00 HOUSE BILL NO. 174 01 "An Act relating to the oil and gas production tax; relating to credits against the oil and 02 gas production tax; relating to monthly installment payments of the oil and gas 03 production tax; relating to the minimum production tax on oil; and providing for an 04 effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06  * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 07 to read: 08 SHORT TITLE. This Act may be known as the Protecting Jobs, Education, and 09 Opportunity Act. 10  * Sec. 2. AS 43.55.011(f) is amended to read: 11 (f) The levy of tax under (e) of this section for 12 (1) oil and gas produced before January 1, 2022, from leases or 13 properties that include land north of 68 degrees North latitude, other than gas subject 14 to (o) of this section or oil subject to (q) of this section, may not be less than 01 (A) four percent of the gross value at the point of production 02 when the average price per barrel for Alaska North Slope crude oil for sale on 03 the United States West Coast during the calendar year for which the tax is due 04 is more than $25; 05 (B) three percent of the gross value at the point of production 06 when the average price per barrel for Alaska North Slope crude oil for sale on 07 the United States West Coast during the calendar year for which the tax is due 08 is over $20 but not over $25; 09 (C) two percent of the gross value at the point of production 10 when the average price per barrel for Alaska North Slope crude oil for sale on 11 the United States West Coast during the calendar year for which the tax is due 12 is over $17.50 but not over $20; 13 (D) one percent of the gross value at the point of production 14 when the average price per barrel for Alaska North Slope crude oil for sale on 15 the United States West Coast during the calendar year for which the tax is due 16 is over $15 but not over $17.50; or 17 (E) zero percent of the gross value at the point of production 18 when the average price per barrel for Alaska North Slope crude oil for sale on 19 the United States West Coast during the calendar year for which the tax is due 20 is $15 or less; and 21 (2) oil produced on and after January 1, 2022, from leases or properties 22 that include land north of 68 degrees North latitude, may not be less than 23 (A) four percent of the gross value at the point of production 24 when the average price per barrel for Alaska North Slope crude oil for sale on 25 the United States West Coast during the calendar year for which the tax is due 26 is more than $25; 27 (B) three percent of the gross value at the point of production 28 when the average price per barrel for Alaska North Slope crude oil for sale on 29 the United States West Coast during the calendar year for which the tax is due 30 is over $20 but not over $25; 31 (C) two percent of the gross value at the point of production 01 when the average price per barrel for Alaska North Slope crude oil for sale on 02 the United States West Coast during the calendar year for which the tax is due 03 is over $17.50 but not over $20; 04 (D) one percent of the gross value at the point of production 05 when the average price per barrel for Alaska North Slope crude oil for sale on 06 the United States West Coast during the calendar year for which the tax is due 07 is over $15 but not over $17.50; or 08 (E) zero percent of the gross value at the point of production 09 when the average price per barrel for Alaska North Slope crude oil for sale on 10 the United States West Coast during the calendar year for which the tax is due 11 is $15 or less. 12  * Sec. 3. AS 43.55.011(f), as amended by sec. 2 of this Act, is amended to read: 13 (f) The levy of tax under (e) of this section for 14 (1) oil and gas produced before January 1, 2022, from leases or 15 properties that include land north of 68 degrees North latitude, other than gas subject 16 to (o) of this section [OR OIL SUBJECT TO (q) OF THIS SECTION], may not be 17 less than 18 (A) four percent of the gross value at the point of production 19 when the average price per barrel for Alaska North Slope crude oil for sale on 20 the United States West Coast during the calendar year for which the tax is due 21 is more than $25; 22 (B) three percent of the gross value at the point of production 23 when the average price per barrel for Alaska North Slope crude oil for sale on 24 the United States West Coast during the calendar year for which the tax is due 25 is over $20 but not over $25; 26 (C) two percent of the gross value at the point of production 27 when the average price per barrel for Alaska North Slope crude oil for sale on 28 the United States West Coast during the calendar year for which the tax is due 29 is over $17.50 but not over $20; 30 (D) one percent of the gross value at the point of production 31 when the average price per barrel for Alaska North Slope crude oil for sale on 01 the United States West Coast during the calendar year for which the tax is due 02 is over $15 but not over $17.50; or 03 (E) zero percent of the gross value at the point of production 04 when the average price per barrel for Alaska North Slope crude oil for sale on 05 the United States West Coast during the calendar year for which the tax is due 06 is $15 or less; and 07 (2) oil produced on and after January 1, 2022, from leases or properties 08 that include land north of 68 degrees North latitude, may not be less than 09 (A) four percent of the gross value at the point of production 10 when the average price per barrel for Alaska North Slope crude oil for sale on 11 the United States West Coast during the calendar year for which the tax is due 12 is more than $25; 13 (B) three percent of the gross value at the point of production 14 when the average price per barrel for Alaska North Slope crude oil for sale on 15 the United States West Coast during the calendar year for which the tax is due 16 is over $20 but not over $25; 17 (C) two percent of the gross value at the point of production 18 when the average