Legislature(2015 - 2016)BARNES 124

03/22/2016 01:00 PM RESOURCES

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Audio Topic
01:06:59 PM Start
01:07:41 PM HB247
03:07:40 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 247 TAX;CREDITS;INTEREST;REFUNDS;O & G TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE RESOURCES STANDING COMMITTEE                                                                             
                         March 22, 2016                                                                                         
                           1:06 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Benjamin Nageak, Co-Chair                                                                                        
Representative David Talerico, Co-Chair                                                                                         
Representative Bob Herron                                                                                                       
Representative Craig Johnson                                                                                                    
Representative Kurt Olson                                                                                                       
Representative Paul Seaton                                                                                                      
Representative Andy Josephson                                                                                                   
Representative Geran Tarr                                                                                                       
Representative Mike Chenault (alternate)                                                                                        
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Mike Hawker, Vice Chair                                                                                          
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 247                                                                                                              
"An Act  relating to confidential  information status  and public                                                               
record status of information in  the possession of the Department                                                               
of Revenue;  relating to interest  applicable to  delinquent tax;                                                               
relating  to disclosure  of  oil and  gas  production tax  credit                                                               
information;  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  the minimum tax for certain                                                               
oil and gas  production; relating to the  minimum tax calculation                                                               
for monthly  installment payments  of estimated tax;  relating to                                                               
interest  on  monthly  installment  payments  of  estimated  tax;                                                               
relating  to  limitations for  the  application  of tax  credits;                                                               
relating  to  oil and  gas  production  tax credits  for  certain                                                               
losses   and   expenditures;    relating   to   limitations   for                                                               
nontransferable oil and  gas production tax credits  based on oil                                                               
production  and  the  alternative  tax credit  for  oil  and  gas                                                               
exploration;  relating to  purchase  of  tax credit  certificates                                                               
from the oil  and gas tax credit fund; relating  to a minimum for                                                               
gross  value  at  the  point of  production;  relating  to  lease                                                               
expenditures  and tax  credits for  municipal entities;  adding a                                                               
definition   for  "qualified   capital  expenditure";   adding  a                                                               
definition for  "outstanding liability  to the  state"; repealing                                                               
oil  and   gas  exploration  incentive  credits;   repealing  the                                                               
limitation on  the application of  credits against  tax liability                                                               
for  lease   expenditures  incurred   before  January   1,  2011;                                                               
repealing provisions related to  the monthly installment payments                                                               
for  estimated tax  for oil  and gas  produced before  January 1,                                                               
2014;  repealing  the  oil  and gas  production  tax  credit  for                                                               
qualified  capital expenditures  and  certain well  expenditures;                                                               
repealing   the  calculation   for  certain   lease  expenditures                                                               
applicable before January 1,  2011; making conforming amendments;                                                               
and providing for an effective date."                                                                                           
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 247                                                                                                                  
SHORT TITLE: TAX;CREDITS;INTEREST;REFUNDS;O & G                                                                                 
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
01/19/16       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/19/16       (H)       RES, FIN                                                                                               
02/03/16       (H)       RES AT 1:00 PM BARNES 124                                                                              
02/03/16       (H)       Heard & Held                                                                                           
02/03/16       (H)       MINUTE(RES)                                                                                            
02/05/16       (H)       RES AT 1:00 PM BARNES 124                                                                              
02/05/16       (H)       -- MEETING CANCELED --                                                                                 
02/10/16       (H)       RES AT 1:00 PM BARNES 124                                                                              
02/10/16       (H)       Heard & Held                                                                                           
02/10/16       (H)       MINUTE(RES)                                                                                            
02/12/16       (H)       RES AT 1:00 PM BARNES 124                                                                              
02/12/16       (H)       Heard & Held                                                                                           
02/12/16       (H)       MINUTE(RES)                                                                                            
02/13/16       (H)       RES AT 1:00 PM BARNES 124                                                                              
02/13/16       (H)       -- MEETING CANCELED --                                                                                 
02/22/16       (H)       RES AT 1:00 PM BARNES 124                                                                              
02/22/16       (H)       Heard & Held                                                                                           
02/22/16       (H)       MINUTE(RES)                                                                                            
02/24/16       (H)       RES AT 1:00 PM BARNES 124                                                                              
02/24/16       (H)       Heard & Held                                                                                           
02/24/16       (H)       MINUTE(RES)                                                                                            
02/25/16       (H)       RES AT 8:30 AM BARNES 124                                                                              
02/25/16       (H)       Heard & Held                                                                                           
02/25/16       (H)       MINUTE(RES)                                                                                            
02/25/16       (H)       RES AT 1:00 PM BARNES 124                                                                              
02/25/16       (H)       Heard & Held                                                                                           
02/25/16       (H)       MINUTE(RES)                                                                                            
02/26/16       (H)       RES AT 1:00 PM BARNES 124                                                                              
02/26/16       (H)       Heard & Held                                                                                           
02/26/16       (H)       MINUTE(RES)                                                                                            
02/27/16       (H)       RES AT 10:00 AM BARNES 124                                                                             
02/27/16       (H)       Heard & Held                                                                                           
02/27/16       (H)       MINUTE(RES)                                                                                            
02/29/16       (H)       RES AT 1:00 PM BARNES 124                                                                              
02/29/16       (H)       Heard & Held                                                                                           
02/29/16       (H)       MINUTE(RES)                                                                                            
02/29/16       (H)       RES AT 6:00 PM BARNES 124                                                                              
02/29/16       (H)       Heard & Held                                                                                           
02/29/16       (H)       MINUTE(RES)                                                                                            
03/01/16       (H)       RES AT 1:00 PM BARNES 124                                                                              
03/01/16       (H)       Heard & Held                                                                                           
03/01/16       (H)       MINUTE(RES)                                                                                            
03/02/16       (H)       RES AT 1:00 PM BARNES 124                                                                              
03/02/16       (H)       Heard & Held                                                                                           
03/02/16       (H)       MINUTE(RES)                                                                                            
03/02/16       (H)       RES AT 6:00 PM BARNES 124                                                                              
03/02/16       (H)       Heard & Held                                                                                           
03/02/16       (H)       MINUTE(RES)                                                                                            
03/07/16       (H)       RES AT 1:00 PM BARNES 124                                                                              
03/07/16       (H)       Heard & Held                                                                                           
03/07/16       (H)       MINUTE(RES)                                                                                            
03/07/16       (H)       RES AT 6:00 PM BARNES 124                                                                              
03/07/16       (H)       Heard & Held                                                                                           
03/07/16       (H)       MINUTE(RES)                                                                                            
03/08/16       (H)       RES AT 1:00 PM BARNES 124                                                                              
03/08/16       (H)       Heard & Held                                                                                           
03/08/16       (H)       MINUTE(RES)                                                                                            
03/09/16       (H)       RES AT 1:00 PM BARNES 124                                                                              
03/09/16       (H)       Heard & Held                                                                                           
03/09/16       (H)       MINUTE(RES)                                                                                            
03/11/16       (H)       RES AT 1:00 PM BARNES 124                                                                              
03/11/16       (H)       -- MEETING CANCELED --                                                                                 
03/14/16       (H)       RES AT 1:00 PM BARNES 124                                                                              
03/14/16       (H)       Heard & Held                                                                                           
03/14/16       (H)       MINUTE(RES)                                                                                            
03/14/16       (H)       RES AT 6:00 PM BARNES 124                                                                              
03/14/16       (H)       Heard & Held                                                                                           
03/14/16       (H)       MINUTE(RES)                                                                                            
03/16/16       (H)       RES AT 1:00 PM BARNES 124                                                                              
03/16/16       (H)       Scheduled but Not Heard                                                                                
03/18/16       (H)       RES AT 1:00 PM BARNES 124                                                                              
03/18/16       (H)       Scheduled but Not Heard                                                                                
03/19/16       (H)       RES AT 1:00 PM BARNES 124                                                                              
03/19/16       (H)       Heard & Held                                                                                           
03/19/16       (H)       MINUTE(RES)                                                                                            
03/21/16       (H)       RES AT 1:00 PM BARNES 124                                                                              
03/21/16       (H)       Heard & Held                                                                                           
03/21/16       (H)       MINUTE(RES)                                                                                            
03/21/16       (H)       RES AT 6:00 PM BARNES 124                                                                              
03/21/16       (H)       -- MEETING CANCELED --                                                                                 
03/22/16       (H)       RES AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
RENA DELBRIDGE, Staff                                                                                                           
Representative Mike Hawker                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   During  the hearing  on  HB 247,  answered                                                             
questions  and presented  amendments  to  the proposed  committee                                                               
substitute, Version P, on behalf of the committee co-chairs.                                                                    
                                                                                                                                
KEN ALPER, Director                                                                                                             
Tax Division                                                                                                                    
Department of Revenue (DOR)                                                                                                     
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   During  the hearing  on  HB 247,  answered                                                           
questions  related  to  amendments   to  the  proposed  committee                                                               
substitute, Version P, on behalf of the governor.                                                                               
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:06:59 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  BENJAMIN NAGEAK  called  the  House Resources  Standing                                                             
Committee meeting to order at  1:06 p.m.  Representatives Seaton,                                                               
Olson,  Johnson,  Tarr,  Josephson,  Talerico,  and  Nageak  were                                                               
present  at   the  call  to  order.     Representatives  Chenault                                                               
(alternate) and Herron arrived as the meeting was in progress.                                                                  
                                                                                                                                
           HB 247-TAX;CREDITS;INTEREST;REFUNDS;O & G                                                                        
                                                                                                                                
1:07:41 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  NAGEAK announced  that the  only order  of business  is                                                               
HOUSE BILL NO. 247, "An  Act relating to confidential information                                                               
status and public record status  of information in the possession                                                               
of the Department of Revenue;  relating to interest applicable to                                                               
delinquent tax; relating to disclosure  of oil and gas production                                                               
tax credit information;  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  the minimum                                                               
tax for certain  oil and gas production; relating  to the minimum                                                               
tax  calculation for  monthly installment  payments of  estimated                                                               
tax;  relating to  interest on  monthly  installment payments  of                                                               
estimated  tax; relating  to limitations  for the  application of                                                               
tax credits; relating  to oil and gas production  tax credits for                                                               
certain  losses and  expenditures;  relating  to limitations  for                                                               
nontransferable oil and  gas production tax credits  based on oil                                                               
production  and  the  alternative  tax credit  for  oil  and  gas                                                               
exploration;  relating to  purchase  of  tax credit  certificates                                                               
from the oil  and gas tax credit fund; relating  to a minimum for                                                               
gross  value  at  the  point of  production;  relating  to  lease                                                               
expenditures  and tax  credits for  municipal entities;  adding a                                                               
definition   for  "qualified   capital  expenditure";   adding  a                                                               
definition for  "outstanding liability  to the  state"; repealing                                                               
oil  and   gas  exploration  incentive  credits;   repealing  the                                                               
limitation on  the application of  credits against  tax liability                                                               
for  lease   expenditures  incurred   before  January   1,  2011;                                                               
repealing provisions related to  the monthly installment payments                                                               
for  estimated tax  for oil  and gas  produced before  January 1,                                                               
2014;  repealing  the  oil  and gas  production  tax  credit  for                                                               
qualified  capital expenditures  and  certain well  expenditures;                                                               
repealing   the  calculation   for  certain   lease  expenditures                                                               
applicable before January 1,  2011; making conforming amendments;                                                               
and providing for an effective date."                                                                                           
                                                                                                                                
[Before the committee was the  proposed committee substitute (CS)                                                               
for HB 247, Version 29-GH2609\P,  Shutts, 3/18/16, adopted as the                                                               
working document on 3/19/16.]                                                                                                   
                                                                                                                                
[During  this hearing,  amendments to  Version P  of HB  247 were                                                               
discussed  or  adopted.   Because  of  their length,  the  longer                                                               
amendments are  found at the  end of  the minutes for  this bill.                                                               
The shorter amendments are included in the main text.]                                                                          
                                                                                                                                
1:08:02 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  TALERICO  moved  to  adopt  Amendment  1,  labeled  29-                                                               
GH2609\P.55, Shutts,  3/21/16.  [Amendment  1 is provided  at the                                                               
end of the minutes on HB 247.]                                                                                                  
                                                                                                                                
REPRESENTATIVE TARR objected for the purpose of discussion.                                                                     
                                                                                                                                
1:08:31 PM                                                                                                                    
                                                                                                                                
RENA DELBRIDGE,  Staff, Representative Mike Hawker,  Alaska State                                                               
Legislature,  explained Amendment  1 on  behalf of  the committee                                                               
co-chairs.  She said the  amendment is offered by Co-Chair Nageak                                                               
and  is largely  a technical  amendment related  to miscellaneous                                                               
items  identified by  staff, by  Legislative  Legal and  Research                                                               
Services,  and by  the  Department of  Revenue  (DOR).   Bringing                                                               
attention to page  1 of Amendment 1, she pointed  out that all of                                                               
the  changes  proposed on  this  page  go  to the  interest  rate                                                               
section  of Version  P, the  proposed committee  substitute (CS).                                                               
These  changes  delineate  the  interest  rate  very  clearly  as                                                               
shifting to compound  interest prospectively and not  as of 2014,                                                               
she specified,  as there  is a  lack of clarity  in the  way that                                                               
Version P is drafted.                                                                                                           
                                                                                                                                
MS.  DELBRIDGE  turned to  page  2  of  Amendment 1  and  brought                                                               
attention to  the changes proposed for  page 3, lines 19  and 31,                                                               
and page  4, line  12, of  Version P.   She explained  that these                                                               
make a change  to the three conforming sections of  Version P for                                                               
the liquefied natural gas (LNG)  storage facility credit, the in-                                                               
state  refinery credit,  and the  gas storage  credit related  to                                                               
Section  17  regarding  outstanding  liability.   In  the  bill's                                                               
original version  the outstanding liability changes  were drafted                                                               
as  43.55.028(e), but  in  Version P  it  became subsection  (j).                                                               
These three changes make that correction.                                                                                       
                                                                                                                                
MS. DELBRIDGE  continued on page  2 of Amendment 1  and addressed                                                               
the  three changes  related to  page  8, lines  2, 4,  and 6,  of                                                               
Version P.   She said  that during  drafting related to  the well                                                               
lease  expenditure credit,  the  existing "that"  in statute  was                                                               
changed to  "an".  The Department  of Revenue had a  concern that                                                               
this may  inadvertently change the  way that a taxpayer  may read                                                               
this  and wanted  to  ensure  that "an"  be  returned to  "that".                                                               
These three changes make that change in Version P.                                                                              
                                                                                                                                
MS. DELBRIDGE  continued on  page 2 of  Amendment 1  and reviewed                                                               
the  change related  to  page 8,  line  31, of  Version  P.   She                                                               
explained  that due  to a  drafting error  here the  cap of  $200                                                               
million is  referenced as the  $200 million "limitations".   This                                                               
proposed change to "limitation" would make the word singular.                                                                   
                                                                                                                                
MS. DELBRIDGE  continued on page  2 of  Amendment 1 and  said the                                                               
last change goes to page 9, line  12, of Version P.  It would add                                                               
"or claimant" after "applicant".   This change was recommended by                                                               
Legislative  Legal and  Research Services  to clarify  that there                                                               
could be an applicant or a claimant of a tax certificate.                                                                       
                                                                                                                                
1:12:20 PM                                                                                                                    
                                                                                                                                
MS. DELBRIDGE turned to page 3  of Amendment 1 and said the first                                                               
change on  this page relates  to page 9,  line 13, of  Version P,                                                               
and  would add  "or claimant's"  after "applicant's".   She  then                                                               
drew  attention to  Section  17 on  page 9  of  Version P,  which                                                               
states:   "If an  applicant has an  outstanding liability  to the                                                               
state directly related  to the applicant's oil  or gas production                                                               
or  exploration ...."   She  said it  was pointed  out that  this                                                               
language does not  include the development stage  and might cause                                                               
lack  of clarity  in  the future.    Thus, page  9,  line 13,  of                                                               
Version  P would  be further  changed to  include the  concept of                                                               
development with exploration and production.                                                                                    
                                                                                                                                
MS. DELBRIDGE continued on page 3  of Amendment 1 and pointed out                                                               
that  the  second  change  on  this  page  would  again  add  "or                                                               
claimant" after "applicant"  [to page 9, line 14,  of Version P],                                                               
and would also add "or  refund" after "certificate".  She further                                                               
pointed  out  that the  next  three  changes  on  page 3  of  the                                                               
amendment are the same thing.                                                                                                   
                                                                                                                                
MS. DELBRIDGE  continued on page  3 of Amendment 1  and addressed                                                               
the  second to  last  change  relating to  page  17,  line 7,  of                                                               
Version P.   She explained  that when Section 17  for outstanding                                                               
liability was added to the bill, it  was made to apply to the in-                                                               
state refinery  credit and  deleted a  reference in  the in-state                                                               
refinery credit to a tax liability.   That is also defined within                                                               
that credit and the Department  of Revenue (DOR) pointed out that                                                               
it would be  good to therefore delete that  definition within the                                                               
in-state refinery credit, which is what this amendment does.                                                                    
                                                                                                                                
MS. DELBRIDGE  continued on page  3 of Amendment 1  and specified                                                               
that the last  change relates to the  [legislative] working group                                                               
on page 18, line  16, of Version P.  The  CS states, "The working                                                               
group is to  be supported by legislative  consultants 'now' under                                                               
contract  through the  Legislative Budget  and Audit  Committee."                                                               
It  was pointed  out by  Representative Johnson  that "now"  is a                                                               
potentially challenging  term as  far as  reading of  the statute                                                               
goes.  Thus, this change would remove the word "now".                                                                           
                                                                                                                                
1:14:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON  referenced the fourth change  on page 1                                                               
of Amendment 1  regarding page 3, lines 12-13, of  Version P.  He                                                               
understood that as  originally drafted in the CS this  would be a                                                               
retroactive  interest  compounding to  2014,  but  that this  was                                                               
inadvertent.                                                                                                                    
                                                                                                                                
MS. DELBRIDGE  replied it would  not necessarily  be retroactive,                                                               
but  it  is unclear.    Certainly  the  effective date  does  not                                                               
support retroactivity, but the future  changes would be much more                                                               
clear if it was left to  say that after January 2014 the interest                                                               
is simple,  as it was,  and that on  January 1, 2017,  it becomes                                                               
compounding.                                                                                                                    
                                                                                                                                
1:15:38 PM                                                                                                                    
                                                                                                                                
KEN ALPER,  Director, Tax Division, Department  of Revenue (DOR),                                                               
on behalf  of the governor,  thanked the committee and  its staff                                                               
for bringing  forth these technical  changes that would  clean up                                                               
some  inconsistencies and  inadvertent issues  in the  bill.   He                                                               
said DOR's  attorney from  the Department of  Law just  now found                                                               
two  small technical  issues with  the proposed  new language  in                                                               
Amendment  1 that  he  would  like to  bring  to the  committee's                                                               
attention.   These  would  not make  any  substantive change  but                                                               
would clean up errors in some of the language in the amendment.                                                                 
                                                                                                                                
