Legislature(2015 - 2016)BILL RAY CENTER 208

05/12/2016 09:30 AM House RULES


Download Mp3. <- Right click and save file as

Audio Topic
09:40:53 AM Start
09:41:15 AM HB247
10:59:20 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Continued at 9:40 a.m. from 5/11/16 --
+= HB 247 TAX;CREDITS;INTEREST;REFUNDS;O & G TELECONFERENCED
Moved 2d CSHB 247(RLS) Out of Committee
           HB 247-TAX;CREDITS;INTEREST;REFUNDS;O & G                                                                        
                                                                                                                                
9:41:15 AM                                                                                                                    
                                                                                                                                
CHAIR JOHNSON announced that the  only order of business would be                                                               
HOUSE BILL NO. 247, "An  Act relating to confidential information                                                               
status and public record status  of information in the possession                                                               
of the Department of Revenue;  relating to interest applicable to                                                               
delinquent tax; relating to disclosure  of oil and gas production                                                               
tax credit information;  relating to refunds for  the gas storage                                                               
facility tax  credit, the liquefied natural  gas storage facility                                                               
tax   credit,   and   the   qualified   in-state   oil   refinery                                                               
infrastructure expenditures  tax credit; relating to  the minimum                                                               
tax for certain  oil and gas production; relating  to the minimum                                                               
tax  calculation for  monthly installment  payments of  estimated                                                               
tax;  relating to  interest on  monthly  installment payments  of                                                               
estimated  tax; relating  to limitations  for the  application of                                                               
tax credits; relating  to oil and gas production  tax credits for                                                               
certain  losses and  expenditures;  relating  to limitations  for                                                               
nontransferable oil and  gas production tax credits  based on oil                                                               
production  and  the  alternative  tax credit  for  oil  and  gas                                                               
exploration;  relating to  purchase  of  tax credit  certificates                                                               
from the oil  and gas tax credit fund; relating  to a minimum for                                                               
gross  value  at  the  point of  production;  relating  to  lease                                                               
expenditures  and tax  credits for  municipal entities;  adding a                                                               
definition   for  "qualified   capital  expenditure";   adding  a                                                               
definition for  "outstanding liability  to the  state"; repealing                                                               
oil  and   gas  exploration  incentive  credits;   repealing  the                                                               
limitation on  the application of  credits against  tax liability                                                               
for  lease   expenditures  incurred   before  January   1,  2011;                                                               
repealing provisions related to  the monthly installment payments                                                               
for  estimated tax  for oil  and gas  produced before  January 1,                                                               
2014;  repealing  the  oil  and gas  production  tax  credit  for                                                               
qualified  capital expenditures  and  certain well  expenditures;                                                               
repealing   the  calculation   for  certain   lease  expenditures                                                               
applicable before January 1,  2011; making conforming amendments;                                                               
and providing for an effective date."                                                                                           
                                                                                                                                
[Before the  committee was  proposed second  committee substitute                                                               
(2d CS)  for HB 247, Version  29-GH2609\D, Nauman/Shutts, 5/6/16,                                                               
adopted during the  5/11/16 hearing of HB 247,  and identified as                                                               
CS for HB 247, Version 29-GH2609\D, Nauman/Shutts, 5/6/16.]                                                                     
                                                                                                                                
9:41:25 AM                                                                                                                    
                                                                                                                                
CHAIR JOHNSON moved to adopt  Amendment 1, labeled 29-GH2609\D.2,                                                               
Nauman/Shutts, 5/10/16.  [Due to  its length, Amendment 1 text is                                                               
provided at the end of this document.]                                                                                          
                                                                                                                                
9:41:30 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK objected.                                                                                                   
                                                                                                                                
9:41:46 AM                                                                                                                    
                                                                                                                                
RENA DELBRIDGE,  Staff, Representative Mike Hawker,  Alaska State                                                               
Legislature, relayed  that Amendment  1 restores  current statute                                                               
so that the  income tax credits for the instate  refinery and the                                                               
liquefied  natural  gas (LNG)  storage  facility  would still  be                                                               
refunded from  the oil  and gas  tax credit  fund.   In addition,                                                               
Amendment 1  would make conforming  changes to the  "Alaska hire"                                                               
provisions under HB  247, so that the income tax  credits are not                                                               
"discriminated against  in prioritizing refunds from  that fund."                                                               
Ms. Delbridge further explained that  Amendment 1 was proposed in                                                               
response  to   Representative  Wilson  and   the  administration,                                                               
including the Alaska Industrial  Development and Export Authority                                                               
(AIDEA), all of  whom expressed concerns that  making the credits                                                               
refundable  by appropriation  through the  Department of  Revenue                                                               
(DOR) could put  AIDEA credits at risk in the  future.  She said,                                                               
"It was  never the intent to  further risk those credits,  and it                                                               
seemed that  they had been  more secure  coming ... not  from the                                                               
oil and  gas tax  credit fund,  but the  chairman, Representative                                                               
Johnson, was happy to make this change."                                                                                        
                                                                                                                                
9:43:50 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TUCK asked  Ms. Delbridge  to confirm  whether he                                                               
was  right in  his summary  that  "we removed  those ...  credits                                                               
going  out from  the oil  and gas  tax credit  fund, and  so, now                                                               
we're putting  it back  in there because  we discovered  that the                                                               
credit rating for the Department of Revenue may be jeopardized."                                                                
                                                                                                                                
MS.  DELBRIDGE clarified  that there  is nothing  wrong with  the                                                               
credit ratings  for anyone.  She  said in Version D,  the credits                                                               
would be subject  to refund by the Department  of Revenue through                                                               
annual appropriation.  The  aforementioned parties were concerned                                                               
that credits refunded by DOR  through appropriation would be more                                                               
difficult to  receive when  due, rather than  to simply  have the                                                               
refunds come out from  the oil and gas tax credit  fund, as is in                                                               
current statute.   She restated that Amendment 1  would revert to                                                               
current statute.                                                                                                                
                                                                                                                                
REPRESENTATIVE TUCK asked for the  original purpose of moving the                                                               
credits from the oil and gas tax credit fund.                                                                                   
                                                                                                                                
MS.  DELBRIDGE answered  that the  purpose of  doing so  had been                                                               
"fairly  genuine."   She explained  that the  tax credits  in the                                                               
bill are income tax credits - not  oil and gas tax credits - thus                                                               
it seemed  to be clearer, particularly  if HB 247 passes  and the                                                               
credits   are  closed   out,  that   there  are   not  continuing                                                               
obligations coming  out of that  fund which are unrelated  to oil                                                               
and gas tax credits.                                                                                                            
                                                                                                                                
9:45:13 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TUCK  removed  his  objection.   There  being  no                                                               
further objection, Amendment 1 was adopted.                                                                                     
                                                                                                                                
9:45:29 AM                                                                                                                    
                                                                                                                                
CHAIR   JOHNSON  moved   to  adopt   Amendment  2,   labeled  29-                                                               
GH2609\D.19,  Nauman/Shutts,  5/11/16.     [Due  to  its  length,                                                               
Amendment 2 text is provided at the end of this document.]                                                                      
                                                                                                                                
9:45:31 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KREISS-TOMKINS objected for discussion purposes.                                                                 
                                                                                                                                
9:45:38 AM                                                                                                                    
                                                                                                                                
MS. DELBRIDGE  directed attention to  Version D, page  8, related                                                               
to changes  in the  three-year transitionary  provision regarding                                                               
who can receive  a 35 percent refunded net  operating loss credit                                                               
on the North  Slope.  On page  8, line 4, there is  an "or" where                                                               
there should be  an "and," which would mean that  an entity could                                                               
get a transitional  credit with production in the  amount of less                                                               
than 15,000 barrels  a day, produced in 2016 on  the North Slope,                                                               
or if  the lease expenditures  creating the credit  were incurred                                                               
under  a unit  plan  of  development or  exploration.   She  said                                                               
Amendment 2  would make the change  from "or" to "and"  to ensure                                                               
that a  new unit plan of  development by an entity  that produces                                                               
even 50,000 barrels a day would  not be included for the purposes                                                               
of said three-year transitionary measure.                                                                                       
                                                                                                                                
MS.  DELBRIDGE then  directed attention  to Version  D, page  12,                                                               
related to  the extension of the  [regions of the state  south of                                                               
68 degrees  north latitude  and outside of  the Cook  Inlet known                                                               
as]  middle earth  credit  in the  Copper River  Basin.   At  the                                                               
request  of  Legislative   Legal  Services,  Legislative  Affairs                                                               
Agency, the amendment  would also make a change on  page 12, line                                                               
10,  inserting  "Notwithstanding  (b)  of  this  section"  before                                                             
"exploration"  to ensure  that  [43.55.025(b)]  "was not  wrapped                                                             
into the new requirements on  the extension."  Finally, Amendment                                                               
2 restores  the definition of a  "qualified capital expenditure,"                                                               
a term  which is  used in statute  independently of  a "qualified                                                               
capital expenditure  credit."  She  said restoring  the qualified                                                               
capital  expenditure  definition would  ensure  there  is not  an                                                               
inadvertent  change.    Additionally,   Tax  Director  Ken  Alper                                                               
requested the deletion of two  repeal statutes currently found in                                                               
Version D, page 28.                                                                                                             
                                                                                                                                
9:48:26 AM                                                                                                                    
                                                                                                                                
The committee stood at ease from 9:48 a.m. to 9:53 a.m.                                                                         
                                                                                                                                
9:53:56 AM                                                                                                                    
                                                                                                                                
CHAIR JOHNSON  moved to adopt  Amendment 1 to Amendment  2, which                                                               
read as follows [original punctuation provided]:                                                                                
                                                                                                                                
     Add to D.19                                                                                                                
     page 28 line 13-14                                                                                                         
     delete repeal 43.55.165(e)(18)                                                                                             
     delete repeal 43.55.890(6)                                                                                                 
                                                                                                                                
9:54:11 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KREISS-TOMKINS objected for discussion purposes.                                                                 
                                                                                                                                
9:54:33 AM                                                                                                                    
                                                                                                                                
MS.  DELBRIDGE explained  that in  Version D  there is  a blanket                                                               
repeal   of  "qualified   capital  expenditure,"   including  its                                                               
definition where  it applies in  other statutes.  Amendment  1 to                                                               
Amendment  2  reinserts  a   definition  for  "qualified  capital                                                               
expenditure" into the proposed  legislation at the recommendation                                                               
of  DOR,  because  it  applies to  other  provisions  in  statute                                                               
"outside of the  credit."  Further, in making this  change to the                                                               
definition,  the   legislation  must   also  reinsert   the  term                                                               
"qualified capital  expenditure"; previously, Version  D repealed                                                               
two   provisions   containing   the   term   "qualified   capital                                                               
expenditure," therefore,  the repeals  must be deleted  to retain                                                               
the term in statute.                                                                                                            
                                                                                                                                
9:55:37 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KREISS-TOMKINS  removed   his  objection  to  the                                                               
motion  to adopt  Amendment 1  to Amendment  2.   There being  no                                                               
further objection, Amendment 1 to Amendment 2 was adopted.                                                                      
                                                                                                                                
9:55:49 AM                                                                                                                    
                                                                                                                                
MS. DELBRIDGE restated  the changes contained in  Amendment 2, as                                                               
amended,  as  follows:   restores  the  definition  of  qualified                                                               
capital expenditure;  tightens the language in  the transitionary                                                               
provision; makes  a recommended  technical change related  to the                                                               
middle earth credit.                                                                                                            
                                                                                                                                
9:56:19 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KREISS-TOMKINS  removed   his  objection  to  the                                                               
motion  to  adopt Amendment  2  [as  amended].   There  being  no                                                               
further objection, Amendment 2, as amended, was adopted.                                                                        
                                                                                                                                
9:56:31 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KREISS-TOMKINS   moved  to  adopt   Amendment  3,                                                               
labeled  29-GH2609\D.8,  Nauman/Shutts,  5/11/16.   [Due  to  its                                                               
length,  Amendment  3  text  is  provided  at  the  end  of  this                                                               
document.]                                                                                                                      
                                                                                                                                
9:56:34 AM                                                                                                                    
                                                                                                                                
CHAIR JOHNSON objected for discussion purposes.                                                                                 
                                                                                                                                
REPRESENTATIVE KREISS-TOMKINS explained  that Amendment 3 relates                                                               
to gross  value reduction (GVR)  and its  cost to the  state now,                                                               
and its  potential costs in the  future, as more oil  becomes GVR                                                               
eligible.  The  amendment takes a conservative  approach to gross                                                               
value  reductions, which  is  important in  order  to maintain  a                                                               
stable revenue  source from the state's  oil and gas.   He opined                                                               
that  removing GVR  simplifies Alaska's  statutes  and ensures  a                                                               
more reliable revenue stream into the future.                                                                                   
                                                                                                                                
9:57:51 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HERRON asked  whether the  amendment creates  two                                                               
different GVRs.                                                                                                                 
                                                                                                                                
REPRESENTATIVE  KREISS-TOMKINS  expressed  his  belief  that  the                                                               
amendment eliminates GVR.                                                                                                       
                                                                                                                                
9:58:15 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK  confirmed that  the intent of  the amendment                                                               
is to eliminate GVR entirely.                                                                                                   
                                                                                                                                
9:58:23 AM                                                                                                                    
                                                                                                                                
CHAIR JOHNSON questioned whether a  10 percent GVR would still be                                                               
in place.                                                                                                                       
                                                                                                                                
REPRESENTATIVE  TUCK said  he could  not  answer Chair  Johnson's                                                               
question.    He  pointed  out  that  he  received  the  committee                                                               
substitute  at 7:30  a.m., before  a 9:30  a.m. meeting,  and was                                                               
required to submit amendments prior  to 2:00 p.m., which resulted                                                               
in work that was rushed.                                                                                                        
                                                                                                                                
9:59:33 AM                                                                                                                    
                                                                                                                                
A roll call  vote was taken.   Representatives Kreiss-Tomkins and                                                               
Tuck  voted in  favor  of Amendment  3.   Representatives  Olson,                                                               
Chenault,  Herron,  and Johnson  voted  against  it.   Therefore,                                                               
Amendment 3 failed by a vote of 2-4.                                                                                            
                                                                                                                                
10:00:22 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  TUCK  moved to  adopt  Amendment  4, labeled  29-                                                               
GH2609\D.10, Nauman/Shutts, 5/10/16, which read as follows:                                                                     
                                                                                                                                
          Page 11, line 7:                                                                                                      
          Delete "$8"                                                                                                           
          Insert "$4 [$8]"                                                                                                  
                                                                                                                                
     Page 11, line 9:                                                                                                           
          Delete "$7"                                                                                                           
          Insert "$3.50 [$7]"                                                                                               
                                                                                                                                
     Page 11, line 12:                                                                                                          
          Delete "$6"                                                                                                           
          Insert "$3 [$6]"                                                                                                  
                                                                                                                                
     Page 11, line 15:                                                                                                          
          Delete "$5"                                                                                                           
          Insert "$2.50 [$5]"                                                                                               
                                                                                                                                
     Page 11, line 18:                                                                                                          
          Delete "$4"                                                                                                           
          Insert "$2 [$4]"                                                                                                  
                                                                                                                                
     Page 11, line 21:                                                                                                          
          Delete "$3"                                                                                                           
          Insert "$1.50 [$3]"                                                                                               
                                                                                                                                
     Page 11, line 24:                                                                                                          
          Delete "$2"                                                                                                           
          Insert "$1 [$2]"                                                                                                  
                                                                                                                                
     Page 11, line 27:                                                                                                          
          Delete "$1"                                                                                                           
          Insert "$0.50 [$1]"                                                                                               
                                                                                                                                
10:00:23 AM                                                                                                                   
                                                                                                                                
CHAIR JOHNSON objected for discussion purposes.                                                                                 
                                                                                                                                
REPRESENTATIVE  TUCK  said  the  intent  of  Amendment  4  is  to                                                               
establish  per barrel  tax credits  from zero  to $4,  instead of                                                               
from zero  to $8.   In  response to  Chair Johnson,  he clarified                                                               
that the  amendment does not  eliminate progressivity,  but would                                                               
cut the amount in half.                                                                                                         
                                                                                                                                
CHAIR JOHNSON  advised that  the amendment  substantially affects                                                               
the  state's credit  system;  although  it is  not  a credit,  it                                                               
changes  the  overall mechanism,  and  he  expressed his  concern                                                               
about "passing  policy without ...  a real  deliberative process.                                                               
I'm not sure this has been heard enough."                                                                                       
                                                                                                                                
10:01:59 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  HERRON  expressed   uncertainty  related  to  the                                                               
effect on  oil prices over $100  per barrel.  He  asked the maker                                                               
of  the amendment  to withdraw  Amendment  4 and  present it  for                                                               
debate on the House floor.                                                                                                      
                                                                                                                                
10:02:41 AM                                                                                                                   
                                                                                                                                
A roll call  vote was taken.   Representatives Kreiss-Tomkins and                                                               
Tuck  voted in  favor of  Amendment 4.   Representatives  Herron,                                                               
Olson,  Chenault,  and  Johnson  voted against  it.    Therefore,                                                               
Amendment 4 failed by a vote of 2-4.                                                                                            
                                                                                                                                
10:03:29 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  TUCK  moved to  adopt  Amendment  6, labeled  29-                                                               
GH2609\D.12,  Nauman/Shutts,  5/10/16.     [Due  to  its  length,                                                               
Amendment 6 text is provided at the end of this document.]                                                                      
                                                                                                                                
10:03:32 AM                                                                                                                   
                                                                                                                                
CHAIR JOHNSON objected for discussion purposes.                                                                                 
                                                                                                                                
REPRESENTATIVE  TUCK  explained  that  Amendment  6  would  limit                                                               
refinery tax credits to companies  that have 51 percent ownership                                                               
in Alaska and are headquartered  in Alaska.  He recalled previous                                                               
testimony from  the industry  that the  refinery tax  credits are                                                               
not  needed by  all  in  the industry,  and  the amendment  would                                                               
ensure that  the credits  are limited to  companies that  do need                                                               
them.                                                                                                                           
                                                                                                                                
10:04:17 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE CHENAULT  expressed his belief that  no funds have                                                               
been paid from the aforementioned  [tax credit] program; in fact,                                                               
the first funds paid from  oil refinery tax credits will probably                                                               
be for an asphalt process in  Fairbanks.  He pointed out that any                                                               
improvements to  an instate oil  refinery will benefit  the state                                                               
and  its  residents because  its  products  will  go to  the  Ted                                                               
Stevens Anchorage  International Airport,  or to  consumers along                                                               
the Railbelt  and around  the state.   Further, Tesoro  Corp. has                                                               
spent hundreds  of millions  of dollars  to develop  a low-sulfur                                                               
fuel process.  He questioned  whether any refinery could meet the                                                               
51  percent  ownership  requirement,  and  concluded  that  if  a                                                               
refinery  needs a  tax  credit  to provide  a  better product  to                                                               
Alaskans -  which was  the original intent  of the  legislation -                                                               
the tax credits should be kept in place.                                                                                        
                                                                                                                                
10:06:38 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  OLSON  added that  Tesoro  extended  the life  of                                                               
Flint  Hills  by  several years  by  supplying  ultra  low-sulfur                                                               
diesel to its plant, at a high cost to Tesoro.                                                                                  
                                                                                                                                
10:07:06 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE TUCK stated that  three refineries in Alaska would                                                               
currently  be  eligible  for  the   credits  [after  the  changes                                                               
proposed  by Amendment  6].   He referred  to previous  testimony                                                               
that  the credits  were not  needed by  Tesoro.   In response  to                                                               
Representative  Chenault, he  said the  ownership requirement  is                                                               
that  at  least 51  percent  of  the  company  must be  owned  by                                                               
Alaskans; for  example, the  two refineries  owned by  the Arctic                                                               
Slope Regional  Corporation (ASRC)  may qualify.   Representative                                                               
Tuck pointed out  that currently, companies do not  need to prove                                                               
their need  for the tax  credits; however, under the  limits made                                                               
by the amendment,  $10 million per year in credits  [would go to]                                                               
"state   corporations   and   that  they're   not   multinational                                                               
corporations that aren't asking for it in the first place."                                                                     
                                                                                                                                
10:08:36 AM                                                                                                                   
                                                                                                                                
A roll call  vote was taken.   Representatives Kreiss-Tomkins and                                                               
Tuck  voted in  favor of  Amendment 6.   Representatives  Herron,                                                               
Olson,  Chenault,  and  Johnson  voted against  it.    Therefore,                                                               
Amendment 6 failed by a vote of 2-4.                                                                                            
                                                                                                                                
