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28th Legislature(2013-2014)

Bill Text 28th Legislature


00 Enrolled SB 138                                                                                                         
01 Relating to the limitation on the value of property taxable by a municipality; relating to the                          
02 Alaska Gasline Development Corporation; relating to an in-state natural gas pipeline, an                                
03 Alaska liquefied natural gas project, and associated funds; requiring state agencies and other                          
04 entities to expedite reviews and actions related to natural gas pipelines and projects; making                          
05 certain contracts by the Department of Natural Resources and the Department of Law not                                  
06 subject to the State Procurement Code; relating to the authorities and duties of the                                    
07 commissioner of natural resources relating to a North Slope natural gas project, oil and gas                            
08 and gas only leases, and royalty gas and other gas received by the state including gas received                         
09 as payment for the production tax on gas; relating to a report and recommendations by the                               
10 commissioner of natural resources regarding the delivery and availability of North Slope                                
11 natural gas in the state, including the identification of risks and recommendations for                                 
12 mitigation; relating to the tax on oil and gas production, on oil production, and on gas                                
01 production; relating to the duties of the commissioner of revenue relating to a North Slope                             
02 natural gas project and gas received as payment for tax; relating to confidential information                           
03 and public record status of information provided to or in the custody of the Department of                              
04 Natural Resources and the Department of Revenue; relating to apportionment factors of the                               
05 Alaska Net Income Tax Act; amending the definition of gross value at the "point of                                      
06 production" for gas for purposes of the oil and gas production tax; clarifying that the                                 
07 exploration incentive credit, the oil or gas producer education credit, and the film production                         
08 tax credit may not be taken against the gas production tax paid in gas; relating to the oil or gas                      
09 producer education credit; requiring the commissioner of revenue to provide a report to the                             
10 legislature on financing options for state ownership and participation in a North Slope natural                         
11 gas project; requesting the governor to establish an advisory planning group to advise the                              
12 governor on municipal involvement in a North Slope natural gas project; relating to the                                 
13 development of a plan by the Alaska Energy Authority for developing infrastructure to deliver                           
14 affordable energy to areas of the state that will not have direct access to a North Slope natural                       
15 gas pipeline and a recommendation of a funding source for energy infrastructure                                         
16 development; establishing the Alaska affordable energy fund; requiring the Department of                                
17 Transportation and Public Facilities to evaluate certain bridges and infrastructure related to an                       
18 Alaska liquefied natural gas project; requiring the commissioner of revenue to develop a plan                           
19 and suggest legislation for municipalities, regional corporations, and residents of the state to                        
20 acquire ownership interests in a North Slope natural gas pipeline project; relating to the duties                       
21 of the Oil and Gas Competitiveness Review Board; making conforming amendments; and                                      
22 providing for an effective date.                                                                                        
23                                                                                                                         
01                           _______________                                                                               
02    * Section 1. AS 29.45.080(c) is amended to read:                                                                   
03            (c)  A municipality may levy and collect a tax on the full and true value of that                            
04       portion of taxable property taxable under AS 43.56 as assessed by the Department of                               
05       Revenue which value, when combined with the value of property otherwise taxable by                                
06       the municipality, does not exceed the product of the percentage determined in (f) of                          
07       this section [225 PERCENT] of the average per capita assessed full and true value of                          
08       property in the state multiplied by the number of residents of the taxing municipality.                           
