00 SENATE BILL NO. 96 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 barrels of oil by the close of the 02 most recent calendar year and from which the average daily production of oil from the 03 unit or nonunitized reservoir during the most recent calendar year exceeded 20,000 04 barrels. Notwithstanding any contrary provision of law, a producer may not apply tax 05 credits to reduce its total tax liability under (e) and (g) of this section for oil produced 06 from all leases or properties within the unit or nonunitized reservoir below 12.5 07 percent of the total gross value at the point of production of that oil. If the amount of 08 tax calculated by multiplying the tax rates in (e) and (g) of this section by the total 09 production tax value of the oil taxable under (e) and (g) of this section produced from 10 all of the producer's leases or properties within the unit or nonunitized reservoir is less 11 than 12.5 percent of the total gross value at the point of production of that oil, the tax 12 levied by (e) of this section for that oil is equal to 12.5 percent of the total gross value 13 at the point of production of that oil. 14  * Sec. 5. AS 43.55.020(a) is amended to read: 15 (a) For a calendar year, a producer subject to tax under AS 43.55.011 shall pay 16 the tax as follows: 17 (1) for oil and gas produced before January 1, 2014, an installment 18 payment of the estimated tax levied by AS 43.55.011(e), net of any tax credits applied 19 as allowed by law, is due for each month of the calendar year on the last day of the 20 following month; except as otherwise provided under (2) of this subsection, the 21 amount of the installment payment is the sum of the following amounts, less 1/12 of 22 the tax credits that are allowed by law to be applied against the tax levied by 23 AS 43.55.011(e) for the calendar year, but the amount of the installment payment may 24 not be less than zero: 25 (A) for oil and gas not subject to AS 43.55.011(o) or (p) 26 produced from leases or properties in the state outside the Cook Inlet 27 sedimentary basin, other than leases or properties subject to AS 43.55.011(f), 28 the greater of 29 (i) zero; or 30 (ii) the sum of 25 percent and the tax rate calculated for 31 the month under AS 43.55.011(g) multiplied by the remainder obtained 01 by subtracting 1/12 of the producer's adjusted lease expenditures for the 02 calendar year of production under AS 43.55.165 and 43.55.170 that are 03 deductible for the oil and gas under AS 43.55.160 from the gross value 04 at the point of production of the oil and gas produced from the leases or 05 properties during the month for which the installment payment is 06 calculated; 07 (B) for oil and gas produced from leases or properties subject 08 to AS 43.55.011(f), the greatest of 09 (i) zero; 10 (ii) zero percent, one percent, two percent, three 11 percent, or four percent, as applicable, of the gross value at the point of 12 production of the oil and gas produced from the leases or properties 13 during the month for which the installment payment is calculated; or 14 (iii) the sum of 25 percent and the tax rate calculated for 15 the month under AS 43.55.011(g) multiplied by the remainder obtained 16 by subtracting 1/12 of the producer's adjusted lease expenditures for the 17 calendar year of production under AS 43.55.165 and 43.55.170 that are 18 deductible for the oil and gas under AS 43.55.160 from the gross value 19 at the point of production of the oil and gas produced from those leases 20 or properties during the month for which the installment payment is 21 calculated; 22 (C) for oil or gas subject to AS 43.55.011(j), (k), or (o), for 23 each lease or property, the greater of 24 (i) zero; or 25 (ii) the sum of 25 percent and the tax rate calculated for 26 the month under AS 43.55.011(g) multiplied by the remainder obtained 27 by subtracting 1/12 of the producer's adjusted lease expenditures for the 28 calendar year of production under AS 43.55.165 and 43.55.170 that are 29 deductible under AS 43.55.160 for the oil or gas, respectively, 30 produced from the lease or property from the gross value at the point of 31 production of the oil or gas, respectively, produced from the lease or 01 property during the month for which the installment payment is 02 calculated; 03 (D) for oil and gas subject to AS 43.55.011(p), the lesser of 04 (i) the sum of 25 percent and the tax rate calculated for 05 the month under AS 43.55.011(g) multiplied by the remainder obtained 06 by subtracting 1/12 of the producer's adjusted lease expenditures for the 07 calendar year of production under AS 43.55.165 and 43.55.170 that are 08 deductible for the oil and gas under AS 43.55.160 from the gross value 09 at the point of production of the oil and gas produced from the leases or 10 properties during the month for which the installment payment is 11 calculated, but