1:16:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TARR,  responding  to Mr.  Alper,  expressed  her                                                               
interest in hearing about those  technical issues.  She then drew                                                               
attention to  page 3, line [14],  of Amendment 1 which  would add                                                               
language to  page 9, line 15,  of Version P that  states, "or pay                                                               
only  that  portion of  a  refund".    She understood  that  this                                                               
provision  in Version  P would  limit the  amount that  the state                                                               
holds back to  the amount that is in question,  the amount of the                                                               
outstanding liability.  Thus, she  understood, the department may                                                               
purchase  only that  portion of  a certificate  or pay  only that                                                               
portion of a refund, so it would be done for both instances.                                                                    
                                                                                                                                
MS. DELBRIDGE  responded yes and  said it was  the recommendation                                                               
of Legislative Legal and Research Services.                                                                                     
                                                                                                                                
1:17:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON requested  an  explanation  of the  two                                                               
technical issues brought forth by Mr. Alper.                                                                                    
                                                                                                                                
MR.  ALPER,  regarding  the  first   issue,  explained  that  the                                                               
structure added  by the  amendment to  the interest  rate section                                                               
creates  a  third  different category  for  the  three  different                                                               
timelines.   The  earliest language  being pre-2014,  the current                                                               
language  being not  restricted to  2014-2016, and  then the  new                                                               
section at  the bottom of page  1 of Amendment 1  for what begins                                                               
on January  1, 2017.   In the other  two, after the  words "bears                                                               
interest", it states  "in each calendar quarter".   Therefore, to                                                               
maintain consistency, he  would suggest that on page  1, line 18,                                                               
of Amendment  1, after  the word "interest",  the words  "in each                                                               
calendar  quarter" be  added.   Regarding  the  second issue,  he                                                               
brought attention to page 3, line  24, of Amendment 1 and advised                                                               
that  "AS"  should  be inserted  in  front  of  "43.20.053(j)(4)"                                                               
because  references  to  statutes   generally  have  that  Alaska                                                               
Statute reference code.                                                                                                         
                                                                                                                                
REPRESENTATIVE  JOSEPHSON   requested  that   the  aforementioned                                                               
issues be pointed out in the CS itself.                                                                                         
                                                                                                                                
MS. DELBRIDGE offered  her belief that following  the language on                                                               
page 3, line 13, of Version P,  there be inserted a "(C)" and the                                                               
(C)  would be  applicable "on  and after  January 1,  2017, bears                                                               
interest" and then add "in  each calendar quarter" before "at the                                                               
rate".  That would mirror  the language used in subparagraphs (A)                                                               
and (B).                                                                                                                        
                                                                                                                                
1:19:51 PM                                                                                                                    
                                                                                                                                
CO-CHAIR NAGEAK  asked whether  the objection  to Amendment  1 is                                                               
maintained.                                                                                                                     
                                                                                                                                
REPRESENTATIVE JOSEPHSON said  it sounds like the  carrier of the                                                               
amendment is  willing to consider the  aforementioned suggestions                                                               
[if they  are proposed as  a friendly  amendment].  He  stated he                                                               
does not have any other objection.                                                                                              
                                                                                                                                
1:20:24 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TALERICO moved Conceptual Amendment  1 to Amendment 1 as                                                               
follows:                                                                                                                        
                                                                                                                                
     On page 1, line 18, after the word "interest" add "in                                                                      
     each calendar quarter"; on page 3, lines 23-24, insert                                                                     
     "AS" in front of both of the numbered statutes.                                                                            
                                                                                                                                
There being no  objection, Conceptual Amendment 1  to Amendment 1                                                               
was adopted.                                                                                                                    
                                                                                                                                
1:21:04 PM                                                                                                                    
                                                                                                                                
[Representative Tarr's  objection to  Amendment 1 was  treated as                                                               
removed.]   There  being no  further objection,  Amendment 1,  as                                                               
amended, was adopted.                                                                                                           
                                                                                                                                
1:21:22 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  TALERICO  moved  to  adopt  Amendment  2,  labeled  29-                                                               
GH2609\P.22, Shutts, 3/19/16, which read:                                                                                       
                                                                                                                                
     Page 9, line 21, following "owed.":                                                                                        
          Insert    "In   this    subsection,   "outstanding                                                                    
     liability" means  an amount of tax,  interest, penalty,                                                                    
     fee,  rental, royalty,  or other  charge for  which the                                                                    
     state  has issued  a demand  for payment  that has  not                                                                    
     been  paid when  due and,  if contested,  has not  been                                                                    
     finally resolved against the state."                                                                                       
                                                                                                                                
REPRESENTATIVE TARR objected for the purpose of discussion.                                                                     
                                                                                                                                
MS. DELBRIDGE explained  Amendment 2 on behalf  of the co-chairs.                                                               
She said  the amendment is  offered by Co-Chair Nageak  and would                                                               
insert  into Version  P a  definition for  the term  "outstanding                                                               
liability".  This definition is  verbatim that proposed by DOR in                                                               
the original version  of HB 247.  Extensive work  was done on the                                                               
way outstanding liability would be handled  in the CS, but it was                                                               
brought  to the  [co-chairs']  attention that  still retaining  a                                                               
definition  of outstanding  liability  would  offer the  greatest                                                               
clarity to taxpayers and readers of statute.                                                                                    
                                                                                                                                
1:22:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON  inquired whether, even though  there is                                                               
this definition, the CS only focuses on late production tax.                                                                    
                                                                                                                                
MS. DELBRIDGE  answered she does  not believe that is  correct in                                                               
the sense that  the new outstanding liability language  on page 9                                                               
of Version P is  Section 17.  She said Section  17 is quite clear                                                               
that if the  applicant has an outstanding liability  to the state                                                               
directly  related to  oil and  gas exploration,  development, and                                                               
production;  so, it  is  not only  related to  tax.   Section  17                                                               
adjusts  how outstanding  liability  will be  handled  and it  is                                                               
handled  much  as defined,  yet  there  is  not a  definition  in                                                               
statute.   The definition  just adds that  clarity.   She offered                                                               
her belief  that a  number of future  amendments also  point that                                                               
out and seek to add that definition.                                                                                            
                                                                                                                                
1:23:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR removed her objection to Amendment 2.                                                                       
                                                                                                                                
1:23:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON  asked Mr.  Alper whether in  DOR's view                                                               
it  is  material  that  line  13  of  Version  P  only  says  gas                                                               
production or exploration and does not say development.                                                                         
                                                                                                                                
MR. ALPER replied he would first  like to hear what Ms. Delbridge                                                               
has to say.                                                                                                                     
                                                                                                                                
MS. DELBRIDGE  offered her belief  that Amendment 1  changed that                                                               
and so it now says exploration, production, and development.                                                                    
                                                                                                                                
1:24:27 PM                                                                                                                    
                                                                                                                                
There being no further objection, Amendment 2 was adopted.                                                                      
                                                                                                                                
1:24:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON moved  to adopt  Amendment 3,  labeled 29-                                                               
GH2609\P.13, Nauman/Shutts,  3/19/16.   [Amendment 3  is provided                                                               
at the end of the minutes on HB 247.]                                                                                           
                                                                                                                                
CO-CHAIR NAGEAK objected.                                                                                                       
                                                                                                                                
1:24:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  explained  that  Amendment  3  would  add                                                               
protection for  Alaska's small businesses  in case  of bankruptcy                                                               
by a non-producer.   He said that to prevent  shenanigans such as                                                               
payment  of  corporate  officers, the  federal  bankruptcy  court                                                               
allows secured creditors to back up  90 days from the filing date                                                               
and recover money that was paid  to people.  Thus, the bankruptcy                                                               
court can  recover money  that was paid  to small  businessmen in                                                               
Alaska who sold  supplies or provided service  to a non-producing                                                               
oil and  gas explorer that the  state is giving credits  to.  For                                                               
example,  with   Buccaneer  Energy  Ltd.  and   the  jack-up  rig                                                               
Endeavour,  there  were  fuel sales,  trucking  services,  harbor                                                               
fees, and  crane fees,  and payments  were made  on these.   Then                                                               
Buccaneer filed  bankruptcy.  The  people supplying  those things                                                               
did not  know at  the time  that Buccaneer  was planning  to file                                                               
bankruptcy.   The bankruptcy court from  Houston [Texas] required                                                               
recoupment from these  small businesses in the  range of $20,000-                                                               
$50,000.   The legal fees to  fight such a recoupment  of payment                                                               
are significant,  so many of these  companies just had to  make a                                                               
deal  and pay  back  money when  they had  in  good [faith]  sold                                                               
product to, and used by, the company that had gone bankrupt.                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  continued his explanation of  Amendment 3,                                                               
saying  it would  insert a  new section,  Section 28,  that would                                                               
require anybody  in exploration or  development to post  a surety                                                               
bond  of $250,000  that  is only  good  for unsecured  creditors.                                                               
Secured creditors that  should do their due  diligence in looking                                                               
at the people they are financing  could not come back and take it                                                               
away from  the small businesses  in Alaska  that do not  have the                                                               
wherewithal to research a company.   Drawing attention to page 1,                                                               
line 11,  of Amendment 3, he  stated that a surety  bond would no                                                               
longer need to be retained  once a company was producing, because                                                               
by that point in time there  would be more security.  Thus, under                                                               
Amendment 3,  in the case  of new entrants  that do not  have oil                                                               
and gas  under production,  small businesses  in Alaska  would be                                                               
protected  by the  posting  of a  surety bond.    He offered  his                                                               
understanding  that   some  committee  members  do   not  believe                                                               
$250,000 is a  high enough limit and therefore he  is open to the                                                               
offering of a different number.                                                                                                 
                                                                                                                                
1:28:28 PM                                                                                                                    
                                                                                                                                
MS. DELBRIDGE  spoke to Amendment  3 on behalf of  the co-chairs.                                                               
She  said  the $250,000  limit  may  be something  that  requires                                                               
discussion.   There is  concern, she said,  about how  this might                                                               
potentially interact  with federal  bankruptcy rules  that relate                                                               
to transfers made  in advance of a bankruptcy.   Being unfamiliar                                                               
with  the  subject,  she  suggested the  committee  may  want  to                                                               
consult the Department  of Law or Legislative  Legal and Research                                                               
Services.   Another concern is that  having commercial quantities                                                               
of production may  not equate to being profitable.   For example,                                                               
there may potentially be an  instance of a different company that                                                               
was in  production theoretically with commercial  quantities, and                                                               
this company may have left some creditors short locally.                                                                        
                                                                                                                                
REPRESENTATIVE SEATON  responded that Amendment 3  was drafted by                                                               
Legislative Legal and Research Services  and no flags were raised                                                               
by the agency.   Several ways were looked at to  do this and this                                                               
one identifies  unsecured creditors licensed in  Alaska to ensure                                                               
it does not go to people not licensed to do business in Alaska.                                                                 
                                                                                                                                
1:30:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HERRON understood  this was a problem  in the Cook                                                               
Inlet.  He inquired whether Cook  Inlet is the target or anywhere                                                               
in Alaska is the target.                                                                                                        
                                                                                                                                
REPRESENTATIVE SEATON  replied the  target is anywhere  in Alaska                                                               
where people are receiving credits  from the state.  These people                                                               
may not  be well financed because  they are using the  credits as                                                               
security  for getting  financing.   This  would  ensure that  any                                                               
Alaskan business, where  ever located, is protected.   It was not                                                               
wanted for the surety bond  to extend to companies after becoming                                                               
profitable, so that  is why it identifies for after  a company is                                                               
producing oil and  gas in commercial quantities.   But, he added,                                                               
he is open to taking other suggestions.                                                                                         
                                                                                                                                
REPRESENTATIVE  HERRON  asked  what the  insurance  premium  cost                                                               
would be to the company for a $250,000 bond.                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  answered that he did  not research premium                                                               
costs,  but  that  a  $250,000  bond, which  is  really  just  an                                                               
insurance premium, is small when compared to a trucking company.                                                                
                                                                                                                                
1:32:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CHENAULT agreed  with Representative  Seaton that                                                               
there needs  to be  provisions somewhere  in the  bill to  try to                                                               
protect corporations and small businesses  in Alaska.  While this                                                               
was seen  by one company  on the Cook Inlet,  he said, it  is not                                                               
the first time that he has seen  it in business.  When an out-of-                                                               
state  corporation comes  to Alaska  to  work and  then tries  to                                                               
leave  without protecting  Alaskans, and  the state  is paying  a                                                               
credit to  corporations, then  he thinks  an amendment  should be                                                               
enacted into this bill to allow that.   While he does not know if                                                               
it works through  the federal court, it is  something that should                                                               
be done for Alaskan businesses.                                                                                                 
                                                                                                                                
REPRESENTATIVE  JOSEPHSON posited  that a  surety bond  would put                                                               
the vendor in  a better position under federal  bankruptcy law so                                                               
that when assets are marshalled  in a bankruptcy the vendor would                                                               
be  higher on  the totem  pole.   This is  a great  amendment, he                                                               
said, because  it is appropriate,  pro Alaska, and responds  to a                                                               
real, not fictitious problem.                                                                                                   
                                                                                                                                
REPRESENTATIVE TARR  agreed with the previous  speakers' comments                                                               
and said this  is a lesson learned  the hard way and  if there is                                                               
an opportunity to protect Alaska businesses, she supports that.                                                                 
                                                                                                                                
1:34:24 PM                                                                                                                    
                                                                                                                                
[The  objection  by  Co-Chair Nageak  was  treated  as  removed.]                                                               
There being no further objection, Amendment 3 was adopted.                                                                      
                                                                                                                                
1:34:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON postponed  offering Amendment  4 due  to a                                                               
drafting error within the amendment.  He requested an at-ease.                                                                  
                                                                                                                                
1:34:50 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 1:34 p.m. to 1:41 p.m.                                                                       
                                                                                                                                
1:41:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON said he will  not offer Amendment 4 at this                                                               
time due to another drafting error in the revised version.                                                                      
                                                                                                                                
1:41:38 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  NAGEAK   turned  to  Amendment  5   and  expressed  his                                                               
objection to the amendment.                                                                                                     
                                                                                                                                
REPRESENTATIVE  SEATON moved  to adopt  Amendment 5,  labeled 29-                                                               
GH2609\P.29, Shutts,  3/21/16.  [Amendment  5 is provided  at the                                                               
end of the minutes on HB 247.]                                                                                                  
                                                                                                                                
REPRESENTATIVE SEATON  explained that  Amendment 5 would  end the                                                               
well lease  expenditure credit, AS  43.55.023(l), in  Cook Inlet,                                                               
but would  retain the ramp down  of this credit for  Middle Earth                                                               
as  written in  Version P.   This  40 percent  of the  well lease                                                               
expenditures is added  to the net operating loss,  which allows a                                                               
65  percent state  cash payment  for  Cook Inlet  projects.   The                                                               
legislature's consultant,  [enalytica], demonstrated  that credit                                                               
support is  not needed at all  for Cook Inlet gas  development in                                                               
either infield drilling or  unconstrained market projects because                                                               
of  the economic  support of  the high  gas prices  of $5-$7  per                                                               
thousand  cubic feet  (Mcf).   It is  a net  present loss  to the                                                               
state at  any price, although  the net present value  is positive                                                               
to  the company  above  a  price of  $7/Mcf  even in  constrained                                                               
markets.   This  production credit  will never  be repaid  to the                                                               
state because  gas contracts through  2023 at $8.19/Mcf  only pay                                                               
17  cents/Mcf or  2 percent  production  tax.   These well  lease                                                               
expenditure  [credits]  also apply  to  private  lands where  the                                                               
state  gets no  royalty from  the gas.   Oil  production in  Cook                                                               
Inlet  pays  a production  tax  of  zero.    Amendment 5  is  not                                                               
retroactive.   Qualification  for  the 25  percent net  operating                                                               
loss credit  and the 20  percent [qualified  capital expenditure]                                                               
credit  would  still  remain,  and would  allow  the  45  percent                                                               
through the end of the year starting  on July 1.  The bill before                                                               
the committee is  seeking to lower the state's  liability and the                                                               
legislature's consultants  have said  it is  not needed  for gas.                                                               
These well  lease expenditures would  exist as they are,  with 65                                                               
percent, through the  end of the current fiscal year.   This ramp                                                               
down and reduction is very appropriate.                                                                                         
                                                                                                                                
1:44:48 PM                                                                                                                    
                                                                                                                                
MS. DELBRIDGE  spoke to Amendment  5 on behalf of  the co-chairs.                                                               
She clarified  that Amendment 5  amends Version P,  the committee                                                               
substitute (CS),  in which  the net  operating loss  [credit] for                                                               
this region is reduced to 10  percent.  So, she said, rather than                                                               
an ongoing 65 percent state support,  under Version P it would be                                                               
10 percent for a net operating  loss [credit] plus a reduction of                                                               
the [well] lease expenditure [credit],  for a total of 50 percent                                                               
in 2017 and around 40 percent  in 2018.  Amendment 5 would retain                                                               
the  well lease  expenditure credit  in Middle  Earth.   Also the                                                               
alternative  exploration  credit  of 30-40  percent  would  still                                                               
apply in Middle Earth "outside of  this bill in CS."  She offered                                                               
her belief that the consultants were  clear that in Cook Inlet it                                                               
looked  like  a profitable  endeavor  for  gas production  in  an                                                               
unconstrained market, a market in  which a company could sell all                                                               
the  gas  it  was  producing  on  its  schedule.    However,  the                                                               
consultants  were  equally  clear  that  this  is  a  constrained                                                               
market, and there was some  clarity that in this circumstance the                                                               
credits have  been working to  help curb the constraints  of that                                                               
market and  provide companies with  that opportunity.   Certainly                                                               
the consultants  suggested that the  incentive for the  work that                                                               
is being undertaken with the  well lease expenditure (WLE) credit                                                               
for infield work,  not new development, is, in  their minds, more                                                               
than necessary.   The question  always remains for  the committee                                                               
as to  whether that work,  whether economic or  uneconomic, would                                                               
exist without the incentives that  the state has provided and how                                                               
quickly  one   wishes  to   withdraw  those   incentives  without                                                               
potentially jeopardizing any kind of supply issues.                                                                             
                                                                                                                                
1:46:40 PM                                                                                                                    
                                                                                                                                
MR. ALPER,  at Co-Chair Nageak's  request, spoke to  Amendment 5.                                                               
He said the  amendment does separate and  create different credit                                                               
regimes for  Cook Inlet versus  Middle Earth, which is  doable if                                                               
that is  the will of the  committee.  However, he  pointed out, a                                                               
technical correction was made to some  of the language that is in                                                               
page 2 of the  amendment, and he would like to  put on the record                                                               
that  DOR would  want  to re-correct  and  re-make the  technical                                                               
change to this amendment should it pass.                                                                                        
                                                                                                                                