09    * Sec. 2. AS 29.45.080(d) is amended to read:                                                                      
10            (d)  Each [BY FEBRUARY 1 OF EACH] assessment year, a taxing                                          
11       municipality shall inform the Department of Revenue, by                                                       
12                 (1)  February 1, which method of taxation the municipality will use;                            
13       and                                                                                                           
14                 (2)  May 1, the                                                                                     
15                      (A)  total value of the municipality's locally assessed                                        
16            property tax base; and                                                                                   
17                      (B)  payment amount for the principal of and interest on                                       
18            bonds that the municipality intends to apply in its mill rate calculation for                            
19            the fiscal year corresponding to the tax year for which the assessment                                   
20            method selected by the municipality under this section will apply.                                       
21    * Sec. 3. AS 29.45.080 is amended by adding a new subsection to read:                                              
22            (f)  The percentage in (c) of this section is based on the total tax rate                                    
23       established by the municipality and levied each year under AS 43.56.010(b) and is as                              
24       follows:                                                                                                          
25       If the tax rate determined under AS 43.56.010(b) is: The percentage is:                                           
26       Not more than 18.0 mills                    375 percent                                                           
27       More than 18.0 mills but not more than 19.0 mills 300 percent                                                     
28       More than 19.0 mills                        225 percent                                                           
29    * Sec. 4. AS 29.45.090(b) is amended to read:                                                                      
30            (b)  A municipality, or combination of municipalities occupying the same                                     
31       geographical area, in whole or in part, may not levy taxes                                                        
01                 (1)  that will result in tax revenues from all sources exceeding $1,500 a                               
02       year for each person residing within the municipal boundaries; or                                                 
03                 (2)  on [UPON] value that, when combined with the value of property                                 
04       otherwise taxable by the municipality, exceeds the product of the percentage                                  
05       determined in (e) of this section [225 PERCENT] of the average per capita assessed                            
06       full and true value of property in the state multiplied by the number of residents of the                         
07       taxing municipality.                                                                                              
08    * Sec. 5. AS 29.45.090(c) is amended to read:                                                                      
09            (c)  The commissioner shall apportion the lawful levy and equitably divide the                               
10       tax revenues on the basis of need, services performed, and other considerations in the                            
11       public interest if two or more municipalities occupying the same geographical area, in                            
12       whole or in part, attempt to levy a tax                                                                           
13                 (1)  the combined levy of which would result in tax revenues from all                                   
14       sources exceeding $1,500 a year for each person residing within the municipal                                     
15       boundaries; or                                                                                                    
16                 (2)  on [UPON] value that, when combined with the value of property                                 
17       otherwise taxable by the municipality, exceeds the product of the percentage                                  
18       determined in (e) of this section [225 PERCENT] of the average per capita assessed                            
19       full and true value of property in the state multiplied by the number of residents of the                         
20       taxing municipality.                                                                                              
21    * Sec. 6. AS 29.45.090 is amended by adding a new subsection to read:                                              
22            (e)  The percentage in (b) and (c) of this section is based on the total tax rate                            
23       established by the municipality and levied each year under AS 43.56.010(b) and is as                              
24       follows:                                                                                                          
25       If the tax rate determined under AS 43.56.010(b) is: The percentage is:                                           
26       Not more than 18.0 mills                    375 percent                                                           
27       More than 18.0 mills but not more than 19.0 mills 300 percent                                                     
28       More than 19.0 mills                        225 percent                                                           
29 * Sec. 7. AS 31.25.005 is amended to read:                                                                            
30            Sec. 31.25.005. Purpose. The corporation shall, for the benefit of the state, to                           
31       the fullest extent possible,                                                                                      
01                 (1)  develop and have primary responsibility for developing natural                                 
02       gas pipelines, an Alaska liquefied natural gas project, and other transportation                              
03       mechanisms to deliver natural gas in-state for the maximum benefit of the people                              
04       of the state;                                                                                                 
05                 (2)  when developing natural gas pipelines, an Alaska liquefied                                     
06       natural gas project, and other transportation mechanisms to deliver natural gas                               
07       in-state, provide economic benefits in the state and revenue to the state;                                    
08                 (3)  assist the Department of Natural Resources and the                                             
09       Department of Revenue to maximize the value of the state's royalty natural gas,                               
10       natural gas delivered to the state as payment of tax, and other natural gas                                   
11       received by the state;                                                                                        
12                 (4)  advance an in-state natural gas pipeline as described in the July 1,                           
13       2011, project plan prepared under former AS 38.34.040 by the corporation while a                                  
14       subsidiary of the Alaska Housing Finance Corporation, with modifications determined                               
15       by the corporation to be appropriate to develop, finance, construct, and operate an in-                           
16       state natural gas pipeline in a safe, prudent, economical, and efficient manner, for the                          
17       purpose of making natural gas, including propane and other hydrocarbons associated                                