not less than zero; or 12 (ii) four percent 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, but not less than zero; 15 (2) an amount calculated under (1)(C) of this subsection for oil or gas 16 subject to AS 43.55.011(j), (k), or (o) may not exceed the product obtained by 17 carrying out the calculation set out in AS 43.55.011(j)(1) or (2) or 43.55.011(o), as 18 applicable, for gas or set out in AS 43.55.011(k)(1) or (2), as applicable, for oil, but 19 substituting in AS 43.55.011(j)(1)(A) or (2)(A) or 43.55.011(o), as applicable, the 20 amount of taxable gas produced during the month for the amount of taxable gas 21 produced during the calendar year and substituting in AS 43.55.011(k)(1)(A) or 22 (2)(A), as applicable, the amount of taxable oil produced during the month for the 23 amount of taxable oil produced during the calendar year; 24 (3) an installment payment of the estimated tax levied by 25 AS 43.55.011(i) for each lease or property is due for each month of the calendar year 26 on the last day of the following month; the amount of the installment payment is the 27 sum of 28 (A) the applicable tax rate for oil provided under 29 AS 43.55.011(i), multiplied by the gross value at the point of production of the 30 oil taxable under AS 43.55.011(i) and produced from the lease or property 31 during the month; and 01 (B) the applicable tax rate for gas provided under 02 AS 43.55.011(i), multiplied by the gross value at the point of production of the 03 gas taxable under AS 43.55.011(i) and produced from the lease or property 04 during the month; 05 (4) any amount of tax levied by AS 43.55.011, net of any credits 06 applied as allowed by law, that exceeds the total of the amounts due as installment 07 payments of estimated tax is due on March 31 of the year following the calendar year 08 of production; 09 (5) for oil and gas produced on and after January 1, 2014, and before 10 January 1, 2022, an installment payment of the estimated tax levied by 11 AS 43.55.011(e), net of any tax credits applied as allowed by law, is due for each 12 month of the calendar year on the last day of the following month; except as otherwise 13 provided under (6) of this subsection, the amount of the installment payment is the 14 sum of the following amounts, less 1/12 of the tax credits that are allowed by law to be 15 applied against the tax levied by AS 43.55.011(e) for the calendar year, but the amount 16 of the installment payment may not be less than zero: 17 (A) for oil and gas not subject to AS 43.55.011(o) or (p) 18 produced from leases or properties in the state outside the Cook Inlet 19 sedimentary basin, other than leases or properties subject to AS 43.55.011(f), 20 the greater of 21 (i) zero; or 22 (ii) 35 percent multiplied by the remainder obtained by 23 subtracting 1/12 of the producer's adjusted lease expenditures for the 24 calendar year of production under AS 43.55.165 and 43.55.170 that are 25 deductible for the oil and gas under AS 43.55.160 from the gross value 26 at the point of production of the oil and gas produced from the leases or 27 properties during the month for which the installment payment is 28 calculated; 29 (B) for oil and gas produced from leases or properties subject 30 to AS 43.55.011(f), the greatest of 31 (i) zero; 01 (ii) zero percent, one percent, two percent, three 02 percent, or four percent, as applicable, of the gross value at the point of 03 production of the oil and gas produced from the leases or properties 04 during the month for which the installment payment is calculated; or 05 (iii) 35 percent multiplied by the remainder obtained by 06 subtracting 1/12 of the producer's adjusted lease expenditures for the 07 calendar year of production under AS 43.55.165 and 43.55.170 that are 08 deductible for the oil and gas under AS 43.55.160 from the gross value 09 at the point of production of the oil and gas produced from those leases 10 or properties during the month for which the installment payment is 11 calculated, except that, for the purposes of this calculation, a reduction 12 from the gross value at the point of production may apply for oil and 13 gas subject to AS 43.55.160(f) [OR (g)]; 14 (C) for oil or gas subject to AS 43.55.011(j), (k), or (o), for 15 each lease or property, the greater of 16 (i) zero; or 17 (ii) 35 percent multiplied by the remainder obtained by 18 subtracting 1/12 of the producer's adjusted lease expenditures for the 19 calendar year of production under AS 43.55.165 and 43.55.170 that are 20 deductible under AS 43.55.160 for the oil or gas, respectively, 21 produced from the lease or property from the gross value at the point of 22 production of the oil or gas, respectively, produced from the lease or 23 property during the month for which the installment payment is 24 calculated; 25 (D) for oil and gas subject to AS 43.55.011(p), the lesser of 26 (i) 