price per barrel for Alaska North Slope crude oil for sale on 19 the United States West Coast during the calendar year for which the tax is due 20 is over $17.50 but not over $20; 21 (D) one percent of the gross value at the point of production 22 when the average price per barrel for Alaska North Slope crude oil for sale on 23 the United States West Coast during the calendar year for which the tax is due 24 is over $15 but not over $17.50; or 25 (E) zero percent of the gross value at the point of production 26 when the average price per barrel for Alaska North Slope crude oil for sale on 27 the United States West Coast during the calendar year for which the tax is due 28 is $15 or less. 29  * Sec. 4. AS 43.55.011 is amended by adding a new subsection to read: 30 (q) Except for oil subject to (i) of this section, the provisions of this subsection 31 apply to oil produced from each lease or property within a unit or nonunitized 01 reservoir that has cumulatively produced 400,000,000 BTU equivalent barrels of oil or 02 gas by the close of the most recent calendar year and from which the average daily 03 production of oil and gas from the unit or nonunitized reservoir during the most recent 04 calendar year exceeded 20,000 BTU equivalent barrels. Notwithstanding any contrary 05 provision of law, a producer may not apply tax credits to reduce its total tax liability 06 under (e) and (g) of this section for oil produced from all leases or properties within 07 the unit or nonunitized reservoir below 12.5 percent of the total gross value at the 08 point of production of that oil. If the amount of tax calculated by multiplying the tax 09 rates in (e) and (g) of this section by the total production tax value of the oil taxable 10 under (e) and (g) of this section produced from all of the producer's leases or 11 properties within the unit or nonunitized reservoir is less than 12.5 percent of the total 12 gross value at the point of production of that oil, the tax levied by (e) of this section 13 for that oil is equal to 12.5 percent of the total gross value at the point of production of 14 that oil. 15  * Sec. 5. AS 43.55.020(a) is amended to read: 16 (a) For a calendar year, a producer subject to tax under AS 43.55.011 shall pay 17 the tax as follows: 18 (1) for oil and gas produced before January 1, 2014, an installment 19 payment of the estimated tax levied by AS 43.55.011(e), net of any tax credits applied 20 as allowed by law, is due for each month of the calendar year on the last day of the 21 following month; except as otherwise provided under (2) of this subsection, the 22 amount of the installment payment is the sum of the following amounts, less 1/12 of 23 the tax credits that are allowed by law to be applied against the tax levied by 24 AS 43.55.011(e) for the calendar year, but the amount of the installment payment may 25 not be less than zero: 26 (A) for oil and gas not subject to AS 43.55.011(o) or (p) 27 produced from leases or properties in the state outside the Cook Inlet 28 sedimentary basin, other than leases or properties subject to AS 43.55.011(f), 29 the greater of 30 (i) zero; or 31 (ii) the sum of 25 percent and the tax rate calculated for 01 the month under AS 43.55.011(g) multiplied by the remainder obtained 02 by subtracting 1/12 of the producer's adjusted lease expenditures for the 03 calendar year of production under AS 43.55.165 and 43.55.170 that are 04 deductible for the oil and gas under AS 43.55.160 from the gross value 05 at the point of production of the oil and gas produced from the leases or 06 properties during the month for which the installment payment is 07 calculated; 08 (B) for oil and gas produced from leases or properties subject to 09 AS 43.55.011(f), the greatest of 10 (i) zero; 11 (ii) zero percent, one percent, two percent, three percent, 12 or four percent, as applicable, of the gross value at the point of 13 production of the oil and gas produced from the leases or properties 14 during the month for which the installment payment is calculated; or 15 (iii) the sum of 25 percent and the tax rate calculated for 16 the month under AS 43.55.011(g) multiplied by the remainder obtained 17 by subtracting 1/12 of the producer's adjusted lease expenditures for the 18 calendar year of production under AS 43.55.165 and 43.55.170 that are 19 deductible for the oil and gas under AS 43.55.160 from the gross value 20 at the point of production of the oil and gas produced from those leases 21 or properties during the month for which the installment payment is 22 calculated; 23 (C) for oil or gas subject to AS 43.55.011(j), (k), or (o), for each 24 lease or property, the greater of 25 (i) zero; or 26 (ii) the sum of 25 percent and the tax rate calculated for 27 the month under AS 43.55.011(g) multiplied by the remainder obtained 28 by subtracting 1/12 of the producer's adjusted lease expenditures for the 29 calendar year of production under AS 43.55.165 and 43.55.170 that are 30 deductible under AS 43.55.160 for the oil or gas, respectively, 31 produced from the lease or property from the gross value at the point of 01 production of the oil or gas, respectively, produced from the lease or 02 property during the month for which the installment payment is 03 calculated; 04 (D) for oil and gas subject to AS 43.55.011(p), the lesser of 05 (i) the sum of 25 percent and the tax rate calculated for 06 the month under AS 43.55.011(g) multiplied by the remainder obtained 07 by subtracting 1/12 of the producer's adjusted lease expenditures for the 08 calendar year of production under AS 43.55.165 and 43.55.170 that are 09 deductible for the oil and gas under AS 43.55.160 from the gross value 10 at the point of production of the oil and gas produced from the leases or 11 properties during the month for which the installment payment is 12 calculated, but not less than zero; or 13 (ii) four percent of the gross value at the point of 14 production of the oil and gas produced from the leases or properties 15 during the month, but