18       with natural gas other than oil, available to Fairbanks, the Southcentral region of the                           
19       state, and other communities in the state at the lowest rates possible;                                           
20                 (5)  advance an Alaska liquefied natural gas project by developing                                  
21       infrastructure and providing related services, including services related to                                  
22       transportation, liquefaction, a marine terminal, marketing, and commercial                                    
23       support; if the corporation provides a service under this paragraph to the state, a                           
24       public corporation or instrumentality of the state, a political subdivision of the                            
25       state, or another entity of the state, the corporation may not charge a fee for the                           
26       service in an amount greater than the amount necessary to reimburse the                                       
27       corporation for the cost of the service;                                                                      
28                 (6) [(2)]  endeavor to develop natural gas pipelines and other                                      
29       transportation mechanisms to deliver natural gas, including propane and other                                     
30       hydrocarbons associated with natural gas other than oil, to public utility and industrial                         
31       customers in areas of the state to which the natural gas, including propane and other                             
01       hydrocarbons associated with natural gas other than oil, may be delivered at                                      
02       commercially reasonable rates; and                                                                                
03                 (7) [(3)]  endeavor to develop natural gas pipelines and other                                      
04       transportation mechanisms that offer commercially reasonable rates for shippers and                               
05       access for shippers who produce natural gas, including propane and other                                          
06       hydrocarbons associated with natural gas other than oil, in the state.                                            
07    * Sec. 8. AS 31.25.010 is amended to read:                                                                         
08            Sec. 31.25.010. Structure. The Alaska Gasline Development Corporation is a                                 
09       public corporation and government instrumentality acting in the best interest of the                          
10       state for the purposes required by AS 31.25.005, located for administrative                                   
11       purposes in the Department of Commerce, Community, and Economic Development,                                      
12       but having a legal existence independent of and separate from the state. The                                      
13       corporation may not be terminated as long as it has bonds, notes, or other obligations                            
14       outstanding. The corporation may dissolve when no bonds, notes, or other obligations                              
15       of the corporation or a subsidiary of the corporation are outstanding and the                                     
16       corporation or a subsidiary of the corporation is no longer engaged in the                                        
17       development, financing, construction, or operation of an in-state natural gas pipeline                            
18       or an Alaska liquefied natural gas project. Upon termination of the corporation, its                          
19       rights and property pass to the state.                                                                            
20    * Sec. 9. AS 31.25.020(a) is amended to read:                                                                      
21            (a)  The corporation shall be governed by a board of directors consisting of                                 
22                 (1)  five public members; and                                                                           
23                 (2)  two individuals designated by the governor that are each the head                                  
24       of a principal department of the state, except that the commissioner of natural                                   
25       resources and the commissioner of revenue may not be designated to serve on the                                   
26       board [UNLESS THE PROJECT FOR WHICH A LICENSE IS ISSUED UNDER                                                     
27       AS 43.90 HAS BEEN ABANDONED OR IS NO LONGER RECEIVING THE                                                         
28       INDUCEMENTS IN AS 43.90.110(a) OR THE COMMISSIONER OF NATURAL                                                     
29       RESOURCES AND THE COMMISSIONER OF REVENUE ARE NO LONGER                                                           
30       SIGNATORIES ON A VALID CONTRACT UNDER AS 43.90].                                                                  
31    * Sec. 10. AS 31.25.040 is amended by adding new subsections to read:                                              
01            (c)  To the maximum extent practicable, the board shall                                                      
02                 (1)  maximize the efficient use of state resources; and                                                 
03                 (2)  establish appropriate separation within the corporation by                                         
04       separating personnel and functions and by other means to the extent that separation                               
05       may be required by contract or applicable law for the purpose of screening and                                    
06       preventing the exchange of commercially sensitive information when developing an                                  
07       in-state natural gas pipeline, an Alaska liquefied natural gas project, and other                                 
08       transportation mechanisms to deliver natural gas in the state.                                                    
09            (d)  The board may appoint a program director for an Alaska liquefied natural                                
10       gas project. The board may appoint a separate program director for an in-state natural                            
11       gas pipeline as described in the July 1, 2011, project plan prepared under former                                 
12       AS 38.34.040 and defined in AS 31.25.390. A program director appointed under this                                 
13       section shall                                                                                                     
14                 (1)  serve at the pleasure of the board; and                                                            
15                 (2)  report to the executive director of the corporation.                                               
16    * Sec. 11. AS 31.25.050 is amended to read:                                                                        
17            Sec. 31.25.050. Legal counsel. Except as provided in (b) of this section, the                            
18       [THE] corporation shall retain legal counsel to advise the corporation in legal matters                           
19       and represent it in litigation.                                                                                   
20    * Sec. 12. AS 31.25.050 is amended by adding a new subsection to read:                                             
21            (b)  The attorney general shall                                                                              
22                 (1)  be the legal counsel for the corporation for legal services related to                             
23       the development of contracts and agreements by the corporation that relate to an                                  
24       Alaska liquefied natural gas project; and                                                                         
25                 (2)  consult with the corporation when procuring outside counsel for                                    
26       legal services for the corporation related to an Alaska liquefied natural gas project.                            
