HCS CSSB 305(RES): "An Act relating to that part of the tax on the production of oil and gas that increases as the average production tax value of the oil and gas increases above $30; relating to payments of the oil and gas production tax; relating to availability of a portion of the money received from the tax on oil and gas production for appropriation to the community revenue sharing fund; relating to the allocation of lease expenditures and adjustments to lease expenditures; relating to the tax on the production of gas in effect at the start of the first binding open season held for the project licensed under the Alaska Gasline Inducement Act; and providing for an effective date."
00 HOUSE CS FOR CS FOR SENATE BILL NO. 305(RES) 01 "An Act relating to that part of the tax on the production of oil and gas that increases as 02 the average production tax value of the oil and gas increases above $30; relating to 03 payments of the oil and gas production tax; relating to availability of a portion of the 04 money received from the tax on oil and gas production for appropriation to the 05 community revenue sharing fund; relating to the allocation of lease expenditures and 06 adjustments to lease expenditures; relating to the tax on the production of gas in effect 07 at the start of the first binding open season held for the project licensed under the 08 Alaska Gasline Inducement Act; and providing for an effective date." 09 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 10 * Section 1. AS 29.60.850(b) is amended to read: 11 (b) Each fiscal year, the legislature may appropriate to the community revenue 12 sharing fund an amount equal to 20 percent of the money received by the state during
01 the previous calendar year under AS 43.55.011(g) and (p). The amount may not 02 exceed 03 (1) $60,000,000; or 04 (2) the amount that, when added to the fund balance on June 30 of the 05 previous fiscal year, equals $180,000,000. 06 * Sec. 2. AS 29.60.850(b), as amended by sec. 1 of this Act, is amended to read: 07 (b) Each fiscal year, the legislature may appropriate to the community revenue 08 sharing fund an amount equal to 20 percent of the money received by the state during 09 the previous calendar year under AS 43.55.011(g) [AND (p)]. The amount may not 10 exceed 11 (1) $60,000,000; or 12 (2) the amount that, when added to the fund balance on June 30 of the 13 previous fiscal year, equals $180,000,000. 14 * Sec. 3. AS 29.60.850(b), as amended by sec. 2 of this Act, is amended to read: 15 (b) Each fiscal year, the legislature may appropriate to the community revenue 16 sharing fund an amount equal to 20 percent of the money received by the state during 17 the previous calendar year under AS 43.55.011(g) and (q). The amount may not 18 exceed 19 (1) $60,000,000; or 20 (2) the amount that, when added to the fund balance on June 30 of the 21 previous fiscal year, equals $180,000,000. 22 * Sec. 4. AS 43.55.011(e) is amended to read: 23 (e) There is levied on the producer of oil or gas a tax for all oil and gas 24 produced each calendar year from each lease or property in the state, less any oil and 25 gas the ownership or right to which is exempt from taxation or constitutes a 26 landowner's royalty interest. Except as otherwise provided under (f), (j), (k), and (o) of 27 this section, the tax is equal to the sum of 28 (1) the annual production tax value of the taxable oil and gas as 29 calculated under AS 43.55.160(a)(1) multiplied by 25 percent; and 30 (2) the sum, over all months of the calendar year, of the tax amounts 31 determined under
01 (A) subsection (g) of this section; and 02 (B) subsection (p) of this section. 03 * Sec. 5. AS 43.55.011(e), as amended by sec. 4 of this Act, is amended to read: 04 (e) There is levied on the producer of oil or gas a tax for all oil and gas 05 produced each calendar year from each lease or property in the state, less any oil and 06 gas the ownership or right to which is exempt from taxation or constitutes a 07 landowner's royalty interest. Except as otherwise provided under (f), (j), (k), and (o) of 08 this section, the tax is equal to the sum of 09 (1) the annual production tax value of the taxable oil and gas as 10 calculated under AS 43.55.160(a)(1) multiplied by 25 percent; and 11 (2) the sum, over all months of the calendar year, of the tax amounts 12 determined under 13 [(A) SUBSECTION] (g) of this section [; AND 14 (B) SUBSECTION (p) OF THIS SECTION]. 15 * Sec. 6. AS 43.55.011(e) as amended by sec. 5 of this Act is amended to read: 16 (e) There is levied on the producer of oil or gas a tax for all oil and gas 17 produced each calendar year from each lease or property in the state, less any oil and 18 gas the ownership or right to which is exempt from taxation or constitutes a 19 landowner's royalty interest. Except as otherwise provided under (f), (j), (k), and (o) of 20 this section, the tax is equal to the sum of 21 (1) the annual production tax value of the taxable oil and gas as 22 calculated under AS 43.55.160(a)(1) multiplied by 25 percent; and 23 (2) the sum, over all months of the calendar year, of the tax amounts 24 determined under 25 (A) subsection (g) of this section; and 26 (B) subsection (q) of this section. 27 * Sec. 7. AS 43.55.011(g) is amended to read: 28 (g) For each month of the calendar year for which the producer's average 29 monthly production tax value under AS 43.55.160(a)(2)(A) - (E) of a 30 [AS 43.55.160(a)(2) PER] BTU equivalent barrel of [THE] taxable oil and gas is more 31 than $30, the amount of tax for purposes of (e)(2)(A) [(e)(2)] of this section is
01 determined by multiplying the monthly production tax value of the taxable oil [AND 02 GAS] produced during the month, gas produced during the month from a lease or 03 property in the Cook Inlet sedimentary basin, and gas produced during the 04 month from a lease or property outside the Cook Inlet sedimentary basin and 05 used in the state by the tax rate calculated as follows: 06 (1) if the producer's average monthly production tax value under 07 AS 43.55.160(a)(2)(A) - (E) of a [PER] BTU equivalent barrel of [THE] taxable oil 08 and gas for the month is not more than $92.50, the tax rate is 0.4 percent multiplied by 09 the number that represents the difference between the producer's [THAT] average 10 monthly production tax value under AS 43.55.160(a)(2)(A) - (E) of a [PER] BTU 11 equivalent barrel of taxable oil and gas and $30; or 12 (2) if the producer's average monthly production tax value under 13 AS 43.55.160(a)(2)(A) - (E) of a [PER] BTU equivalent barrel of [THE] taxable oil 14 and gas for the month is more than $92.50, the tax rate is the sum of 25 percent and 15 the product of 0.1 percent multiplied by the number that represents the difference 16 between the producer's average monthly production tax value under 17 AS 43.55.160(a)(2)(A) - (E) of a [PER] BTU equivalent barrel of taxable oil and gas 18 and $92.50, except that the sum determined under this paragraph may not exceed 50 19 percent. 20 * Sec. 8. AS 43.55.011(g), as amended by sec. 7 of this Act, is amended to read: 21 (g) For each month of the calendar year for which the producer's average 22 monthly production tax value under AS 43.55.160(a)(2) [AS 43.55.160(a)(2)(A) - (E)] 23 of a BTU equivalent barrel of taxable oil and gas is more than $30, the amount of tax 24 for purposes of (e)(2) [(e)(2)(A)] of this section is determined by multiplying the 25 monthly production tax value of the taxable oil and gas produced during the month [, 26 GAS PRODUCED DURING THE MONTH FROM A LEASE OR PROPERTY IN 27 THE COOK INLET SEDIMENTARY BASIN, AND GAS PRODUCED DURING 28 THE MONTH FROM A LEASE OR PROPERTY OUTSIDE THE COOK INLET 29 SEDIMENTARY BASIN AND USED IN THE STATE] by the tax rate calculated as 30 follows: 31 (1) if the producer's average monthly production tax value [UNDER