10:09:07 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  KREISS-TOMKINS   moved  to  adopt   Amendment  7,                                                               
labeled  29-GH2609\D.13, Nauman/Shutts,  5/11/16,  which read  as                                                               
follows:                                                                                                                        
                                                                                                                                
     Page 15, line 26:                                                                                                          
          Delete "$75,000,000"                                                                                              
          Insert "$25,000,000"                                                                                              
                                                                                                                                
     Page 16, line 3:                                                                                                           
          Delete "$75,000,000"                                                                                              
          Insert "$25,000,000"                                                                                              
                                                                                                                                
     Page 16, line 20:                                                                                                          
          Delete "$75,000,000"                                                                                                  
          Insert "$25,000,000"                                                                                                  
                                                                                                                                
     Page 16, line 28:                                                                                                          
          Delete "$75,000,000"                                                                                                  
          Insert "$25,000,000"                                                                                                  
                                                                                                                                
10:09:13 AM                                                                                                                   
                                                                                                                                
CHAIR JOHNSON objected for discussion purposes.                                                                                 
                                                                                                                                
REPRESENTATIVE  KREISS-TOMKINS   said  Amendment  7   relates  to                                                               
refundable or  reimbursable tax credits  which the state  pays to                                                               
holders  of   tax  credits.     The  proposed   second  committee                                                               
substitute  establishes a  ceiling  or "cap"  of  $75 million  in                                                               
refundable  or  reimbursable credits,  which  can  be claimed  or                                                               
cashed by  the holders;  Amendment 7 reduces  the ceiling  or cap                                                               
from $75 million  to $25 million.  He pointed  out that the state                                                               
needs to  limit its exposure  in the  amount paid to  tax credits                                                               
payments, subsidies, and incentives.                                                                                            
                                                                                                                                
10:10:15 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE   HERRON   recalled    that   the   administration                                                               
previously testified  that $25 million was  the cap in 2006.   He                                                               
suggested that  the cap amount  should be adjusted  for inflation                                                               
over ten  years.  In  response to  Representative Kreiss-Tomkins,                                                               
he reiterated the need to adjust for inflation.                                                                                 
                                                                                                                                
REPRESENTATIVE KREISS-TOMKINS  offered to entertain  an amendment                                                               
to Amendment 7.                                                                                                                 
                                                                                                                                
10:11:39 AM                                                                                                                   
                                                                                                                                
CHAIR JOHNSON stated  the $25 million cap is  an arbitrary number                                                               
and  opined the  $75  million  cap is  a  compromise towards  the                                                               
"lower end."   He recalled  industry testimony that this  bill is                                                               
about allowing companies  such as BlueCrest Energy  and Furie the                                                               
opportunity  to  continue  their   work,  and  [a  decrease]  may                                                               
seriously  damage  future  investment.    Further,  he  said  the                                                               
amendment would  undo some of  the balance struck in  other areas                                                               
of the legislation.                                                                                                             
                                                                                                                                
10:12:32 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE TUCK noted that the  amendment returns the related                                                               
provision of the bill to the  governor's version of HB 247, which                                                               
was supported by  public testimony heard by the  committee at the                                                               
previous  meeting.   He  cautioned  that  members of  the  public                                                               
"might  be confused  on, on  all  the elements  of the  CS."   He                                                               
opined that  public testimony  reflected a lack  of trust  in the                                                               
legislative  process and  a desire  to return  to the  governor's                                                               
original version of  HB 247.  Representative  Tuck concluded that                                                               
the $25  million cap  per company  limits the  state's liability,                                                               
but would still keep investments in Alaska.                                                                                     
                                                                                                                                
CHAIR JOHNSON said legislators "have  to strike a balance between                                                               
investment in  the future ...  while not crippling  the industry;                                                               
we certainly need to make adjustments."                                                                                         
                                                                                                                                
10:13:53 AM                                                                                                                   
                                                                                                                                
A roll call  vote was taken.   Representatives Kreiss-Tomkins and                                                               
Tuck voted  in favor of  Amendment 7.   Representatives Chenault,                                                               
Herron,  Olson,  and  Johnson   voted  against  it.    Therefore,                                                               
Amendment 7 failed by a vote of 2-4.                                                                                            
                                                                                                                                
10:14:28 AM                                                                                                                   
                                                                                                                                
The committee took an at-ease from 10:14 a.m. to 10:19 a.m.                                                                     
                                                                                                                                
10:19:27 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  TUCK  moved to  adopt  Amendment  8, labeled  29-                                                               
GH2609\D.14, Shutts,  5/11/16.  [Due  to its length,  Amendment 8                                                               
text is provided at the end of this document.]                                                                                  
                                                                                                                                
10:19:34 AM                                                                                                                   
                                                                                                                                
CHAIR JOHNSON objected for discussion purposes.                                                                                 
                                                                                                                                
REPRESENTATIVE TUCK informed the  committee that Amendment 8 sets                                                               
a  5 percent  minimum  tax.   In response  to  Chair Johnson,  he                                                               
further explained that the original  version of the bill included                                                               
a  provision for  a  5 percent  minimum  tax -  and  a 4  percent                                                               
minimum tax has  been discussed - to ensure that  the state would                                                               
not  "be going  upside down  in  production taxes  as we  survive                                                               
through these low oil prices."                                                                                                  
                                                                                                                                
10:21:24 AM                                                                                                                   
                                                                                                                                
CHAIR JOHNSON  spoke to his  objection to Amendment  8, observing                                                               
that  the  legislature  has  tried   to  strike  a  balance,  and                                                               
cautioned that "taking the 4 percent  from 5 percent would be the                                                               
equivalent of  a North Slope producer  laying down a rig  for six                                                               
months, so  if you multiply  that by  the number of  producers up                                                               
there,  that could  be the  equivalent of  two, three,  [or] four                                                               
rigs  laid down."   He  urged  for the  committee -  even in  the                                                               
lowest price environment - to  encourage companies to continue to                                                               
explore,  and  that  the amendment  would  increase  the  state's                                                               
[production]  decline  curve  from   the  anticipated  4  percent                                                               
decline, closer to a 20 percent decline.                                                                                        
                                                                                                                                
10:21:27 AM                                                                                                                   
                                                                                                                                
A roll  call vote  was taken.   Representatives Tuck  and Kreiss-                                                               
Tomkins  voted   in  favor  of  Amendment   8.    Representatives                                                               
Chenault,   Herron,  Olson,   and  Johnson   voted  against   it.                                                               
Therefore, Amendment 8 failed by a vote of 2-4.                                                                                 
                                                                                                                                
10:22:10 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  TUCK moved  to adopt  Amendment  10, labeled  29-                                                               
GH2609\D.17, Wallace/Shutts, 5/11/16, which read as follows:                                                                    
                                                                                                                                
     Page 17, lines 13 - 14:                                                                                                    
          Delete "applicant's workforce in the state in the                                                                 
     previous calendar year was composed"                                                                                   
          Insert "total hours worked in the state by the                                                                    
     applicant's employees, contractors, and subcontractors                                                                 
     in the previous calendar year were hours"                                                                              
                                                                                                                                
10:22:15 AM                                                                                                                   
                                                                                                                                
CHAIR JOHNSON objected.                                                                                                         
                                                                                                                                
REPRESENTATIVE  TUCK  described  Amendment  10 as  a  local  hire                                                               
provision  to  ensure  that  companies that  have  a  local  hire                                                               
[policy]  receive  priority  for  tax credits.    Differing  from                                                               
[Version D], the amendment would  base eligibility on "the amount                                                               
of,   of  man   hours,   versus  [the]   number  of   employees."                                                               
Furthermore, both subcontractors and  contractors are included in                                                               
the provision.   Representative Tuck acknowledged  that the major                                                               
oil and gas companies are doing  a really good job at local hire,                                                               
but  said the  problem  is at  the  subcontractor and  contractor                                                               
level.   He added, "So, it  doesn't matter how many  Alaskans are                                                               
hired versus  non-residents; it's  based on making  sure Alaskans                                                               
get to work."                                                                                                                   
                                                                                                                                
10:23:26 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  CHENAULT said  he is  a firm  believer in  Alaska                                                               
hire;  however, he  questioned what  restrictions  are placed  on                                                               
companies  or  corporations.   The  second  committee  substitute                                                               
before the  committee gives preference  to corporations  that are                                                               
80 percent  Alaska hire,  so they have  priority on  the refunds.                                                               
He remarked:                                                                                                                    
                                                                                                                                
     My concern  is, is  when we  start talking  about total                                                                    
     man hours,  is that total  man hours worked  in Alaska,                                                                    
     [or] is that  total man hours that the  company has for                                                                    
     employees nationwide or  worldwide?  ...  I  do have an                                                                    
     idea  of  what  kind  of  burden  that  puts  on  a,  a                                                                    
     corporation, especially smaller  companies, to fiscally                                                                    
     track every single hour that  every employee that works                                                                    
     for their company  does across the state  or across the                                                                    
     world.   ...   I  do like  a, the  CS that's  currently                                                                    
     before  us that  has the  "80 percent,"  and I  do wish                                                                    
     that  we  could  hire more  Alaskans,  [but]  sometimes                                                                    
     that's  just not  available because  ... some  of these                                                                    
     jobs Alaskans haven't  been trained yet to do.   I hope                                                                    
     we  train them  into  the future  through  some of  the                                                                    
     training programs  we have and,  and we're able  to put                                                                    
     more  Alaskans to  work on,  on any  of these  new jobs                                                                    
     ....                                                                                                                       
                                                                                                                                
10:25:18 AM                                                                                                                   
                                                                                                                                
The committee took an at-ease from 10:25 a.m. to 10:26 a.m.                                                                     
                                                                                                                                
10:26:48 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE HERRON stated that he  shared some of the concerns                                                               
of the  previous speaker; however, speaking  from the perspective                                                               
of his constituents,  he urged for more discussion  on this issue                                                               
and expressed his support for Amendment 10.                                                                                     
                                                                                                                                
10:27:11 AM                                                                                                                   
                                                                                                                                
CHAIR  JOHNSON  cautioned  that   the  amendment  would  place  a                                                               
terrible  burden  on companies  to  audit  their contractors  and                                                               
review  individual  timecards,  in  addition  to  the  risk  that                                                               
companies would  be responsible for mistakes  made by contractors                                                               
regarding  residency,  thereby   putting  their  application  for                                                               
credits in jeopardy.                                                                                                            
                                                                                                                                
10:27:45 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  TUCK   observed  that  oil   companies  typically                                                               
contract out  some facets of  a job, in  a manner similar  to the                                                               
state's position  as the resource  owner that contracts  with the                                                               
industry to bring  its oil to market.    As the  state invests in                                                               
the industry,  through this proposed  amendment, the  state would                                                               
make the decision to have as  many Alaskans hired as is possible.                                                               
He provided an example of a welder  who applied for a job in Cook                                                               
Inlet  and  was  required  to   travel  to  Louisiana  to  become                                                               
certified.    Representative  Tuck  opined  the  amendment  would                                                               
ensure that contractors are in  compliance with the provisions of                                                               
the proposed CS.   Also clear in the CS, and  in Amendment 10, is                                                               
that  the [tax  credit]  applicant's workforce  is  in the  state                                                               
during the  previous year.  The  basis on man hours  would ensure                                                               
that Alaskans  are employed on  the jobs,  not just hired  on the                                                               
books.  Representative Tuck said compliance benefits Alaskans.                                                                  
                                                                                                                                
10:30:17 AM                                                                                                                   
                                                                                                                                
The committee took an at-ease from 10:30 a.m. to 10:33 a.m.                                                                     
                                                                                                                                
10:33:39 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  TUCK  acknowledged  that  local  hire  provisions                                                               
create   "some  scenarios   [and]  some   situations,"  regarding                                                               
contractors  and subcontractors.    He said  he  would work  with                                                               
other committee  members on  an amendment to  offer on  the House                                                               
floor.                                                                                                                          
                                                                                                                                
10:34:19 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE TUCK withdrew Amendment 10.                                                                                      
                                                                                                                                
10:34:26 AM                                                                                                                   
                                                                                                                                
CHAIR JOHNSON agreed with the intent of Amendment 10.                                                                           
                                                                                                                                
10:34:41 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  TUCK recalled  that  Chair  Johnson's House  Bill                                                               
308, proposed  in the 26th  Alaska State Legislature,  raised his                                                               
interest  in local  hire  provisions.   He  said  the purpose  of                                                               
basing  the  provision on  man  hours  is  "more linear"  in  its                                                               
approach in order to capture a bigger portion of the workforce.                                                                 
                                                                                                                                
10:35:58 AM                                                                                                                   
                                                                                                                                
The committee took an at-ease from 10:35 a.m. to 10:36 a.m.                                                                     
                                                                                                                                
10:36:18 AM                                                                                                                   
                                                                                                                                
CHAIR JOHNSON  stated that  there were  no further  amendments to                                                               
discuss and Version D, as amended, was before the committee.                                                                    
                                                                                                                                
10:36:33 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE TUCK recalled  that at the passage  of Senate Bill                                                               
21 [passed in  the 28th Alaska State Legislature  and signed into                                                               
law 5/21/13],  modeling for the  current level of oil  prices was                                                               
not  provided.   He opined  that  at that  time the  legislature,                                                               
administration,  and  the public  did  not  fully understand  the                                                               
ramifications of  low oil prices.   During its present  effort to                                                               
save money, the state continues to  make cash payments to the oil                                                               
industry  for ongoing  work, as  demonstrated by  House Bill  280                                                               
[passed in the 26th Alaska  State Legislature and signed into law                                                               
5/12/10],  which  "jumpstarted  the  Cook  Inlet";  however,  the                                                               
remaining questions  are:   Is the state  meeting the  purpose of                                                               
the  tax  credits?   Who  is  receiving  the   tax  credits?  Are                                                               
[eligible] parties  not receiving the  tax credits?  He  said the                                                               
legislature does not have sufficient  information in this regard,                                                               
although [Version D,  as amended], does attempt to  "grab some of                                                               
that  information."   The  oil industry  seeks  certainty in  the                                                               
state's tax structure, and the  proposed legislation would do so,                                                               
but  legislators need  time to  understand details  and have  the                                                               
proposed complex legislation and  its amendments properly modeled                                                               
before them.   Representative Tuck  stressed the importance  of a                                                               
tax  structure that  is durable,  works under  all circumstances,                                                               
and meets  the state's  constitutional obligations.   He  said he                                                               
could not support moving the bill out of committee at this time.                                                                
                                                                                                                                
10:40:40 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  KREISS-TOMKINS expressed  his understanding  that                                                               
the issues are hard, oil prices  are low, and the oil industry is                                                               
struggling, although  there is encouraging activity  by BlueCrest                                                               
in Cook  Inlet, by Armstrong/Repsol  on the North Slope,  and CD5                                                               
by  Conoco/Phillips  in  the  National  Petroleum  Reserve-Alaska                                                               
(NPRA).  The  bill is a huge piece of  Alaska's budget, given its                                                               
$772 million  refundable credit cash payment  outlay, even though                                                               
some reduction is projected in future  years.  He said, "There is                                                               
no way - and I think that is  a factual statement - to close this                                                               
budget gap without  major reform and reduction  in these payments                                                               
and subsidies."   He acknowledged that the bill  is a hard-fought                                                               
compromise,   unpopular  with   legislators  and   the  industry.                                                               
Representative  Kreiss-Tomkins turned  attention  to his  coastal                                                               
district,  noting   his  constituents  are  dependent   upon  the                                                               
economics of the  fishing industry, and pointed  out that "salmon                                                               
prices  are in  the toilet,"  some fishing  quotas are  down, and                                                               
production  from  certain species  and  fisheries  is down.    He                                                               
pointed  out  there is  proposed  legislation  to increase  gross                                                               
taxes  on  fishing,  which would  be  detrimental  to  fisherman,                                                               
although it may become necessary.   In fact, raising taxes on all                                                               
sectors is  a matter of  sharing the  burden to close  the budget                                                               
gap.   On  the other  hand, he  said he  has a  big problem  with                                                               
subsidies  and  incentives,  because   there  is  no  tax  credit                                                               
program, incentive,  or subsidy program to  support fishermen and                                                               
pay  a  percentage of  the  cost  of  capital upgrades  to  their                                                               
equipment  to help  them be  more efficient  and hire  more crew.                                                               
This  type  of program  would  also  help fisherman  establish  a                                                               
stronger business in Alaska, would  be great for the economy, and                                                               
would create  more jobs, but  the state  could not afford  such a                                                               
program at  this time, and it  would not garner his  support were                                                               
it to  exist.  Regarding  incentives and subsidies, he  urged the                                                               
committee  to "take  a really  hard and  difficult look  at this,                                                               
this outlay  that we're paying,  because we just can't  afford it                                                               
mathematically, we can't balance the budget with it ...."                                                                       
                                                                                                                                
10:45:55 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  HERRON  stated that  as  a  member of  the  House                                                               
Resources  Standing Committee,  hearings on  HB 247  were a  "big                                                               
learning curve," and  further debate on the  House floor revealed                                                               
that the  bill left  the House  divided.   At this  time, further                                                               
work has been done on the  legislation, and he said he would vote                                                               
to move out the version before  the committee, in order to return                                                               
the bill to the House floor for  further debate.  As an aside, he                                                               
said he  would inquire as to  whether the present version  of the                                                               
bill would increase  exploration activity on the  North Slope and                                                               
attract "50 independents," which  was the governor's expectation,                                                               
or if the bill  brings "anybody else to the table,  or is, is one                                                               
of  the  majors  going  to  be   the  only  one  left  up  there,                                                               
exploring?"                                                                                                                     
                                                                                                                                
10:48:22 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE OLSON said he would support the bill.                                                                            
                                                                                                                                
10:48:40 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE CHENAULT  opined there  are aspects within  HB 247                                                               
that everybody  doesn't like.   He noted the economic  decline of                                                               
the  oil  market, which  provides  over  80 percent  of  Alaska's                                                               
revenue and  therefore must be  addressed.  Alaska's  future will                                                               
be  bleak  if the  state  does  not  continue  to invest  in  the                                                               
industry that  pays its bills.   He  clarified that of  the $773-                                                               
$775 million in  tax credits due this year, $200  million are tax                                                               
credits that  the state did not  pay last year, thus  that amount                                                               
is "just paying  what we owe."  Although the  remaining amount is                                                               
substantial, "it  still is in the  state's pocket."  He  said the                                                               
legislature needs  to exercise caution when  crafting legislation                                                               
to try to save money on the  credits, and to also ensure that the                                                               
state  continues to  see investment  by the  industry, until  the                                                               
price  of  oil  goes  back  up.   If  not,  there  will  be  less                                                               
production as the industry will continue  to do what it has to do                                                               
- what is  good for business -  which could mean lay  down a rig,                                                               
lay  off more  employees,  and make  smaller  or no  investments.                                                               
Representative  Chenault restated  that although  aspects of  the                                                               
bill  are unpopular,  it is  the compromise  needed to  garner 21                                                               
votes and move the bill to the Senate floor.                                                                                    
                                                                                                                                
10:52:08 AM                                                                                                                   
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
10:52:53 AM                                                                                                                   
                                                                                                                                
CHAIR JOHNSON  observed that none  of the provisions of  the bill                                                               
are  new, and  with its  changes  and compromises,  "we tried  to                                                               
reach across  the aisle and bring  as many people on  board as we                                                               
can."   Although not  perfect, he  said now is  the time  for the                                                               
legislation to  move forward, and cautioned  against allowing the                                                               
bill to become a roadblock  to finishing the legislative session.                                                               
In response to  previous comments, he stressed that  [oil and gas                                                               
consultant  firm]   enalytica  was  not  instructed   to  provide                                                               
modeling on any  amendment.  He pointed out  that the legislature                                                               
had  studied the  bill for  four weeks,  and it  was not  "rushed                                                               
through,"  none of  the  concepts are  new,  and the  legislature                                                               
should act.  Chair Johnson  expressed his belief that the state's                                                               
$4 billion  budget could  not be closed  using "every  penny that                                                               
the oil companies made."                                                                                                        
                                                                                                                                
10:54:49 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  CHENAULT  moved  to  report 2D  CS  for  HB  247,                                                               
Version 29-GH2609\D,  Nauman/Shutts, 5/6/16,  as amended,  out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal notes.                                                                                                                   
                                                                                                                                
10:55:04 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE TUCK objected.                                                                                                   
                                                                                                                                