27    * Sec. 13. AS 31.25.080(a) is amended to read:                                                                     
28            (a)  In addition to other powers granted in this chapter, the corporation may                                
29                 (1)  determine the form of ownership and the operating structure of an                                  
30       in-state natural gas pipeline developed by the corporation and may enter into                                     
31       agreements with other persons for joint ownership, joint operation, or both of an in-                             
01       state natural gas pipeline or an Alaska liquefied natural gas project;                                        
02                 (2)  plan, finance, construct, develop, acquire, maintain, and operate a                                
03       pipeline system and other transportation mechanism, including pipelines, compressors,                             
04       storage facilities, and other related facilities, equipment, and works of public                                  
05       improvement, in the state to facilitate production, transportation, and delivery of                               
06       natural gas or other related natural resources to the point of consumption or to the                              
07       point of distribution for consumption;                                                                            
08                 (3)  lease or rent facilities, structures, and properties;                                              
09                 (4)  exercise the power of eminent domain and file a declaration of                                     
10       taking under AS 09.55.240 - 09.55.460 to acquire land or an interest in land that is                              
11       necessary for an in-state natural gas pipeline or an Alaska liquefied natural gas                             
12       project; the exercise of powers by the corporation under this paragraph may not                               
13       exceed the permissible exercise of the powers by the state;                                                       
14                 (5)  acquire, by purchase, lease, or gift, land, structures, real or personal                           
15       property, an interest in property, a right-of-way, a franchise, an easement, or other                             
16       interest in land, or an interest in or right to capacity in a pipeline system determined to                       
17       be necessary or convenient for the development, financing, construction, or operation                             
18       of an in-state natural gas pipeline project or an Alaska liquefied natural gas project                        
19       or part of an in-state natural gas pipeline project or an Alaska liquefied natural gas                        
20       project;                                                                                                      
21                 (6)  transfer or otherwise dispose of all or part of an in-state natural gas                            
22       pipeline project, an Alaska liquefied natural gas project, or [DEVELOPED BY                                   
23       THE CORPORATION OR TRANSFER OR OTHERWISE DISPOSE OF] an interest                                                  
24       in an asset of the corporation;                                                                                   
25                 (7)  elect to provide transportation of natural gas as a contract carrier,                              
26       common carrier, or otherwise;                                                                                     
27                 (8)  provide light, water, security, and other services for property of the                             
28       corporation;                                                                                                      
29                 (9)  conduct hearings to gather and develop data consistent with the                                    
30       purpose and powers of the corporation;                                                                            
31                 (10)  advocate for new pipeline capacity before the Federal Energy                                      
01       Regulatory Commission;                                                                                            
02                 (11)  make and execute agreements, contracts, and other instruments                                     
03       necessary or convenient in the exercise of the powers and functions of the corporation                            
04       under this chapter, including a contract with a person, firm, corporation, governmental                           
05       agency, or other entity;                                                                                          
06                 (12)  sue and be sued in its own name;                                                                  
07                 (13)  adopt an official seal;                                                                           
08                 (14)  adopt bylaws for the regulation of its affairs and the conduct of its                             
09       business and adopt regulations and policies in connection with the performance of its                             
10       functions and duties;                                                                                             
11                 (15)  employ fiscal consultants, engineers, attorneys, appraisers, and                                  
12       other consultants and employees that may, in the judgment of the corporation, be                                  
13       required and fix and pay their compensation from funds available to the corporation;                              
14                 (16)  procure insurance against a loss in connection with its operation;                                
15                 (17)  borrow money as provided in this chapter to carry out its                                         
16       corporate purposes and issue its obligations as evidence of borrowing;                                            
17                 (18)  include in a borrowing the amounts necessary to pay financing                                     
18       charges, to pay interest on the obligations, and to pay the interest, consultant, advisory,                       
19       and legal fees, and other expenses that are necessary or incident to the borrowing;                               
20                 (19)  receive, administer, and comply with the conditions and                                           
21       requirements of an appropriation, gift, grant, or donation of property or money;                                  
22                 (20)  do all acts and things necessary, convenient, or desirable to carry                               
23       out the powers expressly granted or necessarily implied in this chapter;                                          
24                 (21)  invest or reinvest, subject to its contracts with noteholders and                                 
25       bondholders, money or funds held by the corporation, including funds in the in-state                              
26       natural gas pipeline fund (AS 31.25.100) and the Alaska liquefied natural gas                                 
27       project fund (AS 31.25.110), in obligations or other securities or investments in                             
28       which banks or trust companies in the state may legally invest funds held in reserves                             
29       or sinking funds or funds not required for immediate disbursement, and in certificates                            
30       of deposit or time deposits secured by obligations of, or guaranteed by, the state or the                         
31       United States;                                                                                                    
01                 (22)  enter into, as it determines to be necessary or appropriate, any                                  
02       swap or hedge, cap, or other contract providing for payments based on levels of or                                
03       changes in interest rates or indices or in the cost or price of any commodity, supply, or                         
04       expense expected to be used or incurred in connection with the acquisition,                                       
