                                         
          Delete "sec. 45"                                                                                                      
          Insert "sec. 46"                                                                                                      
                                                                                                                                
Page 36, line 18:                                                                                                               
          Delete "sec. 38"                                                                                                      
          Insert "sec. 39"                                                                                                      
                                                                                                                                
Page 36, line 19:                                                                                                               
          Delete "sec. 39"                                                                                                      
          Insert "sec. 40"                                                                                                      
                                                                                                                                
Page 36, line 21:                                                                                                               
          Delete "sec. 45"                                                                                                      
          Insert "sec. 46"                                                                                                      
                                                                                                                                
Page 36, line 24:                                                                                                               
          Delete "sec. 45"                                                                                                      
          Insert "sec. 46"                                                                                                      
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2852
Page 36, line 26:                                                                                                               
          Delete "sec. 45"                                                                                                      
          Insert "sec. 46"                                                                                                      
                                                                                                                                
Page 36, line 29:                                                                                                               
          Delete "sec. 45"                                                                                                      
          Insert "sec. 46"                                                                                                      
                                                                                                                                
Page 37, line 1:                                                                                                                
          Delete "sec. 45"                                                                                                      
          Insert "sec. 46"                                                                                                      
                                                                                                                                
Page 37, lines 2 - 3:                                                                                                           
          Delete "sec. 45"                                                                                                      
          Insert "sec. 46"                                                                                                      
                                                                                                                                
Page 37, line 16:                                                                                                               
          Delete "sec. 36"                                                                                                      
          Insert "sec. 37"                                                                                                      
                                                                                                                                
Page 37, line 20:                                                                                                               
          Delete "sec. 45"                                                                                                      
          Insert "sec. 46"                                                                                                      
                                                                                                                                
Page 38, line 15:                                                                                                               
          Delete "Sections 51 and 52"                                                                                           
          Insert "Sections 52 and 53"                                                                                           
                                                                                                                                
Page 38, line 16:                                                                                                               
          Delete "36 - 40, 45, 47 - 50"                                                                                         
          Insert "37 - 41, 46, 48 - 51"                                                                                         
                                                                                                                                
Page 38, line 17:                                                                                                               
          Delete "sec. 42"                                                                                                      
          Insert "sec. 43"                                                                                                      
                                                                                                                                
Page 38, line 18:                                                                                                               
          Delete "secs. 53 and 54"                                                                                              
          Insert "secs. 54 and 55"                                                                                              
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2853
Senator Wielechowski moved for the adoption of Amendment No. 5.                                                                 
Senator Giessel objected.                                                                                                       
                                                                                                                                
The question being: "Shall Amendment No. 5 be adopted?" The roll                                                                
was taken with the following result:                                                                                            
                                                                                                                                
SCS 2d CSHB 247(FIN)                                                                                                            
Second Reading                                                                                                                  
Amendment No. 5                                                                                                                 
                                                                                                                                
YEAS:  4   NAYS:  16   EXCUSED:  0   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Egan, Ellis, Gardner, Wielechowski                                                                                       
                                                                                                                                
Nays:  Dunleavy, Giessel, Hoffman, Huggins, Kelly, MacKinnon,                                                                   
McGuire, Micciche, Olson, Stedman, Stevens, Stoltze, Bishop,                                                                    
Coghill, Costello, Meyer                                                                                                        
                                                                                                                                
and so, Amendment No. 5 failed.                                                                                                 
                                                                                                                                
Senator Wielechowski offered Amendment No. 6:                                                                                   
                                                                                                                                
Page 20, line 24, through page 21, line 28:                                                                                     
     Delete all material and insert:                                                                                            
"* Sec. 25. AS 43.55.024(j) is amended to read:                                                                               
          (j)  A producer may apply against the producer's tax liability                                                        
     for the calendar year under AS 43.55.011(e) a tax credit in the                                                            
     amount specified in this subsection for each barrel of oil taxable                                                         
     under AS 43.55.011(e) that does not receive a reduction in the                                                         
     gross value at the point of production under [MEET ANY OF                                                              
     THE CRITERIA IN] AS 43.55.160(f) or (g) and that is produced                                                               
     during a calendar year after December 31, 2013, from leases or                                                             
     properties north of 68 degrees North latitude. A tax credit under                                                          
     this subsection may not reduce a producer's tax liability for a                                                            
     calendar year under AS 43.55.011(e) below the amount calculated                                                            
     under AS 43.55.011(f). The amount of the tax credit for a barrel of                                                        
     taxable oil subject to this subsection produced during a month of                                                          
     the calendar year from a lease or property                                                                             
              (1)  north of 68 degrees North latitude, within a unit                                                        
     that had first commercial production within 20 years after                                                             
     establishment under AS 38.05.180(p), and within a unit or                                                              
     nonunitized reservoir that has cumulatively produced                                                                   

2016-05-18                     Senate Journal                      Page 2854
     400,000,000 barrels of oil by the close of the most recent                                                             
     calendar year and from which the average daily production of                                                           
     oil from the unit or nonunitized reservoir during the most                                                             
     recent calendar year exceeded 20,000 barrels is                                                                        
                   (A)  $4 for each barrel of taxable oil if the average                                                    
          gross value at the point of production for the month is less                                                      
          than $80 a barrel;                                                                                                
                   (B)  $3.50 for each barrel of taxable oil if the                                                         
          average gross value at the point of production for the                                                            
          month is greater than or equal to $80 a barrel, but less                                                          
          than $90 a barrel;                                                                                                
                   (C)  $3 for each barrel of taxable oil if the average                                                    
          gross value at the point of production for the month is                                                           
          greater than or equal to $90 a barrel, but less than $100 a                                                       
          barrel;                                                                                                           
                   (D)  $2.50 for each barrel of taxable oil if the                                                         
          average gross value at the point of production for the                                                            
          month is greater than or equal to $100 a barrel, but less                                                         
          than $110 a barrel;                                                                                               
                   (E)  $2 for each barrel of taxable oil if the average                                                    
          gross value at the point of production for the month is                                                           
          greater than or equal to $110 a barrel, but less than $120 a                                                      
          barrel;                                                                                                           
                   (F)  $1.50 for each barrel of taxable oil if the                                                         
          average gross value at the point of production for the                                                            
          month is greater than or equal to $120 a barrel, but less                                                         
          than $130 a barrel;                                                                                               
                   (G)  $1 for each barrel of taxable oil if the average                                                    
          gross value at the point of production for the month is                                                           
          greater than or equal to $130 a barrel, but less than $140 a                                                      
          barrel;                                                                                                           
                   (H)  $.50 for each barrel of taxable oil if the                                                          
          average gross value at the point of production for the                                                            
          month is greater than or equal to $140 a barrel, but less                                                         
          than $150 a barrel;                                                                                               
                   (I)  zero if the average gross value at the point of                                                     
          production for the month is greater than or equal to $150                                                         
          a barrel;                                                                                                         
                                                                                                                                
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2855
               (2)  not described in (1) of this subsection is                                                             
                   (A) [(1)] $8 for each barrel of taxable oil if the                                                       
          average gross value at the point of production for the month is                                                       
          less than $80 a barrel;                                                                                               
                   (B) [(2)]  $7 for each barrel of taxable oil if the                                                      
          average gross value at the point of production for the month is                                                       
          greater than or equal to $80 a barrel, but less than $90 a                                                            
          barrel;                                                                                                               
                   (C) [(3)]  $6 for each barrel of taxable oil if the                                                      
          average gross value at the point of production for the month is                                                       
          greater than or equal to $90 a barrel, but less than $100 a                                                           
          barrel;                                                                                                               
                   (D) [(4)]  $5 for each barrel of taxable oil if the                                                      
          average gross value at the point of production for the month is                                                       
          greater than or equal to $100 a barrel, but less than $110 a                                                          
          barrel;                                                                                                               
                   (E) [(5)]  $4 for each barrel of taxable oil if the                                                      
          average gross value at the point of production for the month is                                                       
          greater than or equal to $110 a barrel, but less than $120 a                                                          
          barrel;                                                                                                               
                   (F) [(6)]  $3 for each barrel of taxable oil if the                                                      
          average gross value at the point of production for the month is                                                       
          greater than or equal to $120 a barrel, but less than $130 a                                                          
          barrel;                                                                                                               
                   (G) [(7)]  $2 for each barrel of taxable oil if the                                                      
          average gross value at the point of production for the month is                                                       
          greater than or equal to $130 a barrel, but less than $140 a                                                          
          barrel;                                                                                                               
                   (H) [(8)]  $1 for each barrel of taxable oil if the                                                      
          average gross value at the point of production for the month is                                                       
          greater than or equal to $140 a barrel, but less than $150 a                                                          
          barrel;                                                                                                               
                   (I) [(9)]  zero if the average gross value at the point                                                  
          of production for the month is greater than or equal to $150 a                                                        
          barrel."                                                                                                              
                                                                                                                                
Senator Wielechowski moved for the adoption of Amendment No. 6.                                                                 
Senator Giessel objected.                                                                                                       
                                                                                                                                
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2856
The question being: "Shall Amendment No. 6 be adopted?" The roll                                                                
was taken with the following result:                                                                                            
                                                                                                                                
SCS 2d CSHB 247(FIN)                                                                                                            
Second Reading                                                                                                                  
Amendment No. 6                                                                                                                 
                                                                                                                                
YEAS:  4   NAYS:  16   EXCUSED:  0   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Egan, Ellis, Gardner, Wielechowski                                                                                       
                                                                                                                                
Nays:  Giessel, Hoffman, Huggins, Kelly, MacKinnon, McGuire,                                                                    
Micciche, Olson, Stedman, Stevens, Stoltze, Bishop, Coghill, Costello,                                                          
Dunleavy, Meyer                                                                                                                 
                                                                                                                                
and so, Amendment No. 6 failed.                                                                                                 
                                                                                                                                
Senator Wielechowski offered Amendment No. 7:                                                                                   
                                                                                                                                
Page 27, line 10:                                                                                                               
          Delete "seven"                                                                                                    
          Insert "five"                                                                                                     
                                                                                                                                