10:55:26 AM                                                                                                                   
                                                                                                                                
CHAIR JOHNSON,  in response to  Representative Tuck,  labeled the                                                               
bill's accompanying fiscal notes as follows:                                                                                    
                                                                                                                                
     Identifier:  HB247CS(RLS)-DOR-TAX-05-10-16;                                                                                
     Identifier:  HB247 (HRLS) Fund Cap 5-10-16                                                                                 
                                                                                                                                
10:55:52 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE TUCK  said fiscal  note Identifier:   HB247 (HRLS)                                                               
Fund Cap 5-10-16 for $1.75  billion dollars was prepared by Chair                                                               
Johnson, and  capitalizes the  Oil and Gas  Tax Credit  Fund with                                                               
$1.75 billion from the Constitutional  Budget Reserve (CBR) Fund.                                                               
He remarked, "This significantly ... adds  to the bill ... so I'm                                                               
going  to object  to the  attachment of  2894, the  OMB Component                                                               
Number 2894, to the HB 247  House Rules Fund Cap, dated 5/10/16."                                                               
He  asked  whether it  was  appropriate  to  move "to  split  the                                                               
question on the two fiscal notes."                                                                                              
                                                                                                                                
[The  committee  treated  the  motion   to  move  the  bill  from                                                               
committee as withdrawn.]                                                                                                        
                                                                                                                                
10:57:10 AM                                                                                                                   
                                                                                                                                
CHAIR JOHNSON asked for a motion to remove one fiscal note.                                                                     
                                                                                                                                
10:57:18 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE TUCK moved  to accept fiscal note  Identifier:  HB
247CS(RLS)-DOR-TAX-05-10-16, OMB Component Number:   2476, and to                                                               
withdraw fiscal note Identifier:   HB247 (HRLS) Fund Cap 5-10-16,                                                               
OMB Component Number:  2894.                                                                                                    
                                                                                                                                
10:57:40 AM                                                                                                                   
                                                                                                                                
CHAIR JOHNSON remarked:                                                                                                         
                                                                                                                                
      Basically what this does is it funds all of the, all                                                                      
      of our credits that were owed, and there are no more                                                                      
     after this,  but ... in  some form or fashion,  we have                                                                    
     to pay those,  and this ... has to  be an appropriation                                                                    
     out of the  CBR so that we can get  them off the books.                                                                    
     And there will be  no further appropriations after this                                                                    
     on a  year-to-year basis.   So this is kind  of lumping                                                                    
     it into one sum.   But I, I do not  have a problem with                                                                    
     the motion and  ... I'm not going to object  to it - we                                                                    
     can take it up at a future date.                                                                                           
                                                                                                                                
10:57:17 AM                                                                                                                   
                                                                                                                                
There being no objection, it was so ordered.                                                                                    
                                                                                                                                
10:58:33 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  CHENAULT  moved  to  report 2d  CS  for  HB  247,                                                               
Version  29-GH2609\D,  Nauman/Shutts,  5/6/16, as  amended,  with                                                               
attached  fiscal  note  and individual  recommendations.    There                                                               
being  no objection,  2d CSHB  247(RLS) was  reported out  of the                                                               
House Rules Standing Committee.                                                                                                 
                                                                                                                                
                           AMENDMENTS                                                                                         
                                                                                                                                
[The following  amendments to  HB 247  were discussed  or adopted                                                               
during the hearing.  Shorter  amendments are provided in the main                                                               
text only.]                                                                                                                     
                                                                                                                                
Amendment 1, labeled  29-GH2609\D.2, Nauman/Shutts, 5/10/16, read                                                             
as follows:                                                                                                                     
                                                                                                                                
     Page 5, lines 1 - 2:                                                                                                       
          Delete "[USE AVAILABLE MONEY IN THE OIL AND GAS                                                                       
     TAX CREDIT FUND ESTABLISHED IN AS 43.55.028 TO]"                                                                           
          Insert "use available money in the oil and gas                                                                        
     tax credit fund established in AS 43.55.028 to"                                                                            
                                                                                                                                
     Page 5, lines 13 - 14:                                                                                                     
          Delete "[USE AVAILABLE MONEY IN THE OIL AND GAS                                                                       
     TAX CREDIT FUND ESTABLISHED IN AS 43.55.028 TO]"                                                                           
          Insert "use available money in the oil and gas                                                                        
     tax credit fund established in AS 43.55.028 to"                                                                            
                                                                                                                                
     Page 5, lines 25 - 26:                                                                                                     
          Delete "[USE AVAILABLE MONEY IN THE OIL AND GAS                                                                       
     TAX CREDIT FUND ESTABLISHED IN AS 43.55.028 TO]"                                                                           
          Insert "use available money in the oil and gas                                                                        
     tax credit fund established in AS 43.55.028 to"                                                                            
                                                                                                                                
     Page 15, lines 9 - 14:                                                                                                     
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 15, line 15:                                                                                                          
         Delete ", as amended by sec. 25 of this Act,"                                                                          
                                                                                                                                
     Page 15, line 19, following "AS 43.55.025":                                                                                
          Insert "and to pay refunds and payments claimed                                                                       
     under AS 43.20.046, 43.20.047, or 43.20.053"                                                                               
                                                                                                                                
     Page 16, line 14:                                                                                                          
          Delete "sec. 27"                                                                                                      
          Insert "sec. 26"                                                                                                      
                                                                                                                                
     Page 17, lines 6 - 20:                                                                                                     
          Delete all material and insert:                                                                                       
        "* Sec. 28. AS 43.55.028(g) is amended to read:                                                                     
          (g)  The department shall [MAY] adopt regulations                                                                 
     to carry  out the  purposes of this  section, including                                                                    
     standards  and procedures  to allocate  available money                                                                    
     among  applications for  purchases  under this  chapter                                                                    
     and   claims    for   refunds   and    payments   under                                                                    
     AS 43.20.046,  43.20.047, or  43.20.053 when  the total                                                                    
     amount of the applications  for purchase and claims for                                                                    
     refund  exceed the  amount of  available  money in  the                                                                    
     fund. The  regulations adopted by the  department, when                                                                
     allocating  available  money  in the  fund  under  this                                                                
     section,                                                                                                               
               (1)  may not [, WHEN ALLOCATING AVAILABLE                                                                    
     MONEY IN  THE FUND UNDER THIS  SECTION,] distinguish an                                                                    
     application for  the purchase  of a  credit certificate                                                                    
     issued under  former AS 43.55.023(m)  or a claim  for a                                                                    
     refund  or payment  under  AS 43.20.046, 43.20.047,  or                                                                    
     43.20.053;                                                                                                             
               (2)  must grant a preference to an applicant                                                                 
     if at least 80 percent  of the applicant's workforce in                                                                
     the state  in the  previous calendar year  was composed                                                                
     of  resident  workers;  in  this  paragraph,  "resident                                                                
     worker" has the meaning given in AS 43.40.092(b)."                                                                     
                                                                                                                                
     Page 18, line 17:                                                                                                          
          Delete "sec. 31"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 18, line 30:                                                                                                          
          Delete "secs. 31 and 32"                                                                                              
          Insert "secs. 30 and 31"                                                                                              
                                                                                                                                
     Page 22, line 19:                                                                                                          
          Delete "sec. 38"                                                                                                      
          Insert "sec. 37"                                                                                                      
                                                                                                                                
     Page 29, line 23:                                                                                                          
          Delete "sec. 27"                                                                                                      
          Insert "sec. 26"                                                                                                      
                                                                                                                                
     Page 29, line 24:                                                                                                          
          Delete "sec. 30"                                                                                                      
          Insert "sec. 29"                                                                                                      
                                                                                                                                
     Page 29, line 26:                                                                                                          
          Delete "sec. 29"                                                                                                      
          Insert "sec. 28"                                                                                                      
                                                                                                                                
     Page 29, line 27:                                                                                                          
          Delete "secs. 27, 29, and 30"                                                                                         
          Insert "secs. 26, 28, and 29"                                                                                         
                                                                                                                                
     Page 29, line 28:                                                                                                          
          Delete "sec. 42"                                                                                                      
          Insert "sec. 41"                                                                                                      
                                                                                                                                
     Page 30, line 2:                                                                                                           
          Delete "sec. 50"                                                                                                      
          Insert "sec. 49"                                                                                                      
                                                                                                                                
     Page 30, line 4:                                                                                                           
          Delete "sec. 31"                                                                                                      
          Insert "sec. 30"                                                                                                      
          Delete "secs. 34 and 35"                                                                                              
          Insert "secs. 33 and 34"                                                                                              
                                                                                                                                
     Page 30, line 5:                                                                                                           
          Delete "sec. 36"                                                                                                      
          Insert "sec. 35"                                                                                                      
          Delete "sec. 43"                                                                                                      
          Insert "sec. 42"                                                                                                      
                                                                                                                                
     Page 30, line 6:                                                                                                           
          Delete "sec. 44"                                                                                                      
          Insert "sec. 43"                                                                                                      
                                                                                                                                
     Page 30, line 7:                                                                                                           
          Delete "sec. 50"                                                                                                      
          Insert "sec. 49"                                                                                                      
                                                                                                                                
     Page 30, lines 10 - 11:                                                                                                    
          Delete "sec. 50"                                                                                                      
          Insert "sec. 49"                                                                                                      
                                                                                                                                
     Page 30, line 14:                                                                                                          
          Delete "sec. 50"                                                                                                      
          Insert "sec. 49"                                                                                                      
                                                                                                                                
     Page 30, line 15:                                                                                                          
          Delete "sec. 50"                                                                                                      
          Insert "sec. 49"                                                                                                      
                                                                                                                                
     Page 30, line 19:                                                                                                          
          Delete "sec. 51"                                                                                                      
          Insert "sec. 50"                                                                                                      
                                                                                                                                
     Page 30, lines 19 - 20:                                                                                                    
          Delete "sec. 32"                                                                                                      
          Insert "sec. 31"                                                                                                      
                                                                                                                                
     Page 30, line 21:                                                                                                          
          Delete "sec. 51"                                                                                                      
          Insert "sec. 50"                                                                                                      
                                                                                                                                
     Page 30, line 24:                                                                                                          
          Delete "sec. 51"                                                                                                      
          Insert "sec. 50"                                                                                                      
                                                                                                                                
     Page 30, line 26:                                                                                                          
          Delete "sec. 51"                                                                                                      
          Insert "sec. 50"                                                                                                      
                                                                                                                                
     Page 30, line 27:                                                                                                          
          Delete "sec. 51"                                                                                                      
          Insert "sec. 50"                                                                                                      
                                                                                                                                
     Page 31, line 1:                                                                                                           
          Delete "sec. 52"                                                                                                      
          Insert "sec. 51"                                                                                                      
                                                                                                                                
     Page 31, line 2:                                                                                                           
          Delete "sec. 33"                                                                                                      
          Insert "sec. 32"                                                                                                      
          Delete "sec. 37"                                                                                                      
          Insert "sec. 36"                                                                                                      
                                                                                                                                
     Page 31, line 3:                                                                                                           
          Delete "sec. 39"                                                                                                      
          Insert "sec. 38"                                                                                                      
                                                                                                                                
     Page 31, line 4:                                                                                                           
          Delete "sec. 52"                                                                                                      
          Insert "sec. 51"                                                                                                      
                                                                                                                                
     Page 31, line 8:                                                                                                           
          Delete "sec. 52"                                                                                                      
          Insert "sec. 51"                                                                                                      
                                                                                                                                
     Page 31, line 10:                                                                                                          
          Delete "sec. 52"                                                                                                      
          Insert "sec. 51"                                                                                                      
                                                                                                                                
     Page 31, line 11:                                                                                                          
          Delete "sec. 52"                                                                                                      
          Insert "sec. 51"                                                                                                      
                                                                                                                                
     Page 31, line 16:                                                                                                          
          Delete "sec. 52"                                                                                                      
          Insert "sec. 51"                                                                                                      
                                                                                                                                
     Page 31, line 17:                                                                                                          
          Delete "secs. 26 and 28"                                                                                              
          Insert "secs. 25 and 27"                                                                                              
                                                                                                                                
     Page 31, line 18:                                                                                                          
          Delete "sec. 33"                                                                                                      
          Insert "sec. 32"                                                                                                      
          Delete "sec. 37"                                                                                                      
          Insert "sec. 36"                                                                                                      
                                                                                                                                
     Page 31, line 19:                                                                                                          
          Delete "sec. 45"                                                                                                      
          Insert "sec. 44"                                                                                                      
                                                                                                                                
     Page 31, line 21:                                                                                                          
          Delete "sec. 52" in both places                                                                                       
          Insert "sec. 51" in both places                                                                                       
                                                                                                                                
     Page 31, line 26:                                                                                                          
          Delete "sec. 42"                                                                                                      
          Insert "sec. 41"                                                                                                      
                                                                                                                                
     Page 31, line 27:                                                                                                          
          Delete "sec. 50"                                                                                                      
          Insert "sec. 49"                                                                                                      
                                                                                                                                
     Page 31, line 30:                                                                                                          
          Delete "sec. 50"                                                                                                      
          Insert "sec. 49"                                                                                                      
                                                                                                                                
     Page 32, line 4:                                                                                                           
          Delete "sec. 50"                                                                                                      
          Insert "sec. 49"                                                                                                      
                                                                                                                                
     Page 32, line 6:                                                                                                           
          Delete "sec. 50"                                                                                                      
          Insert "sec. 49"                                                                                                      
                                                                                                                                
     Page 32, line 9:                                                                                                           
          Delete "sec. 50"                                                                                                      
          Insert "sec. 49"                                                                                                      
                                                                                                                                
     Page 32, line 12:                                                                                                          
          Delete "sec. 50"                                                                                                      
          Insert "sec. 49"                                                                                                      
                                                                                                                                
     Page 32, line 14:                                                                                                          
          Delete "sec. 50"                                                                                                      
          Insert "sec. 49"                                                                                                      
                                                                                                                                
     Page 33, line 9:                                                                                                           
          Delete "53, 61, and 62"                                                                                               
          Insert "52, 60, and 61"                                                                                               
                                                                                                                                
     Page 33, line 11:                                                                                                          
          Delete "Sections 32, 51, and 56"                                                                                      
          Insert "Sections 31, 50, and 55"                                                                                      
                                                                                                                                
     Page 33, line 12:                                                                                                          
          Delete "26, 28, 33, 37, 39, 45, 52, 57, and 58"                                                                       
          Insert "25, 27, 32, 36, 38, 44, 51, 56, and 57"                                                                       
                                                                                                                                
     Page 33, line 14:                                                                                                          
          Delete "secs. 63 - 65"                                                                                                
          Insert "secs. 62 - 64"                                                                                                
                                                                                                                                
Amendment 2, labeled 29-GH2609\D.19, Nauman/Shutts, 5/11/16,                                                                  
read as follows:                                                                                                                
                                                                                                                                
     Page 8, line 4:                                                                                                            
          Delete "or"                                                                                                       
          Insert "and"                                                                                                      
                                                                                                                                
     Page 8, line 6, following "approved":                                                                                  
          Insert "before January 1, 2017,"                                                                                  
                                                                                                                                
     Page 10, lines 5 - 18:                                                                                                     
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 12, line 10:                                                                                                          
          Delete "Exploration"                                                                                              
          Insert "Notwithstanding (b) of this section,                                                                      
     exploration"                                                                                                           
                                                                                                                                
     Page 13, line 12:                                                                                                          
          Delete "sec. 22"                                                                                                      
          Insert "sec. 21"                                                                                                      
                                                                                                                                
     Page 13, line 21:                                                                                                          
          Delete "Exploration"                                                                                                  
          Insert "Notwithstanding (b) of this section,                                                                          
     exploration"                                                                                                               
                                                                                                                                
     Page 15, line 15:                                                                                                          
          Delete "sec. 25"                                                                                                      
          Insert "sec. 24"                                                                                                      
                                                                                                                                
     Page 16, line 14:                                                                                                          
          Delete "sec. 27"                                                                                                      
          Insert "sec. 26"                                                                                                      
                                                                                                                                
     Page 18, line 17:                                                                                                          
          Delete "sec. 31"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 18, line 30:                                                                                                          
          Delete "secs. 31 and 32"                                                                                              
          Insert "secs. 30 and 31"                                                                                              
                                                                                                                                
     Page 20, lines 3 - 5:                                                                                                      
          Delete all material and insert:                                                                                       
               "(6)     the  producer's   qualified  capital                                                                    
     expenditures,  [AS  DEFINED   IN  AS 43.55.023,]  other                                                                    
     lease expenditures under  AS 43.55.165, and adjustments                                                                    
     or other payments or credits under AS 43.55.170;"                                                                          
                                                                                                                                
     Page 20, lines 18 - 21:                                                                                                    
          Delete all material and insert:                                                                                       
               "(1) the  explorer's or  producer's qualified                                                                    
     capital  expenditures,  [AS DEFINED  IN  AS 43.55.023,]                                                                    
     other  lease   expenditures  under   AS 43.55.165,  and                                                                    
     adjustments   or  other   payments  or   credits  under                                                                    
     AS 43.55.170; and"                                                                                                         
                                                                                                                                
     Page 20, line 25, through page 21, line 11:                                                                                
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 22, line 19:                                                                                                          
          Delete "sec. 38"                                                                                                      
          Insert "sec. 36"                                                                                                      
                                                                                                                                