01 AS 43.55.160(a)(2)(A) - (E)] of a BTU equivalent barrel of taxable oil and gas for the 02 month is not more than $92.50, the tax rate is 0.4 percent multiplied by the number 03 that represents the difference between the producer's average monthly production tax 04 value [UNDER AS 43.55.160(a)(2)(A) - (E)] of a BTU equivalent barrel of taxable oil 05 and gas and $30; or 06 (2) if the producer's average monthly production tax value [UNDER 07 AS 43.55.160(a)(2)(A) - (E)] of a BTU equivalent barrel of taxable oil and gas for the 08 month is more than $92.50, the tax rate is the sum of 25 percent and the product of 0.1 09 percent multiplied by the number that represents the difference between the producer's 10 average monthly production tax value [UNDER AS 43.55.160(a)(2)(A) - (E)] of a 11 BTU equivalent barrel of taxable oil and gas and $92.50, except that the sum 12 determined under this paragraph may not exceed 50 percent. 13 * Sec. 9. AS 43.55.011(g), as amended by sec. 8 of this Act, is amended to read: 14 (g) For each month of the calendar year for which the producer's average 15 monthly production tax value under AS 43.55.160(a)(2)(A) - (E) [AS 43.55.160(a)(2)] 16 of a BTU equivalent barrel of taxable oil and gas is more than $30, the amount of tax 17 for purposes of (e)(2)(A) [(e)(2)] of this section is determined by multiplying the 18 monthly production tax value of the taxable oil [AND GAS] produced during the 19 month, gas produced during the month from a lease or property in the Cook Inlet 20 sedimentary basin, and gas produced during the month from a lease or property 21 outside the Cook Inlet sedimentary basin and used in the state by the tax rate 22 calculated as follows: 23 (1) if the producer's average monthly production tax value under 24 AS 43.55.160(a)(2)(A) - (E) of a BTU equivalent barrel of taxable oil and gas for the 25 month is not more than $92.50, the tax rate is 0.4 percent multiplied by the number 26 that represents the difference between the producer's average monthly production tax 27 value under AS 43.55.160(a)(2)(A) - (E) of a BTU equivalent barrel of taxable oil 28 and gas and $30; or 29 (2) if the producer's average monthly production tax value under 30 AS 43.55.160(a)(2)(A) - (E) of a BTU equivalent barrel of taxable oil and gas for the 31 month is more than $92.50, the tax rate is the sum of 25 percent and the product of 0.1
01 percent multiplied by the number that represents the difference between the producer's 02 average monthly production tax value under AS 43.55.160(a)(2)(A) - (E) of a BTU 03 equivalent barrel of taxable oil and gas and $92.50, except that the sum determined 04 under this paragraph may not exceed 50 percent. 05 * Sec. 10. AS 43.55.011 is amended by adding a new subsection to read: 06 (p) For each month of the calendar year for which the producer's average 07 monthly production tax value under AS 43.55.160(a)(2)(F) and (G) of a BTU 08 equivalent barrel of taxable gas is more than $30, the amount of tax on the production 09 of gas for purposes of (e)(2)(B) of this section is determined by multiplying the 10 monthly production tax value of the taxable gas produced during the month other than 11 gas produced from a lease or property in the Cook Inlet sedimentary basin or gas 12 produced outside the Cook Inlet sedimentary basin and used in the state by the tax rate 13 calculated as follows: 14 (1) if the producer's average monthly production tax value under 15 AS 43.55.160(a)(2)(F) and (G) of a BTU equivalent barrel of taxable gas for the 16 month is not more than $92.50, the tax rate is 0.4 percent multiplied by the number 17 that represents the difference between the producer's average monthly production tax 18 value under AS 43.55.160(a)(2)(F) and (G) of a BTU equivalent barrel of gas and $30; 19 or 20 (2) if the producer's average monthly production tax value under 21 AS 43.55.160(a)(2)(F) and (G) of a BTU equivalent barrel of taxable gas for the 22 month is more than $92.50, the tax rate is the sum of 25 percent and the product of 0.1 23 percent multiplied by the number that represents the difference between the producer's 24 average monthly production tax value under AS 43.55.160(a)(2)(F) and (G) of a BTU 25 equivalent barrel of gas and $92.50, except that the sum determined under this 26 paragraph may not exceed 50 percent. 27 * Sec. 11. AS 43.55.011 is amended by adding a new subsection to read: 28 (q) For each month of the calendar year for which the producer's average 29 monthly production tax value under AS 43.55.160(a)(2)(F) and (G) of a BTU 30 equivalent barrel of taxable gas is more than $30, the amount of tax on the production 31 of gas for purposes of (e)(2)(B) of this section is determined by multiplying the
01 monthly production tax value of the taxable gas produced during the month other than 02 gas produced from a lease or property in the Cook Inlet sedimentary basin or gas 03 produced outside the Cook Inlet sedimentary basin and used in the state by the tax rate 04 calculated as follows: 05 (1) if the producer's average monthly production tax value under 06 AS 43.55.160(a)(2)(F) and (G) of a BTU equivalent barrel of taxable gas for the 07 month is not more than $92.50, the tax rate is 0.4 percent multiplied by the number 08 that represents the difference between the producer's average monthly production tax 09 value under AS 43.55.160(a)(2)(F) and (G) of a BTU equivalent barrel of gas and $30; 10 or 11 (2) if the producer's average monthly production tax value under 12 AS 43.55.160(a)(2)(F) and (G) of a BTU equivalent barrel of taxable gas for the 13 month is more than $92.50, the tax rate is the sum of 25 percent and the product of 0.1 14 percent multiplied by the number that represents the difference between the producer's 15 average monthly production tax value under AS 43.55.160(a)(2)(F) and (G) of a BTU 16 equivalent barrel of gas and $92.50, except that the sum determined under this 17 paragraph may not exceed 50 percent. 18 * Sec. 12. AS 43.55.020(a) is amended to read: 19 (a) For a calendar year, a producer subject to tax under AS 43.55.011(e) - (i) 20 and (p) shall pay the tax as follows: 21 (1) an installment payment of the estimated tax levied by 22 AS 43.55.011(e), net of any tax credits applied as allowed by law, is due for each 23 month of the calendar year on the last day of the following month; except as otherwise 24 provided under (2) of this subsection, the amount of the installment payment is the 25 sum of the following amounts, less 1/12 of the tax credits that are allowed by law to be 26 applied against the tax levied by AS 43.55.011(e) for the calendar year, but the amount 27 of the installment payment may not be less than zero: 28 (A) for oil and gas produced from leases or properties in the 29 state outside the Cook Inlet sedimentary basin but not subject to 30 AS 43.55.011(o), other than leases or properties subject to AS 43.55.011(f), the 31 greater of
01 (i) zero; or 02 (ii) an amount equal to the sum of 25 percent and the 03 tax rate calculated for the month under AS 43.55.011(g) multiplied by 04 the remainder obtained by subtracting 1/12 of the producer's adjusted 05 lease expenditures for the calendar year of production applicable to 06 the oil produced by the producer from those leases and properties 07 under AS 43.55.165 and 43.55.170 that are deductible for the leases or 08 properties under AS 43.55.160, from the gross value at the point of 09 production of the oil [AND GAS] produced from the leases or 10 properties during the month for which the installment payment is 11 calculated added to the sum of 25 percent and the tax rate 12 calculated for the month under AS 43.55.011(p) multiplied by the 13 remainder obtained by subtracting 1/12 of the producer's adjusted 14 lease expenditures for the calendar year of production applicable 15 to the gas produced by the producer from those leases and 16 properties under AS 43.55.165 and 43.55.170 that are deductible 17 for the leases or properties under AS 43.55.160 from the gross 18 value at the point of production of the gas produced from the leases 19 or properties during the month for which the installment payment 20 is calculated; 21 (B) for oil and gas produced from leases or properties subject 22 to AS 43.55.011(f), the greatest of 23 (i) zero; 24 (ii) zero percent, one percent, two percent, three 25 percent, or four percent, as applicable, of the gross value at the point of 26 production of the oil and gas produced from all leases or properties 27 during the month for which the installment payment is calculated; or 28 (iii) an amount equal to the sum of 25 percent and the 29 tax rate calculated for the month under AS 43.55.011(g) multiplied by 30 the remainder obtained by subtracting 1/12 of the producer's adjusted 31 lease expenditures for the calendar year of production applicable to