Page 27, line 12:                                                                                                               
          Delete "January 1, 2023"                                                                                          
          Insert "January 1, 2021"                                                                                          
                                                                                                                                
Page 28, line 5:                                                                                                                
          Delete "seven"                                                                                                    
          Insert "five"                                                                                                     
                                                                                                                                
Page 28, line 8:                                                                                                                
          Delete "January 1, 2023"                                                                                          
          Insert "January 1, 2021"                                                                                          
                                                                                                                                
Senator Wielechowski moved for the adoption of Amendment No. 7.                                                                 
Senator Giessel objected.                                                                                                       
                                                                                                                                
The question being: "Shall Amendment No. 7 be adopted?" The roll                                                                
was taken with the following result:                                                                                            
                                                                                                                                
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2857
SCS 2d CSHB 247(FIN)                                                                                                            
Second Reading                                                                                                                  
Amendment No. 7                                                                                                                 
                                                                                                                                
YEAS:  4   NAYS:  16   EXCUSED:  0   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Ellis, Gardner, Wielechowski, Egan                                                                                       
                                                                                                                                
Nays:  Giessel, Hoffman, Huggins, Kelly, MacKinnon, McGuire,                                                                    
Micciche, Olson, Stedman, Stevens, Stoltze, Bishop, Coghill, Costello,                                                          
Dunleavy, Meyer                                                                                                                 
                                                                                                                                
and so, Amendment No. 7 failed.                                                                                                 
                                                                                                                                
Senator Wielechowski offered Amendment No. 8:                                                                                   
                                                                                                                                
Page 6, following line 11:                                                                                                      
     Insert a new bill section to read:                                                                                         
"* Sec. 14. AS 43.55.011(e) is amended to read:                                                                               
          (e)  There is levied on the producer of oil or gas a tax for all                                                      
     oil and gas produced each calendar year from each lease or                                                                 
     property in the state, less any oil and gas the ownership or right to                                                      
     which is exempt from taxation or constitutes a landowner's royalty                                                         
     interest or for which a tax is levied by AS 43.55.014. Except as                                                           
     otherwise provided under (f), (j), (k), (o), and (p) of this section,                                                      
     for oil and gas produced                                                                                                   
              (1)  before January 1, 2014, the tax is equal to the sum of                                                       
                   (A)  the annual production tax value of the taxable oil                                                      
          and gas as calculated under AS 43.55.160(a)(1) multiplied by                                                          
          25 percent; and                                                                                                       
                   (B)  the sum, over all months of the calendar year, of                                                       
            the tax amounts determined under (g) of this section;                                                              
              (2)  on and after January 1, 2014, and before January 1,                                                          
     2022, the tax is equal to the sum of                                                                                   
                   (A)  the annual production tax value of the taxable oil                                                  
          and gas as calculated under AS 43.55.160(a)(1) multiplied by                                                          
          35 percent; and                                                                                                   
                   (B)  the sum, over all months of the calendar year,                                                      
          of the tax amounts determined under (q) of this section;                                                          
                (3)  on and after January 1, 2022, the tax for                                                                 
                   (A)  oil is equal to the sum of                                                                          
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2858
                        (i)  the annual production tax value of the taxable                                                 
              oil as calculated under AS 43.55.160(h) multiplied by 35                                                          
              percent; and                                                                                                  
                        (ii)  the sum, over all the months of the                                                           
              calendar year, of the tax amounts determined under                                                            
              (q) of this section;                                                                                          
                   (B)  gas is equal to 13 percent of the gross value at                                                        
          the point of production of the taxable gas; if the gross value at                                                     
          the point of production of gas produced from a lease or                                                               
          property is less than zero, that gross value at the point of                                                          
          production is considered zero for purposes of this                                                                    
          subparagraph."                                                                                                        
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 8, following line 2:                                                                                                       
     Insert a new bill section to read:                                                                                         
"* Sec. 18. AS 43.55.011 is amended by adding a new subsection to                                                             
read:                                                                                                                           
          (q)  On and after January 1, 2017, for each month of the                                                              
     calendar year for which the producer's average monthly                                                                     
     production tax value under AS 43.55.160 of a barrel of taxable oil                                                         
     is more than $20, the department shall impose a tax on oil, in                                                             
     addition to the tax under AS 43.55.011(e), at the rate of 0.3                                                              
     percent multiplied by the number that represents the difference                                                            
     between the average monthly production tax value of a barrel of                                                            
     oil and $20. The tax under this subsection applies to oil produced                                                         
     from a lease or property within a unit or nonunitized reservoir that                                                       
     has cumulatively produced 400,000,000 barrels of oil by the close                                                          
     of the most recent calendar year and from which the average daily                                                          
     production of oil from the unit or nonunitized reservoir during the                                                        
     most recent calendar year exceeds 20,000 barrels."                                                                         
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 11, line 11:                                                                                                               
     Delete "35 percent"                                                                                                        
     Insert "the sum of 35 percent and the tax rate calculated for the                                                  
month under AS 43.55.011(q)"                                                                                                
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2859
Page 11, line 25:                                                                                                               
     Delete "35 percent"                                                                                                        
     Insert "the sum of 35 percent and the tax rate calculated for the                                                  
month under AS 43.55.011(q)"                                                                                                
                                                                                                                                
Page 12, line 6:                                                                                                                
     Delete "35 percent"                                                                                                        
     Insert "the sum of 35 percent and the tax rate calculated for the                                                  
month under AS 43.55.011(q)"                                                                                                
                                                                                                                                
Page 12, line 15:                                                                                                               
     Delete "35 percent"                                                                                                        
     Insert "the sum of 35 percent and the tax rate calculated for the                                                  
month under AS 43.55.011(q)"                                                                                                
                                                                                                                                
Page 13, line 18:                                                                                                               
     Delete "35 percent"                                                                                                        
     Insert "the sum of 35 percent and the tax rate calculated for the                                                  
month under AS 43.55.011(q)"                                                                                                
                                                                                                                                
Page 14, line 3:                                                                                                                
     Delete "35 percent"                                                                                                        
     Insert "the sum of 35 percent and the tax rate calculated for the                                                  
month under AS 43.55.011(q)"                                                                                                
                                                                                                                                
Page 14, line 12:                                                                                                               
     Delete "35 percent"                                                                                                        
     Insert "the sum of 35 percent and the tax rate calculated for the                                                  
month under AS 43.55.011(q)"                                                                                                
                                                                                                                                
Page 14, line 26:                                                                                                               
     Delete "35 percent"                                                                                                        
     Insert "the sum of 35 percent and the tax rate calculated for the                                                  
month under AS 43.55.011(q)"                                                                                                
                                                                                                                                
Page 15, line 9:                                                                                                                
     Delete "35 percent"                                                                                                    
     Insert "the sum of 35 percent and the tax rate calculated for                                                          
the month under AS 43.55.011(q)"                                                                                            
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2860
Page 17, line 28:                                                                                                               
     Delete "sec. 19"                                                                                                           
     Insert "sec. 21"                                                                                                           
                                                                                                                                
Page 23, line 20:                                                                                                               
     Delete "sec. 28"                                                                                                           
     Insert "sec. 30"                                                                                                           
                                                                                                                                
Page 35, line 21:                                                                                                               
     Delete "sec. 27"                                                                                                           
     Insert "sec. 29"                                                                                                           
                                                                                                                                
Page 35, line 22:                                                                                                               
     Delete "sec. 30"                                                                                                           
     Insert "sec. 32"                                                                                                           
                                                                                                                                
Page 35, line 24:                                                                                                               
     Delete "sec. 29"                                                                                                           
     Insert "sec. 31"                                                                                                           
                                                                                                                                
Page 35, line 25:                                                                                                               
     Delete "27, 29, and 30"                                                                                                    
     Insert "29, 31, and 32"                                                                                                    
                                                                                                                                
Page 35, line 26:                                                                                                               
     Delete "sec. 15"                                                                                                           
     Insert "sec. 16"                                                                                                           
                                                                                                                                
Page 35, line 27:                                                                                                               
     Delete "sec. 15"                                                                                                           
     Insert "sec. 16"                                                                                                           
                                                                                                                                
Page 35, line 31:                                                                                                               
     Delete "sec. 45"                                                                                                           
     Insert "sec. 47"                                                                                                           
                                                                                                                                
Page 36, line 1:                                                                                                                
     Delete "secs. 26 and 29"                                                                                                   
     Insert "secs. 28 and 31"                                                                                                   
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2861
Page 36, line 3:                                                                                                                
     Delete "sec. 45"                                                                                                           
     Insert "sec. 47"                                                                                                           
                                                                                                                                
Page 36, line 5:                                                                                                                
     Delete "sec. 45"                                                                                                           
     Insert "sec. 47"                                                                                                           
                                                                                                                                
Page 36, line 7:                                                                                                                
     Delete "secs. 26 and 29"                                                                                                   
     Insert "secs. 28 and 31"                                                                                                   
                                                                                                                                
Page 36, line 8:                                                                                                                
     Delete "sec. 45"                                                                                                           
     Insert "sec. 47"                                                                                                           
                                                                                                                                
Page 36, line 10:                                                                                                               
     Delete "sec. 45"                                                                                                           
     Insert "sec. 47"                                                                                                           
                                                                                                                                
Page 36, line 12:                                                                                                               
     Delete "sec. 45"                                                                                                           
     Insert "sec. 47"                                                                                                           
                                                                                                                                
Page 36, lines 16 - 17:                                                                                                         
     Delete "sec. 45"                                                                                                           
     Insert "sec. 47"                                                                                                           
                                                                                                                                
Page 36, line 17:                                                                                                               
     Delete "secs. 21 and 22"                                                                                                   
     Insert "secs. 23 and 24"                                                                                                   
                                                                                                                                
Page 36, line 18:                                                                                                               
     Delete "sec. 31"                                                                                                           
     Insert "sec. 33"                                                                                                           
     Delete "sec. 38"                                                                                                           
     Insert "sec. 40"                                                                                                           
                                                                                                                                