     Page 25, following line 29:                                                                                                
          Insert a new bill section to read:                                                                                    
        "* Sec. 41. AS 43.55.165(e) is amended to read:                                                                     
          (e)  For purposes of this section, lease                                                                              
     expenditures do not include                                                                                                
               (1)         depreciation,    depletion,    or                                                                    
     amortization;                                                                                                              
               (2)  oil or  gas royalty payments, production                                                                    
     payments,  lease profit  shares, or  other payments  or                                                                    
     distributions  of a  share of  oil  or gas  production,                                                                    
     profit,  or revenue,  except  that  a producer's  lease                                                                    
     expenditures applicable to oil  and gas produced from a                                                                    
     lease issued  under AS 38.05.180(f)(3)(B), (D),  or (E)                                                                    
     include  the share  of  net profit  paid  to the  state                                                                    
     under that lease;                                                                                                          
               (3)    taxes  based  on or  measured  by  net                                                                    
     income;                                                                                                                    
               (4)   interest or other financing  charges or                                                                    
     costs of raising equity or debt capital;                                                                                   
               (5)    acquisition  costs   for  a  lease  or                                                                    
     property or exploration license;                                                                                           
               (6)     costs  arising  from   fraud,  wilful                                                                    
     misconduct,  gross  negligence,  violation of  law,  or                                                                    
     failure  to comply  with an  obligation under  a lease,                                                                    
     permit,  or  license issued  by  the  state or  federal                                                                    
     government;                                                                                                                
               (7)  fines or penalties imposed by law;                                                                          
               (8)   costs  of  arbitration, litigation,  or                                                                    
     other  dispute resolution  activities that  involve the                                                                    
     state  or  concern  the  rights  or  obligations  among                                                                    
     owners of  interests in, or rights  to production from,                                                                    
     one or more leases or properties or a unit;                                                                                
               (9)     costs   incurred   in  organizing   a                                                                    
     partnership,  joint venture,  or other  business entity                                                                    
     or arrangement;                                                                                                            
               (10)   amounts paid  to indemnify  the state;                                                                    
     the  exclusion  provided  by this  paragraph  does  not                                                                    
     apply to the  costs of obtaining insurance  or a surety                                                                    
     bond from a third-party insurer or surety;                                                                                 
               (11)   surcharges  levied under  AS 43.55.201                                                                    
     or 43.55.300;                                                                                                              
               (12)    an expenditure  otherwise  deductible                                                                    
     under  (b) of  this  section  that is  a  result of  an                                                                    
     internal transfer, a transaction  with an affiliate, or                                                                    
     a transaction between related  parties, or is otherwise                                                                    
     not an  arm's length  transaction, unless  the producer                                                                    
     establishes to the satisfaction  of the department that                                                                    
     the amount of the expenditure  does not exceed the fair                                                                    
     market value of the expenditure;                                                                                           
               (13)  an expenditure  incurred to purchase an                                                                    
     interest  in  any   corporation,  partnership,  limited                                                                    
     liability  company,   business  trust,  or   any  other                                                                    
     business  entity, whether  or  not  the transaction  is                                                                    
     treated  as  an  asset  sale  for  federal  income  tax                                                                    
     purposes;                                                                                                                  
               (14)   a  tax  levied  under AS 43.55.011  or                                                                    
     43.55.014;                                                                                                                 
               (15)    costs   incurred  for  dismantlement,                                                                    
     removal,  surrender,  or  abandonment  of  a  facility,                                                                    
     pipeline, well  pad, platform,  or other  structure, or                                                                    
     for  the restoration  of a  lease,  field, unit,  area,                                                                    
     tract  of  land,  body of  water,  or  right-of-way  in                                                                    
     conjunction with dismantlement,  removal, surrender, or                                                                    
     abandonment;  a   cost  is  not  excluded   under  this                                                                    
     paragraph if the  dismantlement, removal, surrender, or                                                                    
     abandonment  for   which  the   cost  is   incurred  is                                                                    
     undertaken  for the  purpose of  replacing, renovating,                                                                    
     or   improving  the   facility,  pipeline,   well  pad,                                                                    
     platform, or other structure;                                                                                              
               (16)     costs   incurred  for   containment,                                                                    
     control,  cleanup, or  removal in  connection with  any                                                                    
     unpermitted  release of  oil or  a hazardous  substance                                                                    
     and any  liability for damages imposed  on the producer                                                                    
     or   explorer  for   that  unpermitted   release;  this                                                                    
     paragraph does not apply to  the cost of developing and                                                                    
     maintaining   an    oil   discharge    prevention   and                                                                    
     contingency plan under AS 46.04.030;                                                                                       
               (17)  costs incurred to satisfy a work                                                                           
     commitment   under   an   exploration   license   under                                                                    
     AS 38.05.132;                                                                                                              
               (18)  that portion of expenditures, that                                                                         
     would  otherwise be  qualified capital  expenditures [,                                                                    
     AS   DEFINED  IN   AS 43.55.023,]  incurred   during  a                                                                    
     calendar year that  are less than the  product of $0.30                                                                    
     multiplied by  the total  taxable production  from each                                                                    
     lease or  property, in  BTU equivalent  barrels, during                                                                    
     that calendar  year, except that,  when a portion  of a                                                                    
     calendar  year  is  subject   to  this  provision,  the                                                                    
     expenditures and volumes shall  be prorated within that                                                                    
     calendar year;                                                                                                             
               (19)       costs    incurred   for    repair,                                                                    
     replacement, or  deferred maintenance of a  facility, a                                                                    
     pipeline,  a  structure,  or equipment,  other  than  a                                                                    
     well, that results  in or is undertaken  in response to                                                                    
     a  failure,  problem,  or  event  that  results  in  an                                                                    
     unscheduled interruption  of, or reduction in  the rate                                                                    
     of,  oil  or  gas  production; or  costs  incurred  for                                                                    
     repair,  replacement,  or  deferred  maintenance  of  a                                                                    
     facility, a pipeline, a  structure, or equipment, other                                                                    
     than a well,  that is undertaken in response  to, or is                                                                    
     otherwise associated with, an  unpermitted release of a                                                                    
     hazardous  substance or  of gas;  however, costs  under                                                                    
     this  paragraph that  would otherwise  constitute lease                                                                    
     expenditures under (a)  and (b) of this  section may be                                                                    
     treated  as   lease  expenditures  if   the  department                                                                    
     determines  that the  repair or  replacement is  solely                                                                    
     necessitated  by an  act of  war,  by an  unanticipated                                                                    
     grave natural  disaster or other natural  phenomenon of                                                                    
     an    exceptional,    inevitable,   and    irresistible                                                                    
     character,  the effects  of which  could not  have been                                                                    
     prevented or  avoided by  the exercise  of due  care or                                                                    
     foresight,  or by  an intentional  or negligent  act or                                                                    
     omission of  a third party,  other than a party  or its                                                                    
     agents  in privity  of contract  with, or  employed by,                                                                    
     the producer  or an operator  acting for  the producer,                                                                    
     but only  if the  producer or operator,  as applicable,                                                                    
     exercised  due care  in operating  and maintaining  the                                                                    
     facility, pipeline,  structure, or equipment,  and took                                                                    
     reasonable precautions  against the act or  omission of                                                                    
     the  third party  and against  the consequences  of the                                                                    
     act or omission; in this paragraph,                                                                                        
               (A)       "costs    incurred   for    repair,                                                                    
     replacement, or  deferred maintenance of a  facility, a                                                                    
     pipeline, a structure, or  equipment" includes costs to                                                                    
     dismantle   and   remove    the   facility,   pipeline,                                                                    
     structure, or equipment that is being replaced;                                                                            
               (B)  "hazardous substance" has the meaning                                                                       
     given in AS 46.03.826;                                                                                                     
               (C)  "replacement" includes renovation or                                                                        
     improvement;                                                                                                               
               (20)  costs incurred to construct, acquire,                                                                      
     or  operate  a refinery  or  crude  oil topping  plant,                                                                    
     regardless of  whether the products of  the refinery or                                                                    
     topping  plant  are used  in  oil  or gas  exploration,                                                                    
     development,  or production  operations; however,  if a                                                                    
     producer  owns a  refinery or  crude oil  topping plant                                                                    
     that  is  located  on  or  near  the  premises  of  the                                                                    
     producer's  lease or  property  in the  state and  that                                                                    
     processes the  producer's oil produced from  that lease                                                                    
     or property  into a product  that the producer  uses in                                                                    
     the operation of the lease  or property in drilling for                                                                    
     or  producing   oil  or   gas,  the   producer's  lease                                                                    
     expenditures   include   the   amount   calculated   by                                                                    
     subtracting from  the fair market value  of the product                                                                    
     used   the  prevailing   value,  as   determined  under                                                                    
     AS 43.55.020(f), of the oil that is processed;                                                                             
               (21)  costs of lobbying, public relations,                                                                       
     public relations advertising, or policy advocacy."                                                                         
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 26, following line 21:                                                                                                
     Insert a new bill section to read:                                                                                         
        "* Sec. 45. AS 43.55.890 is amended to read:                                                                        
          Sec. 43.55.890. Disclosure of tax information.                                                                      
     Notwithstanding     any    contrary     provision    of                                                                    
     AS 40.25.100,   and    regardless   of    whether   the                                                                    
     information  is  considered  under  AS 43.05.230(e)  to                                                                    
     constitute   statistics  classified   to  prevent   the                                                                    
     identification  of particular  returns or  reports, the                                                                    
     department may publish  the following information under                                                                    
     this  chapter,  if  aggregated   among  three  or  more                                                                    
     producers or  explorers, showing  by month  or calendar                                                                    
     year and  by lease  or property, unit,  or area  of the                                                                    
     state:                                                                                                                     
               (1)  the amount of oil or gas production;                                                                        
               (2)   the amount  of taxes levied  under this                                                                    
     chapter or paid under this chapter;                                                                                        
               (3)    the  effective tax  rates  under  this                                                                    
     chapter;                                                                                                                   
               (4)   the gross  value of oil  or gas  at the                                                                    
     point of production;                                                                                                       
               (5)   the  transportation  costs  for oil  or                                                                    
     gas;                                                                                                                       
               (6)   qualified  capital  expenditures [,  AS                                                                    
     DEFINED IN AS 43.55.023];                                                                                                  
               (7)       exploration    expenditures   under                                                                    
     AS 43.55.025;                                                                                                              
               (8)   production  tax values  of  oil or  gas                                                                    
     under AS 43.55.160;                                                                                                        
               (9)  lease expenditures under AS 43.55.165;                                                                      
               (10)    adjustments   to  lease  expenditures                                                                    
     under AS 43.55.170;                                                                                                        
               (11)   tax credits applicable  or potentially                                                                    
     applicable against taxes levied by this chapter."                                                                          
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 26, line 29:                                                                                                          
          Delete "a new paragraph"                                                                                              
          Insert "new paragraphs"                                                                                               
                                                                                                                                
     Page 26, following line 29:                                                                                                
          Insert a new paragraph to read:                                                                                       
               "(26)  "qualified capital expenditure"                                                                           
               (A)   means, except as otherwise  provided in                                                                    
     (B) of this  paragraph, an expenditure that  is a lease                                                                    
     expenditure under AS 43.55.165 and is                                                                                      
               (i)   incurred for geological  or geophysical                                                                    
     exploration;                                                                                                               
               (ii)   treated  as a  capitalized expenditure                                                                    
     under 26  U.S.C. (Internal  Revenue Code),  as amended,                                                                    
     regardless  of elections  made under  26 U.S.C.  263(c)                                                                    
     (Internal Revenue Code), as amended,  and is treated as                                                                    
     a  capitalized  expenditure   for  federal  income  tax                                                                    
     reporting   purposes  by   the  person   incurring  the                                                                    
     expenditure; or                                                                                                            
               (iii)   treated as a  capitalized expenditure                                                                    
     under 26  U.S.C. (Internal  Revenue Code),  as amended,                                                                    
     regardless  of elections  made under  26 U.S.C.  263(c)                                                                    
     (Internal Revenue  Code), as  amended, and  is eligible                                                                    
     to be  deducted as  an expense  under 26  U.S.C. 263(c)                                                                    
     (Internal Revenue Code), as amended;                                                                                       
               (B)  does not include an expenditure                                                                             
     incurred  to acquire  an asset  the cost  of previously                                                                    
     acquiring   which  was   a   lease  expenditure   under                                                                    
     AS 43.55.165  or would  have been  a lease  expenditure                                                                    
     under  AS 43.55.165  if  it  had  been  incurred  after                                                                    
     March 31, 2006,  or that has previously  been placed in                                                                    
     service  in the  state;  an expenditure  to acquire  an                                                                    
     asset is  not excluded  under this subparagraph  if not                                                                    
     more than  an immaterial portion  of the asset  meets a                                                                    
     description  under this  subparagraph; for  purposes of                                                                    
     this   subparagraph,   "asset"   includes   geological,                                                                    
     geophysical, and well data and interpretations;"                                                                           
                                                                                                                                
     Renumber the following paragraph accordingly.                                                                              
                                                                                                                                
     Page 29, line 23:                                                                                                          
          Delete "sec. 27"                                                                                                      
          Insert "sec. 26"                                                                                                      
                                                                                                                                
     Page 29, line 24:                                                                                                          
          Delete "sec. 30"                                                                                                      
          Insert "sec. 29"                                                                                                      
                                                                                                                                
     Page 29, line 26:                                                                                                          
          Delete "sec. 29"                                                                                                      
          Insert "sec. 28"                                                                                                      
                                                                                                                                
     Page 29, line 27:                                                                                                          
          Delete "secs. 27, 29, and 30"                                                                                         
          Insert "secs. 26, 28, and 29"                                                                                         
                                                                                                                                
     Page 29, line 28:                                                                                                          
          Delete "sec. 42"                                                                                                      
          Insert "sec. 40"                                                                                                      
                                                                                                                                
     Page 30, line 3:                                                                                                           
          Delete "AS 43.55.023(n) by sec. 19 of this Act,"                                                                      
                                                                                                                                
     Page 30, line 4:                                                                                                           
          Delete "sec. 31"                                                                                                      
          Insert "sec. 30"                                                                                                      
          Delete "secs. 34 and 35"                                                                                              
          Insert "secs. 33 and 34"                                                                                              
                                                                                                                                
     Page 30, line 5:                                                                                                           
          Delete "AS 43.55.075(b) by sec. 36 of this Act,"                                                                      
          Delete "sec. 43"                                                                                                      
          Insert "sec. 42"                                                                                                      
                                                                                                                                
     Page 30, line 6:                                                                                                           
          Delete "sec. 44"                                                                                                      
          Insert "sec. 43"                                                                                                      
                                                                                                                                
     Page 30, lines 19 - 20:                                                                                                    
          Delete "sec. 32"                                                                                                      
          Insert "sec. 31"                                                                                                      
                                                                                                                                
     Page 31, line 2:                                                                                                           
          Delete "sec. 33"                                                                                                      
          Insert "sec. 32"                                                                                                      
          Delete "sec. 37"                                                                                                      
          Insert "sec. 35"                                                                                                      
                                                                                                                                
     Page 31, line 3:                                                                                                           
          Delete "sec. 39"                                                                                                      
          Insert "sec. 37"                                                                                                      
                                                                                                                                
     Page 31, line 17:                                                                                                          
          Delete "sec. 23"                                                                                                      
          Insert "sec. 22"                                                                                                      
          Delete "secs. 26 and 28"                                                                                              
          Insert "secs. 25 and 27"                                                                                              
                                                                                                                                
     Page 31, line 18:                                                                                                          
          Delete "sec. 33"                                                                                                      
          Insert "sec. 32"                                                                                                      
          Delete "sec. 37"                                                                                                      
          Insert "sec. 35"                                                                                                      
                                                                                                                                
     Page 31, line 19:                                                                                                          
          Delete "sec. 45"                                                                                                      
          Insert "sec. 44"                                                                                                      
                                                                                                                                
     Page 31, line 26:                                                                                                          
          Delete "sec. 42"                                                                                                      
          Insert "sec. 40"                                                                                                      
                                                                                                                                
     Page 33, line 9:                                                                                                           
          Delete "Sections 22"                                                                                                  
          Insert "Sections 21"                                                                                                  
                                                                                                                                
     Page 33, line 11:                                                                                                          
          Delete "Sections 32"                                                                                                  
          Insert "Sections 31"                                                                                                  
                                                                                                                                
     Page 33, line 12:                                                                                                          
          Delete "Sections 23, 26, 28, 33, 37, 39, 45"                                                                          
          Insert "Sections 22, 25, 27, 32, 35, 37, 44"                                                                          
                                                                                                                                
                                                                                                                                
Amendment 3, labeled 29-GH2609\D.8, Nauman/Shutts, 5/11/16, read                                                              
as follows:                                                                                                                     
     Page 1, line 6, following "interest;":                                                                                   
          Insert "relating to the installment payments of                                                                     
     the oil and gas production tax;"                                                                                         
                                                                                                                                
     Page 1, line 11, following "fund;":                                                                                      
          Insert "relating to certain reductions in the                                                                       
     gross  value at  the  point of  production  of oil  and                                                                  
     gas;"                                                                                                                    
                                                                                                                                