01 the oil produced by the producer from those leases and properties 02 under AS 43.55.165 and 43.55.170 that are deductible for those leases 03 or properties under AS 43.55.160, from the gross value at the point of 04 production of the oil [AND GAS] produced from those leases or 05 properties during the month for which the installment payment is 06 calculated added to the sum of 25 percent and the tax rate 07 calculated for the month under AS 43.55.011(p) multiplied by the 08 remainder obtained by subtracting 1/12 of the producer's adjusted 09 lease expenditures for the calendar year of production applicable 10 to the gas produced by the producer from those leases and 11 properties under AS 43.55.165 and 43.55.170 that are deductible 12 for those leases or properties under AS 43.55.160 from the gross 13 value at the point of production of the gas produced from those 14 leases or properties during the month for which the installment 15 payment is calculated; 16 (C) for oil and gas produced from each lease or property 17 subject to AS 43.55.011(j), (k), or (o), the greater of 18 (i) zero; or 19 (ii) an amount equal to the sum of 25 percent and the 20 tax rate calculated for the month under AS 43.55.011(g) multiplied by 21 the remainder obtained by subtracting 1/12 of the producer's adjusted 22 lease expenditures for the calendar year of production applicable to 23 the oil produced by the producer from those leases and properties 24 under AS 43.55.165 and 43.55.170 that are deductible under 25 AS 43.55.160 for oil [OR GAS, RESPECTIVELY,] produced from the 26 lease or property, from the gross value at the point of production of the 27 oil [OR GAS, RESPECTIVELY,] produced from the lease or property 28 during the month for which the installment payment is calculated 29 added to the sum of 25 percent and the tax rate calculated for the 30 month under AS 43.55.011(g) multiplied by the remainder obtained 31 by subtracting 1/12 of the producer's adjusted lease expenditures
01 for the calendar year of production applicable to the gas produced 02 by the producer from the lease or property under AS 43.55.165 and 03 43.55.170 that are deductible under AS 43.55.160 for gas produced 04 from the lease or property, from the gross value at the point of 05 production of the gas produced from the lease or property during 06 the month for which the installment payment is calculated; 07 (2) an amount calculated under (1)(C) of this subsection for oil or gas 08 produced from a lease or property subject to AS 43.55.011(j), (k), or (o) may not 09 exceed the product obtained by carrying out the calculation set out in 10 AS 43.55.011(j)(1) or (2) or 43.55.011(o), as applicable, for gas or set out in 11 AS 43.55.011(k)(1) or (2), as applicable, for oil, but substituting in 12 AS 43.55.011(j)(1)(A) or (2)(A) or 43.55.011(o), as applicable, the amount of taxable 13 gas produced during the month for the amount of taxable gas produced during the 14 calendar year and substituting in AS 43.55.011(k)(1)(A) or (2)(A), as applicable, the 15 amount of taxable oil produced during the month for the amount of taxable oil 16 produced during the calendar year; 17 (3) an installment payment of the estimated tax levied by 18 AS 43.55.011(i) for each lease or property is due for each month of the calendar year 19 on the last day of the following month; the amount of the installment payment is the 20 sum of 21 (A) the applicable tax rate for oil provided under 22 AS 43.55.011(i), multiplied by the gross value at the point of production of the 23 oil taxable under AS 43.55.011(i) and produced from the lease or property 24 during the month; and 25 (B) the applicable tax rate for gas provided under 26 AS 43.55.011(i), multiplied by the gross value at the point of production of the 27 gas taxable under AS 43.55.011(i) and produced from the lease or property 28 during the month; 29 (4) any amount of tax levied by AS 43.55.011(e) or (i), net of any 30 credits applied as allowed by law, that exceeds the total of the amounts due as 31 installment payments of estimated tax is due on March 31 of the year following the
01 calendar year of production. 02 * Sec. 13. AS 43.55.020(a), as amended by sec. 12 of this Act, is amended to read: 03 (a) For a calendar year, a producer subject to tax under AS 43.55.011(e) - (i) 04 [AND (p)] shall pay the tax as follows: 05 (1) an installment payment of the estimated tax levied by 06 AS 43.55.011(e), net of any tax credits applied as allowed by law, is due for each 07 month of the calendar year on the last day of the following month; except as otherwise 08 provided under (2) of this subsection, the amount of the installment payment is the 09 sum of the following amounts, less 1/12 of the tax credits that are allowed by law to be 10 applied against the tax levied by AS 43.55.011(e) for the calendar year, but the amount 11 of the installment payment may not be less than zero: 12 (A) for oil and gas produced from leases or properties in the 13 state outside the Cook Inlet sedimentary basin but not subject to 14 AS 43.55.011(o), other than leases or properties subject to AS 43.55.011(f), the 15 greater of 16 (i) zero; or 17 (ii) [AN AMOUNT EQUAL TO] the sum of 25 percent 18 and the tax rate calculated for the month under AS 43.55.011(g) 19 multiplied by the remainder obtained by subtracting 1/12 of the 20 producer's adjusted lease expenditures for the calendar year of 21 production [APPLICABLE TO THE OIL PRODUCED BY THE 22 PRODUCER FROM THOSE LEASES AND PROPERTIES] under 23 AS 43.55.165 and 43.55.170 that are deductible for the leases or 24 properties under AS 43.55.160 [,] from the gross value at the point of 25 production of the oil and gas produced from the leases or properties 26 during the month for which the installment payment is calculated 27 [ADDED TO THE SUM OF 25 PERCENT AND THE TAX RATE 28 CALCULATED FOR THE MONTH UNDER AS 43.55.011(p) 29 MULTIPLIED BY THE REMAINDER OBTAINED BY 30 SUBTRACTING 1/12 OF THE PRODUCER'S ADJUSTED LEASE 31 EXPENDITURES FOR THE CALENDAR YEAR OF PRODUCTION
01 APPLICABLE TO THE GAS PRODUCED BY THE PRODUCER 02 FROM THOSE LEASES AND PROPERTIES UNDER AS 43.55.165 03 AND 43.55.170 THAT ARE DEDUCTIBLE FOR THE LEASES OR 04 PROPERTIES UNDER AS 43.55.160 FROM THE GROSS VALUE 05 AT THE POINT OF PRODUCTION OF THE GAS PRODUCED 06 FROM THE LEASES OR PROPERTIES DURING THE MONTH 07 FOR WHICH THE INSTALLMENT PAYMENT IS CALCULATED]; 08 (B) for oil and gas produced from leases or properties subject 09 to AS 43.55.011(f), the greatest of 10 (i) zero; 11 (ii) zero percent, one percent, two percent, three 12 percent, or four percent, as applicable, of the gross value at the point of 13 production of the oil and gas produced from all leases or properties 14 during the month for which the installment payment is calculated; or 15 (iii) [AN AMOUNT EQUAL TO] the sum of 25 16 percent and the tax rate calculated for the month under AS 43.55.011(g) 17 multiplied by the remainder obtained by subtracting 1/12 of the 18 producer's adjusted lease expenditures for the calendar year of 19 production [APPLICABLE TO THE OIL PRODUCED BY THE 20 PRODUCER FROM THOSE LEASES AND PROPERTIES] under 21 AS 43.55.165 and 43.55.170 that are deductible for those leases or 22 properties under AS 43.55.160 [,] from the gross value at the point of 23 production of the oil and gas produced from those leases or properties 24 during the month for which the installment payment is calculated 25 [ADDED TO THE SUM OF 25 PERCENT AND THE TAX RATE 26 CALCULATED FOR THE MONTH UNDER AS 43.55.011(p) 27 MULTIPLIED BY THE REMAINDER OBTAINED BY 28 SUBTRACTING 1/12 OF THE PRODUCER'S ADJUSTED LEASE 29 EXPENDITURES FOR THE CALENDAR YEAR OF PRODUCTION 30 APPLICABLE TO THE GAS PRODUCED BY THE PRODUCER 31 FROM THOSE LEASES AND PROPERTIES UNDER AS 43.55.165