35 percent multiplied by the remainder obtained by 27 subtracting 1/12 of the producer's adjusted lease expenditures for the 28 calendar year of production under AS 43.55.165 and 43.55.170 that are 29 deductible for the oil and gas under AS 43.55.160 from the gross value 30 at the point of production of the oil and gas produced from the leases or 31 properties during the month for which the installment payment is 01 calculated, but not less than zero; or 02 (ii) four percent of the gross value at the point of 03 production of the oil and gas produced from the leases or properties 04 during the month, but not less than zero; 05 (E) for oil subject to AS 43.55.011(q), the greater of 06 (i) 12.5 percent of the gross value at the point of  07 production of that oil produced from leases or properties during  08 the month for which the installment payment is calculated; and  09 (ii) 35 percent multiplied by the remainder obtained  10 by subtracting 1/12 of the producer's adjusted lease expenditures  11 for the calendar year of production under AS 43.55.165 and  12 43.55.170 that are deductible for the oil under AS 43.55.160(h)(3)  13 from the gross value at the point of production of the oil produced  14 from the leases or properties during the month for which the  15 installment payment is calculated; 16 (6) an amount calculated under (5)(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 (7) for oil and gas produced on or after January 1, 2022, an installment 26 payment of the estimated tax levied by AS 43.55.011(e), net of any tax credits applied 27 as allowed by law, is due for each month of the calendar year on the last day of the 28 following month; the amount of the installment payment is the sum of the following 29 amounts, less 1/12 of the tax credits that are allowed by law to be applied against the 30 tax levied by AS 43.55.011(e) for the calendar year, but the amount of the installment 31 payment may not be less than zero: 01 (A) for oil produced from leases or properties that include land 02 north of 68 degrees North latitude, the greatest of 03 (i) zero; 04 (ii) zero percent, one percent, two percent, three 05 percent, or four percent, as applicable, of the gross value at the point of 06 production of the oil produced from the leases or properties during the 07 month for which the installment payment is calculated; or 08 (iii) 35 percent multiplied by the remainder obtained by 09 subtracting 1/12 of the producer's adjusted lease expenditures for the 10 calendar year of production under AS 43.55.165 and 43.55.170 that are 11 deductible for the oil under AS 43.55.160(h)(1) from the gross value at 12 the point of production of the oil produced from those leases or 13 properties during the month for which the installment payment is 14 calculated, except that, for the purposes of this calculation, a reduction 15 from the gross value at the point of production may apply for oil 16 subject to AS 43.55.160(f) [OR 43.55.160(f) AND (g)]; 17 (B) for oil produced before or during the last calendar year 18 under AS 43.55.024(b) for which the producer could take a tax credit under 19 AS 43.55.024(a), from leases or properties in the state outside the Cook Inlet 20 sedimentary basin, no part of which is north of 68 degrees North latitude, other 21 than leases or properties subject to AS 43.55.011(p), 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 under AS 43.55.160(h)(2) from the gross value at 27 the point of production of the oil produced from the leases or properties 28 during the month for which the installment payment is calculated; 29 (C) for oil and gas produced from leases or properties subject 30 to AS 43.55.011(p), except as otherwise provided under (8) of this subsection, 31 the sum of 01 (i) 35 percent multiplied by the remainder obtained by 02 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 under AS 43.55.160(h)(3) from the gross value at 05 the point of production of the oil produced from the leases or properties 06 during the month for which the installment payment is calculated, but 07 not less than zero; and 08 (ii) 13 percent of the gross value at the point of 09 production of the gas produced from the leases or properties during the 10 month, but not less than zero; 11 (D) for oil produced from leases or properties in the state, no 12 part of which is north of 68 degrees North latitude, other than leases or 13 properties subject to (B) or (C) of this paragraph, the greater of 14 (i) zero; or 15 (ii) 35 percent multiplied by the remainder obtained by 16 subtracting 1/12 of the producer's adjusted lease expenditures for the 17 calendar year of production under AS 43.55.165 and 43.55.170 that are 18 deductible for the oil under AS 43.55.160(h)(4) from the gross value at 19 the point of production of the oil produced from the leases or properties 20 during the month for which the installment