                                                                                                                                
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2862
Page 36, line 19:                                                                                                               
     Delete "sec. 39"                                                                                                           
     Insert "sec. 41"                                                                                                           
                                                                                                                                
Page 36, line 21:                                                                                                               
     Delete "sec. 45"                                                                                                           
     Insert "sec. 47"                                                                                                           
                                                                                                                                
Page 36, line 24:                                                                                                               
     Delete "sec. 45"                                                                                                           
     Insert "sec. 47"                                                                                                           
                                                                                                                                
Page 36, line 26:                                                                                                               
     Delete "sec. 45"                                                                                                           
     Insert "sec. 47"                                                                                                           
                                                                                                                                
Page 36, line 29:                                                                                                               
     Delete "sec. 45"                                                                                                           
     Insert "sec. 47"                                                                                                           
                                                                                                                                
Page 37, line 1:                                                                                                                
     Delete "sec. 45"                                                                                                           
     Insert "sec. 47"                                                                                                           
                                                                                                                                
Page 37, lines 2 - 3:                                                                                                           
     Delete "sec. 45"                                                                                                           
     Insert "sec. 47"                                                                                                           
                                                                                                                                
Page 37, line 7:                                                                                                                
     Delete "sec. 20"                                                                                                           
     Insert "sec. 22"                                                                                                           
                                                                                                                                
Page 37, line 8:                                                                                                                
     Delete "sec. 20"                                                                                                           
     Insert "sec. 22"                                                                                                           
                                                                                                                                
Page 37, line 12:                                                                                                               
     Delete "sec. 20"                                                                                                           
     Insert "sec. 22"                                                                                                           
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2863
Page 37, line 16:                                                                                                               
     Delete "sec. 36"                                                                                                           
     Insert "sec. 38"                                                                                                           
                                                                                                                                
Page 37, line 17:                                                                                                               
     Delete "sec. 45"                                                                                                           
     Insert "sec. 47"                                                                                                           
                                                                                                                                
Page 37, line 20:                                                                                                               
     Delete "sec. 45"                                                                                                           
     Insert "sec. 47"                                                                                                           
                                                                                                                                
Page 38, line 15:                                                                                                               
     Delete "Sections 51 and 52"                                                                                                
     Insert "Sections 53 and 54"                                                                                                
                                                                                                                                
Page 38, line 16:                                                                                                               
       Delete "Sections 20 - 22, 26, 29, 31 - 33, 36 - 40, 45, 47 - 50"                                                        
       Insert "Sections 22 - 24, 28, 31, 33 - 35, 38 - 42, 47, 49 - 52"                                                        
                                                                                                                                
Page 38, line 17:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 38, line 18:                                                                                                               
     Delete "secs. 53 and 54"                                                                                                   
     Insert "secs. 55 and 56"                                                                                                   
                                                                                                                                
Senator Wielechowski moved for the adoption of Amendment No. 8.                                                                 
Senator Giessel objected.                                                                                                       
                                                                                                                                
The question being: "Shall Amendment No. 8 be adopted?" The roll                                                                
was taken with the following result:                                                                                            
                                                                                                                                
SCS 2d CSHB 247(FIN)                                                                                                            
Second Reading                                                                                                                  
Amendment No. 8                                                                                                                 
                                                                                                                                
YEAS:  4   NAYS:  15   EXCUSED:  0   ABSENT:  1                                                                               
                                                                                                                                
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2864
Yeas:  Gardner, Wielechowski, Egan, Ellis                                                                                       
                                                                                                                                
Nays:  Giessel, Hoffman, Huggins, MacKinnon, McGuire, Micciche,                                                                 
Olson, Stedman, Stevens, Stoltze, Bishop, Coghill, Costello,                                                                    
Dunleavy, Meyer                                                                                                                 
                                                                                                                                
Absent:  Kelly                                                                                                                  
                                                                                                                                
and so, Amendment No. 8 failed.                                                                                                 
                                                                                                                                
Senator Wielechowski offered Amendment No. 9:                                                                                   
                                                                                                                                
Page 4, lines 20 - 25:                                                                                                          
          Delete all material and insert:                                                                                       
   "* Sec. 9. AS 43.05.230 is amended by adding a new subsection to                                                           
read:                                                                                                                           
                   (l)  The following information for persons claiming a                                                        
          credit under AS 43.55 is public:                                                                                      
                             (1)  the name of each person claiming a                                                            
          credit under AS 43.55;                                                                                                
                             (2)  the aggregate amount of credits under                                                         
          AS 43.55 claimed by the taxpayer in the calendar year, except                                                         
          for the credit in AS 43.55.024(j);                                                                                    
                             (3)  a description of the taxpayer's activities                                                    
            that generated the credits claimed under AS 43.55; and                                                             
                             (4)  the aggregate amount of tax credits                                                           
          purchased under each statutory section or subsection, as                                                              
          applicable, classified to prevent the identification of a                                                             
          particular taxpayer."                                                                                                 
                                                                                                                                
Page 38, following line 15:                                                                                                     
          Insert a new bill section to read:                                                                                    
   "* Sec. 54. Sections 7 and 9 of this Acttake effect July 1, 2016."                                                       
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 38, line 18:                                                                                                               
          Delete "secs. 53 and 54"                                                                                              
          Insert "secs. 53 - 55"                                                                                                
                                                                                                                                
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2865
Senator Wielechowski moved for the adoption of Amendment No. 9.                                                                 
Senator Giessel objected.                                                                                                       
                                                                                                                                
The question being: "Shall Amendment No. 9 be adopted?" The roll                                                                
was taken with the following result:                                                                                            
                                                                                                                                
SCS 2d CSHB 247(FIN)                                                                                                            
Second Reading                                                                                                                  
Amendment No. 9                                                                                                                 
                                                                                                                                
YEAS:  6   NAYS:  14   EXCUSED:  0   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Micciche, Stoltze, Wielechowski, Egan, Ellis, Gardner                                                                    
                                                                                                                                
Nays:  Giessel, Hoffman, Huggins, Kelly, MacKinnon, McGuire,                                                                    
Olson, Stedman, Stevens, Bishop, Coghill, Costello, Dunleavy, Meyer                                                             
                                                                                                                                
and so, Amendment No. 9 failed.                                                                                                 
                                                                                                                                
Senator Wielechowski offered Amendment No. 10:                                                                                  
                                                                                                                                
Page 6, following line 11:                                                                                                      
     Insert a new bill section to read:                                                                                         
"* Sec. 14. AS 43.55.011(f) is amended to read:                                                                               
          (f)  The levy of tax under (e) of this section for                                                                    
              (1)  oil and gas produced before July 1, 2016                                                                 
     [JANUARY 1, 2022], from leases or properties that include land                                                             
     north of 68 degrees North latitude, other than gas subject to (o) of                                                       
     this section, may not be less than                                                                                         
                   (A)  four percent of the gross value at the point of                                                         
          production when the average price per barrel for Alaska North                                                         
          Slope crude oil for sale on the United States West Coast                                                              
          during the calendar year for which the tax is due is more than                                                        
          $25;                                                                                                                  
                   (B)  three percent of the gross value at the point of                                                        
          production when the average price per barrel for Alaska North                                                         
          Slope crude oil for sale on the United States West Coast                                                              
          during the calendar year for which the tax is due is over $20                                                         
          but not over $25;                                                                                                     
                                                                                                                                
                                                                                                                                
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2866
                   (C)  two percent of the gross value at the point of                                                          
          production when the average price per barrel for Alaska North                                                         
          Slope crude oil for sale on the United States West Coast                                                              
          during the calendar year for which the tax is due is over                                                             
          $17.50 but not over $20;                                                                                              
                   (D)  one percent of the gross value at the point of                                                          
          production when the average price per barrel for Alaska North                                                         
          Slope crude oil for sale on the United States West Coast                                                              
          during the calendar year for which the tax is due is over $15                                                         
          but not over $17.50; or                                                                                               
                   (E)  zero percent of the gross value at the point of                                                         
          production when the average price per barrel for Alaska North                                                         
          Slope crude oil for sale on the United States West Coast                                                              
          during the calendar year for which the tax is due is $15 or                                                           
          less; [AND]                                                                                                           
              (2)  oil and gas produced on and after January 1, 2017,                                                       
     but before January 1, 2022, from leases or properties that                                                             
     include land north of 68 degrees North latitude,                                                                       
                   (A)  by a producer that does not qualify under (B)                                                       
          of this paragraph, may not be less than                                                                           
                        (i)  10 percent of the gross value at the point of                                                  
              production when the average price per barrel for                                                              
              Alaska North Slope crude oil for sale on the United                                                           
              States West Coast during the calendar year for which                                                          
              the tax is due is more than $85;                                                                              
                        (ii)  nine percent of the gross value at the point                                                  
              of production when the average price per barrel for                                                           
              Alaska North Slope crude oil for sale on the United                                                           
              States West Coast during the calendar year for which                                                          
                 the tax is due is over $80 but not over $85;                                                              
                        (iii)  eight percent of the gross value at the                                                      
              point of production when the average price per barrel                                                         
              for Alaska North Slope crude oil for sale on the United                                                       
              States West Coast during the calendar year for which                                                          
                 the tax is due is over $75 but not over $80;                                                              
                        (iv)  seven percent of the gross value at the                                                       
              point of production when the average price per barrel                                                         
              for Alaska North Slope crude oil for sale on the United                                                       
              States West Coast during the calendar year for which                                                          
                 the tax is due is over $70 but not over $75;                                                              