01 AND 43.55.170 THAT ARE DEDUCTIBLE FOR THOSE LEASES 02 OR PROPERTIES UNDER AS 43.55.160 FROM THE GROSS 03 VALUE AT THE POINT OF PRODUCTION OF THE GAS 04 PRODUCED FROM THOSE LEASES OR PROPERTIES DURING 05 THE MONTH FOR WHICH THE INSTALLMENT PAYMENT IS 06 CALCULATED]; 07 (C) for oil and gas produced from each lease or property 08 subject to AS 43.55.011(j), (k), or (o), the greater of 09 (i) zero; or 10 (ii) [AN AMOUNT EQUAL TO] the sum of 25 percent 11 and the tax rate calculated for the month under AS 43.55.011(g) 12 multiplied by the remainder obtained by subtracting 1/12 of the 13 producer's adjusted lease expenditures for the calendar year of 14 production [APPLICABLE TO THE OIL PRODUCED BY THE 15 PRODUCER FROM THOSE LEASES AND PROPERTIES] under 16 AS 43.55.165 and 43.55.170 that are deductible under AS 43.55.160 17 for oil or gas, respectively, produced from the lease or property [,] 18 from the gross value at the point of production of the oil or gas, 19 respectively, produced from the lease or property during the month for 20 which the installment payment is calculated [ADDED TO THE SUM 21 OF 25 PERCENT AND THE TAX RATE CALCULATED FOR THE 22 MONTH UNDER AS 43.55.011(g) MULTIPLIED BY THE 23 REMAINDER OBTAINED BY SUBTRACTING 1/12 OF THE 24 PRODUCER'S ADJUSTED LEASE EXPENDITURES FOR THE 25 CALENDAR YEAR OF PRODUCTION APPLICABLE TO THE 26 GAS PRODUCED BY THE PRODUCER FROM THE LEASE OR 27 PROPERTY UNDER AS 43.55.165 AND 43.55.170 THAT ARE 28 DEDUCTIBLE UNDER AS 43.55.160 FOR GAS PRODUCED 29 FROM THE LEASE OR PROPERTY, FROM THE GROSS VALUE 30 AT THE POINT OF PRODUCTION OF THE GAS PRODUCED 31 FROM THE LEASE OR PROPERTY DURING THE MONTH FOR
01 WHICH THE INSTALLMENT PAYMENT IS CALCULATED]; 02 (2) an amount calculated under (1)(C) of this subsection for oil or gas 03 produced before 2022 from a lease or property subject to AS 43.55.011(j), (k), or (o) 04 may not exceed the product obtained by carrying out the calculation set out in 05 AS 43.55.011(j)(1) or (2) or 43.55.011(o), as applicable, for gas or set out in 06 AS 43.55.011(k)(1) or (2), as applicable, for oil, but substituting in 07 AS 43.55.011(j)(1)(A) or (2)(A) or 43.55.011(o), as applicable, the amount of taxable 08 gas produced during the month for the amount of taxable gas produced during the 09 calendar year and substituting in AS 43.55.011(k)(1)(A) or (2)(A), as applicable, the 10 amount of taxable oil produced during the month for the amount of taxable oil 11 produced during the calendar year; 12 (3) an installment payment of the estimated tax levied by 13 AS 43.55.011(i) for each lease or property is due for each month of the calendar year 14 on the last day of the following month; the amount of the installment payment is the 15 sum of 16 (A) the applicable tax rate for oil provided under 17 AS 43.55.011(i), multiplied by the gross value at the point of production of the 18 oil taxable under AS 43.55.011(i) and produced from the lease or property 19 during the month; and 20 (B) the applicable tax rate for gas provided under 21 AS 43.55.011(i), multiplied by the gross value at the point of production of the 22 gas taxable under AS 43.55.011(i) and produced from the lease or property 23 during the month; 24 (4) any amount of tax levied by AS 43.55.011(e) or (i), net of any 25 credits applied as allowed by law, that exceeds the total of the amounts due as 26 installment payments of estimated tax is due on March 31 of the year following the 27 calendar year of production. 28 * Sec. 14. AS 43.55.020(a), as amended by sec. 13 of this Act, is amended to read: 29 (a) For a calendar year, a producer subject to tax under AS 43.55.011(e) - (i) 30 and (q) shall pay the tax as follows: 31 (1) an installment payment of the estimated tax levied by
01 AS 43.55.011(e), net of any tax credits applied as allowed by law, is due for each 02 month of the calendar year on the last day of the following month; except as otherwise 03 provided under (2) of this subsection, the amount of the installment payment is the 04 sum of the following amounts, less 1/12 of the tax credits that are allowed by law to be 05 applied against the tax levied by AS 43.55.011(e) for the calendar year, but the amount 06 of the installment payment may not be less than zero: 07 (A) for oil and gas produced from leases or properties in the 08 state outside the Cook Inlet sedimentary basin but not subject to 09 AS 43.55.011(o), other than leases or properties subject to AS 43.55.011(f), the 10 greater of 11 (i) zero; or 12 (ii) an amount equal to the sum of 25 percent and the 13 tax rate calculated for the month under AS 43.55.011(g) multiplied by 14 the remainder obtained by subtracting 1/12 of the producer's adjusted 15 lease expenditures for the calendar year of production applicable to 16 the oil produced by the producer from those leases and properties 17 under AS 43.55.165 and 43.55.170 that are deductible for the leases or 18 properties under AS 43.55.160, from the gross value at the point of 19 production of the oil [AND GAS] produced from the leases or 20 properties during the month for which the installment payment is 21 calculated added to the sum of 25 percent and the tax rate 22 calculated for the month under AS 43.55.011(q) multiplied by the 23 remainder obtained by subtracting 1/12 of the producer's adjusted 24 lease expenditures for the calendar year of production applicable 25 to the gas produced by the producer from those leases and 26 properties under AS 43.55.165 and 43.55.170 that are deductible 27 for the leases or properties under AS 43.55.160 from the gross 28 value at the point of production of the gas produced from the leases 29 or properties during the month for which the installment payment 30 is calculated; 31 (B) for oil and gas produced from leases or properties subject
01 to AS 43.55.011(f), the greatest of 02 (i) zero; 03 (ii) zero percent, one percent, two percent, three 04 percent, or four percent, as applicable, of the gross value at the point of 05 production of the oil and gas produced from all leases or properties 06 during the month for which the installment payment is calculated; or 07 (iii) an amount equal to the sum of 25 percent and the 08 tax rate calculated for the month under AS 43.55.011(g) multiplied by 09 the remainder obtained by subtracting 1/12 of the producer's adjusted 10 lease expenditures for the calendar year of production applicable to 11 the oil produced by the producer from those leases and properties 12 under AS 43.55.165 and 43.55.170 that are deductible for those leases 13 or properties under AS 43.55.160, from the gross value at the point of 14 production of the oil [AND GAS] produced from those leases or 15 properties during the month for which the installment payment is 16 calculated added to the sum of 25 percent and the tax rate 17 calculated for the month under AS 43.55.011(q) multiplied by the 18 remainder obtained by subtracting 1/12 of the producer's adjusted 19 lease expenditures for the calendar year of production applicable 20 to the gas produced by the producer from those leases and 21 properties under AS 43.55.165 and 43.55.170 that are deductible 22 for those leases or properties under AS 43.55.160 from the gross 23 value at the point of production of the gas produced from those 24 leases or properties during the month for which the installment 25 payment is calculated; 26 (C) for oil and gas produced from each lease or property 27 subject to AS 43.55.011(j), (k), or (o), the greater of 28 (i) zero; or 29 (ii) an amount equal to the sum of 25 percent and the 30 tax rate calculated for the month under AS 43.55.011(g) multiplied by 31 the remainder obtained by subtracting 1/12 of the producer's adjusted
01 lease expenditures for the calendar year of production applicable to 02 the oil produced by the producer from those leases and properties 03 under AS 43.55.165 and 43.55.170 that are deductible under 04 AS 43.55.160 for oil [OR GAS, RESPECTIVELY,] produced from the 05 lease or property, from the gross value at the point of production of the 06 oil [OR GAS, RESPECTIVELY,] produced from the lease or property 07 during the month for which the installment payment is calculated 08 added to the sum of 25 percent and the tax rate calculated for the 09 month under AS 43.55.011(g) multiplied by the remainder obtained 10 by subtracting 1/12 of the producer's adjusted lease expenditures 11 for the calendar year of production applicable to the gas produced 12 by the producer from the lease or property under AS 43.55.165 and 13 43.55.170 that are deductible under AS 43.55.160 for gas produced 14 from the lease or property, from the gross value at the point of 15 production of the gas produced from the lease or property during 16 the month for which the installment payment is calculated; 17 (2) an amount calculated under (1)(C) of this subsection for oil or gas 18 produced before 2022 from a lease or property subject to AS 43.55.011(j), (k), or (o) 19 may not exceed the product obtained by carrying out the calculation set out in 20 AS 43.55.011(j)(1) or (2) or 43.55.011(o), as applicable, for gas or set out in 21 AS 43.55.011(k)(1) or (2), as applicable, for oil, but substituting in 22 AS 43.55.011(j)(1)(A) or (2)(A) or 43.55.011(o), as applicable, the amount of taxable 23 gas produced during the month for the amount of taxable gas produced during the 24 calendar year and substituting in AS 43.55.011(k)(1)(A) or (2)(A), as applicable, the 25 amount of taxable oil produced during the month for the amount of taxable oil 26 produced during the calendar year; 27 (3) an installment payment of the estimated tax levied by 28 AS 43.55.011(i) for each lease or property is due for each month of the calendar year 29 on the last day of the following month; the amount of the installment payment is the 30 sum of 31 (A) the applicable tax rate for oil provided under