payment is calculated; 21 (E) for gas produced from each lease or property in the state, 22 other than a lease or property subject to AS 43.55.011(p), 13 percent of the 23 gross value at the point of production of the gas produced from the lease or 24 property during the month for which the installment payment is calculated, but 25 not less than zero; 26 (8) an amount calculated under (7)(C) of this subsection may not 27 exceed four percent of the gross value at the point of production of the oil and gas 28 produced from leases or properties subject to AS 43.55.011(p) during the month for 29 which the installment payment is calculated; 30 (9) for purposes of the calculation under (1)(B)(ii), (5)(B)(ii), and 31 (7)(A)(ii) of this subsection, the applicable percentage of the gross value at the point 01 of production is determined under AS 43.55.011(f)(1) or (2) but substituting the 02 phrase "month for which the installment payment is calculated" in AS 43.55.011(f)(1) 03 and (2) for the phrase "calendar year for which the tax is due." 04  * Sec. 6. AS 43.55.024(i) is amended to read: 05 (i) A producer may apply against the producer's tax liability for the calendar 06 year under AS 43.55.011(e) a tax credit of $5 for each barrel of oil taxable under 07 AS 43.55.011(e) that meets one or more of the criteria in AS 43.55.160(f), but does  08 not meet the criteria for a credit in (k) of this section, [OR (g)] and that is produced 09 during a calendar year after December 31, 2013. A tax credit authorized by this 10 subsection may not reduce a producer's tax liability for a calendar year under 11 AS 43.55.011(e) below zero. 12  * Sec. 7. AS 43.55.024(i), as amended by sec. 6 of this Act, is amended to read: 13 (i) A producer may apply against the producer's tax liability for the calendar 14 year under AS 43.55.011(e) a tax credit of $5 for each barrel of oil taxable under 15 AS 43.55.011(e) that meets one or more of the criteria in AS 43.55.160(f) [, BUT 16 DOES NOT MEET THE CRITERIA FOR A CREDIT IN (k) OF THIS SECTION,] 17 and that is produced during a calendar year after December 31, 2013. A tax credit 18 authorized by this subsection may not reduce a producer's tax liability for a calendar 19 year under AS 43.55.011(e) below zero. 20  * Sec. 8. AS 43.55.024(j) is amended to read: 21 (j) A producer may apply against the producer's tax liability for the calendar 22 year under AS 43.55.011(e) a tax credit in the amount specified in this subsection for 23 each barrel of oil taxable under AS 43.55.011(e) that does not meet any of the criteria 24 in AS 43.55.160(f) or the criteria for a credit under (k) of this section, [(g)] and that 25 is produced during a calendar year after December 31, 2013, from leases or properties 26 north of 68 degrees North latitude. A tax credit under this subsection may not reduce a 27 producer's tax liability for a calendar year under AS 43.55.011(e) below the amount 28 calculated under AS 43.55.011(f). The amount of the tax credit for a barrel of taxable 29 oil subject to this subsection produced during a month of the calendar year is 30 (1) $8 for each barrel of taxable oil if the average gross value at the 31 point of production for the month is less than $80 a barrel; 01 (2) $7 for each barrel of taxable oil if the average gross value at the 02 point of production for the month is greater than or equal to $80 a barrel, but less than 03 $90 a barrel; 04 (3) $6 for each barrel of taxable oil if the average gross value at the 05 point of production for the month is greater than or equal to $90 a barrel, but less than 06 $100 a barrel; 07 (4) $5 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 $100 a barrel, but less 09 than $110 a barrel; 10 (5) $4 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 $110 a barrel, but less 12 than $120 a barrel; 13 (6) $3 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 $120 a barrel, but less 15 than $130 a barrel; 16 (7) $2 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 $130 a barrel, but less 18 than $140 a barrel; 19 (8) $1 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 $140 a barrel, but less 21 than $150 a barrel; 22 (9) zero if the average gross value at the point of production for the 23 month is greater than or equal to $150 a barrel. 