not less than zero; 16 (2) an amount calculated under (1)(C) of this subsection for oil or gas 17 subject to AS 43.55.011(j), (k), or (o) may not exceed the product obtained by 18 carrying out the calculation set out in AS 43.55.011(j)(1) or (2) or 43.55.011(o), as 19 applicable, for gas or set out in AS 43.55.011(k)(1) or (2), as applicable, for oil, but 20 substituting in AS 43.55.011(j)(1)(A) or (2)(A) or 43.55.011(o), as applicable, the 21 amount of taxable gas produced during the month for the amount of taxable gas 22 produced during the calendar year and substituting in AS 43.55.011(k)(1)(A) or 23 (2)(A), as applicable, the amount of taxable oil produced during the month for the 24 amount of taxable oil produced during the calendar year; 25 (3) an installment payment of the estimated tax levied by 26 AS 43.55.011(i) for each lease or property is due for each month of the calendar year 27 on the last day of the following month; the amount of the installment payment is the 28 sum of 29 (A) the applicable tax rate for oil provided under 30 AS 43.55.011(i), multiplied by the gross value at the point of production of the 31 oil taxable under AS 43.55.011(i) and produced from the lease or property 01 during the month; and 02 (B) the applicable tax rate for gas provided under 03 AS 43.55.011(i), multiplied by the gross value at the point of production of the 04 gas taxable under AS 43.55.011(i) and produced from the lease or property 05 during the month; 06 (4) any amount of tax levied by AS 43.55.011, net of any credits 07 applied as allowed by law, that exceeds the total of the amounts due as installment 08 payments of estimated tax is due on March 31 of the year following the calendar year 09 of production; 10 (5) for oil and gas produced on and after January 1, 2014, and before 11 January 1, 2022, an installment payment of the estimated tax levied by 12 AS 43.55.011(e), net of any tax credits applied as allowed by law, is due for each 13 month of the calendar year on the last day of the following month; except as otherwise 14 provided under (6) of this subsection, the amount of the installment payment is the 15 sum of the following amounts, less 1/12 of the tax credits that are allowed by law to be 16 applied against the tax levied by AS 43.55.011(e) for the calendar year, but the amount 17 of the installment payment may not be less than zero: 18 (A) for oil and gas not subject to AS 43.55.011(o) or (p) 19 produced from leases or properties in the state outside the Cook Inlet 20 sedimentary basin, other than leases or properties subject to AS 43.55.011(f), 21 the greater of 22 (i) zero; or 23 (ii) 35 percent multiplied by the remainder obtained by 24 subtracting 1/12 of the producer's adjusted lease expenditures for the 25 calendar year of production under AS 43.55.165 and 43.55.170 that are 26 deductible for the oil and gas under AS 43.55.160 from the gross value 27 at the point of production of the oil and gas produced from the leases or 28 properties during the month for which the installment payment is 29 calculated; 30 (B) for oil and gas produced from leases or properties subject to 31 AS 43.55.011(f), the greatest of 01 (i) zero; 02 (ii) zero percent, one percent, two percent, three percent, 03 or four percent, as applicable, of the gross value at the point of 04 production of the oil and gas produced from the leases or properties 05 during the month for which the installment payment is calculated; or 06 (iii) 35 percent multiplied by the remainder obtained by 07 subtracting 1/12 of the producer's adjusted lease expenditures for the 08 calendar year of production under AS 43.55.165 and 43.55.170 that are 09 deductible for the oil and gas under AS 43.55.160 from the gross value 10 at the point of production of the oil and gas produced from those leases 11 or properties during the month for which the installment payment is 12 calculated, except that, for the purposes of this calculation, a reduction 13 from the gross value at the point of production may apply for oil and 14 gas subject to AS 43.55.160(f) [OR (g)]; 15 (C) for oil or gas subject to AS 43.55.011(j), (k), or (o), for each 16 lease or property, the greater of 17 (i) zero; or 18 (ii) 35 percent multiplied by the remainder obtained by 19 subtracting 1/12 of the producer's adjusted lease expenditures for the 20 calendar year of production under AS 43.55.165 and 43.55.170 that are 21 deductible under AS 43.55.160 for the oil or gas, respectively, 22 produced from the lease or property from the gross value at the point of 23 production of the oil or gas, respectively, produced from the lease or 24 property during the month for which the installment payment is 25 calculated; 26 (D) for oil and gas subject to AS 43.55.011(p), the lesser of 27 (i) 35 percent multiplied by the remainder obtained by 28 subtracting 1/12 of the producer's adjusted lease expenditures for the 29 calendar year of production under AS 43.55.165 and 43.55.170 that are 30 deductible for the oil and gas under AS 43.55.160 from the gross value 31 at the point of production of the oil and gas produced from the leases or 01 properties during the month for which the installment payment is 02 calculated, but not less than zero; or 03 (ii) four percent of the gross value at the point of 04 production of the oil and gas produced from the leases or properties 05 during the month, but not less than zero; 06 (E) for oil subject to AS 43.55.011(q), the greater of 07 (i) 12.5 percent of the gross value at the point of  08 production of that oil produced from leases or properties during  09 the month for which the installment payment is calculated; and  10 (ii) 35 percent multiplied by the remainder obtained  11 by subtracting 1/12 of the producer's adjusted lease expenditures  12 for the calendar year of production under AS 43.55.165 and  13 43.55.170 that are deductible for the oil under AS 43.55.160(h)(3)  14 from the gross value at the point of production of the oil produced  15 from the leases or properties