     Page 7, following line 4:                                                                                                  
          Insert a new bill section to read:                                                                                    
        "* Sec. 15. AS 43.55.020(a) is amended to read:                                                                     
          (a)  For a calendar year, a producer subject to                                                                       
     tax under AS 43.55.011 shall pay the tax as follows:                                                                       
               (1)  for oil and gas produced before                                                                             
     January 1,   2014,  an   installment  payment   of  the                                                                    
     estimated  tax levied  by AS 43.55.011(e),  net of  any                                                                    
     tax credits applied as allowed  by law, is due for each                                                                    
     month  of the  calendar year  on  the last  day of  the                                                                    
     following  month; except  as  otherwise provided  under                                                                    
     (2) of  this subsection, the amount  of the installment                                                                    
     payment is the sum of  the following amounts, less 1/12                                                                    
     of  the tax  credits  that  are allowed  by  law to  be                                                                    
     applied against  the tax levied by  AS 43.55.011(e) for                                                                    
     the calendar  year, but the  amount of  the installment                                                                    
     payment may not be less than zero:                                                                                         
               (A)  for oil and gas not subject to                                                                              
     AS 43.55.011(o)   or  (p)   produced  from   leases  or                                                                    
     properties  in   the  state  outside  the   Cook  Inlet                                                                    
     sedimentary  basin,  other  than leases  or  properties                                                                    
     subject to AS 43.55.011(f), the greater of                                                                                 
               (i)  zero; or                                                                                                    
               (ii)  the sum of 25 percent and the tax rate                                                                     
     calculated   for   the  month   under   AS 43.55.011(g)                                                                    
     multiplied  by the  remainder  obtained by  subtracting                                                                    
     1/12 of the producer's  adjusted lease expenditures for                                                                    
     the calendar year of  production under AS 43.55.165 and                                                                    
     43.55.170  that  are deductible  for  the  oil and  gas                                                                    
     under AS 43.55.160  from the  gross value at  the point                                                                    
     of  production of  the oil  and gas  produced from  the                                                                    
     leases  or properties  during the  month for  which the                                                                    
     installment payment is calculated;                                                                                         
               (B)  for oil and  gas produced from leases or                                                                    
     properties subject to AS 43.55.011(f), the greatest of                                                                     
               (i)  zero;                                                                                                       
               (ii)     zero   percent,  one   percent,  two                                                                    
     percent,   three   percent,   or   four   percent,   as                                                                    
     applicable,  of  the  gross   value  at  the  point  of                                                                    
     production of the oil and  gas produced from the leases                                                                    
     or   properties  during   the  month   for  which   the                                                                    
     installment payment is calculated; or                                                                                      
               (iii)   the  sum of  25 percent  and the  tax                                                                    
     rate  calculated for  the  month under  AS 43.55.011(g)                                                                    
     multiplied  by the  remainder  obtained by  subtracting                                                                    
     1/12 of the producer's  adjusted lease expenditures for                                                                    
     the calendar year of  production under AS 43.55.165 and                                                                    
     43.55.170  that  are deductible  for  the  oil and  gas                                                                    
     under AS 43.55.160  from the  gross value at  the point                                                                    
     of production  of the oil  and gas produced  from those                                                                    
     leases  or properties  during the  month for  which the                                                                    
     installment payment is calculated;                                                                                         
               (C)      for   oil    or   gas   subject   to                                                                    
     AS 43.55.011(j),  (k),  or  (o),   for  each  lease  or                                                                    
     property, the greater of                                                                                                   
               (i)  zero; or                                                                                                    
               (ii)  the sum of  25 percent and the tax rate                                                                    
     calculated   for   the  month   under   AS 43.55.011(g)                                                                    
     multiplied  by the  remainder  obtained by  subtracting                                                                    
     1/12 of the producer's  adjusted lease expenditures for                                                                    
     the calendar year of  production under AS 43.55.165 and                                                                    
     43.55.170  that are  deductible under  AS 43.55.160 for                                                                    
     the oil  or gas, respectively, produced  from the lease                                                                    
     or  property  from the  gross  value  at the  point  of                                                                    
     production of  the oil  or gas,  respectively, produced                                                                    
     from the lease  or property during the  month for which                                                                    
     the installment payment is calculated;                                                                                     
               (D)      for   oil   and   gas   subject   to                                                                    
     AS 43.55.011(p), the lesser of                                                                                             
               (i)  the  sum of 25 percent and  the tax rate                                                                    
     calculated   for   the  month   under   AS 43.55.011(g)                                                                    
     multiplied  by the  remainder  obtained by  subtracting                                                                    
     1/12 of the producer's  adjusted lease expenditures for                                                                    
     the calendar year of  production under AS 43.55.165 and                                                                    
     43.55.170  that  are deductible  for  the  oil and  gas                                                                    
     under AS 43.55.160  from the  gross value at  the point                                                                    
     of  production of  the oil  and gas  produced from  the                                                                    
     leases  or properties  during the  month for  which the                                                                    
     installment payment  is calculated,  but not  less than                                                                    
     zero; or                                                                                                                   
               (ii)  four percent of  the gross value at the                                                                    
     point of  production of the  oil and gas  produced from                                                                    
     the  leases or  properties  during the  month, but  not                                                                    
     less than zero;                                                                                                            
               (2)   an  amount calculated  under (1)(C)  of                                                                    
     this   subsection   for   oil   or   gas   subject   to                                                                    
     AS 43.55.011(j),  (k),  or  (o)   may  not  exceed  the                                                                    
     product obtained  by carrying  out the  calculation set                                                                    
     out in  AS 43.55.011(j)(1) or  (2) or  43.55.011(o), as                                                                    
     applicable, for  gas or  set out  in AS 43.55.011(k)(1)                                                                    
     or  (2), as  applicable, for  oil, but  substituting in                                                                    
     AS 43.55.011(j)(1)(A)  or  (2)(A) or  43.55.011(o),  as                                                                    
     applicable, the  amount of taxable gas  produced during                                                                    
     the  month  for  the  amount of  taxable  gas  produced                                                                    
     during   the   calendar   year  and   substituting   in                                                                    
     AS 43.55.011(k)(1)(A)  or  (2)(A), as  applicable,  the                                                                    
     amount  of taxable  oil produced  during the  month for                                                                    
     the amount of taxable  oil produced during the calendar                                                                    
     year;                                                                                                                      
               (3)  an installment  payment of the estimated                                                                    
     tax  levied  by  AS 43.55.011(i)   for  each  lease  or                                                                    
     property is due for each  month of the calendar year on                                                                    
     the last day of the  following month; the amount of the                                                                    
     installment payment is the sum of                                                                                          
               (A)     the  applicable  tax  rate   for  oil                                                                    
     provided  under  AS 43.55.011(i),   multiplied  by  the                                                                    
     gross  value at  the  point of  production  of the  oil                                                                    
     taxable  under AS 43.55.011(i)  and  produced from  the                                                                    
     lease or property during the month; and                                                                                    
               (B)     the  applicable  tax  rate   for  gas                                                                    
     provided  under  AS 43.55.011(i),   multiplied  by  the                                                                    
     gross  value at  the  point of  production  of the  gas                                                                    
     taxable  under AS 43.55.011(i)  and  produced from  the                                                                    
     lease or property during the month;                                                                                        
               (4)      any   amount  of   tax   levied   by                                                                    
     AS 43.55.011, net of any credits  applied as allowed by                                                                    
     law,  that exceeds  the  total of  the  amounts due  as                                                                    
     installment  payments  of  estimated   tax  is  due  on                                                                    
     March 31  of the  year following  the calendar  year of                                                                    
     production;                                                                                                                
               (5)   for oil and  gas produced on  and after                                                                    
     January 1,  2014,   and  before  January 1,   2022,  an                                                                    
     installment  payment of  the  estimated  tax levied  by                                                                    
     AS 43.55.011(e),  net of  any  tax  credits applied  as                                                                    
     allowed by law,  is due for each month  of the calendar                                                                    
     year on the last day  of the following month; except as                                                                    
     otherwise provided  under (6)  of this  subsection, the                                                                    
     amount of  the installment  payment is  the sum  of the                                                                    
     following amounts,  less 1/12  of the tax  credits that                                                                    
     are  allowed  by law  to  be  applied against  the  tax                                                                    
     levied by  AS 43.55.011(e) for  the calendar  year, but                                                                    
     the amount of  the installment payment may  not be less                                                                    
     than zero:                                                                                                                 
               (A)  for oil and gas not subject to                                                                              
     AS 43.55.011(o)   or  (p)   produced  from   leases  or                                                                    
     properties  in   the  state  outside  the   Cook  Inlet                                                                    
     sedimentary  basin,  other  than leases  or  properties                                                                    
     subject to AS 43.55.011(f), the greater of                                                                                 
               (i)  zero; or                                                                                                    
               (ii)  35 percent multiplied by the remainder                                                                     
     obtained   by  subtracting   1/12  of   the  producer's                                                                    
     adjusted lease  expenditures for  the calendar  year of                                                                    
     production  under AS 43.55.165  and 43.55.170  that are                                                                    
     deductible for the oil and  gas under AS 43.55.160 from                                                                    
     the gross value  at the point of production  of the oil                                                                    
     and gas  produced from the leases  or properties during                                                                    
     the  month   for  which  the  installment   payment  is                                                                    
     calculated;                                                                                                                
               (B)  for oil and gas produced from leases or                                                                     
     properties subject to AS 43.55.011(f), the greatest of                                                                     
               (i)  zero;                                                                                                       
               (ii)  zero percent, one percent, two                                                                             
     percent,   three   percent,   or   four   percent,   as                                                                    
     applicable,  of  the  gross   value  at  the  point  of                                                                    
     production of the oil and  gas produced from the leases                                                                    
     or   properties  during   the  month   for  which   the                                                                    
     installment payment is calculated; or                                                                                      
               (iii)  35 percent multiplied by the                                                                              
     remainder   obtained  by   subtracting   1/12  of   the                                                                    
     producer's   adjusted   lease  expenditures   for   the                                                                    
     calendar  year  of  production under  AS 43.55.165  and                                                                    
     43.55.170  that  are deductible  for  the  oil and  gas                                                                    
     under AS 43.55.160  from the  gross value at  the point                                                                    
     of production  of the oil  and gas produced  from those                                                                    
     leases  or properties  during the  month for  which the                                                                    
     installment  payment is  calculated,  except that,  for                                                                    
     the purposes of this  calculation, a reduction from the                                                                    
     gross value  at the point  of production may  apply for                                                                    
     oil    and     gas    subject     to    AS 43.55.160(g)                                                                
     [AS 43.55.160(f) OR (g)];                                                                                                  
               (C)      for   oil    or   gas   subject   to                                                                    
     AS 43.55.011(j),  (k),  or  (o),   for  each  lease  or                                                                    
     property, the greater of                                                                                                   
               (i)  zero; or                                                                                                    
               (ii)  35 percent multiplied by the remainder                                                                     
     obtained   by  subtracting   1/12  of   the  producer's                                                                    
     adjusted lease  expenditures for  the calendar  year of                                                                    
     production  under AS 43.55.165  and 43.55.170  that are                                                                    
     deductible  under  AS 43.55.160  for the  oil  or  gas,                                                                    
     respectively, produced from the  lease or property from                                                                    
     the gross value  at the point of production  of the oil                                                                    
     or  gas,  respectively,  produced  from  the  lease  or                                                                    
     property  during the  month for  which the  installment                                                                    
     payment is calculated;                                                                                                     
               (D)      for   oil   and   gas   subject   to                                                                    
     AS 43.55.011(p), the lesser of                                                                                             
               (i)  35 percent multiplied by the remainder                                                                      
     obtained   by  subtracting   1/12  of   the  producer's                                                                    
     adjusted lease  expenditures for  the calendar  year of                                                                    
     production  under AS 43.55.165  and 43.55.170  that are                                                                    
     deductible for the oil and  gas under AS 43.55.160 from                                                                    
     the gross value  at the point of production  of the oil                                                                    
     and gas  produced from the leases  or properties during                                                                    
     the  month   for  which  the  installment   payment  is                                                                    
     calculated, but not less than zero; or                                                                                     
               (ii)  four percent of the gross value at the                                                                     
     point of  production of the  oil and gas  produced from                                                                    
     the  leases or  properties  during the  month, but  not                                                                    
     less than zero;                                                                                                            
               (6)  an amount calculated under (5)(C) of                                                                        
     this   subsection   for   oil   or   gas   subject   to                                                                    
     AS 43.55.011(j),  (k),  or  (o)   may  not  exceed  the                                                                    
     product obtained  by carrying  out the  calculation set                                                                    
     out in  AS 43.55.011(j)(1) or  (2) or  43.55.011(o), as                                                                    
     applicable, for  gas or  set out  in AS 43.55.011(k)(1)                                                                    
     or  (2), as  applicable, for  oil, but  substituting in                                                                    
     AS 43.55.011(j)(1)(A)  or  (2)(A) or  43.55.011(o),  as                                                                    
     applicable, the  amount of taxable gas  produced during                                                                    
     the  month  for  the  amount of  taxable  gas  produced                                                                    
     during   the   calendar   year  and   substituting   in                                                                    
     AS 43.55.011(k)(1)(A)  or  (2)(A), as  applicable,  the                                                                    
     amount  of taxable  oil produced  during the  month for                                                                    
     the amount of taxable  oil produced during the calendar                                                                    
     year;                                                                                                                      
               (7)  for oil and gas produced on or after                                                                        
     January 1,   2022,  an   installment  payment   of  the                                                                    
     estimated  tax levied  by AS 43.55.011(e),  net of  any                                                                    
     tax credits applied as allowed  by law, is due for each                                                                    
     month  of the  calendar year  on  the last  day of  the                                                                    
     following month; the amount  of the installment payment                                                                    
     is the sum  of the following amounts, less  1/12 of the                                                                    
     tax  credits that  are  allowed by  law  to be  applied                                                                    
     against  the  tax  levied by  AS 43.55.011(e)  for  the                                                                    
     calendar  year,  but  the  amount  of  the  installment                                                                    
     payment may not be less than zero:                                                                                         
               (A)  for oil produced from leases or                                                                             
     properties that include land north  of 68 degrees North                                                                    
     latitude, the greatest of                                                                                                  
               (i)  zero;                                                                                                       
               (ii)  zero percent, one percent, two                                                                             
     percent,   three   percent,   or   four   percent,   as                                                                    
     applicable,  of  the  gross   value  at  the  point  of                                                                    
     production  of  the oil  produced  from  the leases  or                                                                    
     properties during  the month for which  the installment                                                                    
     payment is calculated; or                                                                                                  
               (iii)  35 percent multiplied by the                                                                              
     remainder   obtained  by   subtracting   1/12  of   the                                                                    
     producer's   adjusted   lease  expenditures   for   the                                                                    
     calendar  year  of  production under  AS 43.55.165  and                                                                    
     43.55.170  that  are  deductible   for  the  oil  under                                                                    
     AS 43.55.160(h)(1) from  the gross  value at  the point                                                                    
     of production of the oil  produced from those leases or                                                                    
     properties during  the month for which  the installment                                                                    
     payment is  calculated, except  that, for  the purposes                                                                    
     of this  calculation, a reduction from  the gross value                                                                    
     at the  point of production  may apply for  oil subject                                                                    
     to  AS 43.55.160(g)  [AS 43.55.160(f)  OR  43.55.160(f)                                                                
     AND (g)];                                                                                                                  
               (B)  for oil produced before or during the                                                                       
     last calendar year under  AS 43.55.024(b) for which the                                                                    
     producer    could    take    a   tax    credit    under                                                                    
     AS 43.55.024(a),  from  leases  or  properties  in  the                                                                    
     state  outside the  Cook  Inlet  sedimentary basin,  no                                                                    
     part of  which is north  of 68 degrees  North latitude,                                                                    
     other   than   leases    or   properties   subject   to                                                                    
     AS 43.55.011(p), the greater of                                                                                            
               (i)  zero; or                                                                                                    
               (ii)  35 percent multiplied by the remainder                                                                     
     obtained   by  subtracting   1/12  of   the  producer's                                                                    
     adjusted lease  expenditures for  the calendar  year of                                                                    
     production  under AS 43.55.165  and 43.55.170  that are                                                                    
     deductible  for the  oil under  AS 43.55.160(h)(2) from                                                                    
     the gross value  at the point of production  of the oil                                                                    
     produced  from  the  leases or  properties  during  the                                                                    
     month for which the installment payment is calculated;                                                                     
               (C)  for oil and  gas produced from leases or                                                                    
     properties  subject   to  AS 43.55.011(p),   except  as                                                                    
     otherwise provided  under (8)  of this  subsection, the                                                                    
     sum of                                                                                                                     
               (i)   35 percent multiplied by  the remainder                                                                    
     obtained   by  subtracting   1/12  of   the  producer's                                                                    
     adjusted lease  expenditures for  the calendar  year of                                                                    
     production  under AS 43.55.165  and 43.55.170  that are                                                                    
     deductible  for the  oil under  AS 43.55.160(h)(3) from                                                                    
     the gross value  at the point of production  of the oil                                                                    
     produced  from  the  leases or  properties  during  the                                                                    
     month for which the  installment payment is calculated,                                                                    
     but not less than zero; and                                                                                                
               (ii)   13 percent of  the gross value  at the                                                                    
     point  of  production  of the  gas  produced  from  the                                                                    
     leases  or properties  during the  month, but  not less                                                                    
     than zero;                                                                                                                 
               (D)     for  oil  produced  from   leases  or                                                                    
     properties in the  state, no part of which  is north of                                                                    
     68  degrees  North  latitude,   other  than  leases  or                                                                    
     properties  subject to  (B) or  (C) of  this paragraph,                                                                    
     the greater of                                                                                                             
               (i)  zero; or                                                                                                    
               (ii)  35 percent  multiplied by the remainder                                                                    
     obtained   by  subtracting   1/12  of   the  producer's                                                                    
     adjusted lease  expenditures for  the calendar  year of                                                                    
     production  under AS 43.55.165  and 43.55.170  that are                                                                    
     deductible  for the  oil under  AS 43.55.160(h)(4) from                                                                    
     the gross value  at the point of production  of the oil                                                                    
     produced  from  the  leases or  properties  during  the                                                                    
     month for which the installment payment is calculated;                                                                     
               (E)   for  gas produced  from  each lease  or                                                                    
     property in the  state, other than a  lease or property                                                                    
     subject  to AS 43.55.011(p),  13 percent  of the  gross                                                                    
     value at  the point of  production of the  gas produced                                                                    
     from the lease  or property during the  month for which                                                                    
     the  installment payment  is calculated,  but not  less                                                                    
     than zero;                                                                                                                 
               (8)   an  amount calculated  under (7)(C)  of                                                                    
     this  subsection may  not exceed  four  percent of  the                                                                    
     gross value at  the point of production of  the oil and                                                                    
     gas  produced  from  leases or  properties  subject  to                                                                    
     AS 43.55.011(p)   during  the   month  for   which  the                                                                    
     installment payment is calculated;                                                                                         
               (9)  for purposes of the calculation under                                                                       
     (1)(B)(ii),   (5)(B)(ii),   and  (7)(A)(ii)   of   this                                                                    
     subsection,  the  applicable  percentage of  the  gross                                                                    
     value at  the point  of production is  determined under                                                                    
     AS 43.55.011(f)(1) or  (2) but substituting  the phrase                                                                    
     "month   for   which   the   installment   payment   is                                                                    
     calculated"  in  AS 43.55.011(f)(1)  and  (2)  for  the                                                                    
     phrase "calendar year for which the tax is due.""                                                                          
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 10, line 24:                                                                                                          
          Delete "AS 43.55.160(f) or (g)"                                                                                       
          Insert "AS 43.55.160(g) [AS 43.55.160(f) OR (g)]"                                                                 
                                                                                                                                
     Page 11, line 1:                                                                                                           
          Delete "AS 43.55.160(f) or (g)"                                                                                       
          Insert "AS 43.55.160(g) [AS 43.55.160(f) OR (g)]"                                                                 
                                                                                                                                
     Page 13, line 12:                                                                                                          
          Delete "sec. 22"                                                                                                      
          Insert "sec. 23"                                                                                                      
                                                                                                                                
     Page 15, line 15:                                                                                                          
          Delete "sec. 25"                                                                                                      
          Insert "sec. 26"                                                                                                      
                                                                                                                                
     Page 16, line 14:                                                                                                          
          Delete "sec. 27"                                                                                                      
          Insert "sec. 28"                                                                                                      
                                                                                                                                
     Page 18, line 17:                                                                                                          
          Delete "sec. 31"                                                                                                      
          Insert "sec. 32"                                                                                                      
                                                                                                                                
     Page 18, line 30:                                                                                                          
          Delete "secs. 31 and 32"                                                                                              
          Insert "secs. 32 and 33"                                                                                              
                                                                                                                                
     Page 21, following line 11:                                                                                                
          Insert a new bill section to read:                                                                                    
        "* Sec. 38. AS 43.55.160(a) is amended to read:                                                                     
          (a)  For oil and gas produced before January 1,                                                                       
     2022, except  as provided  in (b) [,  (f),] and  (g) of                                                                    
     this section, for the purposes of                                                                                          
               (1)   AS 43.55.011(e)(1) and (2),  the annual                                                                    
     production tax  value of taxable  oil, gas, or  oil and                                                                    
     gas produced during  a calendar year in  a category for                                                                    
     which  a  separate  annual   production  tax  value  is                                                                    
     required to  be calculated under this  paragraph is the                                                                    
     gross value  at the  point of  production of  that oil,                                                                    
     gas,  or oil  and  gas  taxable under  AS 43.55.011(e),                                                                    
     less   the   producer's    lease   expenditures   under                                                                    
     AS 43.55.165 for  the calendar  year applicable  to the                                                                    
     oil, gas, or  oil and gas in that  category produced by                                                                    
     the  producer during  the  calendar  year, as  adjusted                                                                    
     under  AS 43.55.170; a  separate annual  production tax                                                                    
     value shall be calculated for                                                                                              
               (A)   oil  and gas  produced  from leases  or                                                                    
     properties in the  state that include land  north of 68                                                                    
     degrees North latitude, other  than gas produced before                                                                    
     2022 and used in the state;                                                                                                
               (B)   oil  and gas  produced  from leases  or                                                                    
     properties  in   the  state  outside  the   Cook  Inlet                                                                    
     sedimentary  basin, no  part of  which is  north of  68                                                                    
     degrees  North latitude  and that  qualifies for  a tax                                                                    
     credit    under   AS 43.55.024(a)    and   (b);    this                                                                    
     subparagraph does not apply to                                                                                             
               (i)   gas  produced before  2022 and  used in                                                                    
     the state; or                                                                                                              
               (ii)        oil    and   gas    subject    to                                                                    
     AS 43.55.011(p);                                                                                                           
               (C)    oil  produced before  2022  from  each                                                                    
     lease or property in the Cook Inlet sedimentary basin;                                                                     
               (D)    gas  produced before  2022  from  each                                                                    
     lease or property in the Cook Inlet sedimentary basin;                                                                     
               (E)    gas  produced before  2022  from  each                                                                    
     lease or property  in the state outside  the Cook Inlet                                                                    
     sedimentary  basin and  used in  the state,  other than                                                                    
     gas subject to AS 43.55.011(p);                                                                                            
               (F)   oil and gas subject  to AS 43.55.011(p)                                                                    
     produced from leases or properties in the state;                                                                           
               (G)   oil  and gas  produced  from leases  or                                                                    
     properties in  the state no  part of which is  north of                                                                    
     68  degrees  North  latitude, other  than  oil  or  gas                                                                    
     described  in  (B),  (C),  (D), (E),  or  (F)  of  this                                                                    
     paragraph;                                                                                                                 
               (2)     AS 43.55.011(g),  for  oil   and  gas                                                                    
     produced   before   January 1,    2014,   the   monthly                                                                    
     production tax value of the taxable                                                                                        
               (A)   oil  and gas  produced  during a  month                                                                    
     from  leases or  properties in  the state  that include                                                                    
     land north  of 68 degrees  North latitude is  the gross                                                                    
     value at  the point  of production of  the oil  and gas                                                                    
     taxable  under  AS 43.55.011(e)  and  produced  by  the                                                                    
     producer from those leases or  properties, less 1/12 of                                                                    
     the  producer's lease  expenditures under  AS 43.55.165                                                                    
     for the  calendar year  applicable to  the oil  and gas                                                                    
     produced  by   the  producer   from  those   leases  or                                                                    
     properties,  as   adjusted  under   AS 43.55.170;  this                                                                    
     subparagraph  does   not  apply   to  gas   subject  to                                                                    
     AS 43.55.011(o);                                                                                                           
               (B)  oil and gas produced during a month                                                                         
     from  leases or  properties  in the  state outside  the                                                                    
     Cook  Inlet  sedimentary basin,  no  part  of which  is                                                                    
     north of 68 degrees North  latitude, is the gross value                                                                    
     at the point  of production of the oil  and gas taxable                                                                    
     under  AS 43.55.011(e)  and  produced by  the  producer                                                                    
     from  those  leases or  properties,  less  1/12 of  the                                                                    
     producer's  lease expenditures  under AS 43.55.165  for                                                                    
     the  calendar  year  applicable  to  the  oil  and  gas                                                                    
     produced  by   the  producer   from  those   leases  or                                                                    
     properties,  as   adjusted  under   AS 43.55.170;  this                                                                    
     subparagraph  does   not  apply   to  gas   subject  to                                                                    
     AS 43.55.011(o);                                                                                                           
               (C)  oil produced during a month from a                                                                          
     lease or  property in the Cook  Inlet sedimentary basin                                                                    
     is the  gross value at  the point of production  of the                                                                    
     oil taxable  under AS 43.55.011(e) and produced  by the                                                                    
     producer from that lease or  property, less 1/12 of the                                                                    
     producer's  lease expenditures  under AS 43.55.165  for                                                                    
     the  calendar year  applicable to  the oil  produced by                                                                    
     the producer  from that lease or  property, as adjusted                                                                    
     under AS 43.55.170;                                                                                                        
               (D)  gas produced during a month from a                                                                          
     lease or  property in the Cook  Inlet sedimentary basin                                                                    
     is the  gross value at  the point of production  of the                                                                    
     gas taxable  under AS 43.55.011(e) and produced  by the                                                                    
     producer from that lease or  property, less 1/12 of the                                                                    
     producer's  lease expenditures  under AS 43.55.165  for                                                                    
     the  calendar year  applicable to  the gas  produced by                                                                    
     the producer  from that lease or  property, as adjusted                                                                    
     under AS 43.55.170;                                                                                                        
               (E)  gas produced during a month from a                                                                          
     lease or  property outside  the Cook  Inlet sedimentary                                                                    
     basin and used  in the state is the gross  value at the                                                                    
     point  of   production  of   that  gas   taxable  under                                                                    
     AS 43.55.011(e) and produced by  the producer from that                                                                    
     lease or  property, less 1/12  of the  producer's lease                                                                    
     expenditures under  AS 43.55.165 for the  calendar year                                                                    
     applicable to  that gas produced  by the  producer from                                                                    
     that   lease    or   property,   as    adjusted   under                                                                    
     AS 43.55.170."                                                                                                             
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 22, line 19:                                                                                                          
          Delete "sec. 38"                                                                                                      
          Insert "sec. 40"                                                                                                      
                                                                                                                                