24  * Sec. 9. AS 43.55.024(j), as amended by sec. 8 of this Act, is amended to read: 25 (j) A producer may apply against the producer's tax liability for the calendar 26 year under AS 43.55.011(e) a tax credit in the amount specified in this subsection for 27 each barrel of oil taxable under AS 43.55.011(e) that does not meet any of the criteria 28 in AS 43.55.160(f) [OR THE CRITERIA FOR A CREDIT UNDER (k) OF THIS 29 SECTION,] and that is produced during a calendar year after December 31, 2013, 30 from leases or properties north of 68 degrees North latitude. A tax credit under this 31 subsection may not reduce a producer's tax liability for a calendar year under 01 AS 43.55.011(e) below the amount calculated under AS 43.55.011(f). The amount of 02 the tax credit for a barrel of taxable oil subject to this subsection produced during a 03 month of the calendar year is 04 (1) $8 for each barrel of taxable oil if the average gross value at the 05 point of production for the month is less than $80 a barrel; 06 (2) $7 for each barrel of taxable oil if the average gross value at the 07 point of production for the month is greater than or equal to $80 a barrel, but less than 08 $90 a barrel; 09 (3) $6 for each barrel of taxable oil if the average gross value at the 10 point of production for the month is greater than or equal to $90 a barrel, but less than 11 $100 a barrel; 12 (4) $5 for each barrel of taxable oil if the average gross value at the 13 point of production for the month is greater than or equal to $100 a barrel, but less 14 than $110 a barrel; 15 (5) $4 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 $110 a barrel, but less 17 than $120 a barrel; 18 (6) $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 $120 a barrel, but less 20 than $130 a barrel; 21 (7) $2 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 $130 a barrel, but less 23 than $140 a barrel; 24 (8) $1 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 $140 a barrel, but less 26 than $150 a barrel; 27 (9) zero if the average gross value at the point of production for the 28 month is greater than or equal to $150 a barrel. 29  * Sec. 10. AS 43.55.024 is amended by adding a new subsection to read: 30 (k) A producer may apply against the producer's tax liability for the calendar 31 year under AS 43.55.011(e) a tax credit in the amount specified in this subsection for 01 each barrel of oil taxable under AS 43.55.011(e) produced from a lease or property 02 north of 68 degrees North latitude, within a unit that had first commercial production 03 within 20 years after establishment under AS 38.05.180(p), and within a unit or 04 nonunitized reservoir that has cumulatively produced 400,000,000 barrels of oil by the 05 close of the most recent calendar year and from which the average daily production of 06 oil from the unit or nonunitized reservoir during the most recent calendar year 07 exceeded 20,000 barrels. A tax credit under this subsection may not reduce a 08 producer's tax liability for a calendar year under AS 43.55.011(e) below the amount 09 calculated under AS 43.55.011(f). The amount of the tax credit for a barrel of taxable 10 oil subject to this subsection produced during a month of the calendar year is 11 (1) $4 for each barrel of taxable oil if the average gross value at the 12 point of production for the month is less than $80 a barrel; 13 (2) $3.50 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 $80 a barrel, but less than 15 $90 a barrel; 16 (3) $3 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 $90 a barrel, but less than 18 $100 a barrel; 19 (4) $2.50 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 $100 a barrel, but less 21 than $110 a barrel; 22 (5) $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 $110 a barrel, but less 24 than $120 a barrel; 25 (6) $1.50 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 $120 a barrel, but less 27 than $130 a barrel; 28 (7) $1 for each barrel of taxable oil if the average gross value at the 29 point of production for the month is greater than or equal to $130 a barrel, but less 30 than $140 a barrel; 31 (8) $.50 for each barrel of taxable oil if the average gross value at the 01 point of production for the month is greater than or equal to $140 a barrel, but less 02 than $150 a barrel; 03 (9) zero if the average gross value at the point of production for the 04 month is greater than or equal to $150 a barrel. 05  * Sec. 11. AS 43.55.160(a) is amended to read: 06 (a) For oil and gas produced before January 1, 2022, except as provided in (b) 07 and [,] (f) [, AND (g)] of this section, for the purposes of 08 (1) AS 43.55.011(e)(1) and (2), the annual production tax value of 09 taxable oil, gas, or oil and gas produced during a calendar year in a category for which 10 a separate annual production tax value is required to be calculated under this 11 paragraph is the gross value at the point of production of that oil, gas, or oil and gas 12 taxable under AS 43.55.011(e), less the producer's lease expenditures under 13 AS 43.55.165 for the calendar year applicable to the oil, gas, or oil and gas in that 14 category produced by the producer during the calendar year, as adjusted under 15 AS 43.55.170; a separate annual production tax value shall be calculated for 16 (A) oil and gas produced from leases or properties in the state 17 that include land north of 68 degrees North latitude, other than gas produced 18 before 2022 and used in the state; 19 (B) oil and gas produced from leases or properties in the state 20 outside the Cook Inlet sedimentary basin, no part of which is north of 68 21 degrees North latitude and that qualifies for a tax credit under AS 43.55.024(a) 22 and (b); this subparagraph does not apply to 23 (i) gas produced before 2022 and used in the state; or 24 (ii) oil and gas subject to AS 43.55.011(p); 25 (C) oil produced before 2022 from each lease or property in the 26 Cook Inlet sedimentary basin; 27 (D) gas produced before 2022 from each lease or property in 28 the Cook Inlet sedimentary basin; 29 (E) gas produced before 2022 from each lease or property in 30 the state outside the Cook Inlet sedimentary basin and used in the state, other 31 than gas subject to AS 43.55.011(p); 01 (F) oil and gas subject to AS 43.55.011(p) produced from 02 leases or properties in the state; 03 (G) oil and gas produced from leases or properties in the state 04 no part of which is north of 68 degrees North latitude, other than oil or gas 05 described in (B), (C), (D), (E), or (F) of this paragraph; 06 (2) AS 43.55.011(g), for oil and gas produced before January 1, 2014, 07 the monthly production tax value of the taxable 08 (A) oil and gas produced during a month from leases or 09 properties in the state that include land north of 68 degrees North latitude is the 10 gross value at the point of production of the oil and gas taxable under 11 AS 43.55.011(e) and produced by the producer from those leases or properties, 12 less 1/12 of the producer's lease expenditures under AS 43.55.165 for the 13 calendar year applicable to the oil and gas produced by the producer from 14 those leases or properties, as adjusted under AS 43.55.170; this subparagraph 15 does not apply to gas subject to AS 43.55.011(o); 16 (B) oil and gas produced during a month from leases or 17 properties in the state outside the Cook Inlet sedimentary basin, no part of 18 which is north of 68 degrees North latitude, is the gross value at the point of 19 production of the oil and gas taxable under AS 43.55.011(e) and produced by 20 the producer from those leases or properties, less 1/12 of the producer's lease 21 expenditures under AS 43.55.165 for the calendar year applicable to the oil and 22 gas produced by the producer from those leases or properties, as adjusted under 23 AS 43.55.170; this subparagraph does not apply to gas subject to 24 AS 43.55.011(o); 25 (C) oil produced during a month from a lease or property in the 26 Cook Inlet sedimentary basin is the gross value at the point of production of 27 the oil taxable under AS 43.55.011(e) and produced by the producer from that 28 lease or property, less 1/12 of the producer's lease expenditures under 29 AS 43.55.165 for the calendar year applicable to the oil produced by the 30 producer from that lease or property, as adjusted under AS 43.55.170; 31 (D) gas produced during a month from a lease or property in 01 the Cook Inlet sedimentary basin is the gross value at the point of production 02 of the gas taxable under AS 43.55.011(e) and produced by the producer from 03 that lease or property, less 1/12 of the producer's lease expenditures under 04 AS 43.55.165 for the calendar year applicable to the gas produced by the 05 producer from that lease or property, as adjusted under AS 43.55.170; 06 (E) gas produced during a month from a lease or property 07 outside the Cook Inlet sedimentary basin and used in the state is the gross 08 value at the point of production of that gas taxable under AS 43.55.011(e) and 09 produced by the producer from that lease or property, less 1/12 of the 10 producer's lease expenditures under AS 43.55.165 for the calendar year 11 applicable to that gas produced by the producer from that lease or property, as 12 adjusted under AS 43.55.170. 13  * Sec. 12. AS 43.55.160(f) is amended to read: 14 (f) On and after January 1, 2014, in the calculation of an annual production tax 15 value of a producer under (a)(1)(A) or (h)(1) of this section, the gross value at the 16 point of production of oil or gas produced from a lease or property north of 68 degrees 17 North latitude [MEETING ONE OR MORE OF THE FOLLOWING CRITERIA] is 18 reduced by 10 [20] percent for the first portion of a calendar year after the  19 commencement of commercial production and the three immediately following  20 calendar years, if [: (1)] the oil or gas is produced from a lease or property that is not  21 located within a unit established under AS 38.05.180(p) for more than 20 years  22 before the first commercial production on that lease or property, as that unit  23 existed on the effective date of this section, and is [DOES NOT CONTAIN A 24 LEASE THAT WAS] within a unit that did not have commercial production  25 before January 1, 2014 [ON JANUARY 1, 2003; (2) THE OIL OR GAS IS 26 PRODUCED FROM A PARTICIPATING AREA ESTABLISHED AFTER 27 DECEMBER 31, 