during the month for which the  16 installment payment is calculated; 17 (6) an amount calculated under (5)(C) of this subsection for oil or gas 18 subject to AS 43.55.011(j), (k), or (o) may not exceed the product obtained by 19 carrying out the calculation set out in AS 43.55.011(j)(1) or (2) or 43.55.011(o), as 20 applicable, for gas or set out in AS 43.55.011(k)(1) or (2), as applicable, for oil, but 21 substituting in AS 43.55.011(j)(1)(A) or (2)(A) or 43.55.011(o), as applicable, the 22 amount of taxable gas produced during the month for the amount of taxable gas 23 produced during the calendar year and substituting in AS 43.55.011(k)(1)(A) or 24 (2)(A), as applicable, the amount of taxable oil produced during the month for the 25 amount of taxable oil produced during the calendar year; 26 (7) for oil and gas produced on or after January 1, 2022, an installment 27 payment of the estimated tax levied by AS 43.55.011(e), net of any tax credits applied 28 as allowed by law, is due for each month of the calendar year on the last day of the 29 following month; the amount of the installment payment is the sum of the following 30 amounts, less 1/12 of the tax credits that are allowed by law to be applied against the 31 tax levied by AS 43.55.011(e) for the calendar year, but the amount of the installment 01 payment may not be less than zero: 02 (A) for oil produced from leases or properties that include land 03 north of 68 degrees North latitude, the greatest of 04 (i) zero; 05 (ii) zero percent, one percent, two percent, three percent, 06 or four percent, as applicable, of the gross value at the point of 07 production of the oil produced from the leases or properties during the 08 month for which the installment payment is calculated; or 09 (iii) 35 percent multiplied by the remainder obtained by 10 subtracting 1/12 of the producer's adjusted lease expenditures for the 11 calendar year of production under AS 43.55.165 and 43.55.170 that are 12 deductible for the oil under AS 43.55.160(h)(1) from the gross value at 13 the point of production of the oil produced from those leases or 14 properties during the month for which the installment payment is 15 calculated, except that, for the purposes of this calculation, a reduction 16 from the gross value at the point of production may apply for oil 17 subject to AS 43.55.160(f) [OR 43.55.160(f) AND (g)]; 18 (B) for oil produced before or during the last calendar year 19 under AS 43.55.024(b) for which the producer could take a tax credit under 20 AS 43.55.024(a), from leases or properties in the state outside the Cook Inlet 21 sedimentary basin, no part of which is north of 68 degrees North latitude, other 22 than leases or properties subject to AS 43.55.011(p), the greater of 23 (i) zero; or 24 (ii) 35 percent multiplied by the remainder obtained by 25 subtracting 1/12 of the producer's adjusted lease expenditures for the 26 calendar year of production under AS 43.55.165 and 43.55.170 that are 27 deductible for the oil under AS 43.55.160(h)(2) from the gross value at 28 the point of production of the oil produced from the leases or properties 29 during the month for which the installment payment is calculated; 30 (C) for oil and gas produced from leases or properties subject to 31 AS 43.55.011(p), except as otherwise provided under (8) of this subsection, the 01 sum of 02 (i) 35 percent multiplied by the remainder obtained by 03 subtracting 1/12 of the producer's adjusted lease expenditures for the 04 calendar year of production under AS 43.55.165 and 43.55.170 that are 05 deductible for the oil under AS 43.55.160(h)(3) from the gross value at 06 the point of production of the oil produced from the leases or properties 07 during the month for which the installment payment is calculated, but 08 not less than zero; and 09 (ii) 13 percent of the gross value at the point of 10 production of the gas produced from the leases or properties during the 11 month, but not less than zero; 12 (D) for oil produced from leases or properties in the state, no 13 part of which is north of 68 degrees North latitude, other than leases or 14 properties subject to (B) or (C) of this paragraph, the greater of 15 (i) zero; or 16 (ii) 35 percent multiplied by the remainder obtained by 17 subtracting 1/12 of the producer's adjusted lease expenditures for the 18 calendar year of production under AS 43.55.165 and 43.55.170 that are 19 deductible for the oil under AS 43.55.160(h)(4) from the gross value at 20 the point of production of the oil produced from the leases or properties 21 during the month for which the installment payment is calculated; 22 (E) for gas produced from each lease or property in the state, 23 other than a lease or property subject to AS 43.55.011(p), 13 percent of the 24 gross value at the point of production of the gas produced from the lease or 25 property during the month for which the installment payment is calculated, but 26 not less than zero; 27 (8) an amount calculated under (7)(C) of this subsection may not 28 exceed four percent of the gross value at the point of production of the oil and gas 29 produced from leases or properties subject to AS 43.55.011(p) during the month for 30 which the installment payment is calculated; 31 (9) for purposes of the calculation under (1)(B)(ii), (5)(B)(ii), and 01 (7)(A)(ii) of this subsection, the applicable percentage of the gross value at the point 02 of production is determined under AS 43.55.011(f)(1) or (2) but substituting the 03 phrase "month for which the installment payment is calculated" in AS 43.55.011(f)(1) 04 and (2) for the phrase "calendar year for which the tax is due." 05  * Sec. 6. AS 43.55.024(i) is amended to read: 06 (i) A producer may apply against the producer's tax liability for the calendar 07 year under AS 43.55.011(e) a tax credit of $5 for each barrel of oil taxable under 08 AS 43.55.011(e) that meets one or more of the criteria in AS 43.55.160(f), but does  09 not meet the criteria for a credit in (k) of this section, [OR (g)] and that is produced 10 during a calendar year after December 31, 2013. A tax credit authorized by this 11 subsection may not reduce a producer's tax liability for a calendar year under 12 AS 43.55.011(e) below zero. 13  * Sec. 7. AS 43.55.024(i), as amended by sec. 6 of this Act, is amended to read: 14 (i) A producer may apply against the producer's tax liability for the calendar 15 year under AS 43.55.011(e) a tax credit of $5 for each barrel of oil taxable under 16 AS 43.55.011(e) that meets one or more of the criteria in AS 43.55.160(f) [, BUT 17 DOES NOT MEET THE CRITERIA FOR A CREDIT IN (k) OF THIS SECTION,] 18 and that is produced during a calendar year after December 31, 2013. A tax credit 19 authorized by this subsection may not reduce a producer's tax liability for a calendar 20 year under AS 43.55.011(e) below zero. 21  * Sec. 8. AS 43.55.024(j) is amended to read: 22 (j) A producer may apply against the producer's tax liability for the calendar 23 year under AS 43.55.011(e) a tax credit in the amount specified in this subsection for 24 each barrel of oil taxable under AS 43.55.011(e) that does not meet any of the criteria 25 in AS 43.55.160(f) or the criteria for a credit under (k) of this section, [(g)] and that 26 is produced during a calendar year after December 31, 2013, from leases or properties 27 north of 68 degrees North latitude. A tax credit under this subsection may not reduce a 28 producer's tax liability for a calendar year under AS 43.55.011(e) below the amount 29 calculated under AS 43.55.011(f). The amount of the tax credit for a barrel of taxable 30 oil subject to this subsection produced during a month of the calendar year is 31 (1) $8 for each barrel of taxable oil if the average gross value at the 01 point of production for the month is less than $80 a barrel; 02 (2) $7 for each barrel of taxable oil if the average gross value at the 03 point of production for the month is greater than or equal to $80 a barrel, but less than 04 $90 a barrel; 05 (3) $6 for each barrel of taxable oil if the average gross value at the 06 point of production for the month is greater than or equal to $90 a barrel, but less than 07 $100 a barrel; 08 (4) $5 for each barrel of taxable oil if the average gross value at the 09 point of production for the month is greater than or equal to $100 a barrel, but less 10 than $110 a barrel; 11 (5) $4 for each barrel of taxable oil if the average gross value at the 12 point of production for the month is greater than or equal to $110 a barrel, but less 13 than $120 a barrel; 14 (6) $3 for each barrel of taxable oil if the average gross value at the 15 point of production for the month is greater than or equal to $120 a barrel, but less 16 than $130 a barrel; 17 (7) $2 for each barrel of taxable oil if the average gross value at the 18 point of production for the month is greater than or equal to $130 a barrel, but less 19 than $140 a barrel; 20 (8) $1 for each barrel of taxable oil if the average gross value at the 21 point of production for the month is greater than or equal to $140 a barrel, but less 22 than $150 a barrel; 23 (9) zero if the average gross value at the point of production for the 24 month is greater than or equal to $150 a barrel. 25  * Sec. 9. AS 43.55.024(j), as amended by sec. 8 of this Act, is amended to read: 26 (j) A producer may apply against the producer's tax liability for the calendar 27 year under AS 43.55.011(e) a tax credit in the amount specified in this subsection for 28 each barrel of oil taxable under AS 43.55.011(e) that does not meet any of the criteria 29 in AS 43.55.160(f) [OR THE CRITERIA FOR A CREDIT UNDER (k) OF THIS 30 SECTION,] and that is produced during a calendar year after December 31, 2013, 31 from leases or properties north of 68 degrees North latitude. A tax credit under this 01 subsection may not reduce a producer's tax liability for a calendar year under 02 AS 43.55.011(e) below the amount calculated under AS 43.55.011(f). The amount of 03 the tax credit for a barrel of taxable oil subject to this subsection produced during a 04 month of the calendar year is 05 (1) $8 for each barrel of taxable oil if the average gross value at the 06 point of production for the month is less than $80 a barrel; 07 (2) $7 for each barrel of taxable oil if the average gross value at the 08 point of production for the month is greater than or equal to $80 a barrel, but less than 09 $90 a barrel; 10 (3) $6 for each barrel of taxable oil if the average gross value at the 11 point of production for the month is greater than or equal to $90 a barrel, but less than 12 $100 a barrel; 13 (4) $5 for each barrel of taxable oil if the average gross value at the 14 point of production for the month is greater than or equal to $100 a barrel, but less 15 than $110 a barrel; 16 (5) $4 for each barrel of taxable oil if the average gross value at the 17 point of production for the month is greater than or equal to $110 a barrel, but less 18 than $120 a barrel; 19 (6) $3 for each barrel of taxable oil if the average gross value at the 20 point of production for the month is greater than or equal to $120 a barrel, but less 21 than $130 a barrel; 22 (7) $2 for each barrel of taxable oil if the average gross value at the 23 point of production for the month is greater than or equal to $130 a barrel, but less 24 than $140 a barrel; 25 (8) $1 for each barrel of taxable oil if the average gross value at the 26 point of production for the month is greater than or equal to $140 a barrel, but less 27 than $150 a barrel; 28 (9) zero if the average gross value at the point of production for the 29 month is greater than or equal to $150 a barrel. 