05       construction, or operation of any facility or property owned, leased, or operated by the                          
06       corporation, or an option with respect to any of the foregoing;                                               
07                 (23)  except as provided in (g) of this section, acquire an ownership                               
08       or participation interest in an Alaska liquefied natural gas project, natural gas                             
09       treatment facilities, natural gas pipeline facilities, liquefaction facilities, marine                        
10       terminal facilities related to the infrastructure of an Alaska liquefied natural gas                          
11       project, or an entity or joint venture that has an ownership interest in or is                                
12       engaged in the planning, financing, acquisition, maintenance, construction, and                               
13       operation of an Alaska liquefied natural gas project;                                                         
14                 (24)  after consultation with the commissioner of revenue and the                                   
15       commissioner of natural resources, enter into contracts relating to an Alaska                                 
16       liquefied natural gas project, including contracts for services related to                                    
17       operation, marketing, transportation, gas treatment, marine terminal operation,                               
18       or liquefaction.                                                                                              
19    * Sec. 14. AS 31.25.080(e) is amended to read:                                                                     
20            (e)  If commitments to acquire firm transportation capacity for the in-state                             
21       natural gas pipeline are received in an open season conducted by the corporation, the                         
22       corporation shall, within 10 days after accepting and executing the written                                       
23       commitments received during the open season, report the results of the open season to                             
24       the president of the senate and the speaker of the house of representatives and inform                            
25       the public of the results of the open season through publication on the Internet website                          
26       of the corporation and in a press release or other announcement to the media. The                                 
27       results made public must include the name of each prospective shipper, the amount of                              
28       capacity allocated, and the period of the commitment. If the corporation determines                               
29       that the commitments received during the open season are not sufficient to permit the                             
30       corporation to continue the development or construction of the natural gas pipeline,                              
31       the corporation shall report that to the legislature within 30 days.                                              
01    * Sec. 15. AS 31.25.080 is amended by adding a new subsection to read:                                             
02            (g)  The power in (a)(23) of this section may not be exercised by an entity or                               
03       subsidiary of the corporation that is advancing the development of an in-state natural                            
04       gas pipeline.                                                                                                     
05    * Sec. 16. AS 31.25.090 is amended by adding a new subsection to read:                                             
06            (i)  Subject to limitations on the disclosure of confidential information in (g)                             
07       and (h) of this section, the corporation shall provide to the commissioner of natural                             
08       resources and the commissioner of revenue access to information that is related to the                            
09       development of contracts under AS 38.05.020(b)(10) and (11).                                                      
10    * Sec. 17. AS 31.25.100 is amended to read:                                                                        
11            Sec. 31.25.100. In-state natural gas pipeline fund. The in-state natural gas                               
12       pipeline fund is established in the corporation and consists of money appropriated to                             
13       it. The corporation shall determine fund management and may contract with the                                     
14       Department of Revenue for fund management. Unless otherwise provided by law,                                      
15       money appropriated to the fund lapses into the general fund on the day this section is                            
16       repealed. Interest and other income received on money in the fund shall be separately                             
17       accounted for and may be appropriated to the fund. The corporation may use money                                  
18       appropriated to the fund without further appropriation for the cost of managing the                               
19       fund and for the planning, financing, development, acquisition, maintenance,                                      
20       construction, and operation of the [AN] in-state natural gas pipeline described in                        
21       AS 31.25.005(4) and for the purposes in AS 31.25.005(4), (6), and (7).                                        
22    * Sec. 18. AS 31.25 is amended by adding a new section to read:                                                    
23            Sec. 31.25.110. Alaska liquefied natural gas project fund. The Alaska                                      
24       liquefied natural gas project fund is established in the corporation and consists of                              
25       money appropriated to it. The corporation shall determine fund management and may                                 
26       contract with the Department of Revenue for fund management. If money is                                          
27       appropriated to the fund to finance the cost of an Alaska liquefied natural gas project,                          
28       the corporation shall create an account in the fund for that purpose and hold the money                           
29       appropriated for that purpose in that account. Interest and other income received on                              
30       money in the fund shall be separately accounted for and may be appropriated to the                                
31       fund. The corporation may use money appropriated to the fund without further                                      
01       appropriation for the purpose of managing the fund, for purposes related to an Alaska                             
02       liquefied natural gas project, and for the purpose of transferring net revenue received                           
03       by the corporation related to equity interests, contracts, and other activities to the                            
04       appropriate fund of the state as determined by the commissioner of revenue in                                     
05       consultation with the commissioner of natural resources.                                                          
06    * Sec. 19. AS 31.25.120 is amended to read:                                                                        
07            Sec. 31.25.120. Creation of subsidiaries. The corporation may create                                       
08       subsidiary corporations for the purpose of developing, constructing, operating, and                               
09       financing in-state natural gas pipeline projects or other transportation mechanisms; for                          
10       the purpose of aiding in the development, construction, operation, and financing of in-                           
11       state natural gas pipeline projects; or for the purpose of acquiring [THE STATE'S                                 
12       ROYALTY SHARE OF NATURAL GAS,] natural gas from the North Slope, and                                              
13       natural gas from other regions of the state, including the state's outer continental shelf,                       