1:47:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON stated that the  committee has done lots of                                                               
work looking  at what is  necessary in Cook  Inlet.  He  said the                                                               
committee must  ask itself the  policy question of  whether going                                                               
forward it  wants to do  65 percent  state support or  larger for                                                               
projects for  which there is  no market.   If there is  a market,                                                               
the legislature's  analysts have said  it is economic the  way it                                                               
is.     For  infield  work,   the  legislature's   analysts  have                                                               
identified no scenario  in which infield production  of gas along                                                               
the shoreline  in Cook Inlet,  not offshore, is uneconomic.   So,                                                               
the only case that is being  talked about is whether to put large                                                               
amounts of  cash into projects that  are going to have  a product                                                               
that  cannot  be  sold  profitably.    In  this  time  of  fiscal                                                               
constraint  this   question  needs   to  be  looked   at  closely                                                               
especially since we have a fiscal  regime that says there is zero                                                               
production tax for  oil and only 2 percent production  tax on gas                                                               
and  how  does  the  state  generate the  revenue  to  pay  these                                                               
credits.  He said there is  a another amendment that would change                                                               
that  10 percent  net operating  loss [credit]  to 25  percent so                                                               
that if Amendment  5 is passed there  is a way to  make that work                                                               
so that it is 45 percent.   Thus, the committee is not stuck with                                                               
a lower net operating loss combined with the capital credit.                                                                    
                                                                                                                                
1:49:33 PM                                                                                                                    
                                                                                                                                
CO-CHAIR NAGEAK removed his objection to Amendment 5.                                                                           
                                                                                                                                
CO-CHAIR TALERICO objected to the amendment.                                                                                    
                                                                                                                                
A roll call  vote was taken.   Representatives Seaton, Josephson,                                                               
and  Tarr  voted  in  favor  of  Amendment  5.    Representatives                                                               
Johnson,  Olson,  Herron,  Chenault  (alternate),  Talerico,  and                                                               
Nageak  voted against  it.   Therefore, Amendment  5 failed  by a                                                               
vote of 3-6.                                                                                                                    
                                                                                                                                
1:50:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON moved  to adopt  Amendment 6,  labeled 29-                                                               
GH2609\P.30, Shutts, 3/21/16, which read:                                                                                       
                                                                                                                                
     Page 5, line 26, following "January 1, 2014":                                                                              
          Insert ";                                                                                                         
               (4) a credit for a qualified capital                                                                         
     expenditure  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, 2017"                                                                                    
                                                                                                                                
CO-CHAIR NAGEAK objected for the purpose of discussion.                                                                         
                                                                                                                                
REPRESENTATIVE SEATON  explained that  Amendment 6  would require                                                               
that qualified capital expenditure  under AS 43.55.023(a) be done                                                               
before January 1, 2017.   The credits earned before January would                                                               
still  be redeemed  at the  regular schedule  and priority.   The                                                               
reasons for this termination are  the same as those for Amendment                                                               
5, but  Amendment 6  would allow for  existing scheduled  work to                                                               
receive the 45  percent state support from January  1 through the                                                               
end of the year.  He  pointed out that the capital credit, unlike                                                               
the  net  operating loss  credit,  goes  to profitable  producing                                                               
companies for  infield expenses.   The  legislature's consultants                                                               
have told the committee repeatedly  that the infield work onshore                                                               
does not  need to have credit  support because it has  ample cost                                                               
support, as evidenced  by the long-term contracts  that have just                                                               
been  signed starting  at $7.49  [per Mcf]  and going  through to                                                               
2023  at  $8.19  [per  Mcf].    Thus,  there  is  ample  economic                                                               
incentive for  infield work.   These capital  credit expenditures                                                               
will mainly be going to onshore  areas.  He posited that if there                                                               
is reason  for other specific expenditures,  especially since the                                                               
committee has  not eliminated the  well lease  expenditures, then                                                               
the capital  credit expenditures  should be  eliminated effective                                                               
in January of this coming year.                                                                                                 
                                                                                                                                
1:53:21 PM                                                                                                                    
                                                                                                                                
CO-CHAIR NAGEAK removed his objection to Amendment 6.                                                                           
                                                                                                                                
REPRESENTATIVE  HERRON objected  and requested  Ms. Delbridge  to                                                               
respond to Amendment 6.                                                                                                         
                                                                                                                                
MS. DELBRIDGE  replied on behalf  of the co-chairs,  stating that                                                               
Amendment  6 absolutely  changes  the way  that  the levers  were                                                               
adjusted within the committee substitute.   The qualified capital                                                               
expenditure credit  was retained  at 20 percent  in Version  P to                                                               
provide that ongoing support for a  number of phases of work from                                                               
development  to production,  including  ongoing production,  that                                                               
delivers the  oil and  the gas  that is  being used  generally in                                                               
Southcentral  Alaska.   In maintaining  that lever  the co-chairs                                                               
believed it was  appropriate to continue that  credit support for                                                               
that work.  Amendment 6 is  another way of pulling those [levers]                                                               
in Cook Inlet, as explained by Representative Seaton.                                                                           
                                                                                                                                
1:54:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HERRON asked  Mr. Alper whether there  is a number                                                               
in regard to what has happened between January 2014 and to-date.                                                                
                                                                                                                                
MR. ALPER replied that a  lot of exploration and development work                                                               
has  occurred  in  Cook  Inlet.   The  governor's  original  bill                                                               
proposed eliminating  the [qualified capital  expenditure] credit                                                               
and maintaining  the [net  operating loss]  credit at  the higher                                                               
level of 25  percent.  If Amendment  6 were to pass,  he said, it                                                               
would  be his  wish  to restore  a certain  element  to the  [net                                                               
operating  loss] credit.    As  stated by  Ms.  Delbridge, it  is                                                               
really about  the decision to support  the development operations                                                               
of producers,  the people who  are in production selling  oil and                                                               
gas potentially  at a profit under  the realm of the  tax cap, or                                                               
to concentrate the state's credit  support on just the folks that                                                               
have  an operating  loss.   Of the  $400 million  in credits  the                                                               
state gave  in the Cook Inlet  area last year, one-third  to one-                                                               
half was probably in this category.   It is hard to separate this                                                               
number out, he added, but it is definitely a material number.                                                                   
                                                                                                                                
1:56:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HERRON removed his objection to Amendment 6.                                                                     
                                                                                                                                
REPRESENTATIVE OLSON objected to the amendment.                                                                                 
                                                                                                                                
1:56:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  concluded his explanation of  Amendment 6,                                                               
stating it  is a balancing act  in policy whether to  have the 20                                                               
percent  capital  credits which  will  heavily  go to  profitable                                                               
producers  in the  Cook Inlet,  people with  ongoing work.   Only                                                               
18,000 barrels  of oil a day  are produced in the  Cook Inlet, so                                                               
it is almost all gas production  and it is almost all coming from                                                               
wells  and fields  that have  been there  for a  long time.   The                                                               
debate and  policy call  here is whether  the committee  wants to                                                               
have the  state's limited  capital pay for  infield work  that is                                                               
profitable by any  stretch of the testimony  by the legislature's                                                               
consultants,  or to  encourage new  developments with  the higher                                                               
net operating  loss.  He  reiterated that  a revision to  the net                                                               
operating loss credit  would be needed in Version P  given he had                                                               
not wanted to roll everything into one amendment.                                                                               
                                                                                                                                
1:57:57 PM                                                                                                                    
                                                                                                                                
A roll call  vote was taken.   Representatives Seaton, Josephson,                                                               
and  Tarr  voted  in  favor  of  Amendment  6.    Representatives                                                               
Chenault,  Johnson, Olson,  Herron,  Talerico,  and Nageak  voted                                                               
against it.  Therefore, Amendment 6 failed by a vote of 3-6.                                                                    
                                                                                                                                
1:58:43 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  NAGEAK   turned  to  Amendment  7   and  expressed  his                                                               
objection to the amendment.                                                                                                     
                                                                                                                                
REPRESENTATIVE  SEATON moved  to adopt  Amendment 7,  labeled 29-                                                               
GH2609\P.31, Nauman/Shutts,  3/21/16.   [Amendment 7  is provided                                                               
at the end of the minutes on HB 247.]                                                                                           
                                                                                                                                
REPRESENTATIVE SEATON  explained Amendment 7 would  maintain some                                                               
level of capital  credit, but less.  He noted  that, again, it is                                                               
a policy  decision of how  much should go to  existing profitable                                                               
producers that  heavily use  the [qualified  capital expenditure]                                                               
credit  and how  much  should  go to  stimulate  and support  new                                                               
operations.  Drawing  attention to page 1, line  21, of Amendment                                                               
7, he noted that it is not  to exceed 30 percent and therefore it                                                               
is  considering  that the  net  operating  loss credit  would  be                                                               
returned to  25 percent  and would  allow a  capital credit  of 5                                                               
percent to  provide some support  for the existing producers.   A                                                               
total of 30 percent  is what is in Version P,  he pointed out, so                                                               
Amendment 7  would just change the  mix of which kind  of project                                                               
would be  supported -  whether that  would be  existing producers                                                               
adding to  their profit  margin or  stimulating new  producers by                                                               
making their fields economic.                                                                                                   
                                                                                                                                
2:00:37 PM                                                                                                                    
                                                                                                                                
CO-CHAIR NAGEAK removed his objection to Amendment 7.                                                                           
                                                                                                                                
CO-CHAIR TALERICO objected to the amendment.                                                                                    
                                                                                                                                
2:00:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON requested Ms. Delbridge to comment.                                                                      
                                                                                                                                
MS.  DELBRIDGE requested  clarification  from the  sponsor as  to                                                               
whether Amendment 7 would set  a different carried-forward annual                                                               
loss for  Middle Earth and for  Cook Inlet.  She  understood that                                                               
in the  instance of Middle Earth  it would remain the  10 percent                                                               
that is  in Version P  and it would be  reduced to 5  percent for                                                               
Cook Inlet.   She further understood  that overall a credit  or a                                                               
certificate  could not  be issued  if those  credits cumulatively                                                               
exceeded 30 percent of expenditures that qualify for a credit.                                                                  
                                                                                                                                
REPRESENTATIVE SEATON  responded that the purpose  of Amendment 7                                                               
is that credits  would not be over 30 percent  in the Cook Inlet,                                                               
whether they  expended more money  or not, but the  net operating                                                               
loss and the 5 percent could not  be over 30 percent.  Those that                                                               
do not  have a net  operating loss would still  be able to  get 5                                                               
percent state support, but the  combination of net operating loss                                                               
under (b) and the capital credits could not exceed 30 percent.                                                                  
                                                                                                                                
2:02:25 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 2:02 p.m. to 2:05 p.m.                                                                       
                                                                                                                                
2:05:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON withdrew Amendment 7.                                                                                     
                                                                                                                                
REPRESENTATIVE  SEATON  stated  that  Amendment  8,  labeled  29-                                                               
GH2609\P.32, Nauman/Shutts, 3/21/16, is not being offered.                                                                      
                                                                                                                                
2:06:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON moved  to adopt  Amendment 9,  labeled 29-                                                               
GH2609\P.14, Nauman/Shutts, 3/19/16, which read:                                                                                
                                                                                                                                
     Page 6, line 5:                                                                                                            
          Delete "35"                                                                                                           
          Insert "25 [35]"                                                                                                  
                                                                                                                                
     Page 18, line 20, following "APPLICABILITY.":                                                                              
          Insert "(a)"                                                                                                          
                                                                                                                                
     Page 18, following line 21:                                                                                                
     Insert a new subsection to read:                                                                                           
          "(b)  The change in the percentage of the                                                                             
     carried-forward  annual loss  tax credit  applicable to                                                                    
     oil or gas  deposits located north of  68 degrees North                                                                    
     latitude under  AS 43.55.023(b), enacted by sec.  12 of                                                                    
     this Act, applies to a tax  credit taken for a tax year                                                                    
     beginning on or after the  effective date of sec. 12 of                                                                    
     this Act."                                                                                                                 
                                                                                                                                
CO-CHAIR NAGEAK objected for the purpose of discussion.                                                                         
                                                                                                                                
REPRESENTATIVE  SEATON explained  Amendment  9  would change  the                                                               
percentage of  expenses on which  credits are earned to  the same                                                               
that are currently  earned in Cook Inlet and  Middle Earth, which                                                               
is 25  percent.  He recalled  that in the evolution  of tax bills                                                               
for the  North Slope tax  base, there  was credit at  25 percent.                                                               
That was replaced with a new regime  of a 35 percent tax rate and                                                               
a per-barrel  credit which  had a  band of  per-barrel reductions                                                               
across a normal  band of prices.  However, it  is very complex to                                                               
calculate the actual  tax rate for each  company, especially with                                                               
the  sliding scale  that is  variable  with price.   Amendment  9                                                               
would not  change any tax  rates, it would  simply fix a  rate at                                                               
which credits  are earned at the  same 25 percent of  expenses as                                                               
previously  on the  North Slope  and  as currently  in the  other                                                               
basins.  While  it would not change any  process, application, or                                                               
redemption of  credits, it  would have a  big effect.   Currently                                                               
with $1 billion  of spending, the state owes $350  million in tax                                                               
credits.  If  Amendment 9 was passed, the $1  billion of spending                                                               
would be $250  million payment to the state at  25 percent, which                                                               
is what it was previously when  there was lots of activity on the                                                               
North Slope  and was  sufficient to aid  production.   He pointed                                                               
out that when  the state first started going  with the production                                                               
profits tax  (PPT), Pedro  van Meurs urged  that the  state limit                                                               
its  credits  to   25  percent  as  the  credits   are  based  on                                                               
expenditures  by  oil  companies  regardless  of  whether  it  is                                                               
profitable to  the State of Alaska,  and the state is  in exactly                                                               
that situation  right now where it  owes 35 percent of  all these                                                               
expenditures  but  the  state  is  not making  any  money.    The                                                               
question  is, What  is enough  state  participation to  encourage                                                               
investment?     Because  this  was   seen  on  the   North  Slope                                                               
previously, he is asking members to support Amendment 9.                                                                        
                                                                                                                                
2:09:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON stated his support  for Amendment 9.  He                                                               
said he realizes that Senate  Bill 21 [More Alaska Production Act                                                               
(MAPA), passed  in 2013, Twenty-Eighth Alaska  State Legislature]                                                               
dropped the 20  percent capital credit, although it  may still be                                                               
closing out  its two-year window.   He related he  has repeatedly                                                               
read that the  state does not see any production  tax beneath [an                                                               
oil price] of about $75 or $80  a barrel, and he thinks the state                                                               
has shifted too  much to the taxpayers in that  price range.  The                                                               
Department of Revenue has just  announced its projection that the                                                               
state is  going to spend over  $100 million more on  credits than                                                               
it will  reap in royalty,  production tax, corporate  income tax,                                                               
and ad  valorem tax, (excluding  the 25 percent royalty  put into                                                               
the permanent fund constitutionally).   The state's credit system                                                               
is not sustainable  in this economic climate, so this  would be a                                                               
way to rein it in.  The  gross value reduction (GVR) on new areas                                                               
is  20 percent  in perpetuity.   In  looking at  the Oil  and Gas                                                               
Competitiveness  Review  Board [records]  he  said  he could  not                                                               
identify any place where someone  could have a GVR in perpetuity.                                                               
Amendment 9 helps to moderate a program that is too generous.                                                                   
                                                                                                                                
2:11:52 PM                                                                                                                    
                                                                                                                                
MS. DELBRIDGE  spoke to Amendment  9 on behalf of  the co-chairs.                                                               
She  said the  co-chairs  have expressed  their  opposition to  a                                                               
fundamental change to the existing  North Slope tax regime as set                                                               
into  law under  Senate  Bill 21,  a bill  that  was affirmed  by                                                               
voters.   She said the net  operating loss (NOL) credit  can also                                                               
be thought  of as a  part of  the fundamental tax  calculation in                                                               
the sense that  the state wants a company to  keep spending money                                                               
even  if it  is losing  money because  that spend  is potentially                                                               
that future production.  These  are refunded for a fairly limited                                                               
group  of taxpayers;  they are  refunded not  to the  majors with                                                               
legacy production that  have more than 50,000 barrels  a day, but                                                               
to the smaller  companies with less than that,  in which instance                                                               
one  would consider  how much  support  one wants  to provide  to                                                               
those smaller  companies.   The NOL  is also used  as sort  of an                                                               
equalizer for new companies that  do not have existing production                                                               
to come onto the North Slope.   It is their upfront state support                                                               
for developing these  new resources in new areas.   These are the                                                               
reasons the  co-chairs are opposed  to the general change  in the                                                               
NOL on the North Slope.                                                                                                         
                                                                                                                                
2:13:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HERRON  offered his  understanding that  Dr. Pedro                                                               
van Meurs did say 25 percent  for credits but when it was matched                                                               
with 25  percent production  tax rate.   He  asked whether  he is                                                               
correct in this understanding.                                                                                                  
                                                                                                                                
MS. DELBRIDGE  deferred to Mr.  Alper for a recollection  in this                                                               
regard, but said  that typically, yes, the net  operating loss is                                                               
commensurate or equal with the amount  of tax the state is on the                                                               
other side.   That's much as  the federal tax system  works.  So,                                                               
it's a  sense that when  a company is  making money the  state is                                                               
going  to take  the  company's money  from  it in  a  tax as  the                                                               
state's share.  But, when a  company is losing money the state is                                                               
going to make sure that the  company is able to realize the value                                                               
of that loss  against its future liability.  The  State of Alaska                                                               
has chosen to refund that to certain taxpayers.                                                                                 
                                                                                                                                
MR.  ALPER recalled  that  the  original PPT  proposal  had a  20                                                               
percent capital credit,  a 20 percent tax rate, and  a 20 percent                                                               
operating loss  credit.  He  recalled Dr. van Meurs  stating that                                                               
he did  not believe  in credits  in excess of  20 or  25 percent,                                                               
because  they  essentially  become counter-productive  and  could                                                               
encourage too much certain behaviors  that might work against the                                                               
economics.  Mr. Alper said he uses  the numbers of 20, 20, and 20                                                               
to  point out  that  going back  to PPT  there  was a  divergence                                                               
between the tax rate  and the credit rate.  The  PPT tax rate was                                                               
22.5 percent  and the operating loss  credit was 20 percent.   In                                                               
Alaska's  Clear  and Equitable  Share  (ACES)  [House Bill  2001,                                                               
passed in 2007, Twenty-Fifth Alaska  State Legislature] it became                                                               
25 and 25.  He noted  the administration does not have a position                                                               
on  Amendment 9,  and  said Representative  Seaton  brings up  an                                                               
important theoretical concept with the  amendment.  In ACES there                                                               
was  a 25  percent  base  tax rate,  but  effectively because  of                                                               
progressivity it  typically turned  out to  be higher  than that.                                                               
So, the  effective tax rate  was larger  than 25 percent  with an                                                               
operating loss  credit of  less than the  effective tax  rate, 25                                                               
percent.   With Senate Bill 21  the base tax rate  is 35 percent,                                                               
but the  nature of the  calculation is a subtraction  mechanism -                                                               
the  per-barrel credit.   So,  in most  cases, the  effective tax                                                               
rate is less  than 35 percent and there is  a phenomenon in place                                                               
on the North  Slope right now where the operating  loss credit is                                                               
actually  larger  than the  effective  tax  rate, something  that                                                               
hasn't  been  seen  before.   As  he  understands  Representative                                                               
Seaton's   testimony,   that   is   the   phenomenon   that   the                                                               
representative is attempting to address with Amendment 9.                                                                       
                                                                                                                                
