HB 386: "An Act making uniform throughout the state the deadline for certain exploration expenditures used as credits against the production tax on oil and gas produced from a lease or property in the state by extending to July 1, 2010, the deadline for those expenditures on leases or properties located north of 68 degrees, 15 minutes, North latitude."
00 HOUSE BILL NO. 386 01 "An Act making uniform throughout the state the deadline for certain exploration 02 expenditures used as credits against the production tax on oil and gas produced from a 03 lease or property in the state by extending to July 1, 2010, the deadline for those 04 expenditures on leases or properties located north of 68 degrees, 15 minutes, North 05 latitude." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 43.55.025(b) is amended to read: 08 (b) To qualify for the production tax credit under (a) of this section, an 09 exploration expenditure must be incurred for work performed on or after July 1, 2003, 10 and before July 1, 2010 , except that an exploration expenditure for a Cook Inlet 11 prospect must be incurred for work performed on or after July 1, 2005, [AND 12 BEFORE JULY 1, 2010, AND EXCEPT THAT AN EXPLORATION 13 EXPENDITURE, IN WHOLE OR IN PART, SOUTH OF 68 DEGREES, 15
01 MINUTES, NORTH LATITUDE, AND NOT PART OF A COOK INLET 02 PROSPECT MUST BE INCURRED FOR WORK PERFORMED ON OR AFTER 03 JULY 1, 2003, AND BEFORE JULY 1, 2010,] and 04 (1) may be for seismic or geophysical exploration costs not connected 05 with a specific well; 06 (2) if for an exploration well, 07 (A) must be incurred by an explorer that holds an interest in the 08 exploration well for which the production tax credit is claimed; 09 (B) may be for either an oil or gas discovery well or a dry hole; 10 and 11 (C) must be for goods, services, or rentals of personal property 12 reasonably required for the surface preparation, drilling, casing, cementing, 13 and logging of an exploration well, and, in the case of a dry hole, for the 14 expenses required for abandonment if the well is abandoned within 18 months 15 after the date the well was spudded; 16 (3) may not be for testing, stimulation, or completion costs; 17 administration, supervision, engineering, or lease operating costs; geological or 18 management costs; community relations or environmental costs; bonuses, taxes, or 19 other payments to governments related to the well; or other costs that are generally 20 recognized as indirect costs or financing costs; and 21 (4) may not be incurred for an exploration well or seismic exploration 22 that is included in a plan of exploration or a plan of development for any unit on 23 May 13, 2003.