2011, THAT IS WITHIN A UNIT FORMED UNDER 28 AS 38.05.180(p) BEFORE JANUARY 1, 2003, IF THE PARTICIPATING AREA 29 DOES NOT CONTAIN A RESERVOIR THAT HAD PREVIOUSLY BEEN IN A 30 PARTICIPATING AREA ESTABLISHED BEFORE DECEMBER 31, 2011; (3) 31 THE OIL OR GAS IS PRODUCED FROM ACREAGE THAT WAS ADDED TO 01 AN EXISTING PARTICIPATING AREA BY THE DEPARTMENT OF NATURAL 02 RESOURCES ON AND AFTER JANUARY 1, 2014, AND THE PRODUCER 03 DEMONSTRATES TO THE DEPARTMENT THAT THE VOLUME OF OIL OR 04 GAS PRODUCED IS FROM ACREAGE ADDED TO AN EXISTING 05 PARTICIPATING AREA]. This subsection does not apply to gas produced before 06 2022 that is used in the state or to gas produced on and after January 1, 2022. A 07 reduction under this subsection may not reduce the gross value at the point of 08 production below zero. [IN THIS SUBSECTION, "PARTICIPATING AREA" 09 MEANS A RESERVOIR OR PORTION OF A RESERVOIR PRODUCING OR 10 CONTRIBUTING TO PRODUCTION AS APPROVED BY THE DEPARTMENT 11 OF NATURAL RESOURCES.] 12  * Sec. 13. AS 43.55.160(h) is amended to read: 13 (h) For oil produced on and after January 1, 2022, except as provided in (b) 14 and [,] (f) [, AND (g)] of this section, for the purposes of AS 43.55.011(e)(3), the 15 annual production tax value of oil taxable under AS 43.55.011(e) produced by a 16 producer during a calendar year 17 (1) from leases or properties in the state that include land north of 68 18 degrees North latitude is the gross value at the point of production of that oil, less the 19 producer's lease expenditures under AS 43.55.165 for the calendar year incurred to 20 explore for, develop, or produce oil and gas deposits located in the state north of 68 21 degrees North latitude or located in leases or properties in the state that include land 22 north of 68 degrees North latitude, as adjusted under AS 43.55.170; 23 (2) before or during the last calendar year under AS 43.55.024(b) for 24 which the producer could take a tax credit under AS 43.55.024(a), from leases or 25 properties in the state outside the Cook Inlet sedimentary basin, no part of which is 26 north of 68 degrees North latitude, other than leases or properties subject to 27 AS 43.55.011(p), is the gross value at the point of production of that oil, less the 28 producer's lease expenditures under AS 43.55.165 for the calendar year incurred to 29 explore for, develop, or produce oil and gas deposits located in the state outside the 30 Cook Inlet sedimentary basin and south of 68 degrees North latitude, other than oil 31 and gas deposits located in a lease or property that includes land north of 68 degrees 01 North latitude or that is subject to AS 43.55.011(p) or, before January 1, 2027, from 02 which commercial production has not begun, as adjusted under AS 43.55.170; 03 (3) from leases or properties subject to AS 43.55.011(p) is the gross 04 value at the point of production of that oil, less the producer's lease expenditures under 05 AS 43.55.165 for the calendar year incurred to explore for, develop, or produce oil and 06 gas deposits located in leases or properties subject to AS 43.55.011(p) or, before 07 January 1, 2027, located in leases or properties in the state outside the Cook Inlet 08 sedimentary basin, no part of which is north of 68 degrees North latitude from which 09 commercial production has not begun, as adjusted under AS 43.55.170; 10 (4) from leases or properties in the state no part of which is north of 68 11 degrees North latitude, other than leases or properties subject to (2) or (3) of this 12 subsection, is the gross value at the point of production of that oil less the producer's 13 lease expenditures under AS 43.55.165 for the calendar year incurred to explore for, 14 develop, or produce oil and gas deposits located in the state south of 68 degrees North 15 latitude, other than oil and gas deposits located in a lease or property in the state that 16 includes land north of 68 degrees North latitude, and excluding lease expenditures that 17 are deductible under (2) or (3) of this subsection or would be deductible under (2) or 18 (3) of this subsection if not prohibited by (b) of this section, as adjusted under 19 AS 43.55.170. 