2:16:25 PM                                                                                                                    
                                                                                                                                
CO-CHAIR NAGEAK maintained his objection to Amendment 9.                                                                        
                                                                                                                                
2:16:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  concluded his  explanation of  Amendment 9                                                               
by stating that the discussion of  the tax rate and the credit is                                                               
very apropos, but  the portion of this that is  not brought in is                                                               
the $5 or  sliding-scale tax reduction, because  that is reducing                                                               
that  tax rate  and  so that  is  not recognized  at  all in  the                                                               
calculation.  A 50 percent tax  rate could be set and a reduction                                                               
of  $20 per  barrel could  be  given and  the state  could say  a                                                               
company should  be able to  get a  50 percent credit  because the                                                               
tax rate is there and not  taking into account the per-barrel tax                                                               
credit,  which is  a  huge detraction  from  the state's  revenue                                                               
position.   Amendment 9  does not  try to get  in and  balance at                                                               
every  price,  especially  the sliding-scale,  and  balance  that                                                               
against  what is  the tax  and what  is the  effective tax  paid,                                                               
although that could  be done so that a company  gets a credit for                                                               
whatever its  effective tax rate  is.   But, that is  a difficult                                                               
calculation to make, so that is  why Amendment 9 is being offered                                                               
to go back to the 25 percent.                                                                                                   
                                                                                                                                
2:18:01 PM                                                                                                                    
                                                                                                                                
CO-CHAIR NAGEAK again maintained his objection to Amendment 9.                                                                  
                                                                                                                                
A roll  call vote was  taken.  Representatives Tarr,  Seaton, and                                                               
Josephson  voted  in  favor  of  Amendment  9.    Representatives                                                               
Herron,  Chenault, Johnson,  Olson,  Talerico,  and Nageak  voted                                                               
against it.  Therefore, Amendment 9 failed by a vote of 3-6.                                                                    
                                                                                                                                
2:19:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  moved to  adopt Amendment 10,  labeled 29-                                                               
GH2609\P.18, Nauman/Shutts,  3/19/16.  [Amendment 10  is provided                                                               
at the end of the minutes on HB 247.]                                                                                           
                                                                                                                                
CO-CHAIR NAGEAK objected for the purpose of discussion.                                                                         
                                                                                                                                
REPRESENTATIVE  SEATON explained  that Amendment  10 would  limit                                                               
the per-barrel  tax credit to $5.   He recalled that  when Senate                                                               
Bill 21  came before the  House Resources Standing  Committee the                                                               
maximum credit was  $5 per barrel.  The  committee substitute for                                                               
Senate  Bill 21  made  the bill  slightly  progressive at  higher                                                               
prices  by  ramping  down  the per-barrel  credit  as  the  price                                                               
approached $150  per barrel, at  which price the credit  would be                                                               
zero.   At  prices between  $90  and $100  the per-barrel  credit                                                               
increased 20 percent, going from $5  to $6 per barrel.  At prices                                                               
between  $80 and  $90 the  credit increased  another 16  percent,                                                               
going from  $6 to  $7 per barrel.   At prices  less than  $80 the                                                               
credit  increased another  14 percent,  going from  $7 to  $8 per                                                               
barrel.   The problem is that  these increases above the  $5 have                                                               
contributed to the minimum tax being  reached at a price of about                                                               
$85 a  barrel.  He posited  that these credits really  need to be                                                               
looked  at and  taken into  account, and  therefore Amendment  10                                                               
would limit the maximum per-barrel tax credit to $5 a barrel.                                                                   
                                                                                                                                
2:21:03 PM                                                                                                                    
                                                                                                                                
MS. DELBRIDGE spoke  to Amendment 10 on behalf  of the co-chairs.                                                               
She  said the  co-chairs  are opposed  to fundamentally  changing                                                               
aspects  of the  North Slope  fiscal regime  put into  place with                                                               
Senate Bill  21.  To  address only part  of that system,  in this                                                               
case the  sliding-scale credit, without evaluating  the system as                                                               
a whole and  the way that that  would shift the give  and the get                                                               
for the  state and  for companies throughout  the system  has the                                                               
potential for  consequences that  have not  been fully  vetted in                                                               
this committee.                                                                                                                 
                                                                                                                                
2:21:46 PM                                                                                                                    
                                                                                                                                
CO-CHAIR NAGEAK maintained his objection to Amendment 10.                                                                       
                                                                                                                                
A roll  call vote  was taken.   Representatives  Josephson, Tarr,                                                               
and  Seaton voted  in  favor of  Amendment  10.   Representatives                                                               
Chenault,  Herron, Johnson,  Olson,  Talerico,  and Nageak  voted                                                               
against it.  Therefore, Amendment 10 failed by a vote of 3-6.                                                                   
                                                                                                                                
2:22:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  moved to  adopt Amendment 11,  labeled 29-                                                               
GH2609\P.34, Nauman/Shutts,  3/21/16.  [Amendment 11  is provided                                                               
at the end of the minutes on HB 247.]                                                                                           
                                                                                                                                
CO-CHAIR NAGEAK objected for the purpose of discussion.                                                                         
                                                                                                                                
REPRESENTATIVE SEATON  explained that  Amendment 11  would change                                                               
the per-barrel tax  credit to a flat $5 across  all price ranges,                                                               
which is exactly the way that  "the bill" [Senate Bill 21] passed                                                               
the  other body  and came  over to  the House  Resources Standing                                                               
Committee in the first place.                                                                                                   
                                                                                                                                
2:23:27 PM                                                                                                                    
                                                                                                                                
MS. DELBRIDGE spoke  to Amendment 11 on behalf  of the co-chairs.                                                               
She understood  that this  amendment would set  a hard  floor for                                                               
use of the  $5 per-barrel tax credit  that is now for  new oil on                                                               
the North Slope.  This amendment, then, would apply that $5 per-                                                                
barrel tax  credit "if we  fail to make  it meet the  criteria in                                                               
[AS  43.55.160](f) and  (g) potentially  North Slope-wide."   The                                                               
co-chairs  are fundamentally  opposed  to any  changes to  Senate                                                               
Bill 21,  understanding as with  the previous amendment,  that to                                                               
work changes to a piece  of that system without contemplating the                                                               
way it shifts the entire equilibrium  of that system at highs and                                                               
lows  and  between the  state  and  industry was  not  thoroughly                                                               
vetted and considered in this committee with HB 247.                                                                            
                                                                                                                                
2:24:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   CHENAULT   requested   clarification   regarding                                                               
Representative Seaton's  statement about the bill  that came over                                                               
from the other body.                                                                                                            
                                                                                                                                
REPRESENTATIVE SEATON  clarified he was  not speaking of  HB 247,                                                               
but rather the bill that established  the tax rate that came from                                                               
the other body [Senate Bill 21].                                                                                                
                                                                                                                                
2:25:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON  addressed the  sliding-scale per-barrel                                                               
tax credit of $0-$8 that  currently exists under law, noting that                                                               
as the  price rises, the  amount of the  credit drops.   He asked                                                               
whether it is  Representative Seaton's view that in  the event of                                                               
better prices  there is  a winner  and a  loser relative  to that                                                               
calculation.                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  answered by addressing the  question about                                                               
the  progressivity of  the  sliding-scale,  especially at  higher                                                               
prices, versus $5.   He said the  higher the price goes  it is $5                                                               
fixed, so it  would become a lesser and lesser  percentage of the                                                               
price.   Because it would stay  there, there would be  some loss,                                                               
but the  state could  absorb some loss  at higher  prices because                                                               
[the  companies] are  making money.   Whereas  under the  sliding                                                               
scale  of the  credit  going higher  than $5  a  barrel at  lower                                                               
prices,  that jump  from $100  to the  range of  $90 is  actually                                                               
increasing that per-barrel credit by  20 percent ($1) compared to                                                               
$5.  So, it makes much less difference going higher than lower.                                                                 
                                                                                                                                
2:27:25 PM                                                                                                                    
                                                                                                                                
MR.  ALPER provided  some "off  the cuff"  dollar values  for the                                                               
changes that  Amendment 11 would  make.  He said  the elimination                                                               
of the higher-than-$5 credit at  low oil prices under the current                                                               
sliding scale really has no value  at today's [low] prices.  At a                                                               
price  range of  $80-$100,  that would  probably  be worth  [$100                                                               
million] to $300 million of additional  revenue to the state.  At                                                               
prices  beyond $110  or  $120  there would  be  a  little bit  of                                                               
diminishment  in  expected  revenue, peaking  at  extremely  high                                                               
prices of  above $160 the  state might lose around  $750 million.                                                               
However,  in  that high  price  environment  the state  would  be                                                               
getting  many  billions of  dollars  in  production tax  revenue.                                                               
Combining all  of the oil  into the single section  and referring                                                               
to AS  43.55.011(f), which is  the minimum tax, would  extend the                                                               
floor  to oil  that currently  enjoys the  gross value  reduction                                                               
(GVR).  That was a  provision included in the governor's original                                                               
bill and its value is in the neighborhood of $10-$20 million.                                                                   
                                                                                                                                
2:28:47 PM                                                                                                                    
                                                                                                                                
CO-CHAIR NAGEAK maintained his objection to Amendment 11.                                                                       
                                                                                                                                
A roll call  vote was taken.   Representatives Seaton, Josephson,                                                               
and  Tarr  voted  in  favor of  Amendment  11.    Representatives                                                               
Herron,  Chenault, Johnson,  Olson,  Talerico,  and Nageak  voted                                                               
against it.  Therefore, Amendment 11 failed by a vote of 3-6.                                                                   
                                                                                                                                
2:29:40 PM                                                                                                                    
                                                                                                                                
CO-CHAIR NAGEAK turned  to Amendment 12 and  stated his objection                                                               
to the amendment.                                                                                                               
                                                                                                                                
REPRESENTATIVE   SEATON  withdrew   Amendment  12,   labeled  29-                                                               
GH2609\P.19, Nauman/Shutts, 3/19/16.                                                                                            
                                                                                                                                
2:29:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON moved to adopt Amendment 13, labeled 29-                                                                  
GH2609\P.17, Nauman/Shutts,  3/19/16.  [Amendment 13  is provided                                                               
at the end of the minutes on HB 247.]                                                                                           
                                                                                                                                
CO-CHAIR NAGEAK objected for the purpose of discussion.                                                                         
                                                                                                                                
REPRESENTATIVE SEATON explained Amendment  13.  He recounted that                                                               
the gross value  reduction (GVR) was originally  called the gross                                                               
revenue exclusion.  He  said it is really a gross  tax based on a                                                               
value  at the  point of  production  in that  all the  applicable                                                               
upstream expenses are subtracted to reach  a value of the oil and                                                               
then  a percentage  is taken  off.   He  posited that  this is  a                                                               
credit because it is off the  full value after the calculation of                                                               
the value at the point of  production.  He further recounted that                                                               
the  GVR  was  discussed  as  an  equity  measure  for  new  oil,                                                               
retroactive  to  2003,  between legacy  fields  with  depreciated                                                               
assets and new fields requiring  facilities.  However, he pointed                                                               
out, there is no  time limit on the GVR, it  extends for the life                                                               
of the  field, so the  state continues  to lose money  even after                                                               
the allowance and later recovery  of capital.  Amendment 13 would                                                               
put a  five-year limit after  the start of production  of new/GVR                                                               
oil,  and any  new oil  fields  in production  before 2017  would                                                               
still  get the  full five  years of  reduction starting  in 2017.                                                               
The amendment tries  to adjust the state's situation  so that the                                                               
state is not in quite such a fiscal condition.                                                                                  
                                                                                                                                
2:32:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HERRON  inquired whether  this is a  definition of                                                               
new oil.                                                                                                                        
                                                                                                                                
REPRESENTATIVE SEATON replied that  Amendment 13 would remove the                                                               
gross value  reduction (GVR)  after five years  and then  the oil                                                               
would be taxed just  as a regular oil field would  be taxed.  The                                                               
amendment does  not put in  a different definition, it  just says                                                               
that the credit would extend for  five years for this new oil and                                                               
then it  will be regular oil.   Otherwise, the state  is facing a                                                               
time in the future where everything  is new oil and the state has                                                               
much less revenue.                                                                                                              
                                                                                                                                
REPRESENTATIVE  HERRON requested  Mr. Alper  or Ms.  Delbridge to                                                               
speak to whether this is a new oil definition.                                                                                  
                                                                                                                                
MR.  ALPER responded  that  the  definition of  new  oil is  what                                                               
qualifies for  the gross value  reduction and that is  a complex,                                                               
three-part portion of statute.   There are three different tests,                                                               
one of which  must be met.  That definition  holds.  The question                                                               
is, How long  is it necessary to give the  tax benefits that come                                                               
with being new oil?   He recalled Representative Herron last week                                                               
referencing  an  Oklahoma statute  that  provides  a reduced  tax                                                               
benefit for  36-months.  "The  way this  is written, it  is open-                                                               
ended," he continued.   He said his understanding  of the purpose                                                               
of a  new oil tax  reduction is  to compensate companies  for the                                                               
higher  upfront capital  cost of  developing  new oil.   But,  he                                                               
continued, at  some point  one could argue  that those  costs are                                                               
recaptured and  the question  is, Does the  oil graduate  at some                                                               
point  and  go  from being  new  oil  to  being  old oil?    That                                                               
conversation was  had in the  body during the debate  over Senate                                                               
Bill 21, it was unresolved, and  existing statute is that new oil                                                               
remains new forever.                                                                                                            
                                                                                                                                
2:34:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TARR  stated her  support  for  Amendment 13  and                                                               
making it  clear that new oil  is not new forever.   She recalled                                                               
that during the Senate Bill 21  debate members were under the gun                                                               
and took until  4:00 a.m. the night that the  bill was passed out                                                               
of committee.   Had the  committee spent more time,  she posited,                                                               
it may have  gotten there because the conversation  was about new                                                               
oil and she thinks that at some  point it is reasonable to say it                                                               
is not  new anymore  and has  graduated to become  old oil.   The                                                               
amendment  does not  have an  immediate impact,  she said,  which                                                               
gives everyone  an opportunity to  know the policy change  and to                                                               
determine what it means in their company's overall profile.                                                                     
                                                                                                                                
2:35:36 PM                                                                                                                    
                                                                                                                                
CO-CHAIR NAGEAK maintained his objection to Amendment 13.                                                                       
                                                                                                                                
A roll call  vote was taken.   Representatives Seaton, Josephson,                                                               
and Tarr voted in favor  of Amendment 13.  Representatives Olson,                                                               
Herron,  Johnson,   Talerico,  and   Nageak  voted   against  it.                                                               
Therefore, Amendment 13 failed by a vote of 3-5.                                                                                
                                                                                                                                
2:36:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  moved to  adopt Amendment 14,  labeled 29-                                                               
GH2609\P.15, Nauman/Shutts,  3/19/16.  [Amendment 14  is provided                                                               
at the end of the minutes on HB 247.]                                                                                           
                                                                                                                                
CO-CHAIR NAGEAK objected for the purpose of discussion.                                                                         
                                                                                                                                
REPRESENTATIVE SEATON explained that  while Amendment 14 is long,                                                               
it would only do one thing  - remove AS 43.55.160(g).  Subsection                                                               
(g) is  the additional 10  percent gross value reduction  for new                                                               
fields that  have a royalty  above 12.5 percent, which,  he said,                                                               
is  really a  tax credit  override of  the royalty  terms.   When                                                               
leases are offered  to bid or companies bid on  dollars and terms                                                               
and  win a  lease, some  bids  include higher  royalty or  profit                                                               
sharing.   Royalty  modification,  he pointed  out, is  available                                                               
through the Department of Natural  Resources (DNR).  If a project                                                               
is  found,  but   the  royalty  terms  make   it  uneconomic,  an                                                               
application for  royalty modification can  be filed with  DNR and                                                               
if justified the royalty can be  modified for a time to ensure it                                                               
becomes an  economic field.   The  state's ownership  interest is                                                               
royalty and what  is had in Amendment 14 is  a tax provision that                                                               
is put in  specifically to override the competitive  process of a                                                               
royalty  or a  lease bid  in  the higher  royalties.   Now is  an                                                               
appropriate time  to come in and  ensure that if a  company needs                                                               
royalty  modification it  goes through  the statutes  for royalty                                                               
modification and  receives that  for the  economics of  its field                                                               
instead of having a one size fits all for all new oil.                                                                          
                                                                                                                                
2:39:05 PM                                                                                                                    
                                                                                                                                
MS. DELBRIDGE spoke  to Amendment 14 on behalf  of the co-chairs.                                                               
She said the  co-chairs are concerned about  Amendment 14 because                                                               
it is a material change to the  terms in Senate Bill 21 that were                                                               
put  forth to  benefit new  oil.   Nothing  changes the  royalty.                                                               
Certainly  Representative Seaton  presents a  perspective that  a                                                               
tax decrease  on certain royalty  properties is the  state taking                                                               
less  overall  for  those  leases.    The  language  included  in                                                               
Amendment 14  would make  sure that  property receiving  this did                                                               
not include  a lease that was  already within a unit  in 2003 and                                                               
providing  those leases  have royalty  shares of  more than  12.5                                                               
percent.   It is  clearly designed  to apply  to certain  new oil                                                               
production  areas.   The co-chairs'  concern is  that those  most                                                               
affected  by this  are not  here to  fully explain  the potential                                                               
impacts related to  a change in this provision right  now and the                                                               
committee has not considered this topic at this point.                                                                          
                                                                                                                                
MR. ALPER, in  regard to Amendment 14, stated that  there is not,                                                               
to [DOR's] knowledge, any oil  currently enjoying this 30 percent                                                               
gross value  reduction.  Qualifying  for this  reduction requires                                                               
that all the  leases within a given unit be  at greater than 12.5                                                               
percent and all  be state leases.  So, this  30 percent provision                                                               
would never apply,  say, in a high royalty field  in the National                                                               
Petroleum Reserve-Alaska  (NPR-A), it would  have to be  on state                                                               
land.   He recalled  that this  amendment to  add the  30 percent                                                               
rate was a relatively late amendment  to Senate Bill 21.  It came                                                               
in the House  Finance Committee, the last committee,  so it might                                                               
have received a  bit less discussion than some of  the other core                                                               
provisions of that  bill.  He said Ms. Delbridge  is correct that                                                               
it would be a material change to Senate Bill 21 as written.                                                                     
                                                                                                                                
2:41:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON  asked what  the  thinking  was in  the                                                               
policy  when  the state  moved  from  12.25  or 12.5  percent,  a                                                               
traditional royalty rate, to a rate of about 16.67 percent.                                                                     
                                                                                                                                