30  * Sec. 10. AS 43.55.024 is amended by adding a new subsection to read: 31 (k) A producer may apply against the producer's tax liability for the calendar 01 year under AS 43.55.011(e) a tax credit in the amount specified in this subsection for 02 each barrel of oil taxable under AS 43.55.011(e) produced from a lease or property 03 north of 68 degrees North latitude, within a unit that had first commercial production 04 within 20 years after establishment under AS 38.05.180(p), and within a unit or 05 nonunitized reservoir that has cumulatively produced 400,000,000 BTU equivalent 06 barrels of oil or gas by the close of the most recent calendar year and from which the 07 average daily production of oil and gas from the unit or nonunitized reservoir during 08 the most recent calendar year exceeded 20,000 BTU equivalent barrels. A tax credit 09 under this subsection may not reduce a producer's tax liability for a calendar year 10 under AS 43.55.011(e) below the amount calculated under AS 43.55.011(f). The 11 amount of the tax credit for a barrel of taxable oil subject to this subsection produced 12 during a month of the calendar year is 13 (1) $4 for each barrel of taxable oil if the average gross value at the 14 point of production for the month is less than $80 a barrel; 15 (2) $3.50 for each barrel of taxable oil if the average gross value at the 16 point of production for the month is greater than or equal to $80 a barrel, but less than 17 $90 a barrel; 18 (3) $3 for each barrel of taxable oil if the average gross value at the 19 point of production for the month is greater than or equal to $90 a barrel, but less than 20 $100 a barrel; 21 (4) $2.50 for each barrel of taxable oil if the average gross value at the 22 point of production for the month is greater than or equal to $100 a barrel, but less 23 than $110 a barrel; 24 (5) $2 for each barrel of taxable oil if the average gross value at the 25 point of production for the month is greater than or equal to $110 a barrel, but less 26 than $120 a barrel; 27 (6) $1.50 for each barrel of taxable oil if the average gross value at the 28 point of production for the month is greater than or equal to $120 a barrel, but less 29 than $130 a barrel; 30 (7) $1 for each barrel of taxable oil if the average gross value at the 31 point of production for the month is greater than or equal to $130 a barrel, but less 01 than $140 a barrel; 02 (8) $.50 for each barrel of taxable oil if the average gross value at the 03 point of production for the month is greater than or equal to $140 a barrel, but less 04 than $150 a barrel; 05 (9) zero if the average gross value at the point of production for the 06 month is greater than or equal to $150 a barrel. 07  * Sec. 11. AS 43.55.160(a) is amended to read: 08 (a) For oil and gas produced before January 1, 2022, except as provided in (b) 09 and [,] (f) [, AND (g)] of this section, for the purposes of 10 (1) AS 43.55.011(e)(1) and (2), the annual production tax value of 11 taxable oil, gas, or oil and gas produced during a calendar year in a category for which 12 a separate annual production tax value is required to be calculated under this 13 paragraph is the gross value at the point of production of that oil, gas, or oil and gas 14 taxable under AS 43.55.011(e), less the producer's lease expenditures under 15 AS 43.55.165 for the calendar year applicable to the oil, gas, or oil and gas in that 16 category produced by the producer during the calendar year, as adjusted under 17 AS 43.55.170; a separate annual production tax value shall be calculated for 18 (A) oil and gas produced from leases or properties in the state 19 that include land north of 68 degrees North latitude, other than gas produced 20 before 2022 and used in the state; 21 (B) oil and gas produced from leases or properties in the state 22 outside the Cook Inlet sedimentary basin, no part of which is north of 68 23 degrees North latitude and that qualifies for a tax credit under AS 43.55.024(a) 24 and (b); this subparagraph does not apply to 25 (i) gas produced before 2022 and used in the state; or 26 (ii) oil and gas subject to AS 43.55.011(p); 27 (C) oil produced before 2022 from each lease or property in the 28 Cook Inlet sedimentary basin; 29 (D) gas produced before 2022 from each lease or property in the 30 Cook Inlet sedimentary basin; 31 (E) gas produced before 2022 from each lease or property in the 01 state outside the Cook Inlet sedimentary basin and used in the state, other than 02 gas subject to AS 43.55.011(p); 03 (F) oil and gas subject to AS 43.55.011(p) produced from leases 04 or properties in the state; 05 (G) oil and gas produced from leases or properties in the state 06 no part of which is north of 68 degrees North latitude, other than oil or gas 07 described in (B), (C), (D), (E), or (F) of this paragraph; 08 (2) AS 43.55.011(g), for oil and gas produced before January 1, 2014, 09 the monthly production tax value of the taxable 10 (A) oil and gas produced during a month from leases or 11 properties in the state that include land north of 68 degrees North latitude is the 12 gross value at the point of production of the oil and gas taxable under 13 AS 43.55.011(e) and produced by the producer from those leases or properties, 14 less 1/12 of the producer's lease expenditures under AS 43.55.165 for the 15 calendar year applicable to the oil and gas produced by the producer from 16 those leases or properties, as adjusted under AS 43.55.170; this subparagraph 17 does not apply to gas subject to AS 43.55.011(o); 18 (B) oil and gas produced during a month from leases or 19 properties in the state outside the Cook Inlet sedimentary basin, no part of 20 which is north of 68 degrees North latitude, is the gross value at the point of 21 production of the oil and gas taxable under AS 43.55.011(e) and produced by 22 the producer from those leases or properties, less 1/12 of the producer's lease 23 expenditures under AS 43.55.165 for the calendar year applicable to the oil and 24 gas produced by the producer from those leases or properties, as adjusted under 25 AS 43.55.170; this subparagraph does not apply to gas subject to 26 AS 43.55.011(o); 27 (C) oil produced during a month from a lease or property in the 28 Cook Inlet sedimentary basin is the gross value at the point of production of 29 the oil taxable under AS 43.55.011(e) and