     Page 24, following line 28:                                                                                                
          Insert a new bill section to read:                                                                                    
        "* Sec. 44. AS 43.55.160(h) is amended to read:                                                                     
          (h)  For oil produced on and after January 1,                                                                         
     2022, except  as provided  in (b) [,  (f),] and  (g) of                                                                    
     this section,  for the purposes  of AS 43.55.011(e)(3),                                                                    
     the annual  production tax value  of oil  taxable under                                                                    
     AS 43.55.011(e)  produced   by  a  producer   during  a                                                                    
     calendar year                                                                                                              
               (1)  from leases or properties in the state                                                                      
     that include  land north of  68 degrees  North latitude                                                                    
     is the gross  value at the point of  production of that                                                                    
     oil,  less  the  producer's  lease  expenditures  under                                                                    
     AS 43.55.165 for the calendar  year incurred to explore                                                                    
     for, develop,  or produce oil and  gas deposits located                                                                    
     in  the state  north of  68 degrees  North latitude  or                                                                    
     located  in  leases or  properties  in  the state  that                                                                    
     include  land north  of 68  degrees North  latitude, as                                                                    
     adjusted under AS 43.55.170;                                                                                               
               (2)  before or during the last calendar year                                                                     
     under  AS 43.55.024(b)  for  which the  producer  could                                                                    
     take a  tax credit  under AS 43.55.024(a),  from leases                                                                    
     or  properties  in the  state  outside  the Cook  Inlet                                                                    
     sedimentary  basin, no  part of  which is  north of  68                                                                    
     degrees   North   latitude,   other  than   leases   or                                                                    
     properties  subject to  AS 43.55.011(p),  is the  gross                                                                    
     value at the point of  production of that oil, less the                                                                    
     producer's  lease expenditures  under AS 43.55.165  for                                                                    
     the calendar year incurred to  explore for, develop, or                                                                    
     produce  oil  and gas  deposits  located  in the  state                                                                    
     outside the  Cook Inlet sedimentary basin  and south of                                                                    
     68  degrees  North latitude,  other  than  oil and  gas                                                                    
     deposits located  in a lease or  property that includes                                                                    
     land  north of  68 degrees  North latitude  or that  is                                                                    
     subject to AS 43.55.011(p)  or, before January 1, 2027,                                                                    
     from  which commercial  production  has  not begun,  as                                                                    
     adjusted under AS 43.55.170;                                                                                               
               (3)  from leases or properties subject to                                                                        
     AS 43.55.011(p)  is the  gross  value at  the point  of                                                                    
     production  of  that  oil, less  the  producer's  lease                                                                    
     expenditures under  AS 43.55.165 for the  calendar year                                                                    
     incurred to  explore for, develop,  or produce  oil and                                                                    
     gas deposits  located in  leases or  properties subject                                                                    
     to AS 43.55.011(p) or,  before January 1, 2027, located                                                                    
     in leases or  properties in the state  outside the Cook                                                                    
     Inlet sedimentary basin,  no part of which  is north of                                                                    
     68  degrees   North  latitude  from   which  commercial                                                                    
     production   has   not   begun,   as   adjusted   under                                                                    
     AS 43.55.170;                                                                                                              
               (4)  from leases or properties in the state                                                                      
     no  part  of  which  is   north  of  68  degrees  North                                                                    
     latitude, other  than leases  or properties  subject to                                                                    
     (2) or  (3) of this  subsection, is the gross  value at                                                                    
     the  point   of  production  of   that  oil   less  the                                                                    
     producer's  lease expenditures  under AS 43.55.165  for                                                                    
     the calendar year incurred to  explore for, develop, or                                                                    
     produce  oil  and gas  deposits  located  in the  state                                                                    
     south of 68 degrees North  latitude, other than oil and                                                                    
     gas  deposits located  in a  lease or  property in  the                                                                    
     state  that includes  land north  of  68 degrees  North                                                                    
     latitude,  and excluding  lease  expenditures that  are                                                                    
     deductible  under  (2) or  (3)  of  this subsection  or                                                                    
     would  be   deductible  under  (2)   or  (3)   of  this                                                                    
     subsection if  not prohibited by  (b) of  this section,                                                                    
     as adjusted under AS 43.55.170."                                                                                           
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 28, following line 5:                                                                                                 
          Insert a new bill section to read:                                                                                    
        "* Sec. 52. AS 43.98.050 is amended to read:                                                                        
          Sec. 43.98.050. Duties. The duties of the board                                                                     
     include the following:                                                                                                     
               (1)  establish and maintain a salient                                                                            
     collection  of  information  related  to  oil  and  gas                                                                    
     exploration, development,  and production in  the state                                                                    
     and related  to tax  structures, rates, and  credits in                                                                    
     other regions with oil and gas resources;                                                                                  
               (2)  review historical, current, and                                                                             
     potential levels  of investment in the  state's oil and                                                                    
     gas sector;                                                                                                                
               (3)  identify  factors that affect investment                                                                    
     in   oil   and   gas  exploration,   development,   and                                                                    
     production  in  the  state,  including  tax  structure,                                                                    
     rates,     and    credits;     royalty    requirements;                                                                    
     infrastructure; workforce  availability; and regulatory                                                                    
     requirements;                                                                                                              
               (4)   review the competitive position  of the                                                                    
     state  to attract  and maintain  investment in  the oil                                                                    
     and  gas  sector  in  the  state  as  compared  to  the                                                                    
     competitive position of other  regions with oil and gas                                                                    
     resources;                                                                                                                 
               (5)  in  order to facilitate the  work of the                                                                    
     board,   establish  procedures   to  accept   and  keep                                                                    
     confidential  information  that  is beneficial  to  the                                                                    
     work of the  board, including the creation  of a secure                                                                    
     data room  and confidentiality agreements to  be signed                                                                    
     by   individuals   having    access   to   confidential                                                                    
     information;                                                                                                               
               (6)        make    written    findings    and                                                                    
     recommendations to the Alaska State Legislature before                                                                     
               (A)  January 31, 2015,  or as soon thereafter                                                                    
     as practicable, regarding                                                                                                  
               (i)    changes   to  the  state's  regulatory                                                                    
     environment  and  permitting  structure that  would  be                                                                    
     conducive  to  encouraging increased  investment  while                                                                    
     protecting  the interests  of the  people of  the state                                                                    
     and the environment;                                                                                                       
               (ii)  the status of  the oil and gas industry                                                                    
     labor  pool  in  the  state and  the  effectiveness  of                                                                    
     workforce development efforts by the state;                                                                                
               (iii)  the  status of the oil-and-gas-related                                                                    
     infrastructure  of the  state, including  a description                                                                    
     of infrastructure deficiencies; and                                                                                        
               (iv)    the  competitiveness of  the  state's                                                                    
     fiscal oil  and gas tax  regime when compared  to other                                                                    
     regions of the world;                                                                                                      
               (B)  January 15, 2017, regarding                                                                                 
               (i)   the state's tax structure  and rates on                                                                    
     oil  and  gas  produced   south  of  68  degrees  North                                                                    
     latitude;                                                                                                                  
               (ii)    a  tax   structure  that  takes  into                                                                    
     account the unique economic  circumstances for each oil                                                                    
     and  gas  producing  area south  of  68  degrees  North                                                                    
     latitude;                                                                                                                  
               (iii)  a reduction in  the gross value at the                                                                    
     point of production  for oil and gas  produced south of                                                                    
     68  degrees  North  latitude that  is  similar  to  the                                                                    
     reduction in gross value at the point of production in                                                                     
     AS 43.55.160(g) [AS 43.55.160(f) AND (g)];                                                                             
               (iv)  other incentives for oil and gas                                                                           
     production south of 68 degrees North latitude;                                                                             
               (C)  January 31, 2021, or as soon thereafter                                                                     
     as practicable, regarding                                                                                                  
               (i)  changes to the state's fiscal regime                                                                        
     that would be conducive to increased and ongoing long-                                                                     
     term investment in and development of the state's oil                                                                      
     and gas resources;                                                                                                         
               (ii)  alternative means for increasing the                                                                       
     state's ability to attract and maintain investment in                                                                      
     and development of the state's oil and gas resources;                                                                      
     and                                                                                                                        
               (iii)  a review of the current effectiveness                                                                     
     and future value of any provisions of the state's oil                                                                      
      and gas tax laws that are expiring in the next five                                                                       
     years."                                                                                                                    
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 28, line 13, following "43.55.075(d)(1),":                                                                            
          Insert "43.55.160(f),"                                                                                                
                                                                                                                                
     Page 29, line 23:                                                                                                          
          Delete "sec. 27"                                                                                                      
          Insert "sec. 28"                                                                                                      
                                                                                                                                
     Page 29, line 24:                                                                                                          
          Delete "sec. 30"                                                                                                      
          Insert "sec. 31"                                                                                                      
                                                                                                                                
     Page 29, line 26:                                                                                                          
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 29, line 27:                                                                                                          
          Delete "secs. 27, 29, and 30"                                                                                         
          Insert "secs. 28, 30, and 31"                                                                                         
                                                                                                                                
     Page 29, line 28:                                                                                                          
          Delete "sec. 42"                                                                                                      
          Insert "sec. 45"                                                                                                      
                                                                                                                                
     Page 30, line 2:                                                                                                           
          Delete "sec. 50"                                                                                                      
          Insert "sec. 54"                                                                                                      
                                                                                                                                
     Page 30, line 3:                                                                                                           
          Delete "sec. 16"                                                                                                      
          Insert "sec. 17"                                                                                                      
          Delete "sec. 19"                                                                                                      
          Insert "sec. 20"                                                                                                      
                                                                                                                                
     Page 30, line 4:                                                                                                           
          Delete "sec. 31"                                                                                                      
          Insert "sec. 32"                                                                                                      
          Delete "secs. 34 and 35"                                                                                              
          Insert "secs. 35 and 36"                                                                                              
                                                                                                                                
     Page 30, line 5:                                                                                                           
          Delete "sec. 36"                                                                                                      
          Insert "sec. 37"                                                                                                      
          Delete "sec. 43"                                                                                                      
          Insert "sec. 46"                                                                                                      
                                                                                                                                
     Page 30, line 6:                                                                                                           
          Delete "sec. 44"                                                                                                      
          Insert "sec. 47"                                                                                                      
                                                                                                                                
     Page 30, line 7:                                                                                                           
          Delete "sec. 50"                                                                                                      
          Insert "sec. 54"                                                                                                      
                                                                                                                                
     Page 30, lines 10 - 11:                                                                                                    
          Delete "sec. 50"                                                                                                      
          Insert "sec. 54"                                                                                                      
                                                                                                                                
     Page 30, line 14:                                                                                                          
          Delete "sec. 50"                                                                                                      
          Insert "sec. 54"                                                                                                      
                                                                                                                                
     Page 30, line 15:                                                                                                          
          Delete "sec. 50"                                                                                                      
          Insert "sec. 54"                                                                                                      
                                                                                                                                
     Page 30, line 19:                                                                                                          
          Delete "sec. 51"                                                                                                      
          Insert "sec. 55"                                                                                                      
                                                                                                                                
     Page 30, lines 19 - 20:                                                                                                    
          Delete "sec. 32"                                                                                                      
          Insert "sec. 33"                                                                                                      
                                                                                                                                
     Page 30, line 21:                                                                                                          
          Delete "sec. 51"                                                                                                      
          Insert "sec. 55"                                                                                                      
                                                                                                                                
     Page 30, line 24:                                                                                                          
          Delete "sec. 51"                                                                                                      
          Insert "sec. 55"                                                                                                      
                                                                                                                                
     Page 30, line 26:                                                                                                          
          Delete "sec. 51"                                                                                                      
          Insert "sec. 55"                                                                                                      
                                                                                                                                
     Page 30, line 27:                                                                                                          
          Delete "sec. 51"                                                                                                      
          Insert "sec. 55"                                                                                                      
                                                                                                                                
     Page 31, line 1:                                                                                                           
          Delete "sec. 52"                                                                                                      
          Insert "sec. 56"                                                                                                      
                                                                                                                                
     Page 31, line 2:                                                                                                           
          Delete "sec. 33"                                                                                                      
          Insert "sec. 34"                                                                                                      
          Delete "sec. 37"                                                                                                      
          Insert "sec. 39"                                                                                                      
                                                                                                                                
     Page 31, line 3:                                                                                                           
          Delete "sec. 39"                                                                                                      
          Insert "sec. 41"                                                                                                      
                                                                                                                                
     Page 31, line 4:                                                                                                           
          Delete "sec. 52"                                                                                                      
          Insert "sec. 56"                                                                                                      
                                                                                                                                
     Page 31, line 8:                                                                                                           
          Delete "sec. 52"                                                                                                      
          Insert "sec. 56"                                                                                                      
                                                                                                                                
     Page 31, line 10:                                                                                                          
          Delete "sec. 52"                                                                                                      
          Insert "sec. 56"                                                                                                      
                                                                                                                                
     Page 31, line 11:                                                                                                          
          Delete "sec. 52"                                                                                                      
          Insert "sec. 56"                                                                                                      
                                                                                                                                
     Page 31, line 16:                                                                                                          
          Delete "sec. 52"                                                                                                      
          Insert "sec. 56"                                                                                                      
                                                                                                                                
     Page 31, line 17:                                                                                                          
          Delete "sec. 23"                                                                                                      
          Insert "sec. 24"                                                                                                      
          Delete "secs. 26 and 28"                                                                                              
          Insert "secs. 27 and 29"                                                                                              
                                                                                                                                
     Page 31, line 18:                                                                                                          
          Delete "sec. 33"                                                                                                      
          Insert "sec. 34"                                                                                                      
          Delete "sec. 37"                                                                                                      
          Insert "sec. 39"                                                                                                      
                                                                                                                                
     Page 31, line 19:                                                                                                          
          Delete "sec. 45"                                                                                                      
          Insert "sec. 48"                                                                                                      
                                                                                                                                
     Page 31, line 21:                                                                                                          
          Delete "sec. 52" in both places.                                                                                      
          Insert "sec. 56" in both places.                                                                                      
                                                                                                                                
     Page 31, line 26:                                                                                                          
          Delete "sec. 42"                                                                                                      
          Insert "sec. 45"                                                                                                      
                                                                                                                                
     Page 31, line 27:                                                                                                          
          Delete "sec. 50"                                                                                                      
          Insert "sec. 54"                                                                                                      
                                                                                                                                
     Page 31, line 30:                                                                                                          
          Delete "sec. 50"                                                                                                      
          Insert "sec. 54"                                                                                                      
                                                                                                                                
     Page 32, line 4:                                                                                                           
          Delete "sec. 50"                                                                                                      
          Insert "sec. 54"                                                                                                      
                                                                                                                                
     Page 32, line 6:                                                                                                           
          Delete "sec. 50"                                                                                                      
          Insert "sec. 54"                                                                                                      
                                                                                                                                
     Page 32, line 9:                                                                                                           
          Delete "sec. 50"                                                                                                      
          Insert "sec. 54"                                                                                                      
                                                                                                                                
     Page 32, line 12:                                                                                                          
          Delete "sec. 50"                                                                                                      
          Insert "sec. 54"                                                                                                      
                                                                                                                                
     Page 32, line 14:                                                                                                          
          Delete "sec. 50"                                                                                                      
          Insert "sec. 54"                                                                                                      
                                                                                                                                
     Page 33, line 9:                                                                                                           
          Delete "Sections 22, 53, 61, and 62"                                                                                  
          Insert "Sections 23, 57, 65, and 66"                                                                                  
                                                                                                                                
     Page 33, line 11:                                                                                                          
          Delete "Sections 32, 51, and 56"                                                                                      
          Insert "Sections 33, 55, and 60"                                                                                      
                                                                                                                                
     Page 33, line 12:                                                                                                          
          Delete "Sections 23, 26, 28, 33, 37, 39, 45, 52,                                                                      
     57, and 58"                                                                                                                
          Insert "Sections 24, 27, 29, 34, 39, 41, 48, 56,                                                                      
     61, and 62"                                                                                                                
                                                                                                                                
     Page 33, line 14:                                                                                                          
          Delete "secs. 63 - 65"                                                                                                
          Insert "secs. 67 - 69"                                                                                                
                                                                                                                                
Amendment 6, labeled 29-GH2609\D.12, Nauman/Shutts, 5/10/16,                                                                  
read as follows:                                                                                                                
                                                                                                                                
     Page 1, line 2, following "credits;":                                                                                    
          Insert "relating to the qualified in-state oil                                                                      
     refinery infrastructure expenditures tax credit;"                                                                        
                                                                                                                                
     Page 5, following line 23:                                                                                                 
          Insert a new bill section to read:                                                                                    
        "* Sec. 12. AS 43.20.053(a) is amended to read:                                                                     
          (a)  A taxpayer that owns an in-state oil                                                                             
     refinery  whose primary  function is  the manufacturing                                                                    
     and  sale  of  refined   petroleum  products  to  third                                                                    
     parties  in  arm's  length  transactions  may  apply  a                                                                    
     credit against  the tax  due under  this chapter  for a                                                                    
     qualified  infrastructure expenditure  incurred in  the                                                                    
     state  for  a  tax year  beginning  after  December 31,                                                                    
     2014, and  before January 1, 2020. The  total amount of                                                                    
     credit a  taxpayer may receive  under this  section may                                                                    
     not  exceed  the  lesser of  40  percent  of  qualified                                                                    
     infrastructure  expenditures  incurred   in  the  state                                                                    
     during the  tax year  or $10,000,000 for  each in-state                                                                    
     refinery   for   which   qualified   expenditures   are                                                                    
     incurred. To  qualify for a credit  under this section,                                                                
     a  taxpayer that  is a  corporation, joint  venture, or                                                                
     partnership must  be headquartered in the  state and at                                                                
     least 51 percent of the  corporation, joint venture, or                                                                
     partnership must be owned by residents of the state."                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 13, line 12:                                                                                                          
          Delete "sec. 22"                                                                                                      
          Insert "sec. 23"                                                                                                      
                                                                                                                                
     Page 15, line 15:                                                                                                          
          Delete "sec. 25"                                                                                                      
          Insert "sec. 26"                                                                                                      
                                                                                                                                
     Page 16, line 14:                                                                                                          
          Delete "sec. 27"                                                                                                      
          Insert "sec. 28"                                                                                                      
                                                                                                                                
     Page 18, line 17:                                                                                                          
          Delete "sec. 31"                                                                                                      
          Insert "sec. 32"                                                                                                      
                                                                                                                                
     Page 18, line 30:                                                                                                          
          Delete "secs. 31 and 32"                                                                                              
          Insert "secs. 32 and 33"                                                                                              
                                                                                                                                
     Page 22, line 19:                                                                                                          
          Delete "sec. 38"                                                                                                      
          Insert "sec. 39"                                                                                                      
                                                                                                                                
     Page 29, line 24:                                                                                                          
          Delete "sec. 30"                                                                                                      
          Insert "sec. 31"                                                                                                      
                                                                                                                                
     Page 29, line 26:                                                                                                          
          Delete "sec. 29"                                                                                                      
          Insert "sec. 30"                                                                                                      
                                                                                                                                
     Page 29, line 27:                                                                                                          
          Delete "secs. 27, 29, and 30"                                                                                         
          Insert "secs. 28, 30, and 31"                                                                                         
                                                                                                                                
     Page 29, line 28:                                                                                                          
          Delete "sec. 42"                                                                                                      
          Insert "sec. 43"                                                                                                      
                                                                                                                                
     Page 30, line 2:                                                                                                           
          Delete "sec. 50"                                                                                                      
          Insert "sec. 51"                                                                                                      
                                                                                                                                
     Page 30, line 4:                                                                                                           
          Delete "sec. 31"                                                                                                      
          Insert "sec. 32"                                                                                                      
          Delete "secs. 34 and 35"                                                                                              
          Insert "secs. 35 and 36"                                                                                              
                                                                                                                                
     Page 30, line 5:                                                                                                           
          Delete "sec. 36"                                                                                                      
          Insert "sec. 37"                                                                                                      
          Delete "sec. 43"                                                                                                      
          Insert "sec. 44"                                                                                                      
                                                                                                                                