MR. ALPER qualified  that this question might better  be asked of                                                               
DNR  than of  him.   However, he  said, the  higher royalty  rate                                                               
offerings for  the bids, the getting  of companies to bid  on the                                                               
lease offerings,  was made once  people knew there was  oil being                                                               
produced in  the area and  therefore people might be  prepared to                                                               
take a  bit more  of a risk  and give the  owner a  higher share.                                                               
This is  seen all over  oil developing  areas, he noted,  such as                                                               
the  very high  royalty  rates  on private  land  in, say,  North                                                               
Dakota, because  it is known  that there  is oil under  there and                                                               
the producers  are prepared to  pay the 20-25  percent royalties.                                                               
Key about the specific language  in AS 43.55.160(g) is that every                                                               
lease  within a  unit has  to be  above 12.5  percent.   There is                                                               
generally something  of a patchwork or  checkerboard of different                                                               
ownership  interest, different  leaseholds, in  a unit.   So,  to                                                               
qualify for  this high rate, it  would need to be  a circumstance                                                               
where every last lease would be at the higher rate level.                                                                       
                                                                                                                                
2:42:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON agreed  that this  has not  been discussed                                                               
before  the  committee,  but  said  he  thinks  it  needs  to  be                                                               
discussed.   Credits or issues that  are costing the state  a lot                                                               
need to  be discussed in  further committees and putting  this on                                                               
the record at this point in  time will allow the industry to come                                                               
forward and participate and defend  why 30 percent of their gross                                                               
revenue should be excluded from taxation on these areas.                                                                        
                                                                                                                                
2:43:42 PM                                                                                                                    
                                                                                                                                
CO-CHAIR NAGEAK maintained his objection to Amendment 14.                                                                       
                                                                                                                                
A roll call  vote was taken.   Representatives Seaton, Josephson,                                                               
and  Tarr  voted  in  favor of  Amendment  14.    Representatives                                                               
Johnson,  Olson, Herron,  Chenault,  Talerico,  and Nageak  voted                                                               
against it.  Therefore, Amendment 14 failed by a vote of 3-6.                                                                   
                                                                                                                                
2:44:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  moved to  adopt Amendment 15,  labeled 29-                                                               
GH2609\P.16, Nauman/Shutts,  3/19/16.  [Amendment 15  is provided                                                               
at the end of the minutes on HB 247.]                                                                                           
                                                                                                                                
CO-CHAIR NAGEAK objected for the purpose of discussion.                                                                         
                                                                                                                                
REPRESENTATIVE SEATON  explained that  Amendment 15 looks  at the                                                               
20 percent gross revenue reduction.   He distributed a handout to                                                               
committee members  with a two-page  letter addressed to  him from                                                               
Ken Alper  of DOR dated 2/2/16  and accompanied by four  pages of                                                               
graphs and charts.   The handout was produced by  DOR in response                                                               
to his  February 2015 request for  an analysis of what  the North                                                               
Slope 20 percent gross revenue  exclusion was doing for the state                                                               
over  the  long term  and  whether  it  was  paying off.    These                                                               
documents  were   distributed  during  one  of   the  committee's                                                               
previous hearings on HB 247.                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON drew  attention to the chart on  page 12 of                                                               
the  handout  titled,  "Net Present  Value  of  30-Year  Project,                                                               
Production Tax  Only to State  at NPV6.15%."   He noted  that the                                                               
analysis  was  based  on  a  30-year  field  life,  with  a  peak                                                               
production of  15,000 barrels a day.   With the 20  percent gross                                                               
revenue exclusion at  an average oil price of $80  for the entire                                                               
life of the field, the state  would have a net present value loss                                                               
of $36 million  under the production tax only.   The 6.15 percent                                                               
discount rate  is the discount  rate used by the  permanent fund,                                                               
he explained.   He then brought attention to the  bottom chart on                                                               
page  12 titled,  "Net Present  Value of  30-Year Project,  Total                                                               
Revenues to State/Muni  at NPV6.15%."  Referring  to the furthest                                                               
right column,  he noted that  with the general  fund unrestricted                                                               
revenue  (GFUR)  the state  still  loses  $26  million at  $60  a                                                               
barrel,  even  considering  all  of  the  corporate  income  tax,                                                               
property  tax,  royalty,  and production  tax;  the  state  never                                                               
recoups  its investment  even  with all  of  those fund  sources.                                                               
Amendment 15 would  reduce the GVR from 20 percent  to 10 percent                                                               
with the  purpose being  to reduce  the state's  liability caused                                                               
from  this credit  against the  gross before  calculation of  tax                                                               
due.   It would prevent the  state from having net  present value                                                               
losses from its investment at oil prices of $60 and $80.                                                                        
                                                                                                                                
2:49:10 PM                                                                                                                    
                                                                                                                                
MS. DELBRIDGE spoke  to Amendment 15 on behalf  of the co-chairs.                                                               
While the  co-chairs appreciate the  analysis that  was provided,                                                               
she said, they  are again concerned about making  a very material                                                               
change to the tax regime in place  today on the North Slope.  The                                                               
specific  point   of  the  gross   value  reductions   that  were                                                               
implemented with  Senate Bill 21  was to incentivize the  new oil                                                               
that  the state  needs to  continue feeding  the pipeline  and to                                                               
support continued revenue to the  state.  The decision [in Senate                                                               
Bill 21] was made in the  context that providing a tax benefit in                                                               
exchange for  being able to  induce people  to go after  that new                                                               
oil was  a good tradeoff  and appropriate.  The  co-chairs oppose                                                               
these changes to the existing Senate Bill 21 regime.                                                                            
                                                                                                                                
2:50:06 PM                                                                                                                    
                                                                                                                                
CO-CHAIR NAGEAK maintained his objection to Amendment 15.                                                                       
                                                                                                                                
2:50:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR  supported Amendment 15.   She understood Ms.                                                               
Delbridge's  comments, but  said the  state has  some challenging                                                               
times ahead even  if circumstances change and  oil prices adjust.                                                               
Even at $60,  which would seem like a godsend  after today's long                                                               
period  of low  prices, there  is still  significant loss  to the                                                               
state.   So  if it  is  not today,  it is  clearly shown  through                                                               
Amendment 15  and the previous couple  that this is a  topic that                                                               
must be  delved into.  The  industry has asked for  stability and                                                               
the state definitely needs stability.                                                                                           
                                                                                                                                
REPRESENTATIVE  CHENAULT referred  to  the charts  and stated  he                                                               
wishes that  one point in  time could be  picked out and  make it                                                               
look as bad  as it might really  actually be.  The  low oil price                                                               
situation has  only been  for a  year or  so now,  he said.   For                                                               
years the  state was real  happy that oil was  up to $100  and as                                                               
high  as $140,  so he  could pick  oil at  $100 and  show a  $346                                                               
million surplus.   When talking  about a 30-year project,  no one                                                               
has a clue what the price of oil  is going to be next week and he                                                               
does not believe that oil is going  to be at $30 a barrel for the                                                               
next 30  years.  If  it is, then projects  will not come  on line                                                               
because there would be no profit  to be made and in fact industry                                                               
is losing  money.  Seldom are  analysts spot-on on what  the cost                                                               
is on  any given  day.   Therefore, he said,  care must  be taken                                                               
about  how the  pinch points  are changed  and try  to look  at a                                                               
long-term view  and what is  best for  the state and  what brings                                                               
the state  revenue over the  long haul.   While there  is concern                                                               
about  the short  term and  where to  get revenue,  care must  be                                                               
taken on how to address the issue.                                                                                              
                                                                                                                                
2:53:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON concluded his  explanation of Amendment 15.                                                               
He offered his appreciation for  committee members looking at the                                                               
amendment and  urged that members  look at the full  DOR analysis                                                               
that was done on  prices between $50 and $100 a  barrel.  He said                                                               
he  did  not  ask  for  analysis on  $30  a  barrel,  given  that                                                               
obviously everyone  is broke  at $30  a barrel.   He  pointed out                                                               
that he was  very concerned when he looked at  the production tax                                                               
and  saw net  present  value losses  over the  entire  life of  a                                                               
field, because  that is what  the state is  doing.  The  state is                                                               
investing  upfront in  fields and  subsequently the  life of  the                                                               
field, and it  is very disconcerting when looking  at net present                                                               
value losses at  prices of $60 and $80,  whether considering just                                                               
production tax or  all revenue that comes from  that source; that                                                               
becomes  difficult to  sustain.   Representative Seaton  recalled                                                               
the handouts that were provided  to members by Econ One Research,                                                               
Inc.,  during the  committee's consideration  of Senate  Bill 21.                                                               
That analysis  was for prices between  $80 and $140 a  barrel, he                                                               
recounted,  so the  committee did  not look  at a  full range  of                                                               
analysis because it did not look  at anything under $80 a barrel.                                                               
Not looking at a  full range can now be seen  as being a mistake.                                                               
He agreed  the committee has not  had a full discussion  on this,                                                               
and he wishes it had.  He withdrew Amendment 15.                                                                                
                                                                                                                                
2:56:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TARR moved  to adopt  Amendment  16, labeled  29-                                                               
GH2609\P.35, Shutts, 3/21/16, which read:                                                                                       
                                                                                                                                
     Page 3, line 10:                                                                                                           
          Delete "three"                                                                                                        
          Insert "seven [THREE]"                                                                                            
                                                                                                                                
CO-CHAIR NAGEAK objected for the purpose of discussion.                                                                         
                                                                                                                                
REPRESENTATIVE  TARR noted  that  a  theme will  be  seen in  her                                                               
amendments, which  is that she  appreciates the work done  by the                                                               
administration,  the comprehensive  view, and  the only  plan she                                                               
has  seen coming  forward at  this point  in time.   Some  of the                                                               
amendments she will  offer speak to provisions  in the governor's                                                               
original  version  of   the  bill  that  she   thinks  are  worth                                                               
retaining.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  TARR  explained  that  Amendment  16  relates  to                                                               
Section 7  of the  original bill that  changed the  interest rate                                                               
for delinquent  taxes from  3 percent  above the  Federal Reserve                                                               
discount rate  to 7 percent above.   She recounted that  prior to                                                               
passage  of Senate  Bill 21  in 2013  that interest  rate was  11                                                               
percent.  Too  high of an interest rate can  create an unintended                                                               
consequence of  unwanted behavior, she  continued, but so  can an                                                               
interest rate  that is too low.   The proposed rate  of 7 percent                                                               
above relates  to how the state  is going to be  paying for these                                                               
credits.   If the state  is going to have  to borrow from  one of                                                               
its  savings accounts  to pay  these credits,  then the  interest                                                               
rate should  be set to  match the lost opportunity  cost, because                                                               
that  money would  otherwise be  earning  for the  state.   Seven                                                               
percent above hits  the sweet spot in the  middle for encouraging                                                               
good  behavior  on both  sides.    She recalled  the  committee's                                                               
discussion about accelerating  the rate for the  audit review and                                                               
that Mr. Alper had indicated that  DOR has a plan for doing that.                                                               
The public  is demanding some of  these changes, she said.   This                                                               
proposal would  not have a  direct impact on anything  related to                                                               
investment in exploration, development, or production.                                                                          
                                                                                                                                
2:59:57 PM                                                                                                                    
                                                                                                                                
MS. DELBRIDGE spoke  to Amendment 16 on behalf  of the co-chairs.                                                               
She said the co-chairs did  not include an interest rate increase                                                               
in  Version P  because  they  felt it  punitive  to increase  the                                                               
amount of money  being collected from industry  while industry is                                                               
waiting  out a  period under  which the  state is  undertaking an                                                               
activity  that the  state  is requiring.    Also, enalytica,  the                                                               
legislature's  consultant, expressed  serious  concerns with  the                                                               
governor's original  bill having a series  of incremental changes                                                               
that suggested the  state was attempting to squeeze  money out of                                                               
industry in  a number of  different places even when  industry is                                                               
operating at serious losses in the  state and that that creates a                                                               
hesitancy and  a fear related  to the state's  investment climate                                                               
that could threaten future activity.                                                                                            
                                                                                                                                
3:01:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR concluded her  explanation of Amendment 16 by                                                               
saying she would  not characterize it as punitive  because DOR is                                                               
meeting its statutory requirement  for getting those audits done.                                                               
The committee  could have addressed  this in the bill,  she said,                                                               
it was  discussed and  is something  she is  interested in.   The                                                               
quicker things can  be trued up is something she  supports and an                                                               
opportunity to do so would be a  positive move.  There could be a                                                               
circumstance of  the interest rate being  so low that it  may not                                                               
encourage the payment  of those taxes because a  company may also                                                               
have  the  same  opportunity  to   have  those  dollars  invested                                                               
elsewhere  and earning  above 4  percent, making  it advantageous                                                               
for the  company to keep back  some of those dollars,  earn a bit                                                               
more, and then  settle up with the state.   She reiterated she is                                                               
trying for the sweet spot  in the middle that encourages everyone                                                               
to do their best  job.  She added that it  would be worthwhile to                                                               
figure out how  the state can be more aggressive  with its audits                                                               
and that this would be appreciated by the companies as well.                                                                    
                                                                                                                                
MS. DELBRIDGE clarified  that it is illegal for a  company to not                                                               
pay its  taxes to the best  of its ability in  understanding them                                                               
to  be.   In  regard  to concerns  related  to  the concept  that                                                               
someone may intentionally  do that related to  interest, she said                                                               
she wants to make it clear that that is an illegal activity.                                                                    
                                                                                                                                
3:03:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE OLSON commented that  the last several audits have                                                               
gone 5  years, 51  weeks, approximately,  and have  barely missed                                                               
the statute of limitations.  He  asked whether he is correct that                                                               
most recently it was 2008.                                                                                                      
                                                                                                                                
MR. ALPER replied, yes, the 2009 audits are due March 31, 2016.                                                                 
                                                                                                                                
REPRESENTATIVE  OLSON understood  that  about 60  percent of  the                                                               
$265 million collected was interest.                                                                                            
                                                                                                                                
MR. ALPER provided a correction,  stating it was about 40 percent                                                               
interest and 60 percent principle,  but agreed that that is still                                                               
a large  number.  The  number is smaller  as the 2009  audits are                                                               
being finished,  he specified,  because there  are more  years at                                                               
the low  interest rate since  Senate Bill  21 and fewer  years at                                                               
the  higher interest  rate.   The  governor's  original bill,  as                                                               
replicated by Representative Tarr's  amendment, was to go towards                                                               
the middle.   He agreed with Ms. Delbridge that  it is illegal to                                                               
purposely  underpay  taxes, but  noted  that  anecdotally DOR  is                                                               
finding that  in the  past when  a tax  assessment was  given the                                                               
company would pay it because it  is a two-way interest rate.  The                                                               
company might  challenge it and  go through the  appeals process,                                                               
and if  the company won  the state paid  them back at  11 percent                                                               
interest  going back  to  the  beginning, which  means  a lot  of                                                               
money.   Now companies are  more likely to  fight it out  and not                                                               
pay  the state  anything while  they work  their way  through the                                                               
process because  the downside is  relatively low for them  at the                                                               
ongoing 3 percent interest.                                                                                                     
                                                                                                                                
REPRESENTATIVE OLSON inquired  whether the state has  a usury law                                                               
on its books.                                                                                                                   
                                                                                                                                
MR. ALPER answered he is not an  expert on that, but that he does                                                               
remember some payday loan bills  floating around although he does                                                               
not know their final determination.                                                                                             
                                                                                                                                
REPRESENTATIVE OLSON  remarked that he  is curious as  to whether                                                               
the state would  be approaching it with an  11 percent compounded                                                               
interest.                                                                                                                       
                                                                                                                                
3:05:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TARR stressed  she  was not  suggesting that  any                                                               
companies are knowingly engaging  in any illegal behavior, rather                                                               
she was  referencing what  Mr. Alper was  suggesting in  terms of                                                               
those different  behaviors because the interest  rate is two-way.                                                               
Regarding  Representative  Olson's  question about  how  much  is                                                               
interest versus  principle, she  commented that  the relationship                                                               
now would  be more weighted  towards actual penalty due  and less                                                               
weighted towards interest under the lower interest rate.                                                                        
                                                                                                                                
3:06:26 PM                                                                                                                    
                                                                                                                                
CO-CHAIR NAGEAK maintained his objection to Amendment 16.                                                                       
                                                                                                                                
A roll call  vote was taken.  Representatives  Josephson and Tarr                                                               
voted  in  favor  of Amendment  16.    Representatives  Chenault,                                                               
Johnson, Olson,  Seaton, Talerico,  and Nageak voted  against it.                                                               
Therefore, Amendment 16 failed by a vote of 2-6.                                                                                
                                                                                                                                
                                                                                                                                
                AMENDMENTS to HB 247, VERSION P                                                                             
                                                                                                                                
The  following  amendments to  HB  247,  Version P,  were  either                                                               
discussed or adopted during the  hearing.  Shorter amendments are                                                               
provided in the main text.                                                                                                      
                                                                                                                                
Amendment 1, labeled 29-GH2609\P.55, Shutts, 3/21/16:                                                                         
                                                                                                                                
     Page 3, line 8:                                                                                                            
          Delete "or"                                                                                                           
          Insert "[OR]"                                                                                                         
                                                                                                                                
     Page 3, line 9, following "2014,":                                                                                         
          Insert "and before January 1, 2017,"                                                                              
                                                                                                                                
     Page 3, lines 9 - 10:                                                                                                      
          Delete "[IN EACH CALENDAR QUARTER]"                                                                                   
          Insert "in each calendar quarter"                                                                                     
                                                                                                                                
     Page 3, lines 12 - 13:                                                                                                     
          Delete "compounded quarterly as of the last day                                                                   
     of that quarter"                                                                                                       
                                                                                                                                
     Page 3, line 13:                                                                                                           
          Following "quarter":                                                                                              
          Insert ";                                                                                                         
               (C)  on and after January 1, 2017, bears                                                                     
     interest at  the rate of three  percentage points above                                                                
     the annual  rate charged member  banks for  advances by                                                                
     the 12th Federal  Reserve District as of  the first day                                                                
     of that  calendar quarter,  compounded quarterly  as of                                                                
     the last day of that quarter;"                                                                                         
                                                                                                                                
     Page 3, line 19:                                                                                                           
          Delete "AS 43.55.028(e)"                                                                                          
          Insert "AS 43.55.028(j)"                                                                                          
                                                                                                                                
     Page 3, line 31:                                                                                                           
          Delete "AS 43.55.028(e)"                                                                                          
          Insert "AS 43.55.028(j)"                                                                                          
                                                                                                                                
     Page 4, line 12:                                                                                                           
          Delete "AS 43.55.028(e)"                                                                                          
          Insert "AS 43.55.028(j)"                                                                                          
                                                                                                                                
     Page 8, line 2:                                                                                                            
          Delete "an [THAT]"                                                                                                
          Insert "that"                                                                                                         
                                                                                                                                