01 AS 43.55.011(i), multiplied by the gross value at the point of production of the 02 oil taxable under AS 43.55.011(i) and produced from the lease or property 03 during the month; and 04 (B) the applicable tax rate for gas provided under 05 AS 43.55.011(i), multiplied by the gross value at the point of production of the 06 gas taxable under AS 43.55.011(i) and produced from the lease or property 07 during the month; 08 (4) any amount of tax levied by AS 43.55.011(e) or (i), net of any 09 credits applied as allowed by law, that exceeds the total of the amounts due as 10 installment payments of estimated tax is due on March 31 of the year following the 11 calendar year of production. 12 * Sec. 15. AS 43.55.020(d) is amended to read: 13 (d) In making settlement with the royalty owner for oil and gas that is taxable 14 under AS 43.55.011, the producer may deduct the amount of the tax paid on taxable 15 royalty oil and gas, or may deduct taxable royalty oil or gas equivalent in value at the 16 time the tax becomes due to the amount of the tax paid. If the total deductions of 17 installment payments of estimated tax for a calendar year exceed the actual tax for that 18 calendar year, the producer shall, before April 1 of the following year, refund the 19 excess to the royalty owner. Unless otherwise agreed between the producer and the 20 royalty owner, the amount of the tax paid under AS 43.55.011(e) - (g) and (p) on 21 taxable royalty oil and gas for a calendar year, other than oil and gas the ownership or 22 right to which constitutes a landowner's royalty interest, is considered to be the gross 23 value at the point of production of the taxable royalty oil and gas produced during the 24 calendar year multiplied by a figure that is a quotient, in which 25 (1) the numerator is the producer's total tax liability under 26 AS 43.55.011(e) - (g) and (p) for the calendar year of production; and 27 (2) the denominator is the total gross value at the point of production 28 of the oil and gas taxable under AS 43.55.011(e) - (g) and (p) produced by the 29 producer from all leases and properties in the state during the calendar year. 30 * Sec. 16. AS 43.55.020(d), as amended by sec. 15 of this Act, is amended to read: 31 (d) In making settlement with the royalty owner for oil and gas that is taxable
01 under AS 43.55.011, the producer may deduct the amount of the tax paid on taxable 02 royalty oil and gas, or may deduct taxable royalty oil or gas equivalent in value at the 03 time the tax becomes due to the amount of the tax paid. If the total deductions of 04 installment payments of estimated tax for a calendar year exceed the actual tax for that 05 calendar year, the producer shall, before April 1 of the following year, refund the 06 excess to the royalty owner. Unless otherwise agreed between the producer and the 07 royalty owner, the amount of the tax paid under AS 43.55.011(e) - (g) [AND (p)] on 08 taxable royalty oil and gas for a calendar year, other than oil and gas the ownership or 09 right to which constitutes a landowner's royalty interest, is considered to be the gross 10 value at the point of production of the taxable royalty oil and gas produced during the 11 calendar year multiplied by a figure that is a quotient, in which 12 (1) the numerator is the producer's total tax liability under 13 AS 43.55.011(e) - (g) [AND (p)] for the calendar year of production; and 14 (2) the denominator is the total gross value at the point of production 15 of the oil and gas taxable under AS 43.55.011(e) - (g) [AND (p)] produced by the 16 producer from all leases and properties in the state during the calendar year. 17 * Sec. 17. AS 43.55.020(d), as amended by sec. 16 of this Act, is amended to read: 18 (d) In making settlement with the royalty owner for oil and gas that is taxable 19 under AS 43.55.011, the producer may deduct the amount of the tax paid on taxable 20 royalty oil and gas, or may deduct taxable royalty oil or gas equivalent in value at the 21 time the tax becomes due to the amount of the tax paid. If the total deductions of 22 installment payments of estimated tax for a calendar year exceed the actual tax for that 23 calendar year, the producer shall, before April 1 of the following year, refund the 24 excess to the royalty owner. Unless otherwise agreed between the producer and the 25 royalty owner, the amount of the tax paid under AS 43.55.011(e) - (g) and (q) on 26 taxable royalty oil and gas for a calendar year, other than oil and gas the ownership or 27 right to which constitutes a landowner's royalty interest, is considered to be the gross 28 value at the point of production of the taxable royalty oil and gas produced during the 29 calendar year multiplied by a figure that is a quotient, in which 30 (1) the numerator is the producer's total tax liability under 31 AS 43.55.011(e) - (g) and (q) for the calendar year of production; and
01 (2) the denominator is the total gross value at the point of production 02 of the oil and gas taxable under AS 43.55.011(e) - (g) and (q) produced by the 03 producer from all leases and properties in the state during the calendar year. 04 * Sec. 18. AS 43.55.160(a) is amended to read: 05 (a) Except as provided in (b) of this section, for the purposes of 06 (1) AS 43.55.011(e), the annual production tax value of the taxable 07 (A) oil [AND GAS] produced during a calendar year from 08 leases or properties in the state that include land north of 68 degrees North 09 latitude is the gross value at the point of production of the oil [AND GAS] 10 taxable under AS 43.55.011(e) and produced by the producer from those leases 11 or properties, less the producer's lease expenditures under AS 43.55.165 for the 12 calendar year applicable to the oil [AND GAS] produced by the producer from 13 those leases or properties, as adjusted under AS 43.55.170; [THIS 14 SUBPARAGRAPH DOES NOT APPLY TO GAS SUBJECT TO 15 AS 43.55.011(o);] 16 (B) oil [AND GAS] produced during a calendar year from 17 leases or properties in the state outside the Cook Inlet sedimentary basin, no 18 part of which is north of 68 degrees North latitude, is the gross value at the 19 point of production of the oil [AND GAS] taxable under AS 43.55.011(e) and 20 produced by the producer from those leases or properties, less the producer's 21 lease expenditures under AS 43.55.165 for the calendar year applicable to the 22 oil [AND GAS] produced by the producer from those leases or properties, as 23 adjusted under AS 43.55.170; [THIS SUBPARAGRAPH DOES NOT APPLY 24 TO GAS SUBJECT TO AS 43.55.011(o);] 25 (C) oil produced during a calendar year from a lease or 26 property in the Cook Inlet sedimentary basin is the gross value at the point of 27 production of the oil taxable under AS 43.55.011(e) and produced by the 28 producer from that lease or property, less the producer's lease expenditures 29 under 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 calendar year from a lease or