14       and making that natural gas available to markets in the state, including the delivery of                          
15       natural gas, including propane and other hydrocarbons associated with natural gas                                 
16       other than oil, to coastal communities in the state, or for export. Subject to the                            
17       limitations for the use of money appropriated to the in-state natural gas pipeline                            
18       fund (AS 31.25.100) and the Alaska liquefied natural gas project fund                                         
19       (AS 31.25.110), the [A SUBSIDIARY CORPORATION CREATED UNDER THIS                                              
20       SECTION MAY BE INCORPORATED UNDER AS 10.20.146 - 10.20.166. THE]                                                  
21       corporation may transfer assets of the corporation to a subsidiary created under this                             
22       section. A subsidiary created under this section may borrow money and issue bonds as                              
23       evidence of that borrowing and has all the powers of the corporation that the                                     
24       corporation grants to it. Unless otherwise provided by the corporation, the debts,                                
25       liabilities, and obligations of a subsidiary corporation created under this section are not                       
26       the debts, liabilities, or obligations of the corporation.                                                        
27    * Sec. 20. AS 31.25.140(c) is amended to read:                                                                     
28            (c)  To further ensure effective budgetary decision making by the legislature,                               
29       the board shall                                                                                                   
30                 (1)  annually review the corporation's assets, including the assets of the                              
31       in-state natural gas pipeline fund under AS 31.25.100 and the Alaska liquefied                                
01       natural gas project fund under AS 31.25.110, to determine whether assets of the                               
02       corporation exceed an amount required to fulfill the purposes of the corporation as                               
03       defined in this chapter; in making its review, the board shall determine whether, and to                          
04       what extent, assets in excess of the amount required to fulfill the purposes of the                               
05       corporation during the next fiscal year are available without                                                     
06                      (A)  breaching an agreement entered into by the corporation;                                       
07                      (B)  materially impairing the operations or financial integrity of                                 
08            the corporation; or                                                                                          
09                      (C)  materially affecting the ability of the corporation to fulfill                                
10            the purposes of the corporation as defined in this chapter;                                                  
11                 (2)  specifically identify in the corporation's assets the amounts that the                             
12       board believes are necessary to meet the requirements of (1)(C) of this subsection; and                           
13                 (3)  present to the legislature by January 10 of each year a complete                                   
14       accounting of all assets of the corporation, including assets of the in-state natural gas                         
15       pipeline fund under AS 31.25.100 and the Alaska liquefied natural gas project                                 
16       fund under AS 31.25.110, and a report of the review and determination made under                              
17       (1) and (2) of this subsection; the accounting shall be audited by an independent                                 
18       outside auditor.                                                                                                  
19    * Sec. 21. AS 31.25.390 is amended by adding a new paragraph to read:                                              
20                 (7)  "Alaska liquefied natural gas project" means a natural gas project                                 
21       as described in AS 31.25.005(5) that includes collectively, the Prudhoe Bay unit gas                              
22       transmission line, the Point Thomson unit gas transmission line, a gas pipeline, the gas                          
23       treatment plant, a liquefied natural gas plant, and a marine terminal; in this paragraph,                         
24                      (A)  "gas pipeline"                                                                                
25                           (i)  means the main natural gas pipeline from the outlet                                      
26                 flange of the gas treatment plant on the North Slope to the inlet flange                                
27                 of the liquefied natural gas plant located in the Southcentral region of                                
28                 the state, which shall have offtake points along the pipeline for                                       
29                 deliveries of gas in the state;                                                                         
30                           (ii)  does not include any gas lines downstream of any                                        
31                 offtake point between the gas treatment plant and the liquefied natural                                 
01                 gas plant;                                                                                              
02                      (B)  "gas treatment plant" means those facilities and related                                      
03            activities required to receive natural gas from the Prudhoe Bay unit gas                                     
04            transmission line, the Point Thomson unit gas transmission line, and other                                   
05            facilities, treat the natural gas to pipeline specifications, dispose of or deliver                          
06            by-products, deliver liquid products for further transportation, and deliver                                 
07            treated natural gas for transportation through the gas pipeline;                                             
08                      (C)  "liquefied natural gas plant" means the facility for                                          
09            liquefying natural gas and includes structures, equipment, underlying land                                   
10            rights, other associated systems, storage, and facilities for off-loading liquefied                          
11            natural gas;                                                                                                 
12                      (D)  "marine terminal" means the terminal and those facilities                                     
13            required to receive liquefied natural gas from the boundary of the liquefied                                 
14            natural gas plant for marine transportation, including auxiliary vessels used in                             
15            the operation of the terminal;                                                                               
16                      (E)  "Point Thomson unit gas transmission line" means a natural                                    
17            gas transmission line from the outlet flange of the Point Thomson unit                                       
18            production facility to the inlet flange of the gas treatment plant; and                                      
19                      (F)  "Prudhoe Bay unit gas transmission line" means a natural                                      
20            gas transmission line from the outlet flange of the Prudhoe Bay unit central gas                             
21            facility to the inlet flange of the gas treatment plant.                                                     
22    * Sec. 22. AS 36.30.850(b) is amended by adding new paragraphs to read:                                            