     Page 30, line 6:                                                                                                           
          Delete "sec. 44"                                                                                                      
          Insert "sec. 45"                                                                                                      
                                                                                                                                
     Page 30, line 7:                                                                                                           
          Delete "sec. 50"                                                                                                      
          Insert "sec. 51"                                                                                                      
                                                                                                                                
     Page 30, lines 10 - 11:                                                                                                    
          Delete "sec. 50"                                                                                                      
          Insert "sec. 51"                                                                                                      
                                                                                                                                
     Page 30, line 14:                                                                                                          
          Delete "sec. 50"                                                                                                      
          Insert "sec. 51"                                                                                                      
                                                                                                                                
     Page 30, line 15:                                                                                                          
          Delete "sec. 50"                                                                                                      
          Insert "sec. 51"                                                                                                      
                                                                                                                                
     Page 30, line 19:                                                                                                          
          Delete "sec. 51"                                                                                                      
          Insert "sec. 52"                                                                                                      
                                                                                                                                
     Page 30, lines 19 - 20 :                                                                                                   
          Delete "sec. 32"                                                                                                      
          Insert "sec. 33"                                                                                                      
                                                                                                                                
     Page 30, line 21:                                                                                                          
          Delete "sec. 51"                                                                                                      
          Insert "sec. 52"                                                                                                      
                                                                                                                                
     Page 30, line 24:                                                                                                          
          Delete "sec. 51"                                                                                                      
          Insert "sec. 52"                                                                                                      
                                                                                                                                
     Page 30, line 26:                                                                                                          
          Delete "sec. 51"                                                                                                      
          Insert "sec. 52"                                                                                                      
                                                                                                                                
     Page 30, line 27:                                                                                                          
          Delete "sec. 51"                                                                                                      
          Insert "sec. 52"                                                                                                      
                                                                                                                                
     Page 31, line 1:                                                                                                           
          Delete "sec. 52"                                                                                                      
          Insert "sec. 53"                                                                                                      
                                                                                                                                
     Page 31, line 2:                                                                                                           
          Delete "sec. 33"                                                                                                      
          Insert "sec. 34"                                                                                                      
          Delete "sec. 37"                                                                                                      
          Insert "sec. 38"                                                                                                      
                                                                                                                                
     Page 31, line 3:                                                                                                           
          Delete "sec. 39"                                                                                                      
          Insert "sec. 40"                                                                                                      
                                                                                                                                
     Page 31, line 4:                                                                                                           
          Delete "sec. 52"                                                                                                      
          Insert "sec. 53"                                                                                                      
                                                                                                                                
     Page 31, line 8:                                                                                                           
          Delete "sec. 52"                                                                                                      
          Insert "sec. 53"                                                                                                      
                                                                                                                                
     Page 31, line 10:                                                                                                          
          Delete "sec. 52"                                                                                                      
          Insert "sec. 53"                                                                                                      
                                                                                                                                
     Page 31, line 11:                                                                                                          
          Delete "sec. 52"                                                                                                      
          Insert "sec. 53"                                                                                                      
                                                                                                                                
     Page 31, line 16:                                                                                                          
          Delete "sec. 52"                                                                                                      
          Insert "sec. 53"                                                                                                      
                                                                                                                                
     Page 31, line 17:                                                                                                          
          Delete "sec. 23"                                                                                                      
          Insert "sec. 24"                                                                                                      
          Delete "secs. 26 and 28"                                                                                              
          Insert "secs. 27 and 29"                                                                                              
                                                                                                                                
     Page 31, line 18:                                                                                                          
          Delete "sec. 33"                                                                                                      
          Insert "sec. 34"                                                                                                      
          Delete "sec. 37"                                                                                                      
          Insert "sec. 38"                                                                                                      
                                                                                                                                
     Page 31, line 19:                                                                                                          
          Delete "sec. 45"                                                                                                      
          Insert "sec. 46"                                                                                                      
                                                                                                                                
     Page 31, line 21:                                                                                                          
          Delete "sec. 52" in both places                                                                                       
          Insert "sec. 53" in both places                                                                                       
                                                                                                                                
     Page 31, line 26:                                                                                                          
          Delete "sec. 42"                                                                                                      
          Insert "sec. 43"                                                                                                      
                                                                                                                                
     Page 31, line 27:                                                                                                          
          Delete "sec. 50"                                                                                                      
          Insert "sec. 51"                                                                                                      
                                                                                                                                
     Page 31, line 30:                                                                                                          
          Delete "sec. 50"                                                                                                      
          Insert "sec. 51"                                                                                                      
                                                                                                                                
     Page 32, line 4:                                                                                                           
          Delete "sec. 50"                                                                                                      
          Insert "sec. 51"                                                                                                      
                                                                                                                                
     Page 32, line 6:                                                                                                           
          Delete "sec. 50"                                                                                                      
          Insert "sec. 51"                                                                                                      
                                                                                                                                
     Page 32, line 9:                                                                                                           
          Delete "sec. 50"                                                                                                      
          Insert "sec. 51"                                                                                                      
                                                                                                                                
     Page 32, line 12:                                                                                                          
          Delete "sec. 50"                                                                                                      
          Insert "sec. 51"                                                                                                      
                                                                                                                                
     Page 32, line 14:                                                                                                          
          Delete "sec. 50"                                                                                                      
          Insert "sec. 51"                                                                                                      
                                                                                                                                
     Page 33, line 9:                                                                                                           
          Delete "Sections 22, 53, 61, and 62"                                                                                  
          Insert "Sections 23, 54, 62, and 63"                                                                                  
                                                                                                                                
     Page 33, line 11:                                                                                                          
          Delete "Sections 32, 51, and 56"                                                                                      
          Insert "Sections 33, 52, and 57"                                                                                      
                                                                                                                                
     Page 33, line 12:                                                                                                          
          Delete "Sections 23, 26, 28, 33, 37, 39, 45, 52,                                                                      
     57, and 58"                                                                                                                
          Insert "Sections 24, 27, 29, 34, 38, 40, 46, 53,                                                                      
     58, and 59"                                                                                                                
                                                                                                                                
     Page 33, line 14:                                                                                                          
          Delete "secs. 63 - 65"                                                                                                
          Insert "secs. 64 - 66"                                                                                                
                                                                                                                                
Amendment 8, labeled 29-GH2609\D.14, Shutts, 5/11/16, read                                                                    
as follows:                                                                                                                     
                                                                                                                                
     Page 1, line 4, following "tax;":                                                                                        
          Insert "relating to the minimum oil and gas                                                                         
     production tax for certain oil and gas;"                                                                                 
                                                                                                                                
     Page 5, following line 31:                                                                                                 
     Insert a new bill section to read:                                                                                         
        "* Sec. 13. AS 43.55.011(f) is amended to read:                                                                     
          (f)  The levy of tax under (e) of this section                                                                        
     for                                                                                                                        
               (1)  oil and gas produced before January 1,                                                                  
     2017 [JANUARY 1, 2022], from  leases or properties that                                                                
     include land north of 68  degrees North latitude, other                                                                    
     than gas  subject to  (o) of this  section, may  not be                                                                    
     less than                                                                                                                  
               (A)  four percent of the gross value at the                                                                      
     point of production when the average price per barrel                                                                      
        for Alaska North Slope crude oil for sale on the                                                                        
     United States  West Coast during the  calendar year for                                                                    
     which the tax is due is more than $25;                                                                                     
               (B)  three percent of  the gross value at the                                                                    
     point of  production when the average  price per barrel                                                                    
     for  Alaska  North Slope  crude  oil  for sale  on  the                                                                    
     United States  West Coast during the  calendar year for                                                                    
     which the tax is due is over $20 but not over $25;                                                                         
               (C)   two percent of  the gross value  at the                                                                    
     point of  production when the average  price per barrel                                                                    
     for  Alaska  North Slope  crude  oil  for sale  on  the                                                                    
     United States  West Coast during the  calendar year for                                                                    
     which the tax is due is over $17.50 but not over $20;                                                                      
               (D)   one percent of  the gross value  at the                                                                    
     point of  production when the average  price per barrel                                                                    
     for  Alaska  North Slope  crude  oil  for sale  on  the                                                                    
     United States  West Coast during the  calendar year for                                                                    
     which the tax  is due is over $15 but  not over $17.50;                                                                    
     or                                                                                                                         
               (E)  zero  percent of the gross  value at the                                                                    
     point of  production when the average  price per barrel                                                                    
     for  Alaska  North Slope  crude  oil  for sale  on  the                                                                    
     United States  West Coast during the  calendar year for                                                                    
     which the tax is due is $15 or less; [AND]                                                                                 
               (2)    oil  and  gas produced  on  and  after                                                                
     January 1,  2017,  and  before  January 1,  2022,  from                                                                
     leases  or properties  that include  land  north of  68                                                                    
     degrees North  latitude, other than gas  subject to (o)                                                                
     of this section, may not be less than five                                                                         
               [(A)   FOUR]  percent of  the gross  value at                                                                    
     the point of production;                                                                                               
               (3)   oil  produced on  and after  January 1,                                                                
     2022,  from  leases  or properties  that  include  land                                                                
     north  of 68  degrees North  latitude may  not be  less                                                                
     than five  percent of the  gross value at the  point of                                                                
     production  [WHEN  THE  AVERAGE PRICE  PER  BARREL  FOR                                                                
     ALASKA NORTH  SLOPE CRUDE  OIL FOR  SALE ON  THE UNITED                                                                    
     STATES WEST  COAST DURING THE  CALENDAR YEAR  FOR WHICH                                                                    
     THE TAX IS DUE IS MORE THAN $25;                                                                                           
               (B)  THREE PERCENT OF  THE GROSS VALUE AT THE                                                                    
     POINT OF  PRODUCTION WHEN THE AVERAGE  PRICE PER BARREL                                                                    
     FOR  ALASKA  NORTH SLOPE  CRUDE  OIL  FOR SALE  ON  THE                                                                    
     UNITED STATES  WEST COAST DURING THE  CALENDAR YEAR FOR                                                                    
     WHICH THE TAX IS DUE IS OVER $20 BUT NOT OVER $25;                                                                         
               (C)   TWO PERCENT OF  THE GROSS VALUE  AT THE                                                                    
     POINT OF  PRODUCTION WHEN THE AVERAGE  PRICE PER BARREL                                                                    
     FOR  ALASKA  NORTH SLOPE  CRUDE  OIL  FOR SALE  ON  THE                                                                    
     UNITED STATES  WEST COAST DURING THE  CALENDAR YEAR FOR                                                                    
     WHICH THE TAX IS DUE IS OVER $17.50 BUT NOT OVER $20;                                                                      
               (D)  ONE PERCENT OF THE GROSS VALUE AT THE                                                                       
     POINT OF  PRODUCTION WHEN THE AVERAGE  PRICE PER BARREL                                                                    
     FOR  ALASKA  NORTH SLOPE  CRUDE  OIL  FOR SALE  ON  THE                                                                    
     UNITED STATES  WEST COAST DURING THE  CALENDAR YEAR FOR                                                                    
     WHICH THE TAX  IS DUE IS OVER $15 BUT  NOT OVER $17.50;                                                                    
     OR                                                                                                                         
               (E)  ZERO PERCENT OF THE GROSS VALUE AT THE                                                                      
     POINT OF  PRODUCTION WHEN THE AVERAGE  PRICE PER BARREL                                                                    
     FOR  ALASKA  NORTH SLOPE  CRUDE  OIL  FOR SALE  ON  THE                                                                    
     UNITED STATES  WEST COAST DURING THE  CALENDAR YEAR FOR                                                                    
     WHICH THE TAX IS DUE IS $15 OR LESS]."                                                                                     
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 7, following line 4:                                                                                                  
     Insert a new bill section to read:                                                                                         
        "* Sec. 16. AS 43.55.020(a) is amended to read:                                                                     
          (a)  For a calendar year, a producer subject to                                                                       
     tax under AS 43.55.011 shall pay the tax as follows:                                                                       
               (1)  for oil and gas produced before                                                                             
     January 1,   2014,  an   installment  payment   of  the                                                                    
     estimated  tax levied  by AS 43.55.011(e),  net of  any                                                                    
     tax credits applied as allowed  by law, is due for each                                                                    
     month  of the  calendar year  on  the last  day of  the                                                                    
     following  month; except  as  otherwise provided  under                                                                    
     (2) of  this subsection, the amount  of the installment                                                                    
     payment is the sum of  the following amounts, less 1/12                                                                    
     of  the tax  credits  that  are allowed  by  law to  be                                                                    
     applied against  the tax levied by  AS 43.55.011(e) for                                                                    
     the calendar  year, but the  amount of  the installment                                                                    
     payment may not be less than zero:                                                                                         
               (A)  for oil and gas not subject to                                                                              
     AS 43.55.011(o)   or  (p)   produced  from   leases  or                                                                    
     properties  in   the  state  outside  the   Cook  Inlet                                                                    
     sedimentary  basin,  other  than leases  or  properties                                                                    
     subject to AS 43.55.011(f), the greater of                                                                                 
               (i)  zero; or                                                                                                    
               (ii)  the sum of 25 percent and the tax rate                                                                     
     calculated   for   the  month   under   AS 43.55.011(g)                                                                    
     multiplied  by the  remainder  obtained by  subtracting                                                                    
     1/12 of the producer's  adjusted lease expenditures for                                                                    
     the calendar year of  production under AS 43.55.165 and                                                                    
     43.55.170  that  are deductible  for  the  oil and  gas                                                                    
     under AS 43.55.160  from the  gross value at  the point                                                                    
     of  production of  the oil  and gas  produced from  the                                                                    
     leases  or properties  during the  month for  which the                                                                    
     installment payment is calculated;                                                                                         
               (B)  for oil and  gas produced from leases or                                                                    
     properties subject to AS 43.55.011(f), the greatest of                                                                     
               (i)  zero;                                                                                                       
               (ii)     zero   percent,  one   percent,  two                                                                    
     percent,   three   percent,   or   four   percent,   as                                                                    
     applicable,  of  the  gross   value  at  the  point  of                                                                    
     production of the oil and  gas produced from the leases                                                                    
     or   properties  during   the  month   for  which   the                                                                    
     installment payment is calculated; or                                                                                      
               (iii)   the  sum of  25 percent  and the  tax                                                                    
     rate  calculated for  the  month under  AS 43.55.011(g)                                                                    
     multiplied  by the  remainder  obtained by  subtracting                                                                    
     1/12 of the producer's  adjusted lease expenditures for                                                                    
     the calendar year of  production under AS 43.55.165 and                                                                    
     43.55.170  that  are deductible  for  the  oil and  gas                                                                    
     under AS 43.55.160  from the  gross value at  the point                                                                    
     of production  of the oil  and gas produced  from those                                                                    
     leases  or properties  during the  month for  which the                                                                    
     installment payment is calculated;                                                                                         
               (C)      for   oil    or   gas   subject   to                                                                    
     AS 43.55.011(j),  (k),  or  (o),   for  each  lease  or                                                                    
     property, the greater of                                                                                                   
               (i)  zero; or                                                                                                    
               (ii)  the sum of  25 percent and the tax rate                                                                    
     calculated   for   the  month   under   AS 43.55.011(g)                                                                    
     multiplied  by the  remainder  obtained by  subtracting                                                                    
     1/12 of the producer's  adjusted lease expenditures for                                                                    
     the calendar year of  production under AS 43.55.165 and                                                                    
     43.55.170  that are  deductible under  AS 43.55.160 for                                                                    
     the oil  or gas, respectively, produced  from the lease                                                                    
     or  property  from the  gross  value  at the  point  of                                                                    
     production of  the oil  or gas,  respectively, produced                                                                    
     from the lease  or property during the  month for which                                                                    
     the installment payment is calculated;                                                                                     
               (D)      for   oil   and   gas   subject   to                                                                    
     AS 43.55.011(p), the lesser of                                                                                             
               (i)  the  sum of 25 percent and  the tax rate                                                                    
     calculated   for   the  month   under   AS 43.55.011(g)                                                                    
     multiplied  by the  remainder  obtained by  subtracting                                                                    
     1/12 of the producer's  adjusted lease expenditures for                                                                    
     the calendar year of  production under AS 43.55.165 and                                                                    
     43.55.170  that  are deductible  for  the  oil and  gas                                                                    
     under AS 43.55.160  from the  gross value at  the point                                                                    
     of  production of  the oil  and gas  produced from  the                                                                    
     leases  or properties  during the  month for  which the                                                                    
     installment payment  is calculated,  but not  less than                                                                    
     zero; or                                                                                                                   
               (ii)  four percent of  the gross value at the                                                                    
     point of  production of the  oil and gas  produced from                                                                    
     the  leases or  properties  during the  month, but  not                                                                    
     less than zero;                                                                                                            
               (2)   an  amount calculated  under (1)(C)  of                                                                    
     this   subsection   for   oil   or   gas   subject   to                                                                    
     AS 43.55.011(j),  (k),  or  (o)   may  not  exceed  the                                                                    
     product obtained  by carrying  out the  calculation set                                                                    
     out in  AS 43.55.011(j)(1) or  (2) or  43.55.011(o), as                                                                    
     applicable, for  gas or  set out  in AS 43.55.011(k)(1)                                                                    
     or  (2), as  applicable, for  oil, but  substituting in                                                                    
     AS 43.55.011(j)(1)(A)  or  (2)(A) or  43.55.011(o),  as                                                                    
     applicable, the  amount of taxable gas  produced during                                                                    
     the  month  for  the  amount of  taxable  gas  produced                                                                    
     during  the  calendar  year   and  substituting  in  as                                                                    
     43.55.011(k)(1)(A)  or   (2)(A),  as   applicable,  the                                                                    
     amount  of taxable  oil produced  during the  month for                                                                    
     the amount of taxable  oil produced during the calendar                                                                    
     year;                                                                                                                      
               (3)  an installment  payment of the estimated                                                                    
     tax  levied  by  AS 43.55.011(i)   for  each  lease  or                                                                    
     property is due for each  month of the calendar year on                                                                    
     the last day of the  following month; the amount of the                                                                    
     installment payment is the sum of                                                                                          
               (A)     the  applicable  tax  rate   for  oil                                                                    
     provided  under  AS 43.55.011(i),   multiplied  by  the                                                                    
     gross  value at  the  point of  production  of the  oil                                                                    
     taxable  under AS 43.55.011(i)  and  produced from  the                                                                    
     lease or property during the month; and                                                                                    
               (B)     the  applicable  tax  rate   for  gas                                                                    
     provided  under  AS 43.55.011(i),   multiplied  by  the                                                                    
     gross  value at  the  point of  production  of the  gas                                                                    
     taxable  under AS 43.55.011(i)  and  produced from  the                                                                    
     lease or property during the month;                                                                                        
               (4)      any   amount  of   tax   levied   by                                                                    
     AS 43.55.011, net of any credits  applied as allowed by                                                                    
     law,  that exceeds  the  total of  the  amounts due  as                                                                    
     installment  payments  of  estimated   tax  is  due  on                                                                    
     March 31  of the  year following  the calendar  year of                                                                    
     production;                                                                                                                
               (5)   for oil and  gas produced on  and after                                                                    
     January 1,  2014,   and  before  January 1,   2022,  an                                                                    
     installment  payment of  the  estimated  tax levied  by                                                                    
     AS 43.55.011(e),  net of  any  tax  credits applied  as                                                                    
     allowed by law,  is due for each month  of the calendar                                                                    
     year on the last day  of the following month; except as                                                                    
     otherwise provided  under (6)  of this  subsection, the                                                                    
     amount of  the installment  payment is  the sum  of the                                                                    
     following amounts,  less 1/12  of the tax  credits that                                                                    
     are  allowed  by law  to  be  applied against  the  tax                                                                    
     levied by  AS 43.55.011(e) for  the calendar  year, but                                                                    
     the amount of  the installment payment may  not be less                                                                    
     than zero:                                                                                                                 
               (A)  for oil and gas not subject to                                                                              
     AS 43.55.011(o)   or  (p)   produced  from   leases  or                                                                    
     properties  in   the  state  outside  the   Cook  Inlet                                                                    
     sedimentary  basin,  other  than leases  or  properties                                                                    
     subject to AS 43.55.011(f), the greater of                                                                                 
               (i)  zero; or                                                                                                    
               (ii)  35 percent multiplied by the remainder                                                                     
     obtained   by  subtracting   1/12  of   the  producer's                                                                    
     adjusted lease  expenditures for  the calendar  year of                                                                    
     production  under AS 43.55.165  and 43.55.170  that are                                                                    
     deductible for the oil and  gas under AS 43.55.160 from                                                                    
     the gross value  at the point of production  of the oil                                                                    
     and gas  produced from the leases  or properties during                                                                    
     the  month   for  which  the  installment   payment  is                                                                    
     calculated;                                                                                                                
               (B)  for oil and gas produced from leases or                                                                     
     properties subject to AS 43.55.011(f), the greatest of                                                                     
               (i)  zero;                                                                                                       
               (ii)  zero percent, one percent, two                                                                             
     percent,  three percent,  [OR]  four  percent, or  five                                                                
     percent,  as  applicable, of  the  gross  value at  the                                                                
     point of  production of the  oil and gas  produced from                                                                    
     the  leases or  properties during  the month  for which                                                                    
     the installment payment is calculated; or                                                                                  
               (iii)  35 percent multiplied by the                                                                              
     remainder   obtained  by   subtracting   1/12  of   the                                                                    
     producer's   adjusted   lease  expenditures   for   the                                                                    
     calendar  year  of  production under  AS 43.55.165  and                                                                    
     43.55.170  that  are deductible  for  the  oil and  gas                                                                    
     under AS 43.55.160  from the  gross value at  the point                                                                    
     of production  of the oil  and gas produced  from those                                                                    
     leases  or properties  during the  month for  which the                                                                    
     installment  payment is  calculated,  except that,  for                                                                    
     the purposes of this  calculation, a reduction from the                                                                    
     gross value  at the point  of production may  apply for                                                                    
     oil and gas subject to AS 43.55.160(f) or (g);                                                                             
               (C)      for   oil    or   gas   subject   to                                                                    
     AS 43.55.011(j),  (k),  or  (o),   for  each  lease  or                                                                    
     property, the greater of                                                                                                   
               (i)  zero; or                                                                                                    
               (ii)  35 percent multiplied by the remainder                                                                     
     obtained   by  subtracting   1/12  of   the  producer's                                                                    
     adjusted lease  expenditures for  the calendar  year of                                                                    
     production  under AS 43.55.165  and 43.55.170  that are                                                                    
     deductible  under  AS 43.55.160  for the  oil  or  gas,                                                                    
     respectively, produced from the  lease or property from                                                                    
     the gross value  at the point of production  of the oil                                                                    
     or  gas,  respectively,  produced  from  the  lease  or                                                                    
     property  during the  month for  which the  installment                                                                    
     payment is calculated;                                                                                                     
               (D)      for   oil   and   gas   subject   to                                                                    
     AS 43.55.011(p), the lesser of                                                                                             
               (i)  35 percent multiplied by the remainder                                                                      
     obtained   by  subtracting   1/12  of   the  producer's                                                                    
     adjusted lease  expenditures for  the calendar  year of                                                                    
     production  under AS 43.55.165  and 43.55.170  that are                                                                    
     deductible for the oil and  gas under AS 43.55.160 from                                                                    
     the gross value  at the point of production  of the oil                                                                    
     and gas  produced from the leases  or properties during                                                                    
     the  month   for  which  the  installment   payment  is                                                                    
     calculated, but not less than zero; or                                                                                     
               (ii)  four percent of the gross value at the                                                                     
     point of  production of the  oil and gas  produced from                                                                    
     the  leases or  properties  during the  month, but  not                                                                    
     less than zero;                                                                                                            
               (6)  an amount calculated under (5)(C) of                                                                        
     this   subsection   for   oil   or   gas   subject   to                                                                    
     AS 43.55.011(j),  (k),  or  (o)   may  not  exceed  the                                                                    
     product obtained  by carrying  out the  calculation set                                                                    
     out in  AS 43.55.011(j)(1) or  (2) or  43.55.011(o), as                                                                    
     applicable, for  gas or  set out  in AS 43.55.011(k)(1)                                                                    
     or  (2), as  applicable, for  oil, but  substituting in                                                                    
     AS 43.55.011(j)(1)(A)  or  (2)(A) or  43.55.011(o),  as                                                                    
     applicable, the  amount of taxable gas  produced during                                                                    
     the  month  for  the  amount of  taxable  gas  produced                                                                    
     during   the   calendar   year  and   substituting   in                                                                    
     AS 43.55.011(k)(1)(A)  or  (2)(A), as  applicable,  the                                                                    
     amount  of taxable  oil produced  during the  month for                                                                    
     the amount of taxable  oil produced during the calendar                                                                    
     year;                                                                                                                      
               (7)  for oil and gas produced on or after                                                                        
     January 1,   2022,  an   installment  payment   of  the                                                                    
     estimated  tax levied  by AS 43.55.011(e),  net of  any                                                                    
     tax credits applied as allowed  by law, is due for each                                                                    
     month  of the  calendar year  on  the last  day of  the                                                                    
     following month; the amount  of the installment payment                                                                    
     is the sum  of the following amounts, less  1/12 of the                                                                    
     tax  credits that  are  allowed by  law  to be  applied                                                                    
     against  the  tax  levied by  AS 43.55.011(e)  for  the                                                                    
     calendar  year,  but  the  amount  of  the  installment                                                                    
     payment may not be less than zero:                                                                                         
               (A)  for oil produced from leases or                                                                             
     properties that include land north  of 68 degrees North                                                                    
     latitude, the greatest of                                                                                                  
               (i)  zero;                                                                                                       
               (ii)  five [ZERO] percent [, ONE PERCENT,                                                                    
     TWO  PERCENT,  THREE  PERCENT,   OR  FOUR  PERCENT,  AS                                                                    
     APPLICABLE,]  of  the  gross  value  at  the  point  of                                                                    
     production  of  the oil  produced  from  the leases  or                                                                    
     properties during  the month for which  the installment                                                                    
     payment is calculated; or                                                                                                  
               (iii)  35 percent multiplied by the                                                                              
     remainder   obtained  by   subtracting   1/12  of   the                                                                    
     producer's   adjusted   lease  expenditures   for   the                                                                    
     calendar  year  of  production under  AS 43.55.165  and                                                                    
     43.55.170  that  are  deductible   for  the  oil  under                                                                    
     AS 43.55.160(h)(1) from  the gross  value at  the point                                                                    
     of production of the oil  produced from those leases or                                                                    
     properties during  the month for which  the installment                                                                    
     payment is  calculated, except  that, for  the purposes                                                                    
     of this  calculation, a reduction from  the gross value                                                                    
     at the  point of production  may apply for  oil subject                                                                    
     to AS 43.55.160(f) or 43.55.160(f) and (g);                                                                                
               (B)  for oil produced before or during the                                                                       
     last calendar year under  AS 43.55.024(b) for which the                                                                    
     producer    could    take    a   tax    credit    under                                                                    
     AS 43.55.024(a),  from  leases  or  properties  in  the                                                                    
     state  outside the  Cook  Inlet  sedimentary basin,  no                                                                    
     part of  which is north  of 68 degrees  North latitude,                                                                    
     other   than   leases    or   properties   subject   to                                                                    
     AS 43.55.011(p), the greater of                                                                                            
               (i)  zero; or                                                                                                    
               (ii)  35 percent multiplied by the remainder                                                                     
     obtained   by  subtracting   1/12  of   the  producer's                                                                    
     adjusted lease  expenditures for  the calendar  year of                                                                    
     production  under AS 43.55.165  and 43.55.170  that are                                                                    
     deductible  for the  oil under  AS 43.55.160(h)(2) from                                                                    
     the gross value  at the point of production  of the oil                                                                    
     produced  from  the  leases or  properties  during  the                                                                    
     month for which the installment payment is calculated;                                                                     
               (C)  for oil and gas produced from leases or                                                                     
     properties  subject   to  AS 43.55.011(p),   except  as                                                                    
     otherwise provided  under (8)  of this  subsection, the                                                                    
     sum of                                                                                                                     
               (i)   35 percent multiplied by  the remainder                                                                    
     obtained   by  subtracting   1/12  of   the  producer's                                                                    
     adjusted lease  expenditures for  the calendar  year of                                                                    
     production  under AS 43.55.165  and 43.55.170  that are                                                                    
     deductible  for the  oil under  AS 43.55.160(h)(3) from                                                                    
     the gross value  at the point of production  of the oil                                                                    
     produced  from  the  leases or  properties  during  the                                                                    
     month for which the  installment payment is calculated,                                                                    
     but not less than zero; and                                                                                                
               (ii)   13 percent of  the gross value  at the                                                                    
     point  of  production  of the  gas  produced  from  the                                                                    
     leases  or properties  during the  month, but  not less                                                                    
     than zero;                                                                                                                 
               (D)     for  oil  produced  from   leases  or                                                                    
     properties in the  state, no part of which  is north of                                                                    
     68  degrees  North  latitude,   other  than  leases  or                                                                    
     properties  subject to  (B) or  (C) of  this paragraph,                                                                    
     the greater of                                                                                                             
               (i)  zero; or                                                                                                    
               (ii)  35 percent  multiplied by the remainder                                                                    
     obtained   by  subtracting   1/12  of   the  producer's                                                                    
     adjusted lease  expenditures for  the calendar  year of                                                                    
     production  under AS 43.55.165  and 43.55.170  that are                                                                    
     deductible  for the  oil under  AS 43.55.160(h)(4) from                                                                    
     the gross value  at the point of production  of the oil                                                                    
     produced  from  the  leases or  properties  during  the                                                                    
     month for which the installment payment is calculated;                                                                     
               (E)   for  gas produced  from  each lease  or                                                                    
     property in the  state, other than a  lease or property                                                                    
     subject  to AS 43.55.011(p),  13 percent  of the  gross                                                                    
     value at  the point of  production of the  gas produced                                                                    
     from the lease  or property during the  month for which                                                                    
     the  installment payment  is calculated,  but not  less                                                                    
     than zero;                                                                                                                 
               (8)   an  amount calculated  under (7)(C)  of                                                                    
     this  subsection may  not exceed  four  percent of  the                                                                    
     gross value at  the point of production of  the oil and                                                                    
     gas  produced  from  leases or  properties  subject  to                                                                    
     AS 43.55.011(p)   during  the   month  for   which  the                                                                    
     installment payment is calculated;                                                                                         
               (9)   for purposes  of the  calculation under                                                                    
     (1)(B)(ii),   (5)(B)(ii),   and  (7)(A)(ii)   of   this                                                                    
     subsection,  the  applicable  percentage of  the  gross                                                                    
     value at  the point  of production is  determined under                                                                    
     AS 43.55.011(f)   [AS 43.55.011(f)(1)   OR   (2)]   but                                                                
     substituting   the   phrase   "month  for   which   the                                                                    
     installment      payment     is      calculated"     in                                                                    
     [AS 43.55.011(f)(1) AND  (2)] for the  phrase "calendar                                                                    
     year for which the tax is due.""                                                                                         
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 13, line 12:                                                                                                          
          Delete "sec. 22"                                                                                                      
          Insert "sec. 24"                                                                                                      
                                                                                                                                