     Page 8, line 4:                                                                                                            
          Delete "an"                                                                                                       
          Insert "that"                                                                                                     
                                                                                                                                
     Page 8, line 6:                                                                                                            
          Delete "an"                                                                                                       
          Insert "that"                                                                                                     
                                                                                                                                
     Page 8, line 31:                                                                                                           
          Delete "limitations"                                                                                              
          Insert "limitation"                                                                                               
                                                                                                                                
     Page 9, line 12, following "applicant":                                                                                    
          Insert "or claimant"                                                                                                  
                                                                                                                                
     Page 9, line 13:                                                                                                           
     Following "applicant's":                                                                                                   
          Insert "or claimant's"                                                                                                
          Delete "production or exploration"                                                                                    
          Insert "exploration, development, or production"                                                                      
                                                                                                                                
     Page 9, line 14:                                                                                                           
          Following "applicant":                                                                                                
          Insert "or claimant"                                                                                                  
          Following "certificate":                                                                                              
          Insert "or refund"                                                                                                    
                                                                                                                                
     Page 9, line 15, following "certificate":                                                                                  
         Insert "or pay only that portion of a refund"                                                                          
                                                                                                                                
     Page 9, line 16, following "applicant's":                                                                                  
          Insert "or claimant's"                                                                                                
                                                                                                                                
     Page 9, line 17, following "certificate":                                                                                  
          Insert "or payment for a refund"                                                                                      
                                                                                                                                
     Page 17, line 7:                                                                                                           
          Delete "and 41.09.090"                                                                                                
          Insert "41.09.090; and 43.20.053(j)(4)"                                                                               
                                                                                                                                
     Page 18, line 16:                                                                                                          
          Delete "now"                                                                                                          
                                                                                                                                
Amendment 3, labeled 29-GH2609\P.13, Nauman/Shutts, 3/19/16:                                                                  
                                                                                                                                
                                                                                                                                
     Page 1, line 5, following "entities;":                                                                                   
          Insert "relating to a business license for an oil                                                                   
     or gas business;"                                                                                                        
                                                                                                                                
     Page 17, following line 6:                                                                                                 
          Insert a new bill section to read:                                                                                    
      "* Sec. 28. AS 43.70.020 is amended by adding a new                                                                   
     subsection to read:                                                                                                        
          (g)  A person whose business engages in oil or                                                                        
     gas  exploration or  development must,  in addition  to                                                                    
     filing  the   regular  application  required   by  this                                                                    
     section, file  with the commissioner  a surety  bond of                                                                    
     $250,000  running to  unsecured  creditors licensed  in                                                                    
     the  state before  being entitled  to  a license  under                                                                    
     this chapter.  The commissioner shall waive  the surety                                                                    
     bond requirement under this  subsection if the business                                                                    
     produces oil or gas in commercial quantities."                                                                             
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 18, lines 25 - 26:                                                                                                    
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 18, line 28:                                                                                                          
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 18, line 31:                                                                                                          
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 19, line 2:                                                                                                           
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 19, line 5:                                                                                                           
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 19, line 8:                                                                                                           
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 19, line 10:                                                                                                          
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 19, line 15:                                                                                                          
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 19, line 17:                                                                                                          
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 20, line 12:                                                                                                          
          Delete "Sections 30 and 34"                                                                                           
          Insert "Sections 31 and 35"                                                                                           
                                                                                                                                
     Page 20, line 13:                                                                                                          
          Delete "29, 32, and 33"                                                                                               
          Insert "30, 33, and 34"                                                                                               
                                                                                                                                
     Page 20, line 15:                                                                                                          
          Delete "secs. 36 and 37"                                                                                              
          Insert "secs. 37 and 38"                                                                                              
                                                                                                                                
Amendment 5, labeled 29-GH2609\P.29, Shutts, 3/21/16:                                                                         
                                                                                                                                
     Page 7, line 22, through page 8, line 16:                                                                                  
          Delete all material and insert:                                                                                       
        "* Sec. 15. 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 credit                                                                    
     against a  tax levied by AS 43.55.011(e)  in the amount                                                                    
     of 40 percent  of that expenditure; 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  producer  or explorer  may  take  a                                                                
     credit  for a  well lease  expenditure incurred  in the                                                                
     state in the  Cook Inlet sedimentary basin  only if the                                                                
     producer  or  explorer  incurs the  expenditure  before                                                                
     July 1, 2016.                                                                                                          
        * Sec.  16. AS 43.55.023(l),  as amended by  sec. 15                                                                  
     of this Act, 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  credit against  a tax levied  by AS 43.55.011(e)                                                                    
     in the amount of                                                                                                           
               (A)   40  percent  of  an [THAT]  expenditure                                                            
     incurred before January 1, 2017;                                                                                       
               (B) 30 percent of  an expenditure incurred on                                                                
     or after January 1, 2017, and before January 1, 2018;                                                                  
               (C) 20 percent of  an expenditure incurred on                                                                
     or after  January 1, 2018  [; 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  producer  or explorer  may  take  a                                                                    
     credit  for a  well lease  expenditure incurred  in the                                                                    
     state in the  Cook Inlet sedimentary basin  only if the                                                                    
     producer  or  explorer  incurs the  expenditure  before                                                                    
     July 1, 2016."                                                                                                             
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 18, line 20:                                                                                                          
          Delete "16, and 17"                                                                                                   
          Insert "17, and 18"                                                                                                   
                                                                                                                                
     Page 18, lines 25 - 26:                                                                                                    
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 18, line 27:                                                                                                          
          Delete "18, 23, and 24"                                                                                               
          Insert "19, 24, and 25"                                                                                               
                                                                                                                                
     Page 18, line 28:                                                                                                          
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 18, line 31:                                                                                                          
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 19, line 2:                                                                                                           
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 19, line 5:                                                                                                           
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 19, line 8:                                                                                                           
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 19, line 10:                                                                                                          
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 19, line 14:                                                                                                          
          Delete "sec. 21"                                                                                                      
          Insert "sec. 22"                                                                                                      
                                                                                                                                
     Page 19, line 15:                                                                                                          
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 19, line 17:                                                                                                          
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 20, line 12:                                                                                                          
          Delete "Sections 30 and 34"                                                                                           
          Insert "Sections 31 and 35"                                                                                           
                                                                                                                                
     Page 20, following line 12:                                                                                                
     Insert a new bill section to read:                                                                                         
        "*  Sec. 37.  Section 15  of this  Act takes  effect                                                                
     July 1, 2016."                                                                                                             
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 20, line 13:                                                                                                          
          Delete "18 - 25, 27, 29, 32, and 33"                                                                                  
          Insert "19 - 26, 28, 30, 33, and 34"                                                                                  
                                                                                                                                
     Page 20, line 15:                                                                                                          
          Delete "secs. 36 and 37"                                                                                              
          Insert "secs. 37 - 39"                                                                                                
                                                                                                                                
Amendment 7, labeled 29-GH2609\P.31, Nauman/Shutts, 3/21/16:                                                                  
                                                                                                                                
     Page 5, line 8:                                                                                                            
          Delete "A"                                                                                                            
          Insert "Subject to the limitation in (q) of this                                                                  
     section, a [A]"                                                                                                        
                                                                                                                                
     Page 6, line 11, following "latitude,":                                                                                
          Insert "excluding the Cook Inlet sedimentary                                                                      
     basin,"                                                                                                                
                                                                                                                                
     Page 6, line 12, following "loss.":                                                                                    
          Insert "Subject to the limitation in (q) of this                                                                  
     section, for  lease expenditures  incurred on  or after                                                                
     January 1, 2017,  to explore  for, develop,  or produce                                                                
     oil  or   gas  deposits  located  in   the  Cook  Inlet                                                                
     sedimentary basin, a producer  or explorer may elect to                                                                
     take a  tax credit in the  amount of five percent  of a                                                                
     carried-forward annual loss."                                                                                          
                                                                                                                                
     Page 8, following line 16:                                                                                                 
     Insert a new bill section to read:                                                                                         
        "* Sec. 16. AS 43.55.023 is  amended by adding a new                                                                
     subsection to read:                                                                                                        
          (q)  A producer or explorer may not take a tax                                                                        
     credit  or   apply  for   a  transferable   tax  credit                                                                    
     certificate   resulting   from  an   expenditure   that                                                                    
     qualifies  for  a  credit  under (a)  or  (b)  of  this                                                                    
     section  for expenditures  incurred in  the Cook  Inlet                                                                    
     sedimentary  basin if,  in a  calendar year,  the total                                                                    
     amount of  credits and  certificates applied  for under                                                                    
     (a) and  (b) of this  section exceed 30 percent  of the                                                                    
     combined expenditures  that qualify for a  credit under                                                                    
     (a) and (b) of this section."                                                                                              
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 18, line 20:                                                                                                          
          Delete "16, and 17"                                                                                                   
          Insert "17, and 18"                                                                                                   
                                                                                                                                
     Page 18, lines 25 - 26:                                                                                                    
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 18, line 27:                                                                                                          
          Delete "18, 23, and 24"                                                                                               
          Insert "19, 24, and 25"                                                                                               
                                                                                                                                
     Page 18, line 28:                                                                                                          
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 18, line 31:                                                                                                          
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 19, line 2:                                                                                                           
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 19, line 5:                                                                                                           
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 19, line 8:                                                                                                           
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 19, line 10:                                                                                                          
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 19, line 14:                                                                                                          
          Delete "sec. 21"                                                                                                      
          Insert "sec. 22"                                                                                                      
                                                                                                                                
     Page 19, line 15:                                                                                                          
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 19, line 17:                                                                                                          
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 20, line 12:                                                                                                          
          Delete "Sections 30 and 34"                                                                                           
          Insert "Sections 31 and 35"                                                                                           
                                                                                                                                
     Page 20, line 13:                                                                                                          
          Delete "18 - 25, 27, 29, 32, and 33"                                                                                  
          Insert "19 - 26, 28, 30, 33, and 34"                                                                                  
                                                                                                                                
     Page 20, line 15:                                                                                                          
          Delete "secs. 36 and 37"                                                                                              
          Insert "secs. 37 and 38"                                                                                              
                                                                                                                                
Amendment 10, labeled 29-GH2609\P.18, Nauman/Shutts, 3/19/16:                                                                 
                                                                                                                                
     Page 8, following line 16:                                                                                                 
     Insert a new bill section to read:                                                                                         
        "* Sec. 16. 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  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 is                                                                            
               (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;                                                                                       
               (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;                                                                                                
               (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;                                                                                               
               (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;                                                                                              
               (2) [(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;                                                                                       
               (3) [(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;                                                                                       
               (4) [(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;                                                                                       
               (5) [(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;                                                                                       
               (6) [(9)]   zero  if the average  gross value                                                                
     at the  point of  production for  the month  is greater                                                                    
     than or equal to $150 a barrel."                                                                                           
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 18, line 20:                                                                                                          
          Delete "16, and 17"                                                                                                   
          Insert "17, and 18"                                                                                                   
                                                                                                                                
     Page 18, lines 25 - 26 :                                                                                                   
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 18, line 27:                                                                                                          
          Delete "18, 23, and 24"                                                                                               
          Insert "19, 24, and 25"                                                                                               
                                                                                                                                
     Page 18, line 28:                                                                                                          
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 18, line 31:                                                                                                          
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 19, line 2:                                                                                                           
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 19, line 5:                                                                                                           
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 19, line 8:                                                                                                           
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 19, line 10:                                                                                                          
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 19, line 14:                                                                                                          
          Delete "sec. 21"                                                                                                      
          Insert "sec. 22"                                                                                                      
                                                                                                                                
     Page 19, line 15:                                                                                                          
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 19, line 17:                                                                                                          
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 20, line 12:                                                                                                          
          Delete "Sections 30 and 34"                                                                                           
          Insert "Sections 31 and 35"                                                                                           
                                                                                                                                
     Page 20, line 13:                                                                                                          
          Delete "18 - 25, 27, 29, 32, and 33"                                                                                  
          Insert "19 - 26, 28, 30, 33, and 34"                                                                                  
                                                                                                                                
     Page 20, line 15:                                                                                                          
          Delete "secs. 36 and 37"                                                                                              
          Insert "secs. 37 and 38"                                                                                              
                                                                                                                                
Amendment 11, labeled 29-GH2609\P.34, Nauman/Shutts, 3/21/16:                                                                 
                                                                                                                                
     Page 8, following line 16:                                                                                                 
     Insert a new bill section to read:                                                                                         
        "* Sec. 16. AS 43.55.024(i) is amended to read:                                                                     
          (i)  A producer may apply against the producer's                                                                      
     tax   liability    for   the   calendar    year   under                                                                    
     AS 43.55.011(e) a tax  credit of $5 for  each barrel of                                                                    
     oil taxable  under AS 43.55.011(e)  [THAT MEETS  ONE OR                                                                    
     MORE  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 authorized by                                                                
     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)                                                                
     [ZERO]."                                                                                                                   
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 17, line 7:                                                                                                           
          Delete "and 41.09.090"                                                                                                
          Insert "41.09.090; and AS 43.55.024(j)"                                                                               
                                                                                                                                
     Page 18, line 20:                                                                                                          
          Delete "16, and 17"                                                                                                   
          Insert "17, and 18"                                                                                                   
                                                                                                                                
     Page 18, lines 25 - 26:                                                                                                    
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 18, line 27:                                                                                                          
          Delete "18, 23, and 24"                                                                                               
          Insert "19, 24, and 25"                                                                                               
                                                                                                                                
     Page 18, line 28:                                                                                                          
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 18, line 31:                                                                                                          
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
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Amendment 13, labeled 29-GH2609\P.17, Nauman/Shutts, 3/19/16:                                                                 
                                                                                                                                
     Page 11, following line 15:                                                                                                
          Insert a new bill section to read:                                                                                    
        "* Sec. 21. AS 43.55.160(f) is amended to read:                                                                     
          (f)  On and after January 1, 2014, in the                                                                             
       calculation of an annual production tax value of a                                                                       
     producer  under (a)(1)(A)  or (h)(1)  of this  section,                                                                    
     the gross  value at the  point of production of  oil or                                                                    
     gas  produced from  a  lease or  property  north of  68                                                                    
     degrees  North  latitude meeting  one  or  more of  the                                                                    
     following criteria  is reduced  by 20 percent:  (1) the                                                                    
     oil or  gas is produced  from a lease or  property that                                                                    
     does  not contain  a lease  that was  within a  unit on                                                                    
     January 1, 2003; (2) the oil  or gas is produced from a                                                                    
     participating   area  established   after  December 31,                                                                    
     2011,   that   is   within    a   unit   formed   under                                                                    
     AS 38.05.180(p)   before   January 1,  2003,   if   the                                                                    
     participating area  does not  contain a  reservoir that                                                                    
     had   previously   been   in   a   participating   area                                                                    
     established before  December 31, 2011;  (3) the  oil or                                                                    
     gas  is produced  from  acreage that  was  added to  an                                                                    
     existing  participating  area   by  the  Department  of                                                                    
     Natural  Resources on  and after  January 1, 2014,  and                                                                    
     the producer  demonstrates to  the department  that the                                                                    
     volume of oil or gas  produced is from acreage added to                                                                    
     an  existing participating  area. This  subsection does                                                                    
     not apply to  gas produced before 2022 that  is used in                                                                    
     the state  or to gas  produced on and  after January 1,                                                                    
     2022. For  oil or  gas produced after  January 1, 2017,                                                                
     the reduction under this subsection  shall apply to oil                                                                
     or gas produced from a  lease or property for the first                                                                
     five  years after  the  commencement  of production  in                                                                
     commercial quantities of oil or  gas from that lease or                                                                
     property.  For oil  or gas  produced before  January 1,                                                                
     2017, the  reduction under this subsection  for a lease                                                                
     or property  shall expire January 1, 2022.  A reduction                                                                
     under this  subsection may not  reduce the  gross value                                                                    
     at  the  point  of   production  below  zero.  In  this                                                                    
     subsection, "participating  area" means a  reservoir or                                                                    
     portion  of a  reservoir producing  or contributing  to                                                                    
     production  as approved  by the  Department of  Natural                                                                    
     Resources."                                                                                                                
                                                                                                                                
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Amendment 14, labeled 29-GH2609\P.15, Nauman/Shutts, 3/19/16:                                                                 
                                                                                                                                