2016-05-18                     Senate Journal                      Page 2867
                        (v)  six percent of the gross value at the point                                                    
              of production when the average price per barrel for                                                           
              Alaska North Slope crude oil for sale on the United                                                           
              States West Coast during the calendar year for which                                                          
                 the tax is due is over $65 but not over $70;                                                              
                        (vi)  five percent of the gross value at the point                                                  
              of production when the average price per barrel for                                                           
              Alaska North Slope crude oil for sale on the United                                                           
              States West Coast during the calendar year for which                                                          
              the tax is due is over $60 but not over $65; or                                                               
                        (vii)  four percent of the gross value at the                                                       
              point of production when the average price per barrel                                                         
              for Alaska North Slope crude oil for sale on the United                                                       
              States West Coast during the calendar year for which                                                          
              the tax is due is $60 or less; or                                                                             
                   (B) by a producer that produces less than an                                                             
          average of 30,000 barrels of oil a day, in total, from leases                                                     
          or properties located north of 68 degrees North latitude                                                          
          and that produces oil or gas that qualifies for a reduction                                                       
          in the gross value of the point of production under                                                               
          AS 43.55.160(f) may not be less than                                                                              
                        (i)  10 percent of the gross value at the point of                                                  
              production when the average price per barrel for                                                              
              Alaska North Slope crude oil for sale on the United                                                           
              States West Coast during the calendar year for which                                                          
              the tax is due is more than $100;                                                                             
                        (ii)  nine percent of the gross value at the point                                                  
              of production when the average price per barrel for                                                           
              Alaska North Slope crude oil for sale on the United                                                           
              States West Coast during the calendar year for which                                                          
                the tax is due is over $95 but not over $100;                                                              
                        (iii)  eight percent of the gross value at the                                                      
              point of production when the average price per barrel                                                         
              for Alaska North Slope crude oil for sale on the United                                                       
              States West Coast during the calendar year for which                                                          
                 the tax is due is over $90 but not over $95;                                                              
                        (iv)  seven percent of the gross value at the                                                       
              point of production when the average price per barrel                                                         
              for Alaska North Slope crude oil for sale on the United                                                       
              States West Coast during the calendar year for which                                                          

2016-05-18                     Senate Journal                      Page 2868
                 the tax is due is over $85 but not over $90;                                                              
                        (v)  six percent of the gross value at the point                                                    
              of production when the average price per barrel for                                                           
              Alaska North Slope crude oil for sale on the United                                                           
              States West Coast during the calendar year for which                                                          
                 the tax is due is over $80 but not over $85;                                                              
                        (vi)  five percent of the gross value at the point                                                  
              of production when the average price per barrel for                                                           
              Alaska North Slope crude oil for sale on the United                                                           
              States West Coast during the calendar year for which                                                          
               the tax is due is over $75 but not over $80; or                                                             
                        (vii)  four percent of the gross value at the                                                       
              point of production when the average price per barrel                                                         
              for Alaska North Slope crude oil for sale on the United                                                       
              States West Coast during the calendar year for which                                                          
              the tax is due is $75 or less; and                                                                            
              (3) oil produced on and after January 1, 2022, from leases                                                    
     or properties that include land north of 68 degrees North latitude,                                                       
                   (A)  by a producer that does not qualify under (B)                                                       
          of this paragraph, may not be less than                                                                           
                        (i)  10 [(A) FOUR] percent of the gross value at                                                    
              the point of production when the average price per barrel                                                         
              for Alaska North Slope crude oil for sale on the United                                                           
              States West Coast during the calendar year for which the                                                          
              tax is due is more than $85 [$25];                                                                            
                        (ii)  nine [(B) THREE] percent of the gross value                                                   
              at the point of production when the average price per                                                             
              barrel for Alaska North Slope crude oil for sale on the                                                           
              United States West Coast during the calendar year for                                                             
              which the tax is due is over $80 [$20] but not over $85                                                   
              [$25];                                                                                                            
                        (iii)  eight [(C) TWO] percent of the gross value                                                   
              at the point of production when the average price per                                                             
              barrel for Alaska North Slope crude oil for sale on the                                                           
              United States West Coast during the calendar year for                                                             
              which the tax is due is over $75 [$17.50] but not over $80                                                
              [$20];                                                                                                            
                                                                                                                                
                                                                                                                                
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2869
                        (iv)  seven [(D) ONE] percent of the gross value                                                    
              at the point of production when the average price per                                                             
              barrel for Alaska North Slope crude oil for sale on the                                                           
              United States West Coast during the calendar year for                                                             
              which the tax is due is over $70 [$15] but not over $75;                                                  
                        (v)  six percent of the gross value at the point                                                    
              of production when the average price per barrel for                                                           
              Alaska North Slope crude oil for sale on the United                                                           
              States West Coast during the calendar year for which                                                          
                 the tax is due is over $65 but not over $70;                                                              
                        (vi)  five percent of the gross value at the point                                                  
              of production when the average price per barrel for                                                           
              Alaska North Slope crude oil for sale on the United                                                           
              States West Coast during the calendar year for which                                                          
              the tax is due is over $60 but not over $65 [$17.50]; or                                                      
                        (vii)  four [(E) ZERO] percent of the gross value                                                   
              at the point of production when the average price per                                                             
              barrel for Alaska North Slope crude oil for sale on the                                                           
              United States West Coast during the calendar year for                                                             
                which the tax is due is $60 [$15] or less; or                                                          
                   (B)  by a producer that produces less than an                                                            
          average of 30,000 barrels of oil a day, in total, from leases                                                     
          or properties located north of 68 degrees North latitude                                                          
          and that produces oil that qualifies for a reduction in the                                                       
          gross value of the point of production under                                                                      
          AS 43.55.160(f) may not be less than                                                                              
                        (i)  10 percent of the gross value at the point of                                                  
              production when the average price per barrel for                                                              
              Alaska North Slope crude oil for sale on the United                                                           
              States West Coast during the calendar year for which                                                          
              the tax is due is more than $100;                                                                             
                        (ii)  nine percent of the gross value at the point                                                  
              of production when the average price per barrel for                                                           
              Alaska North Slope crude oil for sale on the United                                                           
              States West Coast during the calendar year for which                                                          
                the tax is due is over $95 but not over $100;                                                              
                                                                                                                                
                                                                                                                                
                                                                                                                                
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2870
                        (iii)  eight percent of the gross value at the                                                      
              point of production when the average price per barrel                                                         
              for Alaska North Slope crude oil for sale on the United                                                       
              States West Coast during the calendar year for which                                                          
                 the tax is due is over $90 but not over $95;                                                              
                        (iv)  seven percent of the gross value at the                                                       
              point of production when the average price per barrel                                                         
              for Alaska North Slope crude oil for sale on the United                                                       
              States West Coast during the calendar year for which                                                          
                 the tax is due is over $85 but not over $90;                                                              
                        (v)  six percent of the gross value at the point                                                    
              of production when the average price per barrel for                                                           
              Alaska North Slope crude oil for sale on the United                                                           
              States West Coast during the calendar year for which                                                          
                 the tax is due is over $80 but not over $85;                                                              
                        (vi)  five percent of the gross value at the point                                                  
              of production when the average price per barrel for                                                           
              Alaska North Slope crude oil for sale on the United                                                           
              States West Coast during the calendar year for which                                                          
               the tax is due is over $75 but not over $80; or                                                             
                        (vii)  four percent of the gross value at the                                                       
              point of production when the average price per barrel                                                         
              for Alaska North Slope crude oil for sale on the United                                                       
              States West Coast during the calendar year for which                                                          
              the tax is due is $75 or less."                                                                               
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 11, line 22:                                                                                                               
     Delete "or four percent"                                                                                                   
     Insert "[OR] four percent, or five percent"                                                                            
                                                                                                                                
Page 13, lines 14 - 15:                                                                                                         
     Delete "zero percent, one percent, two percent, three percent, or                                                          
four percent, as applicable,"                                                                                                   
     Insert "five [ZERO] percent [, ONE PERCENT, TWO                                                                        
PERCENT, THREE PERCENT, OR FOUR PERCENT, AS                                                                                     
APPLICABLE,]"                                                                                                                   
                                                                                                                                
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2871
Page 15, line 28:                                                                                                               
     Delete "AS 43.55.011(f)(1) or (2)"                                                                                         
     Insert "AS 43.55.011(f) [AS 43.55.011(f)(1) OR (2)]"                                                                   
                                                                                                                                
Page 15, lines 29 - 30:                                                                                                         
     Delete "AS 43.55.011(f)(1) and (2)"                                                                                        
     Insert "AS 43.55.011(f) [AS 43.55.011(f)(1) AND (2)]"                                                                  
                                                                                                                                
Page 16, following line 9:                                                                                                      
     Insert a new bill section to read:                                                                                         
   "* Sec. 19. AS 43.55 is amended by adding a new section to read:                                                           
          Sec. 43.55.022. Limitations on tax credits. (a)                                                                     
     Notwithstanding any contrary provision of this chapter, the                                                                
     application of tax credits under this chapter is subject to the                                                            
     limitations set out in this section.                                                                                       
          (b)  A tax credit or a fraction of a tax credit under                                                                 
     AS 43.55.023, 43.55.024, and 43.55.025 may not be subtracted in                                                            
     calculating an installment payment of estimated tax required under                                                         
     AS 43.55.020(a) if the resulting amount of the installment                                                                 
     payment would be less than the amount in                                                                                   
     AS 43.55.020(a)(5)(B)(ii) or 43.55.020(a)(7)(A)(ii), as applicable.                                                        
          (c)  The total amount of tax credits under AS 43.55.023,                                                              
     43.55.024, and 43.55.025 that may be applied against a tax levied                                                          
     by AS 43.55.011(e) for a calendar year may not exceed the sum of                                                           
     the amount of the tax credits or fractions of tax credits that are                                                         
     allowed under (b) of this section to be subtracted in calculating the                                                      
     installment payments of estimated tax for each month in the                                                                
     calendar year."                                                                                                            
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 17, line 28:                                                                                                               
     Delete "sec. 19"                                                                                                           
     Insert "sec. 21"                                                                                                           
                                                                                                                                
Page 18, following line 25:                                                                                                     
     Insert a new bill section to read:                                                                                         
"* Sec. 23. AS 43.55.023(c) is amended to read:                                                                               
          (c)  A credit or portion of a credit under this section may not                                                       
     be used to reduce a person's tax liability under AS 43.55.011(e)                                                           
     for any calendar year below the amount calculated under                                                                