01 property in the Cook Inlet sedimentary basin is the gross value at the point of 02 production of the gas taxable under AS 43.55.011(e) and produced by the 03 producer from that lease or property, less the producer's lease expenditures 04 under 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 calendar year from a lease or 07 property outside the Cook Inlet sedimentary basin and used in the state is the 08 gross value at the point of production of that gas taxable under 09 AS 43.55.011(e) and produced by the producer from that lease or property, less 10 the 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 (F) gas produced during a calendar year from leases or 14 properties in the state that include land north of 68 degrees North latitude 15 is the gross value at the point of production of the gas taxable under 16 AS 43.55.011(e) and produced by the producer from those leases or 17 properties, less the producer's lease expenditures under AS 43.55.165 for 18 the calendar year applicable to the gas produced by the producer from 19 those leases or properties, as adjusted under AS 43.55.170; this 20 subparagraph does not apply to gas used in the state; 21 (G) gas produced during a calendar year from leases or 22 properties in the state outside the Cook Inlet sedimentary basin, no part of 23 which is north of 68 degrees North latitude, is the gross value at the point 24 of production of the gas taxable under AS 43.55.011(e) and produced by 25 the producer from those leases or properties, less the producer's lease 26 expenditures under AS 43.55.165 for the calendar year applicable to the 27 gas produced by the producer from those leases or properties, as adjusted 28 under AS 43.55.170; this subparagraph does not apply to gas used in the 29 state; 30 (2) AS 43.55.011(g) and (p), the monthly production tax value of the 31 taxable
01 (A) oil [AND GAS] produced during a month from leases or 02 properties in the state that include land north of 68 degrees North latitude is the 03 gross value at the point of production of the oil [AND GAS] taxable under 04 AS 43.55.011(e) and produced by the producer from those leases or properties, 05 less 1/12 of the producer's lease expenditures under AS 43.55.165 for the 06 calendar year applicable to the oil [AND GAS] produced by the producer from 07 those leases or properties, as adjusted under AS 43.55.170; [THIS 08 SUBPARAGRAPH DOES NOT APPLY TO GAS SUBJECT TO 09 AS 43.55.011(o);] 10 (B) oil [AND GAS] produced during a month from leases or 11 properties in the state outside the Cook Inlet sedimentary basin, no part of 12 which is north of 68 degrees North latitude, is the gross value at the point of 13 production of the oil [AND GAS] taxable under AS 43.55.011(e) and produced 14 by the producer from those leases or properties, less 1/12 of the producer's 15 lease expenditures under AS 43.55.165 for the calendar year applicable to the 16 oil [AND GAS] produced by the producer from those leases or properties, as 17 adjusted under AS 43.55.170; [THIS SUBPARAGRAPH DOES NOT APPLY 18 TO GAS SUBJECT TO AS 43.55.011(o);] 19 (C) oil produced during a month from a lease or property in the 20 Cook Inlet sedimentary basin is the gross value at the point of production of 21 the oil taxable under AS 43.55.011(e) and produced by the producer from that 22 lease or property, less 1/12 of the producer's lease expenditures under 23 AS 43.55.165 for the calendar year applicable to the oil produced by the 24 producer from that lease or property, as adjusted under AS 43.55.170; 25 (D) gas produced during a month from a lease or property in 26 the Cook Inlet sedimentary basin is the gross value at the point of production 27 of the gas taxable under AS 43.55.011(e) and produced by the producer from 28 that 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 gas produced by the 30 producer from that lease or property, as adjusted under AS 43.55.170; 31 (E) gas produced during a month from a lease or property
01 outside the Cook Inlet sedimentary basin and used in the state is the gross 02 value at the point of production of that gas taxable under AS 43.55.011(e) and 03 produced by the producer from that lease or property, less 1/12 of the 04 producer's lease expenditures under AS 43.55.165 for the calendar year 05 applicable to that gas produced by the producer from that lease or property, as 06 adjusted under AS 43.55.170; 07 (F) gas produced during a month from leases or properties 08 in the state that include land north of 68 degrees North latitude is the 09 gross value at the point of production of the gas taxable under 10 AS 43.55.011(e) and produced by the producer from those leases or 11 properties, less 1/12 of the producer's lease expenditures under 12 AS 43.55.165 for the calendar year applicable to the gas produced by the 13 producer from those leases or properties, as adjusted under AS 43.55.170; 14 this subparagraph does not apply to gas used in the state; 15 (G) gas produced during a month from leases or properties 16 in the state outside the Cook Inlet sedimentary basin, no part of which is 17 north of 68 degrees North latitude, is the gross value at the point of 18 production of the gas taxable under AS 43.55.011(e) and produced by the 19 producer from those leases or properties, less 1/12 of the producer's lease 20 expenditures under AS 43.55.165 for the calendar year applicable to the 21 gas produced by the producer from those leases or properties, as adjusted 22 under AS 43.55.170; this subparagraph does not apply to gas used in the 23 state. 24 * Sec. 19. AS 43.55.160(a), as amended by sec. 18 of this Act, is amended to read: 25 (a) Except as provided in (b) of this section, for the purposes of 26 (1) AS 43.55.011(e), the annual production tax value of the taxable 27 (A) oil and gas produced during a calendar year from leases or 28 properties in the state that include land north of 68 degrees North latitude is the 29 gross value at the point of production of the oil and gas taxable under 30 AS 43.55.011(e) and produced by the producer from those leases or properties, 31 less the producer's lease expenditures under AS 43.55.165 for the calendar year
01 applicable to the oil and gas produced by the producer from those leases or 02 properties, as adjusted under AS 43.55.170; this subparagraph does not 03 apply to gas subject to AS 43.55.011(o); 04 (B) oil and gas produced during a calendar year from leases or 05 properties in the state outside the Cook Inlet sedimentary basin, no part of 06 which is north of 68 degrees North latitude, is the gross value at the point of 07 production of the oil and gas taxable under AS 43.55.011(e) and produced by 08 the producer from those leases or properties, less the producer's lease 09 expenditures under AS 43.55.165 for the calendar year applicable to the oil 10 and gas produced by the producer from those leases or properties, as adjusted 11 under AS 43.55.170; this subparagraph does not apply to gas subject to 12 AS 43.55.011(o); 13 (C) oil produced during a calendar year from a lease or 14 property in the Cook Inlet sedimentary basin is the gross value at the point of 15 production of the oil taxable under AS 43.55.011(e) and produced by the 16 producer from that lease or property, less the producer's lease expenditures 17 under AS 43.55.165 for the calendar year applicable to the oil produced by the 18 producer from that lease or property, as adjusted under AS 43.55.170; 19 (D) gas produced during a calendar year from a lease or 20 property in the Cook Inlet sedimentary basin is the gross value at the point of 21 production of the gas taxable under AS 43.55.011(e) and produced by the 22 producer from that lease or property, less the producer's lease expenditures 23 under AS 43.55.165 for the calendar year applicable to the gas produced by the 24 producer from that lease or property, as adjusted under AS 43.55.170; 25 (E) gas produced during a calendar year from a lease or 26 property outside the Cook Inlet sedimentary basin and used in the state is the 27 gross value at the point of production of that gas taxable under 28 AS 43.55.011(e) and produced by the producer from that lease or property, less 29 the producer's lease expenditures under AS 43.55.165 for the calendar year 30 applicable to that gas produced by the producer from that lease or property, as 31 adjusted under AS 43.55.170;