     Page 5, following line 6:                                                                                                  
          Insert a new bill section to read:                                                                                    
        "* Sec. 11. AS 43.55.020(a) is amended to read:                                                                     
          (a)  For a calendar year, a producer subject to                                                                       
     tax under AS 43.55.011 shall pay the tax as follows:                                                                       
               (1)  for oil and gas produced before                                                                             
     January 1,   2014,  an   installment  payment   of  the                                                                    
     estimated  tax levied  by AS 43.55.011(e),  net of  any                                                                    
     tax credits applied as allowed  by law, is due for each                                                                    
     month  of the  calendar year  on  the last  day of  the                                                                    
     following  month; except  as  otherwise provided  under                                                                    
     (2) of  this subsection, the amount  of the installment                                                                    
     payment is the sum of  the following amounts, less 1/12                                                                    
     of  the tax  credits  that  are allowed  by  law to  be                                                                    
     applied against  the tax levied by  AS 43.55.011(e) for                                                                    
     the calendar  year, but the  amount of  the installment                                                                    
     payment may not be less than zero:                                                                                         
               (A)  for oil and gas not subject to                                                                              
     AS 43.55.011(o)   or  (p)   produced  from   leases  or                                                                    
     properties  in   the  state  outside  the   Cook  Inlet                                                                    
     sedimentary  basin,  other  than leases  or  properties                                                                    
     subject to AS 43.55.011(f), the greater of                                                                                 
               (i)  zero; or                                                                                                    
               (ii)  the sum of 25 percent and the tax rate                                                                     
     calculated   for   the  month   under   AS 43.55.011(g)                                                                    
     multiplied  by the  remainder  obtained by  subtracting                                                                    
     1/12 of the producer's  adjusted lease expenditures for                                                                    
     the calendar year of  production under AS 43.55.165 and                                                                    
     43.55.170  that  are deductible  for  the  oil and  gas                                                                    
     under AS 43.55.160  from the  gross value at  the point                                                                    
     of  production of  the oil  and gas  produced from  the                                                                    
     leases  or properties  during the  month for  which the                                                                    
     installment payment is calculated;                                                                                         
               (B)  for oil and gas produced from leases or                                                                     
     properties subject to AS 43.55.011(f), the greatest of                                                                     
               (i)  zero;                                                                                                       
               (ii)  zero percent, one percent, two                                                                             
     percent,   three   percent,   or   four   percent,   as                                                                    
     applicable,  of  the  gross   value  at  the  point  of                                                                    
     production of the oil and  gas produced from the leases                                                                    
     or   properties  during   the  month   for  which   the                                                                    
     installment payment is calculated; or                                                                                      
               (iii)  the sum of 25 percent and the tax                                                                         
     rate  calculated for  the  month under  AS 43.55.011(g)                                                                    
     multiplied  by the  remainder  obtained by  subtracting                                                                    
     1/12 of the producer's  adjusted lease expenditures for                                                                    
     the calendar year of  production under AS 43.55.165 and                                                                    
     43.55.170  that  are deductible  for  the  oil and  gas                                                                    
     under AS 43.55.160  from the  gross value at  the point                                                                    
     of production  of the oil  and gas produced  from those                                                                    
     leases  or properties  during the  month for  which the                                                                    
     installment payment is calculated;                                                                                         
               (C)      for   oil    or   gas   subject   to                                                                    
     AS 43.55.011(j),  (k),  or  (o),   for  each  lease  or                                                                    
     property, the greater of                                                                                                   
               (i)  zero; or                                                                                                    
               (ii)  the sum of 25 percent and the tax rate                                                                     
     calculated   for   the  month   under   AS 43.55.011(g)                                                                    
     multiplied  by the  remainder  obtained by  subtracting                                                                    
     1/12 of the producer's  adjusted lease expenditures for                                                                    
     the calendar year of  production under AS 43.55.165 and                                                                    
     43.55.170  that are  deductible under  AS 43.55.160 for                                                                    
     the oil  or gas, respectively, produced  from the lease                                                                    
     or  property  from the  gross  value  at the  point  of                                                                    
     production of  the oil  or gas,  respectively, produced                                                                    
     from the lease  or property during the  month for which                                                                    
     the installment payment is calculated;                                                                                     
               (D)      for   oil   and   gas   subject   to                                                                    
     AS 43.55.011(p), the lesser of                                                                                             
               (i)  the sum of 25 percent and the tax rate                                                                      
     calculated   for   the  month   under   AS 43.55.011(g)                                                                    
     multiplied  by the  remainder  obtained by  subtracting                                                                    
     1/12 of the producer's  adjusted lease expenditures for                                                                    
     the calendar year of  production under AS 43.55.165 and                                                                    
     43.55.170  that  are deductible  for  the  oil and  gas                                                                    
     under AS 43.55.160  from the  gross value at  the point                                                                    
     of  production of  the oil  and gas  produced from  the                                                                    
     leases  or properties  during the  month for  which the                                                                    
     installment payment  is calculated,  but not  less than                                                                    
     zero; or                                                                                                                   
               (ii)  four percent of the gross value at the                                                                     
     point of  production of the  oil and gas  produced from                                                                    
     the  leases or  properties  during the  month, but  not                                                                    
     less than zero;                                                                                                            
               (2)  an amount calculated under (1)(C) of                                                                        
     this   subsection   for   oil   or   gas   subject   to                                                                    
     AS 43.55.011(j),  (k),  or  (o)   may  not  exceed  the                                                                    
     product obtained  by carrying  out the  calculation set                                                                    
     out in  AS 43.55.011(j)(1) or  (2) or  43.55.011(o), as                                                                    
     applicable, for  gas or  set out  in AS 43.55.011(k)(1)                                                                    
     or  (2), as  applicable, for  oil, but  substituting in                                                                    
     AS 43.55.011(j)(1)(A)  or  (2)(A) or  43.55.011(o),  as                                                                    
     applicable, the  amount of taxable gas  produced during                                                                    
     the  month  for  the  amount of  taxable  gas  produced                                                                    
     during   the   calendar   year  and   substituting   in                                                                    
     AS 43.55.011(k)(1)(A)  or  (2)(A), as  applicable,  the                                                                    
     amount  of taxable  oil produced  during the  month for                                                                    
     the amount of taxable  oil produced during the calendar                                                                    
     year;                                                                                                                      
               (3)  an installment payment of the estimated                                                                     
     tax  levied  by  AS 43.55.011(i)   for  each  lease  or                                                                    
     property is due for each  month of the calendar year on                                                                    
     the last day of the  following month; the amount of the                                                                    
     installment payment is the sum of                                                                                          
               (A)  the applicable tax rate for oil                                                                             
     provided  under  AS 43.55.011(i),   multiplied  by  the                                                                    
     gross  value at  the  point of  production  of the  oil                                                                    
     taxable  under AS 43.55.011(i)  and  produced from  the                                                                    
     lease or property during the month; and                                                                                    
               (B)  the applicable tax rate for gas                                                                             
     provided  under  AS 43.55.011(i),   multiplied  by  the                                                                    
     gross  value at  the  point of  production  of the  gas                                                                    
     taxable  under AS 43.55.011(i)  and  produced from  the                                                                    
     lease or property during the month;                                                                                        
               (4)  any amount of tax levied by                                                                                 
     AS 43.55.011, net of any credits  applied as allowed by                                                                    
     law,  that exceeds  the  total of  the  amounts due  as                                                                    
     installment  payments  of  estimated   tax  is  due  on                                                                    
     March 31  of the  year following  the calendar  year of                                                                    
     production;                                                                                                                
               (5)  for oil and gas produced on and after                                                                       
     January 1,  2014,   and  before  January 1,   2022,  an                                                                    
     installment  payment of  the  estimated  tax levied  by                                                                    
     AS 43.55.011(e),  net of  any  tax  credits applied  as                                                                    
     allowed by law,  is due for each month  of the calendar                                                                    
     year on the last day  of the following month; except as                                                                    
     otherwise provided  under (6)  of this  subsection, the                                                                    
     amount of  the installment  payment is  the sum  of the                                                                    
     following amounts,  less 1/12  of the tax  credits that                                                                    
     are  allowed  by law  to  be  applied against  the  tax                                                                    
     levied by  AS 43.55.011(e) for  the calendar  year, but                                                                    
     the amount of  the installment payment may  not be less                                                                    
     than zero:                                                                                                                 
               (A)  for oil and gas not subject to                                                                              
     AS 43.55.011(o)   or  (p)   produced  from   leases  or                                                                    
     properties  in   the  state  outside  the   Cook  Inlet                                                                    
     sedimentary  basin,  other  than leases  or  properties                                                                    
     subject to AS 43.55.011(f), the greater of                                                                                 
               (i)  zero; or                                                                                                    
               (ii)  35 percent  multiplied by the remainder                                                                    
     obtained   by  subtracting   1/12  of   the  producer's                                                                    
     adjusted lease  expenditures for  the calendar  year of                                                                    
     production  under AS 43.55.165  and 43.55.170  that are                                                                    
     deductible for the oil and  gas under AS 43.55.160 from                                                                    
     the gross value  at the point of production  of the oil                                                                    
     and gas  produced from the leases  or properties during                                                                    
     the  month   for  which  the  installment   payment  is                                                                    
     calculated;                                                                                                                
               (B)  for oil and  gas produced from leases or                                                                    
     properties subject to AS 43.55.011(f), the greatest of                                                                     
               (i)  zero;                                                                                                       
               (ii)     zero   percent,  one   percent,  two                                                                    
     percent,   three   percent,   or   four   percent,   as                                                                    
     applicable,  of  the  gross   value  at  the  point  of                                                                    
     production of the oil and  gas produced from the leases                                                                    
     or   properties  during   the  month   for  which   the                                                                    
     installment payment is calculated; or                                                                                      
               (iii)     35   percent   multiplied  by   the                                                                    
     remainder   obtained  by   subtracting   1/12  of   the                                                                    
     producer's   adjusted   lease  expenditures   for   the                                                                    
     calendar  year  of  production under  AS 43.55.165  and                                                                    
     43.55.170  that  are deductible  for  the  oil and  gas                                                                    
     under AS 43.55.160  from the  gross value at  the point                                                                    
     of production  of the oil  and gas produced  from those                                                                    
     leases  or properties  during the  month for  which the                                                                    
     installment  payment is  calculated,  except that,  for                                                                    
     the purposes of this  calculation, a reduction from the                                                                    
     gross value  at the point  of production may  apply for                                                                    
     oil and gas subject to AS 43.55.160(f) [OR (g)];                                                                           
               (C)      for   oil    or   gas   subject   to                                                                    
     AS 43.55.011(j),  (k),  or  (o),   for  each  lease  or                                                                    
     property, the greater of                                                                                                   
               (i)  zero; or                                                                                                    
               (ii)  35 percent  multiplied by the remainder                                                                    
     obtained   by  subtracting   1/12  of   the  producer's                                                                    
     adjusted lease  expenditures for  the calendar  year of                                                                    
     production  under AS 43.55.165  and 43.55.170  that are                                                                    
     deductible  under  AS 43.55.160  for the  oil  or  gas,                                                                    
     respectively, produced from the  lease or property from                                                                    
     the gross value  at the point of production  of the oil                                                                    
     or  gas,  respectively,  produced  from  the  lease  or                                                                    
     property  during the  month for  which the  installment                                                                    
     payment is calculated;                                                                                                     
               (D)      for   oil   and   gas   subject   to                                                                    
     AS 43.55.011(p), the lesser of                                                                                             
               (i)  35 percent multiplied by the remainder                                                                      
     obtained   by  subtracting   1/12  of   the  producer's                                                                    
     adjusted lease  expenditures for  the calendar  year of                                                                    
     production  under AS 43.55.165  and 43.55.170  that are                                                                    
     deductible for the oil and  gas under AS 43.55.160 from                                                                    
     the gross value  at the point of production  of the oil                                                                    
     and gas  produced from the leases  or properties during                                                                    
     the  month   for  which  the  installment   payment  is                                                                    
     calculated, but not less than zero; or                                                                                     
               (ii)  four percent of the gross value at the                                                                     
     point of  production of the  oil and gas  produced from                                                                    
     the  leases or  properties  during the  month, but  not                                                                    
     less than zero;                                                                                                            
               (6)  an amount calculated under (5)(C) of                                                                        
     this   subsection   for   oil   or   gas   subject   to                                                                    
     AS 43.55.011(j),  (k),  or  (o)   may  not  exceed  the                                                                    
     product obtained  by carrying  out the  calculation set                                                                    
     out in  AS 43.55.011(j)(1) or  (2) or  43.55.011(o), as                                                                    
     applicable, for  gas or  set out  in AS 43.55.011(k)(1)                                                                    
     or  (2), as  applicable, for  oil, but  substituting in                                                                    
     AS 43.55.011(j)(1)(A)  or  (2)(A) or  43.55.011(o),  as                                                                    
     applicable, the  amount of taxable gas  produced during                                                                    
     the  month  for  the  amount of  taxable  gas  produced                                                                    
     during   the   calendar   year  and   substituting   in                                                                    
     AS 43.55.011(k)(1)(A)  or  (2)(A), as  applicable,  the                                                                    
     amount  of taxable  oil produced  during the  month for                                                                    
     the amount of taxable  oil produced during the calendar                                                                    
     year;                                                                                                                      
               (7)  for oil and gas produced on or after                                                                        
     January 1,   2022,  an   installment  payment   of  the                                                                    
     estimated  tax levied  by AS 43.55.011(e),  net of  any                                                                    
     tax credits applied as allowed  by law, is due for each                                                                    
     month  of the  calendar year  on  the last  day of  the                                                                    
     following month; the amount  of the installment payment                                                                    
     is the sum  of the following amounts, less  1/12 of the                                                                    
     tax  credits that  are  allowed by  law  to be  applied                                                                    
     against  the  tax  levied by  AS 43.55.011(e)  for  the                                                                    
     calendar  year,  but  the  amount  of  the  installment                                                                    
     payment may not be less than zero:                                                                                         
               (A)  for oil produced from leases or                                                                             
     properties that include land north  of 68 degrees North                                                                    
     latitude, the greatest of                                                                                                  
               (i)  zero;                                                                                                       
               (ii)  zero percent, one percent, two                                                                             
     percent,   three   percent,   or   four   percent,   as                                                                    
     applicable,  of  the  gross   value  at  the  point  of                                                                    
     production  of  the oil  produced  from  the leases  or                                                                    
     properties during  the month for which  the installment                                                                    
     payment is calculated; or                                                                                                  
               (iii)  35 percent multiplied by the                                                                              
     remainder   obtained  by   subtracting   1/12  of   the                                                                    
     producer's   adjusted   lease  expenditures   for   the                                                                    
     calendar  year  of  production under  AS 43.55.165  and                                                                    
     43.55.170  that  are  deductible   for  the  oil  under                                                                    
     AS 43.55.160(h)(1) from  the gross  value at  the point                                                                    
     of production of the oil  produced from those leases or                                                                    
     properties during  the month for which  the installment                                                                    
     payment is  calculated, except  that, for  the purposes                                                                    
     of this  calculation, a reduction from  the gross value                                                                    
     at the  point of production  may apply for  oil subject                                                                    
     to AS 43.55.160(f) [OR 43.55.160(f) AND (g)];                                                                              
               (B)  for oil produced 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), the greater of                                                                                            
               (i)  zero; or                                                                                                    
               (ii)  35 percent multiplied by the remainder                                                                     
     obtained   by  subtracting   1/12  of   the  producer's                                                                    
     adjusted lease  expenditures for  the calendar  year of                                                                    
     production  under AS 43.55.165  and 43.55.170  that are                                                                    
     deductible  for the  oil under  AS 43.55.160(h)(2) from                                                                    
     the gross value  at the point of production  of the oil                                                                    
     produced  from  the  leases or  properties  during  the                                                                    
     month for which the installment payment is calculated;                                                                     
               (C)  for oil and gas produced from leases or                                                                     
     properties  subject   to  AS 43.55.011(p),   except  as                                                                    
     otherwise provided  under (8)  of this  subsection, the                                                                    
     sum of                                                                                                                     
               (i)  35 percent multiplied by the remainder                                                                      
     obtained   by  subtracting   1/12  of   the  producer's                                                                    
     adjusted lease  expenditures for  the calendar  year of                                                                    
     production  under AS 43.55.165  and 43.55.170  that are                                                                    
     deductible  for the  oil under  AS 43.55.160(h)(3) from                                                                    
     the gross value  at the point of production  of the oil                                                                    
     produced  from  the  leases or  properties  during  the                                                                    
     month for which the  installment payment is calculated,                                                                    
     but not less than zero; and                                                                                                
               (ii)  13 percent of the gross value at the                                                                       
     point  of  production  of the  gas  produced  from  the                                                                    
     leases  or properties  during the  month, but  not less                                                                    
     than zero;                                                                                                                 
               (D)  for oil produced 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  (B) or  (C) of  this paragraph,                                                                    
     the greater of                                                                                                             
               (i)  zero; or                                                                                                    
               (ii)  35 percent multiplied by the remainder                                                                     
     obtained   by  subtracting   1/12  of   the  producer's                                                                    
     adjusted lease  expenditures for  the calendar  year of                                                                    
     production  under AS 43.55.165  and 43.55.170  that are                                                                    
     deductible  for the  oil under  AS 43.55.160(h)(4) from                                                                    
     the gross value  at the point of production  of the oil                                                                    
     produced  from  the  leases or  properties  during  the                                                                    
     month for which the installment payment is calculated;                                                                     
               (E)  for gas produced from each lease or                                                                         
     property in the  state, other than a  lease or property                                                                    
     subject  to AS 43.55.011(p),  13 percent  of the  gross                                                                    
     value at  the point of  production of the  gas produced                                                                    
     from the lease  or property during the  month for which                                                                    
     the  installment payment  is calculated,  but not  less                                                                    
     than zero;                                                                                                                 
               (8)  an amount calculated under (7)(C) of                                                                        
     this  subsection may  not exceed  four  percent of  the                                                                    
     gross value at  the point of production of  the oil and                                                                    
     gas  produced  from  leases or  properties  subject  to                                                                    
     AS 43.55.011(p)   during  the   month  for   which  the                                                                    
     installment payment is calculated;                                                                                         
               (9)  for purposes of the calculation under                                                                       
     (1)(B)(ii),   (5)(B)(ii),   and  (7)(A)(ii)   of   this                                                                    
     subsection,  the  applicable  percentage of  the  gross                                                                    
     value at  the point  of production is  determined under                                                                    
     AS 43.55.011(f)(1) or  (2) but substituting  the phrase                                                                    
     "month   for   which   the   installment   payment   is                                                                    
     calculated"  in  AS 43.55.011(f)(1)  and  (2)  for  the                                                                    
     phrase "calendar year for which the tax is due.""                                                                          
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 6, line 20:                                                                                                           
          Delete "or (g)"                                                                                                   
                                                                                                                                