2016-05-18                     Senate Journal                      Page 2872
     AS 43.55.011(f) [ZERO], and any unused credit or portion of a                                                          
     credit not used under this subsection may be applied in a later                                                            
     calendar year."                                                                                                            
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 20, following line 15:                                                                                                     
     Insert new bill sections to read:                                                                                          
"* Sec. 27. AS 43.55.024(f) is amended to read:                                                                               
          (f)  A tax credit authorized by (a) of this section may not be                                                        
     applied to reduce a producer's tax liability for any calendar year                                                         
     under AS 43.55.011(e) on oil and gas produced from leases or                                                               
     properties outside the Cook Inlet sedimentary basin, no part of                                                            
     which is north of 68 degrees North latitude, below the amount                                                          
     calculated under AS 43.55.011(f) [ZERO].                                                                               
   * Sec. 28. AS 43.55.024(g) is amended to read:                                                                             
          (g)  A tax credit authorized by (c) of this section may not be                                                        
     applied to reduce a producer's tax liability for any calendar year                                                         
     under AS 43.55.011(e) below the amount calculated under                                                                
     AS 43.55.011(f) [ZERO]."                                                                                               
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 20, line 23:                                                                                                               
     Delete "zero"                                                                                                              
         Insert "the amount calculated under AS 43.55.011(f) [ZERO]"                                                       
                                                                                                                                
Page 21, following line 28:                                                                                                     
     Insert new bill sections to read:                                                                                          
"* Sec. 31. AS 43.55.025(i) is amended to read:                                                                               
          (i)  For a production tax credit under this section,                                                                  
              (1)  a credit may not be applied to reduce a taxpayer's tax                                                       
     liability under AS 43.55.011(e) below the amount calculated                                                            
     under AS 43.55.011(f) [ZERO] for a calendar year; and                                                                  
              (2)  an amount of the production tax credit in excess of                                                          
     the amount that may be applied for a calendar year under this                                                              
     subsection may be carried forward and applied against the                                                                  
     taxpayer's tax liability under AS 43.55.011(e) in one or more later                                                        
     calendar years.                                                                                                            
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2873
   * Sec. 32. AS 43.55.025 is amended by adding a new subsection to                                                           
read:                                                                                                                           
          (q)  A credit or portion of a credit under this section may not                                                       
     be used to reduce a person's tax liability under AS 43.55.011(e)                                                           
     for any calendar year below the amount calculated under                                                                    
     AS 43.55.011(f)."                                                                                                          
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 23, line 20:                                                                                                               
     Delete "sec. 28"                                                                                                           
     Insert "sec. 35"                                                                                                           
                                                                                                                                
Page 26, following line 19:                                                                                                     
     Insert a new bill section to read:                                                                                         
"* Sec. 41. AS 43.55.150 is amended by adding a new subsection to                                                             
read:                                                                                                                           
          (d)  The gross value at the point of production may not be less                                                       
     than zero."                                                                                                                
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 35, line 21:                                                                                                               
     Delete "sec. 27"                                                                                                           
     Insert "sec. 34"                                                                                                           
                                                                                                                                
Page 35, line 22:                                                                                                               
     Delete "sec. 30"                                                                                                           
     Insert "sec. 37"                                                                                                           
                                                                                                                                
Page 35, line 24:                                                                                                               
     Delete "sec. 29"                                                                                                           
     Insert "sec. 36"                                                                                                           
                                                                                                                                
Page 35, line 25:                                                                                                               
     Delete "27, 29, and 30"                                                                                                    
     Insert "34, 36, and 37"                                                                                                    
                                                                                                                                
                                                                                                                                
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2874
Page 35, line 26:                                                                                                               
     Delete "sec. 15"                                                                                                           
     Insert "sec. 16"                                                                                                           
                                                                                                                                
Page 35, line 27:                                                                                                               
     Delete "sec. 15"                                                                                                           
     Insert "sec. 16"                                                                                                           
                                                                                                                                
Page 35, line 31:                                                                                                               
     Delete "sec. 45"                                                                                                           
     Insert "sec. 53"                                                                                                           
                                                                                                                                
Page 36, line 1:                                                                                                                
     Delete "secs. 26 and 29"                                                                                                   
     Insert "secs. 33 and 36"                                                                                                   
                                                                                                                                
Page 36, line 3:                                                                                                                
     Delete "sec. 45"                                                                                                           
     Insert "sec. 53"                                                                                                           
                                                                                                                                
Page 36, line 5:                                                                                                                
     Delete "sec. 45"                                                                                                           
     Insert "sec. 53"                                                                                                           
                                                                                                                                
Page 36, line 7:                                                                                                                
     Delete "secs. 26 and 29"                                                                                                   
     Insert "secs. 33 and 36"                                                                                                   
                                                                                                                                
Page 36, line 8:                                                                                                                
     Delete "sec. 45"                                                                                                           
     Insert "sec. 53"                                                                                                           
                                                                                                                                
Page 36, line 10:                                                                                                               
     Delete "sec. 45"                                                                                                           
     Insert "sec. 53"                                                                                                           
                                                                                                                                
Page 36, line 12:                                                                                                               
     Delete "sec. 45"                                                                                                           
     Insert "sec. 53"                                                                                                           
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2875
Page 36, lines 16 - 17:                                                                                                         
     Delete "sec. 45"                                                                                                           
     Insert "sec. 53"                                                                                                           
                                                                                                                                
Page 36, line 17:                                                                                                               
     Delete "secs. 21 and 22"                                                                                                   
     Insert "secs. 24 and 25"                                                                                                   
                                                                                                                                
Page 36, line 18:                                                                                                               
     Delete "sec. 31"                                                                                                           
     Insert "sec. 38"                                                                                                           
     Delete "sec. 38"                                                                                                           
     Insert "sec. 46"                                                                                                           
                                                                                                                                
Page 36, line 19:                                                                                                               
     Delete "sec. 39"                                                                                                           
     Insert "sec. 47"                                                                                                           
                                                                                                                                
Page 36, line 21:                                                                                                               
     Delete "sec. 45"                                                                                                           
     Insert "sec. 53"                                                                                                           
                                                                                                                                
Page 36, line 24:                                                                                                               
     Delete "sec. 45"                                                                                                           
     Insert "sec. 53"                                                                                                           
                                                                                                                                
Page 36, line 26:                                                                                                               
     Delete "sec. 45"                                                                                                           
     Insert "sec. 53"                                                                                                           
                                                                                                                                
Page 36, line 29:                                                                                                               
     Delete "sec. 45"                                                                                                           
     Insert "sec. 53"                                                                                                           
                                                                                                                                
Page 37, line 1:                                                                                                                
     Delete "sec. 45"                                                                                                           
     Insert "sec. 53"                                                                                                           
                                                                                                                                
                                                                                                                                
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2876
Page 37, lines 2 - 3:                                                                                                           
     Delete "sec. 45"                                                                                                           
     Insert "sec. 53"                                                                                                           
                                                                                                                                
Page 37, line 7:                                                                                                                
     Delete "sec. 20"                                                                                                           
     Insert "sec. 22"                                                                                                           
                                                                                                                                
Page 37, line 8:                                                                                                                
     Delete "sec. 20"                                                                                                           
     Insert "sec. 22"                                                                                                           
                                                                                                                                
Page 37, line 12:                                                                                                               
     Delete "sec. 20"                                                                                                           
     Insert "sec. 22"                                                                                                           
                                                                                                                                
Page 37, line 16:                                                                                                               
     Delete "sec. 36"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 37, line 17:                                                                                                               
     Delete "sec. 45"                                                                                                           
     Insert "sec. 53"                                                                                                           
                                                                                                                                
Page 37, line 20:                                                                                                               
     Delete "sec. 45"                                                                                                           
     Insert "sec. 53"                                                                                                           
                                                                                                                                
Page 38, line 15:                                                                                                               
     Delete "Sections 51 and 52"                                                                                                
     Insert "Sections 59 and 60"                                                                                                
                                                                                                                                
Page 38, line 16:                                                                                                               
       Delete "Sections 20 - 22, 26, 29, 31 - 33, 36 - 40, 45, 47 - 50"                                                        
     Insert "Sections 22, 24, 25, 33, 36, 38 - 40, 44 - 48, 53, 55 - 58"                                                       
                                                                                                                                
Page 38, line 17:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 50"                                                                                                           
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2877
Page 38, line 18:                                                                                                               
     Delete "secs. 53 and 54"                                                                                                   
     Insert "secs. 61 and 62"                                                                                                   
                                                                                                                                
Senator Wielechowski moved for the adoption of Amendment No. 10.                                                                
Senator Giessel objected.                                                                                                       
                                                                                                                                
The question being: "Shall Amendment No. 10 be adopted?" The roll                                                               
was taken with the following result:                                                                                            
                                                                                                                                
SCS 2d CSHB 247(FIN)                                                                                                            
Second Reading                                                                                                                  
Amendment No. 10                                                                                                                
                                                                                                                                
YEAS:  4   NAYS:  16   EXCUSED:  0   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Wielechowski, Egan, Ellis, Gardner                                                                                       
                                                                                                                                
Nays:  Hoffman, Huggins, Kelly, MacKinnon, McGuire, Micciche,                                                                   
Olson, Stedman, Stevens, Stoltze, Bishop, Coghill, Costello,                                                                    
Dunleavy, Giessel, Meyer                                                                                                        
                                                                                                                                
and so, Amendment No. 10 failed.                                                                                                
                                                                                                                                
Senator Wielechowski offered Amendment No. 11:                                                                                  
                                                                                                                                
Page 22, line 10:                                                                                                               
          Delete "$70,000,000"                                                                                              
          Insert "$25,000,000"                                                                                              
                                                                                                                                
Page 22, line 18:                                                                                                               
          Delete "$70,000,000"                                                                                              
          Insert "$25,000,000"                                                                                              
                                                                                                                                
Page 22, line 26:                                                                                                               
          Delete "and"                                                                                                          
          Insert "[AND]"                                                                                                        
                                                                                                                                
                                                                                                                                
                                                                                                                                