produced by the producer from that 30 lease or property, less 1/12 of the producer's lease expenditures under 31 AS 43.55.165 for the calendar year applicable to the oil produced by the 01 producer from that lease or property, as adjusted under AS 43.55.170; 02 (D) gas produced during a month from a lease or property in the 03 Cook Inlet sedimentary basin is the gross value at the point of production of 04 the gas taxable under AS 43.55.011(e) and produced by the producer from that 05 lease or property, less 1/12 of the producer's lease expenditures under 06 AS 43.55.165 for the calendar year applicable to the gas produced by the 07 producer from that lease or property, as adjusted under AS 43.55.170; 08 (E) gas produced during a month from a lease or property 09 outside the Cook Inlet sedimentary basin and used in the state is the gross 10 value at the point of production of that gas taxable under AS 43.55.011(e) and 11 produced by the producer from that lease or property, less 1/12 of the 12 producer's lease expenditures under AS 43.55.165 for the calendar year 13 applicable to that gas produced by the producer from that lease or property, as 14 adjusted under AS 43.55.170. 15  * Sec. 12. AS 43.55.160(f) is amended to read: 16 (f) On and after January 1, 2014, in the calculation of an annual production tax 17 value of a producer under (a)(1)(A) or (h)(1) of this section, the gross value at the 18 point of production of oil or gas produced from a lease or property north of 68 degrees 19 North latitude [MEETING ONE OR MORE OF THE FOLLOWING CRITERIA] is 20 reduced by 10 [20] percent for the first portion of a calendar year after the  21 commencement of commercial production and the three immediately following  22 calendar years, if [: (1)] the oil or gas is produced from a lease or property that is not  23 located within a unit established under AS 38.05.180(p) for more than 20 years  24 before the first commercial production on that lease or property, as that unit  25 existed on the effective date of this section, and is [DOES NOT CONTAIN A 26 LEASE THAT WAS] within a unit that did not have commercial production  27 before January 1, 2014 [ON JANUARY 1, 2003; (2) THE OIL OR GAS IS 28 PRODUCED FROM A PARTICIPATING AREA ESTABLISHED AFTER 29 DECEMBER 31, 2011, THAT IS WITHIN A UNIT FORMED UNDER 30 AS 38.05.180(p) BEFORE JANUARY 1, 2003, IF THE PARTICIPATING AREA 31 DOES NOT CONTAIN A RESERVOIR THAT HAD PREVIOUSLY BEEN IN A 01 PARTICIPATING AREA ESTABLISHED BEFORE DECEMBER 31, 2011; (3) 02 THE OIL OR GAS IS PRODUCED FROM ACREAGE THAT WAS ADDED TO 03 AN EXISTING PARTICIPATING AREA BY THE DEPARTMENT OF NATURAL 04 RESOURCES ON AND AFTER JANUARY 1, 2014, AND THE PRODUCER 05 DEMONSTRATES TO THE DEPARTMENT THAT THE VOLUME OF OIL OR 06 GAS PRODUCED IS FROM ACREAGE ADDED TO AN EXISTING 07 PARTICIPATING AREA]. This subsection does not apply to gas produced before 08 2022 that is used in the state or to gas produced on and after January 1, 2022. A 09 reduction under this subsection may not reduce the gross value at the point of 10 production below zero. [IN THIS SUBSECTION, "PARTICIPATING AREA" 11 MEANS A RESERVOIR OR PORTION OF A RESERVOIR PRODUCING OR 12 CONTRIBUTING TO PRODUCTION AS APPROVED BY THE DEPARTMENT 13 OF NATURAL RESOURCES.] 14  * Sec. 13. AS 43.55.160(h) is amended to read: 15 (h) For oil produced on and after January 1, 2022, except as provided in (b) 16 and [,] (f) [, AND (g)] of this section, for the purposes of AS 43.55.011(e)(3), the 17 annual production tax value of oil taxable under AS 43.55.011(e) produced by a 18 producer during a calendar year 19 (1) from leases or properties in the state that include land north of 68 20 degrees North latitude is the gross value at the point of production of that oil, less the 21 producer's lease expenditures under AS 43.55.165 for the calendar year incurred to 22 explore for, develop, or produce oil and gas deposits located in the state north of 68 23 degrees North latitude or located in leases or properties in the state that include land 24 north of 68 degrees North latitude, as adjusted under AS 43.55.170; 25 (2) before or during the last calendar year under AS 43.55.024(b) for 26 which the producer could take a tax credit under AS 43.55.024(a), from leases or 27 properties in the state outside the Cook Inlet sedimentary basin, no part of which is 28 north of 68 degrees North latitude, other than leases or properties subject to 29 AS 43.55.011(p), is the gross value at the point of production of that oil, less the 30 producer's lease expenditures under AS 43.55.165 for the calendar year incurred to 31 explore for, develop, or produce oil and gas deposits located in the state outside the 01 Cook Inlet sedimentary basin and south of 68 degrees North latitude, other than oil 02 and gas deposits located in a lease or property that includes land north of 68 degrees 03 North latitude or that is subject to AS 43.55.011(p) or, before January 1, 2027, from 04 which commercial production has not begun, as adjusted under AS 43.55.170; 05 (3) from leases or properties subject to AS 43.55.011(p) is the gross 06 value at the point of production of that oil, less the producer's lease expenditures under 07 AS 43.55.165 for the calendar year incurred to explore for, develop, or produce oil and 08 gas deposits located in leases or properties subject to AS 43.55.011(p) or, before 09 January 1, 2027, located in leases or properties in the state outside the Cook Inlet 10 sedimentary basin, no part of which is north of 68 degrees North latitude from which 11 commercial production has not begun, as adjusted under AS 43.55.170; 12 (4) from leases or properties in the state no part of which is north of 68 13 degrees North latitude, other than leases or properties subject to (2) or (3) of this 14 subsection, is the gross value at the point of production of that oil less the producer's 15 lease expenditures under AS 43.55.165 for the calendar year incurred to explore for, 16 develop, or produce oil and gas deposits located in the state south of 68 degrees North 17 latitude, other than oil and gas deposits located in a lease or property in the state that 18 includes land north of 68 degrees North latitude, and excluding lease expenditures that 19 are deductible under (2) or (3) of this subsection or would be deductible under (2) or 20 (3) of this subsection if not prohibited by (b) of this section, as adjusted under 21 AS 43.55.170. 