20  * Sec. 14. AS 43.98.050 is amended to read: 21 Sec. 43.98.050. Duties. The duties of the board include the following: 22 (1) establish and maintain a salient collection of information related to 23 oil and gas exploration, development, and production in the state and related to tax 24 structures, rates, and credits in other regions with oil and gas resources; 25 (2) review historical, current, and potential levels of investment in the 26 state's oil and gas sector; 27 (3) identify factors that affect investment in oil and gas exploration, 28 development, and production in the state, including tax structure, rates, and credits; 29 royalty requirements; infrastructure; workforce availability; and regulatory 30 requirements; 31 (4) review the competitive position of the state to attract and maintain 01 investment in the oil and gas sector in the state as compared to the competitive 02 position of other regions with oil and gas resources; 03 (5) in order to facilitate the work of the board, establish procedures to 04 accept and keep confidential information that is beneficial to the work of the board, 05 including the creation of a secure data room and confidentiality agreements to be 06 signed by individuals having access to confidential information; 07 (6) make written findings and recommendations to the Alaska State 08 Legislature before 09 (A) January 31, 2015, or as soon thereafter as practicable, 10 regarding 11 (i) changes to the state's regulatory environment and 12 permitting structure that would be conducive to encouraging increased 13 investment while protecting the interests of the people of the state and 14 the environment; 15 (ii) the status of the oil and gas industry labor pool in 16 the state and the effectiveness of workforce development efforts by the 17 state; 18 (iii) the status of the oil-and-gas-related infrastructure 19 of the state, including a description of infrastructure deficiencies; and 20 (iv) the competitiveness of the state's fiscal oil and gas 21 tax regime when compared to other regions of the world; 22 (B) January 15, 2017, regarding 23 (i) the state's tax structure and rates on oil and gas 24 produced south of 68 degrees North latitude; 25 (ii) a tax structure that takes into account the unique 26 economic circumstances for each oil and gas producing area south of 27 68 degrees North latitude; 28 (iii) a reduction in the gross value at the point of 29 production for oil and gas produced south of 68 degrees North latitude 30 that is similar to the reduction in gross value at the point of production 31 in AS 43.55.160(f) [AND (g)]; 01 (iv) other incentives for oil and gas production south of 02 68 degrees North latitude; 03 (C) January 31, 2021, or as soon thereafter as practicable, 04 regarding 05 (i) changes to the state's fiscal regime that would be 06 conducive to increased and ongoing long-term investment in and 07 development of the state's oil and gas resources; 08 (ii) alternative means for increasing the state's ability to 09 attract and maintain investment in and development of the state's oil 10 and gas resources; and 11 (iii) a review of the current effectiveness and future 12 value of any provisions of the state's oil and gas tax laws that are 13 expiring in the next five years. 14  * Sec. 15. AS 43.55.160(g) is repealed. 15  * Sec. 16. AS 43.55.011(q), 43.55.020(a)(5)(B), and 43.55.024(k) are repealed. 16  * Sec. 17. The uncodified law of the State of Alaska is amended by adding a new section to 17 read: 18 TRANSITION: PAYMENT OF TAX. A person that was required to make one or 19 more installment payments of estimated tax or other payment of tax under AS 43.55.020(a) 20 during the period after December 31, 2014, and before the effective date of secs. 2, 4 - 6, 8, 21 and 10 - 15 of this Act, but failed to pay the full amount of the installment payments or other 22 payment because of the retroactive application of AS 43.55.011(f), as amended by sec. 2 of 23 this Act, AS 43.55.011(q), added by sec. 4 of this Act, AS 43.55.020(a), as amended by sec. 5 24 of this Act, AS 43.55.024(i), as amended by sec. 6 of this Act, AS 43.55.024(j), as amended 25 by sec. 8 of this Act, AS 43.55.024(k), added by sec. 10 of this Act, AS 43.55.160(a), as 26 amended by sec. 11 of this Act, AS 43.55.160(f), as amended by sec. 12 of this Act, or former 27 AS 43.55.160(g), as repealed by sec. 15 of this Act, which are retroactive to January 1, 2015, 28 under sec. 19 of this Act, shall pay, before September 1, 2015, the balance of any tax due for 29 the period after December 31, 2014, and before the effective date of this section. 30  * Sec. 18. The uncodified law of the State of Alaska is amended by adding a new section to 31 read: 01 TRANSITION: RETROACTIVITY OF REGULATIONS. Notwithstanding any 02 contrary provision of AS 44.62.240, if the Department of Revenue expressly designates in the 03 regulation that the regulation applies retroactively to January 1, 2015, a regulation adopted by 04 the Department of Revenue to implement, interpret, make specific, or otherwise carry out 05 secs. 2, 4 - 6, 8, and 10 - 15 of this Act may apply retroactively to January 1, 2015. 06  * Sec. 19. The uncodified law of the State of Alaska is amended by adding a new section to 07 read: 08 RETROACTIVITY OF CERTAIN PROVISIONS OF THIS ACT. Sections 2, 4 - 6, 8, 09 and 10 - 15 of this Act are retroactive to January 1, 2015. 10  * Sec. 20. Sections 3, 7, 9, and 16 of this Act take effect December 31, 2016. 11  * Sec. 21. Except as provided in sec. 20 of this Act, this Act takes effect immediately under 12 AS 01.10.070(c).