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2878
Page 22, line 27, following "(5)":                                                                                              
          Insert "during the calendar year preceding the calendar                                                           
year in which the application is made, the applicant's revenue                                                              
generated from the applicant's oil and gas business, including the                                                          
revenue of the applicant's affiliates if the applicant is part of an                                                        
affiliated group, did not exceed $10,000,000,000; and                                                                       
                             (6)"                                                                                           
                                                                                                                                
Senator Wielechowski moved for the adoption of Amendment No. 11.                                                                
Senator Giessel objected.                                                                                                       
                                                                                                                                
The question being: "Shall Amendment No. 11 be adopted?" The roll                                                               
was taken with the following result:                                                                                            
                                                                                                                                
SCS 2d CSHB 247(FIN)                                                                                                            
Second Reading                                                                                                                  
Amendment No. 11                                                                                                                
                                                                                                                                
YEAS:  4   NAYS:  16   EXCUSED:  0   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Wielechowski, Egan, Ellis, Gardner                                                                                       
                                                                                                                                
Nays:  Huggins, Kelly, MacKinnon, McGuire, Micciche, Olson,                                                                     
Stedman, Stevens, Stoltze, Bishop, Coghill, Costello, Dunleavy,                                                                 
Giessel, Hoffman, Meyer                                                                                                         
                                                                                                                                
and so, Amendment No. 11 failed.                                                                                                
                                                                                                                                
Senator MacKinnon offered Amendment No. 12:                                                                                     
                                                                                                                                
Page 2, lines 1 - 3:                                                                                                            
     Delete "(1) verify regular production for the purposes of                                                                  
AS 43.55.023(b) and (l); and                                                                                                    
              (2)"                                                                                                              
                                                                                                                                
Page 13, lines 11 - 12:                                                                                                         
     Delete "that include land north of 68 degrees North latitude"                                                              
     Insert "subject to AS 43.55.011(f) [THAT INCLUDE LAND                                                                  
NORTH OF 68 DEGREES NORTH LATITUDE]"                                                                                            
                                                                                                                                
Page 15, line 1, following "state":                                                                                             
     Insert "outside the Cook Inlet sedimentary basin"                                                                      
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2879
Page 16, line 17, following "expenditure":                                                                                      
     Insert "to explore for, develop, or produce oil or gas deposits                                                        
located"                                                                                                                    
                                                                                                                                
Page 20, line 9:                                                                                                                
     Delete "state south of 68 degrees North latitude"                                                                          
     Insert "Cook Inlet sedimentary basin [STATE SOUTH OF 68                                                                
DEGREES NORTH LATITUDE]"                                                                                                        
                                                                                                                                
Page 21, line 29, through page 22, line 3:                                                                                      
     Delete all material.                                                                                                       
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 23, line 20, through page 24, line 9:                                                                                      
     Delete all material.                                                                                                       
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 28, lines 3 - 8:                                                                                                           
     Delete "For oil or gas first produced after December 31, 2016,                                                         
a reduction allowed under this subsection applies to oil or gas                                                             
produced from a lease or property for the first seven years after                                                           
the commencement of regular production of oil or gas from that                                                              
lease or property. For oil or gas first produced before January 1,                                                          
2017, a reduction allowed under this subsection for a lease or                                                              
property expires January 1, 2023."                                                                                          
     Insert "For oil and gas first produced from a lease or property                                                        
after December 31, 2016, a reduction allowed under this                                                                     
subsection applies from the date of commencement of regular                                                                 
production of oil and gas from that lease or property and expires                                                           
after three years, consecutive or nonconsecutive, in which the                                                              
average annual price per barrel for Alaska North Slope crude oil                                                            
for sale on the United States West Coast is more than $70 or after                                                          
seven years, whichever occurs first.  For oil and gas first produced                                                        
from a lease or property before January 1, 2017, a reduction                                                                
allowed under this subsection expires on the earlier of January 1,                                                          
2023, or January 1 following three years, consecutive or                                                                    
nonconsecutive, in which the average annual price per barrel for                                                            
Alaska North Slope crude oil for sale on the United States West                                                             
Coast is more than $70."                                                                                                    
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2880
Page 28, following line 11:                                                                                                     
     Insert a new bill section to read:                                                                                         
"* Sec. 34. AS 43.55.160(h) is amended to read:                                                                               
          (h)  For oil produced on and after January 1, 2022, except as                                                         
     provided in (b), (f), and (g) of this section, for the purposes of                                                         
     AS 43.55.011(e)(3), the annual production tax value of oil taxable                                                         
     under AS 43.55.011(e) produced by a producer during a calendar                                                             
     year                                                                                                                       
              (1)  from leases or properties in the state that include land                                                     
     north of 68 degrees North latitude is the gross value at the point of                                                      
     production of that oil, less the producer's lease expenditures under                                                       
     AS 43.55.165 for the calendar year incurred to explore for,                                                                
     develop, or produce oil and gas deposits located in the state north                                                        
     of 68 degrees North latitude or located in leases or properties in                                                         
     the state that include land north of 68 degrees North latitude, as                                                         
     adjusted under AS 43.55.170;                                                                                               
              (2)  before or during the last calendar year under                                                                
     AS 43.55.024(b) for which the producer could take a tax credit                                                             
     under AS 43.55.024(a), from leases or properties in the state                                                              
     outside the Cook Inlet sedimentary basin, no part of which is north                                                        
     of 68 degrees North latitude, other than leases or properties                                                              
     subject to AS 43.55.011(p), is the gross value at the point of                                                             
     production of that oil, less the producer's lease expenditures under                                                       
     AS 43.55.165 for the calendar year incurred to explore for,                                                                
     develop, or produce oil and gas deposits located in the state                                                              
     outside the Cook Inlet sedimentary basin and south of 68 degrees                                                           
     North latitude, other than oil and gas deposits located in a lease or                                                      
     property that includes land north of 68 degrees North latitude or                                                          
     that is subject to AS 43.55.011(p) or, before January 1, 2027, from                                                        
     which commercial production has not begun, as adjusted under                                                               
     AS 43.55.170;                                                                                                              
              (3)  from leases or properties subject to AS 43.55.011(p)                                                         
     is the gross value at the point of production of that oil, less the                                                        
     producer's lease expenditures under AS 43.55.165 for the calendar                                                          
     year incurred to explore for, develop, or produce oil and gas                                                              
     deposits located in leases or properties subject to AS 43.55.011(p)                                                        
     or, before January 1, 2027, located in leases or properties in the                                                         
     state outside the Cook Inlet sedimentary basin, no part of which is                                                        
     north of 68 degrees North latitude from which commercial                                                                   
     production has not begun, as adjusted under AS 43.55.170;                                                                  

2016-05-18                     Senate Journal                      Page 2881
              (4)  from leases or properties in the state no part of which                                                      
     is north of 68 degrees North latitude, other than leases or                                                                
     properties subject to (2) or (3) of this subsection, is the gross value                                                    
     at the point of production of that oil less the producer's lease                                                           
     expenditures under AS 43.55.165 for the calendar year incurred to                                                          
     explore for, develop, or produce oil and gas deposits located in the                                                       
     state south of 68 degrees North latitude, other than oil and gas                                                           
     deposits located in a lease or property in the state that includes                                                         
     land north of 68 degrees North latitude, and excluding lease                                                               
     expenditures that are deductible under (2) or (3) of this subsection                                                       
     or would be deductible under (2) or (3) of this subsection if not                                                          
     prohibited by (b) of this section, as adjusted under AS 43.55.170;                                                     
     a separate annual production tax value shall be calculated for                                                         
                   (A)  oil produced from each lease or property in                                                         
          the Cook Inlet sedimentary basin;                                                                                 
                   (B)  oil produced from each lease or property                                                            
          outside the Cook Inlet sedimentary basin, no part of which                                                        
          is north of 68 degrees North latitude, other than leases or                                                       
          properties subject to (3) of this subsection."                                                                    
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 35, line 15:                                                                                                               
     Delete "AS 43.20.053;"                                                                                                     
                                                                                                                                
Page 35, line 21:                                                                                                               
     Delete "sec. 27"                                                                                                           
     Insert "sec. 26"                                                                                                           
                                                                                                                                
Page 35, line 22:                                                                                                               
     Delete "sec. 30"                                                                                                           
     Insert "sec. 28"                                                                                                           
                                                                                                                                
Page 35, line 24:                                                                                                               
     Delete "sec. 29"                                                                                                           
     Insert "sec. 27"                                                                                                           
                                                                                                                                
Page 35, line 25:                                                                                                               
     Delete "27, 29, and 30"                                                                                                    
     Insert "and 26 - 28"                                                                                                       
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2882
Page 35, line 28, through page 36, line 12:                                                                                     
     Delete all material.                                                                                                       
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 36, lines 16 - 17:                                                                                                         
     Delete "sec. 45"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 36, line 18:                                                                                                               
     Delete "sec. 31"                                                                                                           
     Insert "sec. 29"                                                                                                           
     Delete "sec. 38"                                                                                                           
     Insert "sec. 37"                                                                                                           
                                                                                                                                
Page 36, line 19:                                                                                                               
     Delete "sec. 39"                                                                                                           
     Insert "sec. 38"                                                                                                           
                                                                                                                                
Page 36, line 21:                                                                                                               
     Delete "sec. 45"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 36, line 24:                                                                                                               
     Delete "sec. 45"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 36, line 26:                                                                                                               
     Delete "sec. 45"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 36, line 29:                                                                                                               
     Delete "sec. 45"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 37, line 1:                                                                                                                
     Delete "sec. 45"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2883
Page 37, lines 2 - 3:                                                                                                           
     Delete "sec. 45"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 37, line 16:                                                                                                               
     Delete "sec. 36"                                                                                                           
     Insert "sec. 35"                                                                                                           
                                                                                                                                
Page 37, line 17:                                                                                                               
     Delete "sec. 45"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 37, line 20:                                                                                                               
     Delete "sec. 45"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 38, line 15:                                                                                                               
     Delete "Sections 51 and 52"                                                                                                
     Insert "Sections 49 and 50"                                                                                                
                                                                                                                                