     Page 8, following line 16:                                                                                                 
          Insert new bill sections to read:                                                                                     
        "* Sec. 17. AS 43.55.024(i) is amended to read:                                                                     
          (i)  A producer may apply against the producer's                                                                      
     tax   liability    for   the   calendar    year   under                                                                    
     AS 43.55.011(e) a tax  credit of $5 for  each barrel of                                                                    
     oil  taxable under  AS 43.55.011(e) that  meets one  or                                                                    
     more of  the criteria  in AS 43.55.160(f) [OR  (g)] and                                                                    
     that  is   produced  during   a  calendar   year  after                                                                    
     December 31,  2013. A  tax  credit  authorized by  this                                                                    
     subsection may  not reduce  a producer's  tax liability                                                                    
     for a calendar year under AS 43.55.011(e) below zero.                                                                      
        * Sec. 18. 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  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 is                                                                            
               (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;                                                                                           
               (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;                                                                                                    
               (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;                                                                                                   
               (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;                                                                                                   
               (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;                                                                                                   
               (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;                                                                                                   
               (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;                                                                                                   
               (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;                                                                                                   
               (9) zero  if the  average gross value  at the                                                                    
     point of  production for the  month is greater  than or                                                                    
     equal to $150 a barrel."                                                                                                   
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 11, following line 15:                                                                                                
          Insert new bill sections to read:                                                                                     
        "* Sec. 24. AS 43.55.160(a) is amended to read:                                                                     
          (a) For oil and gas produced before January 1,                                                                        
     2022,  except as  provided in  (b) and  [,] (f)  [, AND                                                                
     (g)] of this section, for the purposes of                                                                                  
               (1)  AS 43.55.011(e)(1) and  (2), the  annual                                                                    
     production tax  value of taxable  oil, gas, or  oil and                                                                    
     gas produced during  a calendar year in  a category for                                                                    
     which  a  separate  annual   production  tax  value  is                                                                    
     required to  be calculated under this  paragraph is the                                                                    
     gross value  at the  point of  production of  that oil,                                                                    
     gas,  or oil  and  gas  taxable under  AS 43.55.011(e),                                                                    
     less   the   producer's    lease   expenditures   under                                                                    
     AS 43.55.165 for  the calendar  year applicable  to the                                                                    
     oil, gas, or  oil and gas in that  category produced by                                                                    
     the  producer during  the  calendar  year, as  adjusted                                                                    
     under  AS 43.55.170; a  separate annual  production tax                                                                    
     value shall be calculated for                                                                                              
               (A)  oil  and  gas produced  from  leases  or                                                                    
     properties in the  state that include land  north of 68                                                                    
     degrees North latitude, other  than gas produced before                                                                    
     2022 and used in the state;                                                                                                
               (B)  oil  and  gas produced  from  leases  or                                                                    
     properties  in   the  state  outside  the   Cook  Inlet                                                                    
     sedimentary  basin, no  part of  which is  north of  68                                                                    
     degrees  North latitude  and that  qualifies for  a tax                                                                    
     credit    under   AS 43.55.024(a)    and   (b);    this                                                                    
     subparagraph does not apply to                                                                                             
               (i) gas produced before 2022  and used in the                                                                    
     state; or                                                                                                                  
               (ii) oil and gas subject to AS 43.55.011(p);                                                                     
               (C) oil produced before  2022 from each lease                                                                    
     or property in the Cook Inlet sedimentary basin;                                                                           
               (D) gas produced before  2022 from each lease                                                                    
     or property in the Cook Inlet sedimentary basin;                                                                           
               (E) gas produced before  2022 from each lease                                                                    
     or  property  in  the  state  outside  the  Cook  Inlet                                                                    
     sedimentary  basin and  used in  the state,  other than                                                                    
     gas subject to AS 43.55.011(p);                                                                                            
               (F)  oil and  gas subject  to AS 43.55.011(p)                                                                    
     produced from leases or properties in the state;                                                                           
               (G)  oil  and  gas produced  from  leases  or                                                                    
     properties in  the state no  part of which is  north of                                                                    
     68  degrees  North  latitude, other  than  oil  or  gas                                                                    
     described  in  (B),  (C),  (D), (E),  or  (F)  of  this                                                                    
     paragraph;                                                                                                                 
               (2)   AS 43.55.011(g),   for  oil   and   gas                                                                    
     produced   before   January 1,    2014,   the   monthly                                                                    
     production tax value of the taxable                                                                                        
               (A) oil and gas  produced during a month 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 the oil  and gas taxable                                                                    
     under  AS 43.55.011(e)  and  produced by  the  producer                                                                    
     from  those  leases or  properties,  less  1/12 of  the                                                                    
     producer's  lease expenditures  under AS 43.55.165  for                                                                    
     the  calendar  year  applicable  to  the  oil  and  gas                                                                    
     produced  by   the  producer   from  those   leases  or                                                                    
     properties,  as   adjusted  under   AS 43.55.170;  this                                                                    
     subparagraph  does   not  apply   to  gas   subject  to                                                                    
     AS 43.55.011(o);                                                                                                           
               (B) oil and gas  produced during a month from                                                                    
     leases  or properties  in the  state  outside the  Cook                                                                    
     Inlet sedimentary basin,  no part of which  is north of                                                                    
     68 degrees  North latitude, is  the gross value  at the                                                                    
     point of  production of the  oil and gas  taxable under                                                                    
     AS 43.55.011(e)  and  produced  by  the  producer  from                                                                    
     those   leases  or   properties,  less   1/12  of   the                                                                    
     producer's  lease expenditures  under AS 43.55.165  for                                                                    
     the  calendar  year  applicable  to  the  oil  and  gas                                                                    
     produced  by   the  producer   from  those   leases  or                                                                    
     properties,  as   adjusted  under   AS 43.55.170;  this                                                                    
     subparagraph  does   not  apply   to  gas   subject  to                                                                    
     AS 43.55.011(o);                                                                                                           
               (C) oil produced during a  month from a lease                                                                    
     or property in the Cook  Inlet sedimentary basin is the                                                                    
     gross  value at  the  point of  production  of the  oil                                                                    
     taxable  under  AS 43.55.011(e)  and  produced  by  the                                                                    
     producer from that lease or  property, less 1/12 of the                                                                    
     producer's  lease expenditures  under AS 43.55.165  for                                                                    
     the  calendar year  applicable to  the oil  produced by                                                                    
     the producer  from that lease or  property, as adjusted                                                                    
     under AS 43.55.170;                                                                                                        
               (D) gas produced during a month from a lease                                                                     
     or property in the Cook  Inlet sedimentary basin is the                                                                    
     gross  value at  the  point of  production  of the  gas                                                                    
     taxable  under  AS 43.55.011(e)  and  produced  by  the                                                                    
     producer from that lease or  property, less 1/12 of the                                                                    
     producer's  lease expenditures  under AS 43.55.165  for                                                                    
     the  calendar year  applicable to  the gas  produced by                                                                    
     the producer  from that lease or  property, as adjusted                                                                    
     under AS 43.55.170;                                                                                                        
               (E) gas produced during a month from a lease                                                                     
     or property  outside the  Cook Inlet  sedimentary basin                                                                    
     and used in  the state is the gross value  at the point                                                                    
     of    production   of    that    gas   taxable    under                                                                    
     AS 43.55.011(e) and produced by  the producer from that                                                                    
     lease or  property, less 1/12  of the  producer's lease                                                                    
     expenditures under  AS 43.55.165 for the  calendar year                                                                    
     applicable to  that gas produced  by the  producer from                                                                    
     that   lease    or   property,   as    adjusted   under                                                                    
     AS 43.55.170.                                                                                                              
        * Sec. 25. AS 43.55.160(h) is amended to read:                                                                        
          (h) For oil produced on and after January 1,                                                                          
     2022,  except as  provided in  (b) and  [,] (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;                                                                                                              
               (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."                                                                                           
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 17, following line 6:                                                                                                 
          Insert a new bill section to read:                                                                                    
        "* Sec. 33. AS 43.98.050 is amended to read:                                                                        
          Sec. 43.98.050. Duties. The duties of the board                                                                     
     include the following:                                                                                                     
               (1)   establish   and  maintain   a   salient                                                                    
     collection  of  information  related  to  oil  and  gas                                                                    
     exploration, development,  and production in  the state                                                                    
     and related  to tax  structures, rates, and  credits in                                                                    
     other regions with oil and gas resources;                                                                                  
               (2)    review   historical,    current,   and                                                                    
     potential levels  of investment in the  state's oil and                                                                    
     gas sector;                                                                                                                
               (3) identify  factors that  affect investment                                                                    
     in   oil   and   gas  exploration,   development,   and                                                                    
     production  in  the  state,  including  tax  structure,                                                                    
     rates,     and    credits;     royalty    requirements;                                                                    
     infrastructure; workforce  availability; and regulatory                                                                    
     requirements;                                                                                                              
               (4)  review the  competitive position  of the                                                                    
     state  to attract  and maintain  investment in  the oil                                                                    
     and  gas  sector  in  the  state  as  compared  to  the                                                                    
     competitive position of other  regions with oil and gas                                                                    
     resources;                                                                                                                 
               (5) in  order to  facilitate the work  of the                                                                    
     board,   establish  procedures   to  accept   and  keep                                                                    
     confidential  information  that  is beneficial  to  the                                                                    
     work of the  board, including the creation  of a secure                                                                    
     data room  and confidentiality agreements to  be signed                                                                    
     by   individuals   having    access   to   confidential                                                                    
     information;                                                                                                               
               (6)     make     written     findings     and                                                                    
     recommendations to the Alaska State Legislature before                                                                     
               (A) January 31,  2015, or as  soon thereafter                                                                    
     as practicable, regarding                                                                                                  
               (i)   changes  to   the  state's   regulatory                                                                    
     environment  and  permitting  structure that  would  be                                                                    
     conducive  to  encouraging increased  investment  while                                                                    
     protecting  the interests  of the  people of  the state                                                                    
     and the environment;                                                                                                       
               (ii) the  status of the oil  and gas industry                                                                    
     labor  pool  in  the  state and  the  effectiveness  of                                                                    
     workforce development efforts by the state;                                                                                
               (iii) the  status of  the oil-and-gas-related                                                                    
     infrastructure  of the  state, including  a description                                                                    
     of infrastructure deficiencies; and                                                                                        
               (iv)  the  competitiveness   of  the  state's                                                                    
     fiscal oil  and gas tax  regime when compared  to other                                                                    
     regions of the world;                                                                                                      
               (B) January 15, 2017, regarding                                                                                  
               (i) the  state's tax  structure and  rates on                                                                    
     oil  and  gas  produced   south  of  68  degrees  North                                                                    
     latitude;                                                                                                                  
               (ii) a tax structure  that takes into account                                                                    
     the unique economic circumstances  for each oil and gas                                                                    
     producing area south of 68 degrees North latitude;                                                                         
               (iii) a  reduction in the gross  value at the                                                                    
     point of production  for oil and gas  produced south of                                                                    
     68  degrees  North  latitude that  is  similar  to  the                                                                    
     reduction in gross value at  the point of production in                                                                    
     AS 43.55.160(f) [AND (g)];                                                                                                 
               (iv)  other   incentives  for  oil   and  gas                                                                    
     production south of 68 degrees North latitude;                                                                             
               (C) January 31,  2021, or as  soon thereafter                                                                    
     as practicable, regarding                                                                                                  
               (i)  changes  to  the state's  fiscal  regime                                                                    
     that would be conducive  to increased and ongoing long-                                                                    
     term investment  in and development of  the state's oil                                                                    
     and gas resources;                                                                                                         
               (ii)  alternative  means for  increasing  the                                                                    
     state's ability  to attract and maintain  investment in                                                                    
     and development  of the state's oil  and gas resources;                                                                    
     and                                                                                                                        
               (iii) a  review of the  current effectiveness                                                                    
     and future value  of any provisions of  the state's oil                                                                    
     and gas  tax laws  that are expiring  in the  next five                                                                    
     years."                                                                                                                    
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 17, line 7:                                                                                                           
          Delete "and 41.09.090"                                                                                                
          Insert "41.09.090; and AS 43.55.160(g),"                                                                              
                                                                                                                                
     Page 18, line 20:                                                                                                          
          Delete "16, and 17"                                                                                                   
          Insert "19, and 20"                                                                                                   
                                                                                                                                
     Page 18, line 20, following "APPLICABILITY.":                                                                              
          Insert "(a)"                                                                                                          
                                                                                                                                
     Page 18, following line 21:                                                                                                
     Insert a new subsection to read:                                                                                           
          "(b) The repeal of AS 43.55.160(g) by sec. 34 of                                                                      
     this    Act    and    the   conforming    changes    to                                                                    
     AS 43.55.020(a),  as amended  by sec.  11 of  this Act,                                                                    
     AS 43.55.024(i) and (j), as amended  by secs. 17 and 18                                                                    
     of  this Act,  AS 43.55.160(a) and  (h), as  amended by                                                                    
     secs.  24 and  25  of this  Act,  and AS 43.98.050,  as                                                                    
     amended by  sec. 33 of  this Act,  apply to oil  or gas                                                                    
     produced  from a  lease  or property  on  or after  the                                                                    
     effective date of sec. 34 of this Act."                                                                                    
                                                                                                                                
     Page 18, lines 25 - 26:                                                                                                    
          Delete "sec. 29"                                                                                                      
          Insert "sec. 35"                                                                                                      
                                                                                                                                
     Page 18, line 27:                                                                                                          
          Delete "secs. 13, 14, 18, 23, and 24"                                                                                 
          Insert "secs. 14, 15, 21, 28, and 29"                                                                                 
                                                                                                                                
     Page 18, line 28:                                                                                                          
          Delete "sec. 29"                                                                                                      
          Insert "sec. 35"                                                                                                      
                                                                                                                                
     Page 18, line 31:                                                                                                          
          Delete "sec. 29"                                                                                                      
          Insert "sec. 35"                                                                                                      
                                                                                                                                
     Page 19, line 2:                                                                                                           
          Delete "sec. 29"                                                                                                      
          Insert "sec. 35"                                                                                                      
                                                                                                                                
     Page 19, line 5:                                                                                                           
          Delete "sec. 29"                                                                                                      
          Insert "sec. 35"                                                                                                      
                                                                                                                                
     Page 19, line 8:                                                                                                           
          Delete "sec. 29"                                                                                                      
          Insert "sec. 35"                                                                                                      
                                                                                                                                
     Page 19, line 10:                                                                                                          
          Delete "sec. 29"                                                                                                      
          Insert "sec. 35"                                                                                                      
                                                                                                                                
     Page 19, line 14:                                                                                                          
          Delete "sec. 21"                                                                                                      
          Insert "sec. 26"                                                                                                      
                                                                                                                                
     Page 19, line 15:                                                                                                          
          Delete "sec. 29"                                                                                                      
          Insert "sec. 35"                                                                                                      
                                                                                                                                
     Page 19, line 17:                                                                                                          
          Delete "sec. 29"                                                                                                      
          Insert "sec. 35"                                                                                                      
                                                                                                                                
     Page 20, line 12:                                                                                                          
          Delete "Sections 30 and 34"                                                                                           
          Insert "Sections 36 and 40"                                                                                           
                                                                                                                                
     Page 20, line 13:                                                                                                          
          Delete "Sections 13, 14, 18 - 25, 27, 29, 32, and                                                                     
     33"                                                                                                                        
          Insert "Sections 14, 15, 21 - 23, 26 - 30, 32,                                                                        
     35, 38, and 39"                                                                                                            
                                                                                                                                
     Page 20, line 15:                                                                                                          
          Delete "secs. 36 and 37"                                                                                              
          Insert "secs. 42 and 43"                                                                                              
                                                                                                                                
Amendment 15, labeled 29-GH2609\P.16, Nauman/Shutts, 3/19/16:                                                                 
                                                                                                                                
     Page 11, following line 15:                                                                                                
          Insert a new bill section to read:                                                                                    
        "* Sec. 21. AS 43.55.160(f) is amended to read:                                                                     
          (f)  On and after January 1, 2014, in the                                                                             
     calculation  of an  annual production  tax  value of  a                                                                    
     producer  under (a)(1)(A)  or (h)(1)  of this  section,                                                                    
     the gross  value at the  point of production of  oil or                                                                    
     gas  produced from  a  lease or  property  north of  68                                                                    
     degrees  North  latitude meeting  one  or  more of  the                                                                    
     following criteria  is reduced by 10  [20] percent: (1)                                                                
     the oil  or gas  is produced from  a lease  or property                                                                    
     that does  not contain a  lease that was within  a unit                                                                    
     on  January 1, 2003;  (2) the  oil or  gas is  produced                                                                    
     from   a    participating   area    established   after                                                                    
     December 31, 2011,  that is within a  unit formed under                                                                    
     AS 38.05.180(p)   before   January 1,  2003,   if   the                                                                    
     participating area  does not  contain a  reservoir that                                                                    
     had   previously   been   in   a   participating   area                                                                    
     established before  December 31, 2011;  (3) the  oil or                                                                    
     gas  is produced  from  acreage that  was  added to  an                                                                    
     existing  participating  area   by  the  Department  of                                                                    
     Natural  Resources on  and after  January 1, 2014,  and                                                                    
     the producer  demonstrates to  the department  that the                                                                    
     volume of oil or gas  produced is from acreage added to                                                                    
     an  existing participating  area. This  subsection does                                                                    
     not apply to  gas produced before 2022 that  is used in                                                                    
     the state  or to gas  produced on and  after January 1,                                                                    
     2022. A reduction under this  subsection may not reduce                                                                    
     the gross value at the  point of production below zero.                                                                    
     In  this  subsection,   "participating  area"  means  a                                                                    
     reservoir  or  portion  of  a  reservoir  producing  or                                                                    
     contributing   to  production   as   approved  by   the                                                                    
     Department of Natural Resources."                                                                                          
                                                                                                                                
     Page 18, line 20, following "APPLICABILITY.":                                                                              
          Insert "(a)"                                                                                                          
                                                                                                                                
     Page 18, following line 21:                                                                                                
     Insert a new subsection to read:                                                                                           
          "(b)  The change in the percentage reduction in                                                                       
     the gross  value at the  point of production of  oil or                                                                    
     gas   produced  from   a   lease   or  property   under                                                                    
     AS 43.55.160(f),  as amended  by sec.  21 of  this Act,                                                                    
     applies  to  oil  or  gas  produced  from  a  lease  or                                                                    
     property on or  after the effective date of  sec. 21 of                                                                    
     this Act."                                                                                                                 
                                                                                                                                
     Page 18, lines 25 - 26:                                                                                                    
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 18, line 27:                                                                                                          
          Delete "23, and 24"                                                                                                   
          Insert "24, and 25"                                                                                                   
                                                                                                                                
     Page 18, line 28:                                                                                                          
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 18, line 31:                                                                                                          
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 19, line 2:                                                                                                           
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 19, line 5:                                                                                                           
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 19, line 8:                                                                                                           
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 19, line 10:                                                                                                          
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 19, line 14:                                                                                                          
          Delete "sec. 21"                                                                                                      
          Insert "sec. 22"                                                                                                      
                                                                                                                                
     Page 19, line 15:                                                                                                          
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 19, line 17:                                                                                                          
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 20, line 12:                                                                                                          
          Delete "Sections 30 and 34"                                                                                           
          Insert "Sections 31 and 35"                                                                                           
                                                                                                                                
     Page 20, line 13:                                                                                                          
          Delete "18 - 25, 27, 29, 32, and 33"                                                                                  
         Insert "18 - 20, 22 - 26, 28, 30, 33, and 34"                                                                          
                                                                                                                                
     Page 20, line 15:                                                                                                          
          Delete "secs. 36 and 37"                                                                                              
          Insert "secs. 37 and 38"                                                                                              
                                                                                                                                
[End of amendments for this meeting.]                                                                                           
                                                                                                                                
[HB 247 was held over.]                                                                                                         
                                                                                                                                
3:07:40 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Resources Standing Committee meeting was adjourned at 3:08 p.m.                                                                 

Document Name Date/Time Subjects
HSE RES CS for HB 247 - 29-GH2609 - ver P.pdf HRES 3/21/2016 1:00:00 PM
HRES 3/22/2016 1:00:00 PM
HB 247
HSE RES CS for HB 247, ver P - Summary of Changes.pdf HRES 3/21/2016 1:00:00 PM
HRES 3/22/2016 1:00:00 PM
HB 247
HSE RES CS for HB 247, ver P Sectional Analysis 3.21.16 Final.pdf HRES 3/21/2016 1:00:00 PM
HRES 3/22/2016 1:00:00 PM
HB 247
HSE RES CS HB 247 (RES), ver P - Amendments #1 - #16.pdf HRES 3/22/2016 1:00:00 PM
HB 247
HSE RES CS HB 247 (RES), ver P - Amendments #17 - #33.pdf HRES 3/22/2016 1:00:00 PM
HB 247
HSE RES CS HB 247 (RES), ver P - Amendments #34 - #43.pdf HRES 3/22/2016 1:00:00 PM
HB 247
HSE RES CS HB 247 (RES), ver P - Amendment #44.pdf HRES 3/22/2016 1:00:00 PM
HB 247
CS HB 247(RES), ver P - Fiscal Note-DOR-TAX-3-22-16.pdf HRES 3/22/2016 1:00:00 PM
HB 247
CS HB 247(RES), ver P - Fiscal Note-DOR-TAX-Fund Cap-3-22-16.pdf HRES 3/22/2016 1:00:00 PM
HB 247
HSE RES CS HB 247(RES), ver P - Amendment # 45.pdf HRES 3/22/2016 1:00:00 PM
HB 247
HSE RES CS HB 247(RES), ver P - AMENDMENTS Index 3.22.16.docx HRES 3/22/2016 1:00:00 PM
HB 247