01 [(F) GAS PRODUCED DURING A CALENDAR YEAR 02 FROM LEASES OR PROPERTIES IN THE STATE THAT INCLUDE 03 LAND NORTH OF 68 DEGREES NORTH LATITUDE IS THE GROSS 04 VALUE AT THE POINT OF PRODUCTION OF THE GAS TAXABLE 05 UNDER AS 43.55.011(e) AND PRODUCED BY THE PRODUCER FROM 06 THOSE LEASES OR PROPERTIES, LESS THE PRODUCER'S LEASE 07 EXPENDITURES UNDER AS 43.55.165 FOR THE CALENDAR YEAR 08 APPLICABLE TO THE GAS PRODUCED BY THE PRODUCER FROM 09 THOSE LEASES OR PROPERTIES, AS ADJUSTED UNDER AS 43.55.170; 10 THIS SUBPARAGRAPH DOES NOT APPLY TO GAS USED IN THE 11 STATE; 12 (G) GAS PRODUCED DURING A CALENDAR YEAR 13 FROM LEASES OR PROPERTIES IN THE STATE OUTSIDE THE COOK 14 INLET SEDIMENTARY BASIN, NO PART OF WHICH IS NORTH OF 68 15 DEGREES NORTH LATITUDE, IS THE GROSS VALUE AT THE POINT 16 OF PRODUCTION OF THE GAS TAXABLE UNDER AS 43.55.011(e) 17 AND PRODUCED BY THE PRODUCER FROM THOSE LEASES OR 18 PROPERTIES, LESS THE PRODUCER'S LEASE EXPENDITURES 19 UNDER AS 43.55.165 FOR THE CALENDAR YEAR APPLICABLE TO 20 THE GAS PRODUCED BY THE PRODUCER FROM THOSE LEASES OR 21 PROPERTIES, AS ADJUSTED UNDER AS 43.55.170; THIS 22 SUBPARAGRAPH DOES NOT APPLY TO GAS USED IN THE STATE;] 23 (2) AS 43.55.011(g) [AND (p)], the monthly production tax value of 24 the taxable 25 (A) oil and gas produced during a month from leases or 26 properties in the state that include land north of 68 degrees North latitude is the 27 gross value at the point of production of the oil and gas taxable under 28 AS 43.55.011(e) and produced by the producer from those leases or properties, 29 less 1/12 of the producer's lease expenditures under AS 43.55.165 for the 30 calendar year applicable to the oil and gas produced by the producer from 31 those leases or properties, as adjusted under AS 43.55.170; this subparagraph
01 does not apply to gas subject to AS 43.55.011(o); 02 (B) oil and gas produced during a month from leases or 03 properties in the state outside the Cook Inlet sedimentary basin, no part of 04 which is north of 68 degrees North latitude, is the gross value at the point of 05 production of the oil and gas taxable under AS 43.55.011(e) and produced by 06 the producer from those leases or properties, less 1/12 of the producer's lease 07 expenditures under AS 43.55.165 for the calendar year applicable to the oil 08 and gas produced by the producer from those leases or properties, as adjusted 09 under AS 43.55.170; this subparagraph does not apply to gas subject to 10 AS 43.55.011(o); 11 (C) oil produced during a month from a lease or property in the 12 Cook Inlet sedimentary basin is the gross value at the point of production of 13 the oil taxable under AS 43.55.011(e) and produced by the producer from that 14 lease or property, less 1/12 of the producer's lease expenditures under 15 AS 43.55.165 for the calendar year applicable to the oil produced by the 16 producer from that lease or property, as adjusted under AS 43.55.170; 17 (D) gas produced during a month from a lease or property in 18 the Cook Inlet sedimentary basin is the gross value at the point of production 19 of the gas taxable under AS 43.55.011(e) and produced by the producer from 20 that lease or property, less 1/12 of the producer's lease expenditures under 21 AS 43.55.165 for the calendar year applicable to the gas produced by the 22 producer from that lease or property, as adjusted under AS 43.55.170; 23 (E) gas produced during a month from a lease or property 24 outside the Cook Inlet sedimentary basin and used in the state is the gross 25 value at the point of production of that gas taxable under AS 43.55.011(e) and 26 produced by the producer from that lease or property, less 1/12 of the 27 producer's lease expenditures under AS 43.55.165 for the calendar year 28 applicable to that gas produced by the producer from that lease or property, as 29 adjusted under AS 43.55.170 [; 30 (F) GAS PRODUCED DURING A MONTH FROM LEASES 31 OR PROPERTIES IN THE STATE THAT INCLUDE LAND NORTH OF 68
01 DEGREES NORTH LATITUDE IS THE GROSS VALUE AT THE POINT 02 OF PRODUCTION OF THE GAS TAXABLE UNDER AS 43.55.011(e) 03 AND PRODUCED BY THE PRODUCER FROM THOSE LEASES OR 04 PROPERTIES, LESS 1/12 OF THE PRODUCER'S LEASE 05 EXPENDITURES UNDER AS 43.55.165 FOR THE CALENDAR YEAR 06 APPLICABLE TO THE GAS PRODUCED BY THE PRODUCER FROM 07 THOSE LEASES OR PROPERTIES, AS ADJUSTED UNDER AS 43.55.170; 08 THIS SUBPARAGRAPH DOES NOT APPLY TO GAS USED IN THE 09 STATE; 10 (G) GAS PRODUCED DURING A MONTH FROM LEASES 11 OR PROPERTIES IN THE STATE OUTSIDE THE COOK INLET 12 SEDIMENTARY BASIN, NO PART OF WHICH IS NORTH OF 68 13 DEGREES NORTH LATITUDE, IS THE GROSS VALUE AT THE POINT 14 OF PRODUCTION OF THE GAS TAXABLE UNDER AS 43.55.011(e) 15 AND PRODUCED BY THE PRODUCER FROM THOSE LEASES OR 16 PROPERTIES, LESS 1/12 OF THE PRODUCER'S LEASE 17 EXPENDITURES UNDER AS 43.55.165 FOR THE CALENDAR YEAR 18 APPLICABLE TO THE GAS PRODUCED BY THE PRODUCER FROM 19 THOSE LEASES OR PROPERTIES, AS ADJUSTED UNDER AS 43.55.170; 20 THIS SUBPARAGRAPH DOES NOT APPLY TO GAS USED IN THE 21 STATE]. 22 * Sec. 20. AS 43.55.160(a), as amended by sec. 19 of this Act, is amended to read: 23 (a) Except as provided in (b) of this section, for the purposes of 24 (1) AS 43.55.011(e), the annual production tax value of the taxable 25 (A) oil [AND GAS] produced during a calendar year from 26 leases or properties in the state that include land north of 68 degrees North 27 latitude is the gross value at the point of production of the oil [AND GAS] 28 taxable under AS 43.55.011(e) and produced by the producer from those leases 29 or properties, less the producer's lease expenditures under AS 43.55.165 for the 30 calendar year applicable to the oil [AND GAS] produced by the producer from 31 those leases or properties, as adjusted under AS 43.55.170; [THIS
01 SUBPARAGRAPH DOES NOT APPLY TO GAS SUBJECT TO 02 AS 43.55.011(o);] 03 (B) oil [AND GAS] produced during a calendar year from 04 leases or properties in the state outside the Cook Inlet sedimentary basin, no 05 part of which is north of 68 degrees North latitude, is the gross value at the 06 point of production of the oil [AND GAS] taxable under AS 43.55.011(e) and 07 produced by the producer from those leases or properties, less the producer's 08 lease expenditures under AS 43.55.165 for the calendar year applicable to the 09 oil [AND GAS] produced by the producer from those leases or properties, as 10 adjusted under AS 43.55.170; [THIS SUBPARAGRAPH DOES NOT APPLY 11 TO GAS SUBJECT TO AS 43.55.011(o);] 12 (C) oil produced during a calendar year from a lease or 13 property in the Cook Inlet sedimentary basin is the gross value at the point of 14 production of the oil taxable under AS 43.55.011(e) and produced by the 15 producer from that lease or property, less the producer's lease expenditures 16 under AS 43.55.165 for the calendar year applicable to the oil produced by the 17 producer from that lease or property, as adjusted under AS 43.55.170; 18 (D) gas produced during a calendar year from a lease or 19 property in the Cook Inlet sedimentary basin is the gross value at the point of 20 production of the gas taxable under AS 43.55.011(e) and produced by the 21 producer from that lease or property, less the producer's lease expenditures 22 under AS 43.55.165 for the calendar year applicable to the gas produced by the 23 producer from that lease or property, as adjusted under AS 43.55.170; 24 (E) gas produced during a calendar year from a lease or 25 property outside the Cook Inlet sedimentary basin and used in the state is the 26 gross value at the point of production of that gas taxable under 27 AS 43.55.011(e) and produced by the producer from that lease or property, less 28 the producer's lease expenditures under AS 43.55.165 for the calendar year 29 applicable to that gas produced by the producer from that lease or property, as 30 adjusted under AS 43.55.170; 31 (F) gas produced during a calendar year from leases or
01 properties in the state that include land north of 68 degrees North latitude 02 is the gross value at the point of production of the gas taxable under 03 AS 43.55.011(e) and produced by the producer from those leases or 04 properties, less the producer's lease expenditures under AS 43.55.165 for 05 the calendar year applicable to the gas produced by the producer from 06 those leases or properties, as adjusted under AS 43.55.170; this 07 subparagraph does not apply to gas used in the state; 08 (G) gas produced during a calendar year from leases or 09 properties in the state outside the Cook Inlet sedimentary basin, no part of 10 which is north of 68 degrees North latitude, is the gross value at the point 11 of production of the gas taxable under AS 43.55.011(e) and produced by 12 the producer from those leases or properties, less the producer's lease 13 expenditures under AS 43.55.165 for the calendar year applicable to the 14 gas produced by the producer from those leases or properties, as adjusted 15 under AS 43.55.170; this subparagraph does not apply to gas used in the 16 state; 17 (2) AS 43.55.011(g) and (q), the monthly production tax value of the 18 taxable 19 (A) oil [AND GAS] produced during a month from leases or 20 properties in the state that include land north of 68 degrees North latitude is the 21 gross value at the point of production of the oil [AND GAS] taxable under 22 AS 43.55.011(e) and produced by the producer from those leases or properties, 23 less 1/12 of the producer's lease expenditures under AS 43.55.165 for the 24 calendar year applicable to the oil [AND GAS] produced by the producer from 25 those leases or properties, as adjusted under AS 43.55.170; [THIS 26 SUBPARAGRAPH DOES NOT APPLY TO GAS SUBJECT TO 27 AS 43.55.011(o);] 28 (B) oil [AND GAS] produced during a month from leases or 29 properties in the state outside the Cook Inlet sedimentary basin, no part of 30 which is north of 68 degrees North latitude, is the gross value at the point of 31 production of the oil [AND GAS] taxable under AS 43.55.011(e) and produced