Page 38, line 16:                                                                                                               
     Delete "26, 29, 31 - 33, 36 - 40, 45, 47 - 50"                                                                             
     Insert "29 - 31, 35 - 39, 44, 46 - 48"                                                                                     
                                                                                                                                
Page 38, line 17:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 41"                                                                                                           
                                                                                                                                
Page 38, line 18:                                                                                                               
     Delete "secs. 53 and 54"                                                                                                   
     Insert "secs. 51 and 52"                                                                                                   
                                                                                                                                
Senator MacKinnon moved for the adoption of Amendment No. 12.                                                                   
Senator Giessel objected, then withdrew her objection. There being no                                                           
further objection, Amendment No. 12 was adopted.                                                                                
                                                                                                                                
Senators MacKinnon, Bishop, Dunleavy, Coghill, Micciche, Kelly,                                                                 
Costello, Huggins, Giessel, Stevens, Hoffman, Olson offered                                                                     
Amendment No. 13:                                                                                                               
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2884
Page 16, line 10, through page 20, line 15:                                                                                     
     Delete all material and insert:                                                                                            
"* Sec. 18. AS 43.55.023(a) is amended to read:                                                                               
          (a)  A producer or explorer may take a tax credit for a                                                               
     qualified capital expenditure as follows:                                                                                  
              (1)  notwithstanding that a qualified capital expenditure                                                         
     may be a deductible lease expenditure for purposes of calculating                                                          
     the production tax value of oil and gas under AS 43.55.160(a),                                                             
     unless a credit for that expenditure is taken under                                                                        
     [AS 38.05.180(i), AS 41.09.010,] AS 43.20.043 [,] or                                                                       
     AS 43.55.025, a producer or explorer that incurs a qualified                                                               
     capital expenditure may also elect to apply a tax credit against a                                                         
     tax levied by AS 43.55.011(e) in the amount of 10 [20] percent of                                                      
     that expenditure;                                                                                                          
              (2)  a producer or explorer may take a credit for a                                                               
     qualified capital expenditure incurred in connection with                                                                  
     geological or geophysical exploration or in connection with an                                                             
     exploration well only if the producer or explorer                                                                          
                   (A)  agrees, in writing, to the applicable provisions of                                                     
          AS 43.55.025(f)(2); and                                                                                               
                   (B)  submits to the Department of Natural Resources                                                          
          all data that would be required to be submitted under                                                                 
          AS 43.55.025(f)(2);                                                                                                   
              (3)  a credit for a qualified capital expenditure incurred to                                                     
     explore for, develop, or produce oil or gas deposits located                                                               
                   (A)  north of 68 degrees North latitude may be taken                                                     
          only if the expenditure is incurred before January 1, 2014;                                                       
                   (B)  in the Cook Inlet sedimentary basin may be                                                          
          taken only if the expenditure is incurred before January 1,                                                       
          2018.                                                                                                             
   * Sec. 19. AS 43.55.023(b) is amended to read:                                                                             
          (b)  Before January 1, 2014, a producer or explorer may elect                                                         
     to take a tax credit in the amount of 25 percent of a carried-                                                             
     forward annual loss. For lease expenditures incurred on and after                                                          
     January 1, 2014, and before January 1, 2016, to explore for,                                                               
     develop, or produce oil or gas deposits located north of 68 degrees                                                        
     North latitude, a producer or explorer may elect to take a tax credit                                                      
     in the amount of 45 percent of a carried-forward annual loss. For                                                          
     lease expenditures incurred on and after January 1, 2016, to                                                               
     explore for, develop, or produce oil or gas deposits located north                                                         

2016-05-18                     Senate Journal                      Page 2885
     of 68 degrees North latitude, a producer or explorer may elect to                                                          
     take a tax credit in the amount of 35 percent of a carried-forward                                                         
     annual loss. For lease expenditures incurred on or after January 1,                                                        
     2014, and before January 1, 2017, to explore for, develop, or                                                          
     produce oil or gas deposits located south of 68 degrees North                                                              
     latitude, a producer or explorer may elect to take a tax credit in the                                                     
     amount of 25 percent of a carried-forward annual loss. For lease                                                       
     expenditures incurred on or after January 1, 2017, to explore                                                          
     for, develop, or produce oil or gas deposits located south of 68                                                       
     degrees North latitude, a producer or explorer may elect to                                                            
     take a tax credit in the amount of 15 percent of a carried-                                                            
     forward annual loss, except that a credit for lease                                                                    
     expenditures incurred to explore for, develop, or produce oil                                                          
     or gas deposits located in the Cook Inlet sedimentary basin                                                            
     may only be taken if the expenditure is incurred before                                                                
     January 1, 2018. A credit under this subsection may be applied                                                         
     against a tax levied by AS 43.55.011(e). For purposes of this                                                              
     subsection,                                                                                                                
              (1)  a carried-forward annual loss is the amount of a                                                         
     producer's or explorer's adjusted lease expenditures under                                                                 
     AS 43.55.165 and 43.55.170 for a previous calendar year that was                                                           
     not deductible in calculating production tax values for that                                                               
     calendar year under AS 43.55.160;                                                                                      
              (2)  for lease expenditures incurred on or after                                                              
     January 1, 2017, any reduction under AS 43.55.160(f) or (g) is                                                         
     added back to the calculation of production tax values for that                                                        
     calendar year under AS 43.55.160 for the determination of a                                                            
     carried-forward annual loss.                                                                                           
   * Sec. 20. AS 43.55.023(l) is amended to read:                                                                             
          (l)  A producer or explorer may apply for a tax credit for a                                                          
     well lease expenditure incurred in the state south of 68 degrees                                                           
     North latitude after June 30, 2010, as follows:                                                                            
              (1)  notwithstanding that a well lease expenditure                                                                
     incurred in the state south of 68 degrees North latitude may be a                                                          
     deductible lease expenditure for purposes of calculating the                                                               
     production tax value of oil and gas under AS 43.55.160(a), unless                                                          
     a credit for that expenditure is taken under (a) of this section,                                                          
     [AS 38.05.180(i), AS 41.09.010,] AS 43.20.043, or AS 43.55.025,                                                            
     a producer or explorer that incurs a well lease expenditure in the                                                         
     state south of 68 degrees North latitude may elect to apply a tax                                                          

2016-05-18                     Senate Journal                      Page 2886
       credit against a tax levied by AS 43.55.011(e) in the amount of                                                         
                   (A)  40 percent ofthat expenditure incurred before                                                   
          January 1, 2017;                                                                                                  
                   (B)  20 percent of that expenditure incurred on or                                                       
          after January 1, 2017 [; A TAX CREDIT UNDER THIS                                                                  
          PARAGRAPH MAY BE APPLIED FOR A SINGLE                                                                                 
          CALENDAR YEAR];                                                                                                       
              (2)  a producer or explorer may take a credit for a well                                                          
     lease expenditure incurred in the state south of 68 degrees North                                                          
     latitude in connection with geological or geophysical exploration                                                          
     or in connection with an exploration well only if the producer or                                                          
     explorer                                                                                                                   
                   (A)  agrees, in writing, to the applicable provisions of                                                     
          AS 43.55.025(f)(2); and                                                                                               
                   (B)  submits to the Department of Natural Resources                                                          
          all data that would be required to be submitted under                                                                 
          AS 43.55.025(f)(2);                                                                                               
              (3)  a credit for a well lease expenditure incurred to                                                        
     explore for, develop, or produce oil or gas deposits located in                                                        
     the Cook Inlet sedimentary basin may be taken only if the                                                              
     expenditure is incurred before January 1, 2018."                                                                       
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 21, following line 28:                                                                                                     
     Insert a new bill section to read:                                                                                         
"* Sec. 23. AS 43.55.025(m) is amended to read:                                                                               
          (m)  The persons that drill the first four exploration wells in                                                       
     the state and within the areas described in (o) of this section on                                                         
     state lands, private lands, or federal onshore lands for the purpose                                                       
     of discovering oil or gas that penetrate and evaluate a prospect in a                                                      
     basin described in (o) of this section are eligible for a credit under                                                     
     (a)(6) of this section. A credit under this subsection may not be                                                          
     taken for more than two exploration wells in a single area                                                                 
     described in (o)(1) - (6) of this section. Notwithstanding (b) of                                                      
     this section, exploration [EXPLORATION] expenditures eligible                                                          
     for the credit in this subsection must be incurred for work                                                                
     performed after June 1, 2012, and before January 1, 2017, except                                                       
     that expenditures to complete an exploration well that was                                                             
     spudded but not completed before January 1, 2017, are                                                                  

2016-05-18                     Senate Journal                      Page 2887
     eligible for the credit under this subsection [JULY 1, 2016]. A                                                        
     person planning to drill an exploration well on private land and to                                                        
     apply for a credit under this subsection shall obtain written                                                              
     consent from the owner of the oil and gas interest for the full                                                            
     public release of all well data after the expiration of the                                                                
     confidentiality period applicable to information collected under (f)                                                       
     of this section. The written consent of the owner of the oil and gas                                                       
     interest must be submitted to the commissioner of natural                                                                  
     resources before approval of the proposed exploration well. In                                                             
     addition to the requirements in (c)(1), (c)(2)(A), and (c)(2)(C) of                                                        
     this section and submission of the written consent of the owner of                                                         
     the oil and gas interest, a person planning to drill an exploration                                                        
     well shall obtain approval from the commissioner of natural                                                                
     resources before the well is spudded. The commissioner of natural                                                          
     resources shall make a written determination approving or                                                                  
     rejecting an exploration well within 60 days after receiving the                                                           
     request for approval or as soon as is practicable thereafter. Before                                                       
     approving the exploration well, the commissioner of natural                                                                
     resources shall consider the following: the location of the well; the                                                      
     proximity to a community in need of a local energy source; the                                                             
     proximity of existing infrastructure; the experience and safety                                                            
     record of the explorer in conducting operations in remote or                                                               
     roadless areas; the projected cost schedule; whether seismic                                                               
     mapping and seismic data sufficiently identify a particular trap for                                                       
     exploration; whether the targeted and planned depth and range are                                                          
     designed to penetrate and fully evaluate the hydrocarbon potential                                                         
     of the proposed prospect and reach the level below which                                                                   
     economic hydrocarbon reservoirs are likely to be found, or reach                                                           
     12,000 feet or more true vertical depth; and whether the                                                                   
     exploration plan provides for a full evaluation of the wellbore                                                            
     below surface casing to the depth of the well. Whether the                                                                 
     exploration well for which a credit is requested under this                                                                
     subsection is located within an area and a basin described under                                                           
     (o) of this section shall be determined by the commissioner of                                                             
     natural resources and reported to the commissioner. A taxpayer                                                             
     that obtains a credit under this subsection may not claim a tax                                                            
     credit under AS 43.55.023 or another provision in this section for                                                         
     the same exploration expenditure."                                                                                         
                                                                                                                                