23                 (47)  contracts for professional and technical services by the                                          
24       Department of Natural Resources to support the development of agreements and                                      
25       contracts under AS 38.05.020(b)(10) and (11);                                                                     
26                 (48)  contracts of the Department of Law developed with client                                          
27       participation for legal services related to an Alaska liquefied natural gas project as that                       
28       project is defined in AS 31.25.390, except that, to the extent practicable, the                                   
29       Department of Law shall use the procurement process under AS 36.30.320 with the                                   
30       participation of the client.                                                                                      
31    * Sec. 23. AS 37.05 is amended by adding a new section to article 6 to read:                                     
01            Sec. 37.05.610. Alaska affordable energy fund. (a) The Alaska affordable                                   
02       energy fund is created as a special account in the general fund. The fund consists of                             
03       the amount determined and deposited in the fund under (b) of this section and interest                            
04       earned on the fund balance. The purpose of the fund is to provide a source from which                             
05       the legislature may appropriate money to develop infrastructure to deliver energy to                              
06       areas of the state that are not expected to have or do not have direct access to a North                          
07       Slope natural gas pipeline.                                                                                       
08            (b)  The amount to be deposited in (a) of this section is 20 percent of the                                  
09       revenue received from the state's royalty gas transported in an Alaska liquefied natural                          
10       gas project that remains after the payment to the Alaska permanent fund under                                     
11       AS 37.13.010.                                                                                                     
12            (c)  The legislature may make appropriations from the Alaska affordable                                      
13       energy fund for the purpose described in (a) of this section.                                                     
14            (d)  Nothing in this section creates a dedicated fund.                                                       
15            (e)  In this section,                                                                                        
16                 (1)  "Alaska liquefied natural gas project" has the meaning given in                                    
17       AS 31.25.390;                                                                                                     
18                 (2)  "North Slope natural gas pipeline" has the meaning given in                                        
19       AS 42.06.630.                                                                                                     
20    * Sec. 24. AS 38.05.020(b) is amended to read:                                                                     
21            (b)  The commissioner may                                                                                    
22                 (1)  establish reasonable procedures and adopt reasonable regulations                                   
23       necessary to carry out this chapter and, whenever necessary, issue directives or orders                           
24       to the director to carry out specific functions and duties; regulations adopted by the                            
25       commissioner shall be adopted under AS 44.62 (Administrative Procedure Act);                                      
26       orders by the commissioner classifying land, issued after January 3, 1959, are not                                
27       required to be adopted under AS 44.62 (Administrative Procedure Act);                                             
28                 (2)  enter into agreements considered necessary to carry out the                                        
29       purposes of this chapter, including agreements with federal and state agencies;                                   
30                 (3)  review any order or action of the director;                                                        
31                 (4)  exercise the powers and do the acts necessary to carry out the                                     
01       provisions and objectives of this chapter;                                                                        
02                 (5)  notwithstanding the provisions of any other section of this chapter,                               
03       grant an extension of the time within which payments due on any exploration license,                              
04       lease, or sale of state land, minerals, or materials may be made, including payment of                            
05       rental and royalties, on a finding that compliance with the requirements is or was                                
06       prevented by reason of war, riots, or acts of God;                                                                
07                 (6)  classify tracts for agricultural uses;                                                             
08                 (7)  after consulting with the Board of Agriculture and Conservation                                    
09       (AS 03.09.010), waive, postpone, or otherwise modify the development requirements                                 
10       of a contract for the sale of agricultural land if                                                                
11                      (A)  the land is inaccessible by road; or                                                          
12                      (B)  transportation, marketing, and development costs render                                       
13            the required development uneconomic;                                                                         
14                 (8)  reconvey or relinquish land or an interest in land to the federal                                  
15       government if                                                                                                     
16                      (A)  the land is described in an amended application for an                                        
17            allotment under 43 U.S.C. 1617; and                                                                          
18                      (B)  the reconveyance or relinquishment is                                                         
19                           (i)  for the purposes provided in 43 U.S.C. 1617; and                                         
20                           (ii)  in the best interests of the state;                                                     
21                 (9)  lead and coordinate all matters relating to the state's review and                                 
22       authorization of resource development projects;                                                                   
23                 (10)  enter into commercial agreements with a duration of not more                                  
24       than two years for project services related to a North Slope natural gas project;                             
25                 (11)  in consultation with the commissioner of revenue, participate                                 
26       in the negotiation of agreements that include balancing, marketing, disposition of                            
27       natural gas, and offtake and contracts and development of terms for inclusion in                              
28       those proposed agreements and contracts associated with a North Slope natural                                 
29       gas project; an agreement or contract negotiated under this paragraph to which                                
30       the state is a party is not effective unless the legislature authorizes the governor                          