22  * Sec. 14. AS 43.98.050 is amended to read: 23 Sec. 43.98.050. Duties. The duties of the board include the following: 24 (1) establish and maintain a salient collection of information related to 25 oil and gas exploration, development, and production in the state and related to tax 26 structures, rates, and credits in other regions with oil and gas resources; 27 (2) review historical, current, and potential levels of investment in the 28 state's oil and gas sector; 29 (3) identify factors that affect investment in oil and gas exploration, 30 development, and production in the state, including tax structure, rates, and credits; 31 royalty requirements; infrastructure; workforce availability; and regulatory 01 requirements; 02 (4) review the competitive position of the state to attract and maintain 03 investment in the oil and gas sector in the state as compared to the competitive 04 position of other regions with oil and gas resources; 05 (5) in order to facilitate the work of the board, establish procedures to 06 accept and keep confidential information that is beneficial to the work of the board, 07 including the creation of a secure data room and confidentiality agreements to be 08 signed by individuals having access to confidential information; 09 (6) make written findings and recommendations to the Alaska State 10 Legislature before 11 (A) January 31, 2015, or as soon thereafter as practicable, 12 regarding 13 (i) changes to the state's regulatory environment and 14 permitting structure that would be conducive to encouraging increased 15 investment while protecting the interests of the people of the state and 16 the environment; 17 (ii) the status of the oil and gas industry labor pool in the 18 state and the effectiveness of workforce development efforts by the 19 state; 20 (iii) the status of the oil-and-gas-related infrastructure of 21 the state, including a description of infrastructure deficiencies; and 22 (iv) the competitiveness of the state's fiscal oil and gas 23 tax regime when compared to other regions of the world; 24 (B) January 15, 2017, regarding 25 (i) the state's tax structure and rates on oil and gas 26 produced south of 68 degrees North latitude; 27 (ii) a tax structure that takes into account the unique 28 economic circumstances for each oil and gas producing area south of 29 68 degrees North latitude; 30 (iii) a reduction in the gross value at the point of 31 production for oil and gas produced south of 68 degrees North latitude 01 that is similar to the reduction in gross value at the point of production 02 in AS 43.55.160(f) [AND (g)]; 03 (iv) other incentives for oil and gas production south of 04 68 degrees North latitude; 05 (C) January 31, 2021, or as soon thereafter as practicable, 06 regarding 07 (i) changes to the state's fiscal regime that would be 08 conducive to increased and ongoing long-term investment in and 09 development of the state's oil and gas resources; 10 (ii) alternative means for increasing the state's ability to 11 attract and maintain investment in and development of the state's oil 12 and gas resources; and 13 (iii) a review of the current effectiveness and future 14 value of any provisions of the state's oil and gas tax laws that are 15 expiring in the next five years. 16  * Sec. 15. AS 43.55.160(g) is repealed. 17  * Sec. 16. AS 43.55.011(q), 43.55.020(a)(5)(B), and 43.55.024(k) are repealed. 18  * Sec. 17. The uncodified law of the State of Alaska is amended by adding a new section to 19 read: 20 TRANSITION: PAYMENT OF TAX. A person that was required to make one or 21 more installment payments of estimated tax or other payment of tax under AS 43.55.020(a) 22 during the period after December 31, 2014, and before the effective date of secs. 2, 4 - 6, 8, 23 and 10 - 15 of this Act, but failed to pay the full amount of the installment payments or other 24 payment because of the retroactive application of AS 43.55.011(f), as amended by sec. 2 of 25 this Act, AS 43.55.011(q), added by sec. 4 of this Act, AS 43.55.020(a), as amended by sec. 5 26 of this Act, AS 43.55.024(i), as amended by sec. 6 of this Act, AS 43.55.024(j), as amended 27 by sec. 8 of this Act, AS 43.55.024(k), added by sec. 10 of this Act, AS 43.55.160(a), as 28 amended by sec. 11 of this Act, AS 43.55.160(f), as amended by sec. 12 of this Act, or former 29 AS 43.55.160(g), as repealed by sec. 15 of this Act, which are retroactive to January 1, 2015, 30 under sec. 19 of this Act, shall pay, before September 1, 2015, the balance of any tax due for 31 the period after December 31, 2014, and before the effective date of this section. 01  * Sec. 18. The uncodified law of the State of Alaska is amended by adding a new section to 02 read: 03 TRANSITION: RETROACTIVITY OF REGULATIONS. Notwithstanding any 04 contrary provision of AS 44.62.240, if the Department of Revenue expressly designates in the 05 regulation that the regulation applies retroactively to January 1, 2015, a regulation adopted by 06 the Department of Revenue to implement, interpret, make specific, or otherwise carry out 07 secs. 2, 4 - 6, 8, and 10 - 15 of this Act may apply retroactively to January 1, 2015. 08  * Sec. 19. The uncodified law of the State of Alaska is amended by adding a new section to 09 read: 10 RETROACTIVITY OF CERTAIN PROVISIONS OF THIS ACT. Sections 2, 4 - 6, 8, 11 and 10 - 15 of this Act are retroactive to January 1, 2015. 12  * Sec. 20. Sections 3, 7, 9, and 16 of this Act take effect December 31, 2016. 13  * Sec. 21. Except as provided in sec. 20 of this Act, this Act takes effect immediately under 14 AS 01.10.070(c).