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2888
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 23, line 20:                                                                                                               
     Delete "sec. 28"                                                                                                           
     Insert "sec. 26"                                                                                                           
                                                                                                                                
Page 24, line 26, through page 26, line 19:                                                                                     
     Delete all material.                                                                                                       
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 29, line 4, through page 33, line 2:                                                                                       
     Delete all material.                                                                                                       
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 33, line 10:                                                                                                               
     Delete "new paragraphs"                                                                                                    
     Insert "a new paragraph"                                                                                                   
                                                                                                                                
Page 33, line 11, through page 34, line 2:                                                                                      
     Delete all material.                                                                                                       
                                                                                                                                
Renumber the following paragraph accordingly.                                                                                   
                                                                                                                                
Page 35, lines 15 - 16:                                                                                                         
     Delete       "AS 43.55.023(a),         43.55.023(l),       43.55.023(n),                                                   
43.55.023(o), 43.55.028(i), 43.55.075(d)(1), 43.55.165(j),"                                                                     
     Insert "AS 43.55.165(j)"                                                                                                   
                                                                                                                                
Page 35, line 21:                                                                                                               
     Delete "sec. 27"                                                                                                           
     Insert "sec. 25"                                                                                                           
                                                                                                                                
Page 35, line 22:                                                                                                               
     Delete "sec. 30"                                                                                                           
     Insert "sec. 28"                                                                                                           
                                                                                                                                
                                                                                                                                
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2889
Page 35, line 24:                                                                                                               
     Delete "sec. 29"                                                                                                           
     Insert "sec. 27"                                                                                                           
                                                                                                                                
Page 35, line 25:                                                                                                               
     Delete "27, 29, and 30"                                                                                                    
     Insert "25, 27, and 28"                                                                                                    
                                                                                                                                
Page 35, line 31:                                                                                                               
     Delete "sec. 45"                                                                                                           
     Insert "sec. 36"                                                                                                           
                                                                                                                                
Page 36, line 1:                                                                                                                
     Delete "secs. 26 and 29"                                                                                                   
     Insert "secs. 24 and 27"                                                                                                   
                                                                                                                                
Page 36, line 3:                                                                                                                
     Delete "sec. 45"                                                                                                           
     Insert "sec. 36"                                                                                                           
                                                                                                                                
Page 36, line 5:                                                                                                                
     Delete "sec. 45"                                                                                                           
     Insert "sec. 36"                                                                                                           
                                                                                                                                
Page 36, line 7:                                                                                                                
     Delete "secs. 26 and 29"                                                                                                   
     Insert "secs. 24 and 27"                                                                                                   
                                                                                                                                
Page 36, line 8:                                                                                                                
     Delete "sec. 45"                                                                                                           
     Insert "sec. 36"                                                                                                           
                                                                                                                                
Page 36, line 10:                                                                                                               
     Delete "sec. 45"                                                                                                           
     Insert "sec. 36"                                                                                                           
                                                                                                                                
Page 36, line 12:                                                                                                               
     Delete "sec. 45"                                                                                                           
     Insert "sec. 36"                                                                                                           
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2890
Page 36, line 13, through page 37, line 12:                                                                                     
     Delete all material.                                                                                                       
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 37, line 16:                                                                                                               
     Delete "sec. 36"                                                                                                           
     Insert "sec. 31"                                                                                                           
                                                                                                                                
Page 37, line 17:                                                                                                               
     Delete "sec. 45"                                                                                                           
     Insert "sec. 36"                                                                                                           
                                                                                                                                
Page 37, line 20:                                                                                                               
     Delete "sec. 45"                                                                                                           
     Insert "sec. 36"                                                                                                           
                                                                                                                                
Page 38, line 15:                                                                                                               
     Delete "Sections 51 and 52"                                                                                                
     Insert "Sections 23, 40, and 41"                                                                                           
                                                                                                                                
Page 38, lines 16 - 17:                                                                                                         
     Delete "Sections 20 - 22, 26, 29, 31 - 33, 36 - 40, 45, 47 - 50, and                                                       
AS 43.55.900(26), added by sec. 42 of this Act,"                                                                                
     Insert "Sections 24, 27, 31, 36, 38, and 39 of this Act"                                                                   
                                                                                                                                
Page 38, line 18:                                                                                                               
     Delete "secs. 53 and 54"                                                                                                   
     Insert "secs. 42 and 43"                                                                                                   
                                                                                                                                
Senator MacKinnon moved for the adoption of Amendment No. 13.                                                                   
Senator Giessel objected, then withdrew her objection. Senator Stoltze                                                          
objected.                                                                                                                       
                                                                                                                                
Senator McGuire moved and asked unanimous consent to be shown as                                                                
a cosponsor on Amendment No. 13. Without objection, it was so                                                                   
ordered.                                                                                                                        
                                                                                                                                
The question being: "Shall Amendment No. 13 be adopted?" The roll                                                               
was taken with the following result:                                                                                            
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2891
SCS 2d CSHB 247(FIN) am S                                                                                                       
Second Reading                                                                                                                  
Amendment No. 13                                                                                                                
                                                                                                                                
YEAS:  19   NAYS:  1   EXCUSED:  0   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Kelly, MacKinnon, McGuire, Micciche, Olson, Stedman,                                                                     
Stevens, Wielechowski, Bishop, Coghill, Costello, Dunleavy, Egan,                                                               
Ellis, Gardner, Giessel, Hoffman, Huggins, Meyer                                                                                
                                                                                                                                
Nays:  Stoltze                                                                                                                  
                                                                                                                                
and so, Amendment No. 13 was adopted.                                                                                           
                                                                                                                                
Senators Micciche, MacKinnon, Bishop, Dunleavy, Kelly, Hoffman,                                                                 
Olson offered Amendment No. 14:                                                                                                 
                                                                                                                                
Page 34, line 10, following "subdivisions;":                                                                                    
     Insert "and"                                                                                                               
                                                                                                                                
Page 34, lines 12 - 15:                                                                                                         
     Delete "; and                                                                                                              
              (3)  amounts that may be adjudged against the applicant                                                           
     because of negligent or improper work or breach of contract while                                                          
     engaged in the business of oil or gas exploration, development, or                                                         
     production"                                                                                                                
                                                                                                                                
Page 35, lines 2 - 7:                                                                                                           
     Delete all material and insert:                                                                                            
              "(1)  material, equipment, and supplies delivered in the                                                          
     state;                                                                                                                     
              (2) labor, including employee benefits;                                                                           
              (3) taxes and other amounts due to the city and borough,                                                          
     in that order;                                                                                                             
              (4) repair of public facilities;                                                                                  
                (5) taxes and other amounts due to the state."                                                                 
                                                                                                                                
Senator Micciche moved for the adoption of Amendment No. 14.                                                                    
Senator Giessel objected, then withdrew her objection. There being no                                                           
further objection, Amendment No. 14 was adopted.                                                                                
                                                                                                                                
                                                                                                                                

2016-05-18                     Senate Journal                      Page 2892
SENATE CS FOR 2d CS FOR HOUSE BILL NO. 247(FIN) am S                                                                            
was automatically in third reading.                                                                                             
                                                                                                                                
Senator Wielechowski rose to a point of order.                                                                                  
                                                                                                                                
The question being: "Shall SENATE CS FOR 2d CS FOR HOUSE                                                                        
BILL NO. 247(FIN) am S "An Act relating to the exploration                                                                      
incentive credits; relating to the powers and duties of the Alaska Oil                                                          
and Gas Conservation Commission; relating to interest applicable to                                                             
delinquent tax; relating to the oil and gas production tax, tax                                                                 
payments, and credits; relating to tax credit certificates; relating to                                                         
refunds for the gas storage facility tax credit, the liquefied natural gas                                                      
storage facility tax credit, and the qualified in-state oil refinery                                                            
infrastructure expenditures tax credit; relating to oil and gas lease                                                           
expenditures and production tax credits for municipal entities;                                                                 
requiring a bond or cash deposit with a business license application for                                                        
an oil or gas business; and providing for an effective date" pass the                                                           
Senate?" The roll was taken with the following result:                                                                          
                                                                                                                                
SCS 2d CSHB 247(FIN) am S                                                                                                       
Third Reading - Final Passage                                                                                                   
Effective Dates                                                                                                                 
                                                                                                                                
YEAS:  14   NAYS:  6   EXCUSED:  0   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  MacKinnon, Micciche, Olson, Stedman, Stevens, Bishop,                                                                    
Coghill, Costello, Dunleavy, Giessel, Hoffman, Huggins, Kelly,                                                                  
Meyer                                                                                                                           
                                                                                                                                
Nays:  McGuire, Stoltze, Wielechowski, Egan, Ellis, Gardner                                                                     
                                                                                                                                
and so, SENATE CS FOR 2d CS FOR HOUSE BILL NO. 247(FIN)                                                                         
am S passed the Senate.                                                                                                         
                                                                                                                                
Senator Coghill moved and asked unanimous consent that the vote on                                                              
the passage of the bill be considered the vote on the effective date                                                            
clauses. Without objection, it was so ordered.                                                                                  
                                                                                                                                
In accordance with Uniform Rule 43, engrossment was waived on                                                                   
SENATE CS FOR 2d CS FOR HOUSE BILL NO. 247(FIN) am S and                                                                        
the bill was returned to the House for consideration with certified                                                             
amendments.