     Page 15, line 15:                                                                                                          
          Delete "sec. 25"                                                                                                      
          Insert "sec. 27"                                                                                                      
                                                                                                                                
     Page 16, line 14:                                                                                                          
          Delete "sec. 27"                                                                                                      
          Insert "sec. 29"                                                                                                      
                                                                                                                                
     Page 18, line 17:                                                                                                          
          Delete "sec. 31"                                                                                                      
          Insert "sec. 33"                                                                                                      
                                                                                                                                
     Page 18, line 30:                                                                                                          
          Delete "secs. 31 and 32"                                                                                              
          Insert "secs. 33 and 34"                                                                                              
                                                                                                                                
     Page 22, line 19:                                                                                                          
          Delete "sec. 38"                                                                                                      
          Insert "sec. 40"                                                                                                      
                                                                                                                                
     Page 29, line 23:                                                                                                          
          Delete "sec. 27"                                                                                                      
          Insert "sec. 29"                                                                                                      
                                                                                                                                
     Page 29, line 24:                                                                                                          
          Delete "sec. 30"                                                                                                      
          Insert "sec. 32"                                                                                                      
                                                                                                                                
     Page 29, line 26:                                                                                                          
          Delete "sec. 29"                                                                                                      
          Insert "sec. 31"                                                                                                      
                                                                                                                                
     Page 29, line 27:                                                                                                          
          Delete "secs. 27, 29, and 30"                                                                                         
          Insert "secs. 29, 31, and 32"                                                                                         
                                                                                                                                
     Page 29, line 28:                                                                                                          
          Delete "sec. 42"                                                                                                      
          Insert "sec. 44"                                                                                                      
                                                                                                                                
     Page 30, line 2:                                                                                                           
          Delete "sec. 50"                                                                                                      
          Insert "sec. 52"                                                                                                      
                                                                                                                                
     Page 30, line 3:                                                                                                           
          Delete "sec. 16"                                                                                                      
          Insert "sec. 18"                                                                                                      
          Delete "sec. 19"                                                                                                      
          Insert "sec. 21"                                                                                                      
                                                                                                                                
     Page 30, line 4:                                                                                                           
          Delete "sec. 31"                                                                                                      
          Insert "sec. 33"                                                                                                      
          Delete "secs. 34 and 35"                                                                                              
          Insert "secs. 36 and 37"                                                                                              
                                                                                                                                
     Page 30, line 5:                                                                                                           
          Delete "sec. 36"                                                                                                      
          Insert "sec. 38"                                                                                                      
          Delete "sec. 43"                                                                                                      
          Insert "sec. 45"                                                                                                      
                                                                                                                                
     Page 30, line 6:                                                                                                           
          Delete "sec. 44"                                                                                                      
          Insert "sec. 46"                                                                                                      
                                                                                                                                
     Page 30, line 7:                                                                                                           
          Delete "sec. 50"                                                                                                      
          Insert "sec. 52"                                                                                                      
                                                                                                                                
     Page 30, lines 10 - 11:                                                                                                    
          Delete "sec. 50"                                                                                                      
          Insert "sec. 52"                                                                                                      
                                                                                                                                
     Page 30, line 14:                                                                                                          
          Delete "sec. 50"                                                                                                      
          Insert "sec. 52"                                                                                                      
                                                                                                                                
     Page 30, line 15:                                                                                                          
          Delete "sec. 50"                                                                                                      
          Insert "sec. 52"                                                                                                      
                                                                                                                                
     Page 30, line 19:                                                                                                          
          Delete "sec. 51"                                                                                                      
          Insert "sec. 53"                                                                                                      
                                                                                                                                
     Page 30, lines 19 - 20:                                                                                                    
          Delete "sec. 32"                                                                                                      
          Insert "sec. 34"                                                                                                      
                                                                                                                                
     Page 30, line 21:                                                                                                          
          Delete "sec. 51"                                                                                                      
          Insert "sec. 53"                                                                                                      
                                                                                                                                
     Page 30, line 24:                                                                                                          
          Delete "sec. 51"                                                                                                      
          Insert "sec. 53"                                                                                                      
                                                                                                                                
     Page 30, line 26:                                                                                                          
          Delete "sec. 51"                                                                                                      
          Insert "sec. 53"                                                                                                      
                                                                                                                                
     Page 30, line 27:                                                                                                          
          Delete "sec. 51"                                                                                                      
          Insert "sec. 53"                                                                                                      
                                                                                                                                
     Page 31, line 1:                                                                                                           
          Delete "sec. 52"                                                                                                      
          Insert "sec. 54"                                                                                                      
                                                                                                                                
     Page 31, line 2:                                                                                                           
          Delete "sec. 33"                                                                                                      
          Insert "sec. 35"                                                                                                      
          Delete "sec. 37"                                                                                                      
          Insert "sec. 39"                                                                                                      
                                                                                                                                
     Page 31, line 3:                                                                                                           
          Delete "sec. 39"                                                                                                      
          Insert "sec. 41"                                                                                                      
                                                                                                                                
     Page 31, line 4:                                                                                                           
          Delete "sec. 52"                                                                                                      
          Insert "sec. 54"                                                                                                      
                                                                                                                                
     Page 31, line 8:                                                                                                           
          Delete "sec. 52"                                                                                                      
          Insert "sec. 54"                                                                                                      
                                                                                                                                
     Page 31, line 10:                                                                                                          
          Delete "sec. 52"                                                                                                      
          Insert "sec. 54"                                                                                                      
                                                                                                                                
     Page 31, line 11:                                                                                                          
          Delete "sec. 52"                                                                                                      
          Insert "sec. 54"                                                                                                      
                                                                                                                                
     Page 31, line 16:                                                                                                          
          Delete "sec. 52"                                                                                                      
          Insert "sec. 54"                                                                                                      
                                                                                                                                
     Page 31, line 17:                                                                                                          
          Delete "sec. 23"                                                                                                      
          Insert "sec. 25"                                                                                                      
          Delete "secs. 26 and 28"                                                                                              
          Insert "secs. 28 and 30"                                                                                              
                                                                                                                                
     Page 31, line 18:                                                                                                          
          Delete "sec. 33"                                                                                                      
          Insert "sec. 35"                                                                                                      
          Delete "sec. 37"                                                                                                      
          Insert "sec. 39"                                                                                                      
                                                                                                                                
     Page 31, line 19:                                                                                                          
          Delete "sec. 45"                                                                                                      
          Insert "sec. 47"                                                                                                      
                                                                                                                                
     Page 31, line 21:                                                                                                          
          Delete "sec. 52" in both places.                                                                                      
          Insert "sec. 54" in both places.                                                                                      
                                                                                                                                
     Page 31, line 26:                                                                                                          
          Delete "sec. 42"                                                                                                      
          Insert "sec. 44"                                                                                                      
                                                                                                                                
     Page 31, line 27:                                                                                                          
          Delete "sec. 50"                                                                                                      
          Insert "sec. 52"                                                                                                      
                                                                                                                                
     Page 31, line 30:                                                                                                          
          Delete "sec. 50"                                                                                                      
          Insert "sec. 52"                                                                                                      
                                                                                                                                
     Page 32, line 4:                                                                                                           
          Delete "sec. 50"                                                                                                      
          Insert "sec. 52"                                                                                                      
                                                                                                                                
     Page 32, line 6:                                                                                                           
          Delete "sec. 50"                                                                                                      
          Insert "sec. 52"                                                                                                      
                                                                                                                                
     Page 32, line 9:                                                                                                           
          Delete "sec. 50"                                                                                                      
          Insert "sec. 52"                                                                                                      
                                                                                                                                
     Page 32, line 12:                                                                                                          
          Delete "sec. 50"                                                                                                      
          Insert "sec. 52"                                                                                                      
                                                                                                                                
     Page 32, line 14:                                                                                                          
          Delete "sec. 50"                                                                                                      
          Insert "sec. 52"                                                                                                      
                                                                                                                                
     Page 33, line 9:                                                                                                           
          Delete "Sections 22, 53, 61, and 62"                                                                                  
          Insert "Sections 24, 55, 63, and 64"                                                                                  
                                                                                                                                
     Page 33, line 11:                                                                                                          
          Delete "Sections 32, 51, and 56"                                                                                      
          Insert "Sections 34, 53, and 58"                                                                                      
                                                                                                                                
     Page 33, line 12:                                                                                                          
          Delete "Sections 23, 26, 28, 33, 37, 39, 45, 52,                                                                      
     57, and 58"                                                                                                                
          Insert "Sections 25, 28, 30, 35, 39, 41, 47, 54,                                                                      
     59, and 60"                                                                                                                
                                                                                                                                
     Page 33, line 14:                                                                                                          
          Delete "secs. 63 - 65"                                                                                                
          Insert "secs. 65 - 67"                                                                                                

Document Name Date/Time Subjects
HB 247.D Amendment 1.pdf HRLS 5/12/2016 9:30:00 AM
HB 247
HB 247.D Amendment 2.pdf HRLS 5/12/2016 9:30:00 AM
HB 247
HB 247.D Amendment 3.pdf HRLS 5/12/2016 9:30:00 AM
HB 247
HB 247.D Amendment 4.pdf HRLS 5/12/2016 9:30:00 AM
HB 247
HB 247.D Amendment 5.pdf HRLS 5/12/2016 9:30:00 AM
HB 247
HB 247.D Amendment 6.pdf HRLS 5/12/2016 9:30:00 AM
HB 247
HB 247.D Amendment 7.pdf HRLS 5/12/2016 9:30:00 AM
HB 247
HB 247.D Amendment 8.pdf HRLS 5/12/2016 9:30:00 AM
HB 247
HB 247.D Amendment 9.pdf HRLS 5/12/2016 9:30:00 AM
HB 247
HB 247.D Amendment 10.pdf HRLS 5/12/2016 9:30:00 AM
HB 247