01 by the producer from those leases or properties, less 1/12 of the producer's 02 lease expenditures under AS 43.55.165 for the calendar year applicable to the 03 oil [AND GAS] produced by the producer from those leases or properties, as 04 adjusted under AS 43.55.170; [THIS SUBPARAGRAPH DOES NOT APPLY 05 TO GAS SUBJECT TO AS 43.55.011(o);] 06 (C) oil produced during a month from a lease or property in the 07 Cook Inlet sedimentary basin is the gross value at the point of production of 08 the oil taxable under AS 43.55.011(e) and produced by the producer from that 09 lease or property, less 1/12 of the producer's lease expenditures under 10 AS 43.55.165 for the calendar year applicable to the oil produced by the 11 producer from that lease or property, as adjusted under AS 43.55.170; 12 (D) gas produced during a month from a lease or property in 13 the Cook Inlet sedimentary basin is the gross value at the point of production 14 of the gas taxable under AS 43.55.011(e) and produced by the producer from 15 that lease or property, less 1/12 of the producer's lease expenditures under 16 AS 43.55.165 for the calendar year applicable to the gas produced by the 17 producer from that lease or property, as adjusted under AS 43.55.170; 18 (E) gas produced during a month from a lease or property 19 outside the Cook Inlet sedimentary basin and used in the state is the gross 20 value at the point of production of that gas taxable under AS 43.55.011(e) and 21 produced by the producer from that lease or property, less 1/12 of the 22 producer's lease expenditures under AS 43.55.165 for the calendar year 23 applicable to that gas produced by the producer from that lease or property, as 24 adjusted under AS 43.55.170; 25 (F) gas produced during a month from leases or properties 26 in the state that include land north of 68 degrees North latitude is the 27 gross value at the point of production of the gas taxable under 28 AS 43.55.011(e) and produced by the producer from those leases or 29 properties, less 1/12 of the producer's lease expenditures under 30 AS 43.55.165 for the calendar year applicable to the gas produced by the 31 producer from those leases or properties, as adjusted under AS 43.55.170;
01 this subparagraph does not apply to gas used in the state; 02 (G) gas produced during a month from leases or properties 03 in the state outside the Cook Inlet sedimentary basin, no part of which is 04 north of 68 degrees North latitude, is the gross value at the point of 05 production of the gas taxable under AS 43.55.011(e) and produced by the 06 producer from those leases or properties, less 1/12 of the producer's lease 07 expenditures under AS 43.55.165 for the calendar year applicable to the 08 gas produced by the producer from those leases or properties, as adjusted 09 under AS 43.55.170; this subparagraph does not apply to gas used in the 10 state. 11 * Sec. 21. AS 43.55.165(h) is amended to read: 12 (h) The department shall adopt regulations that provide for reasonable 13 methods of allocating costs between oil and gas, between gas subject to 14 AS 43.55.011(o) and other gas, and between leases or properties in those 15 circumstances where an allocation of costs is required to determine lease expenditures 16 that are costs of exploring for, developing, or producing oil deposits or costs of 17 exploring for, developing, or producing gas deposits, or that are costs of exploring for, 18 developing, or producing oil or gas deposits located within different leases or 19 properties. When determining a reasonable method of allocating lease 20 expenditures between the production of oil and the production of gas, the 21 department shall, to the extent possible, allocate lease expenditures in proportion 22 to the gross value at the point of production for oil produced and gas produced 23 from each lease or property. 24 * Sec. 22. AS 43.55.170 is amended by adding a new subsection to read: 25 (d) The department shall adopt regulations that provide for reasonable 26 methods of allocating the adjustments to a producer's lease expenditures in (a) of this 27 section and the payments and credits described in (b) of this section between oil and 28 gas, between gas subject to AS 43.55.011(o) and other gas, and between leases or 29 properties in those circumstances where an allocation of costs is required to determine 30 lease expenditures that are costs of exploring for, developing, or producing oil 31 deposits, or costs of exploring for, developing, or producing gas deposits, or that are
01 costs of exploring for, developing, or producing oil or gas deposits located within 02 different leases or properties. When determining a reasonable method of allocating the 03 adjustments to a producer's lease expenditures between the production of oil and the 04 production of gas, the department shall consider allocating the adjustments in 05 proportion to the lease expenditures allocated to the production of oil and the 06 production of gas under regulations adopted by the department under 07 AS 43.55.165(h). 08 * Sec. 23. AS 43.55.011(p) is repealed. 09 * Sec. 24. The uncodified law of the State of Alaska is amended by adding a new section to 10 read: 11 TRANSITION; REGULATIONS; PAYMENT OF TAX; FILING OF REPORTS. If 12 secs. 1, 4, 7, 10, 12, 15, and 18 of this Act take effect, the Department of Revenue shall adopt 13 regulations providing for the payment of tax and the filing of reports required for the period in 14 which secs. 1, 4, 7, 10, 12, 15, and 18 of this Act are in effect. 15 * Sec. 25. The uncodified law of the State of Alaska is amended by adding a new section to 16 read: 17 CONDITIONAL EFFECT OF SECS. 1, 2, 4, 5, 7, 8, 10, 12, 13, 15, 16, 18, 19, AND 18 23 OF THIS ACT; NOTICE. (a) Sections 1, 2, 4, 5, 7, 8, 10, 12, 13, 15, 16, 18, 19, and 23 of 19 this Act take effect only if secs. 21 and 22 of this Act take effect before April 29, 2010. 20 (b) The commissioner of revenue shall notify the revisor of statutes of the date of the 21 start of the first binding open season for the project licensed under AS 43.90 (Alaska Gasline 22 Inducement Act). 23 * Sec. 26. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 CONDITIONAL EFFECT OF SECS. 3, 6, 9, 11, 14, 17, AND 20 OF THIS ACT; 26 NOTICE. (a) Sections 3, 6, 9, 11, 14, 17, and 20 of this Act take effect only if more than 27 1,500,000,000 cubic feet of natural gas a day that is produced in the state is tendered for 28 shipment through a natural gas pipeline project in the state to a market in Canada or the 48 29 contiguous states, or to a gas liquefaction facility in the state for shipment in a liquefied state 30 by marine transportation to a market outside of the state. 31 (b) The commissioner of revenue shall notify the revisor of statutes of the date that
01 natural gas was first tendered for shipment under the circumstances described in (a) of this 02 section. 03 * Sec. 27. If secs. 1, 4, 7, 10, 12, 15, and 18 of this Act take effect, they take effect April 29, 04 2010. 05 * Sec. 28. If secs. 2, 5, 8, 13, 16, 19, and 23 of this Act take effect, they take effect on the 06 first day immediately following the date on which the open season starts for the project 07 licensed under AS 43.90. 08 * Sec. 29. If secs. 3, 6, 9, 11, 14, 17, and 20 take effect, they take effect on the first day of 09 the month immediately following the date on which the condition in sec. 26(a) of this Act is 10 met. 11 * Sec. 30. Except as provided in secs. 27 - 29 of this Act, this Act takes effect immediately 12 under AS 01.10.070(c).