31       to execute the agreement or contract;                                                                         
01                 (12)  enter into confidentiality agreements to maintain the                                         
02       confidentiality of information related to contract negotiations and contract                                  
03       implementation associated with a North Slope natural gas project; information                                 
04       under those confidentiality agreements is not subject to AS 40.25.100 - 40.25.295                             
05       (Alaska Public Records Act), except that                                                                      
06                      (A)  the terms of a proposed contract that the commissioner                                    
07            presents to the legislature for the purpose of obtaining authorization for                               
08            the governor to execute are not confidential and must be made available to                               
09            the public at least 90 days before the proposed effective date for the terms;                            
10            and                                                                                                      
11                      (B)  the commissioner may share confidential information                                       
12            obtained under this paragraph with members of the legislature, their                                     
13            agents, and contractors on request under confidentiality agreements,                                     
14            either in committees held in executive session or individually;                                          
15                 (13)  consult with the Alaska Gasline Development Corporation in                                    
16       the development of agreements or contracts under (10) or (11) of this subsection                              
17       for project services related to a gas treatment plant, pipeline, liquefaction facility,                       
18       marine terminal, or marine transportation services necessary to transport                                     
19       natural gas to market;                                                                                        
20                 (14)  exercise the powers and do the acts necessary to carry out the                                
21       provisions and objectives of AS 43.90 that relate to this chapter.                                                
22    * Sec. 25. AS 38.05.020(b), as amended by sec. 24 of this Act, is amended to read:                                 
23            (b)  The commissioner may                                                                                    
24                 (1)  establish reasonable procedures and adopt reasonable regulations                                   
25       necessary to carry out this chapter and, whenever necessary, issue directives or orders                           
26       to the director to carry out specific functions and duties; regulations adopted by the                            
27       commissioner shall be adopted under AS 44.62 (Administrative Procedure Act);                                      
28       orders by the commissioner classifying land, issued after January 3, 1959, are not                                
29       required to be adopted under AS 44.62 (Administrative Procedure Act);                                             
30                 (2)  enter into agreements considered necessary to carry out the                                        
31       purposes of this chapter, including agreements with federal and state agencies;                                   
01                 (3)  review any order or action of the director;                                                        
02                 (4)  exercise the powers and do the acts necessary to carry out the                                     
03       provisions and objectives of this chapter;                                                                        
04                 (5)  notwithstanding the provisions of any other section of this chapter,                               
05       grant an extension of the time within which payments due on any exploration license,                              
06       lease, or sale of state land, minerals, or materials may be made, including payment of                            
07       rental and royalties, on a finding that compliance with the requirements is or was                                
08       prevented by reason of war, riots, or acts of God;                                                                
09                 (6)  classify tracts for agricultural uses;                                                             
10                 (7)  after consulting with the Board of Agriculture and Conservation                                    
11       (AS 03.09.010), waive, postpone, or otherwise modify the development requirements                                 
12       of a contract for the sale of agricultural land if                                                                
13                      (A)  the land is inaccessible by road; or                                                          
14                      (B)  transportation, marketing, and development costs render                                       
15            the required development uneconomic;                                                                         
16                 (8)  reconvey or relinquish land or an interest in land to the federal                                  
17       government if                                                                                                     
18                      (A)  the land is described in an amended application for an                                        
19            allotment under 43 U.S.C. 1617; and                                                                          
20                      (B)  the reconveyance or relinquishment is                                                         
21                           (i)  for the purposes provided in 43 U.S.C. 1617; and                                         
22                           (ii)  in the best interests of the state;                                                     
23                 (9)  lead and coordinate all matters relating to the state's review and                                 
24       authorization of resource development projects;                                                                   
25                 (10)  enter into commercial agreements with a duration of not more                                      
26       than two years for project services related to a North Slope natural gas project;                                 
27                 (11)  in consultation with the commissioner of revenue, participate in                                  
28       the negotiation of agreements that include balancing, marketing, disposition of natural                           
29       gas, and offtake and contracts and development of terms for inclusion in those                                    
30       proposed agreements and contracts associated with a North Slope natural gas project;                              
31       an agreement or contract negotiated under this paragraph to which the state is a party                            
01       is not effective unless the legislature authorizes the governor to execute the agreement                          
02       or contract;                                                                                                      
03                 (12)  enter into confidentiality agreements to maintain the                                             
04       confidentiality of information related to contract negotiations and contract                                      
05       implementation associated with a North Slope natural gas project; information under                               
06       those confidentiality agreements is not subject to AS 40.25.100 - 40.25.295 (Alaska                               
07       Public Records Act), except that                                                                                  
08                      (A)  the terms of a proposed contract that the commissioner                                        
09            presents to the legislature for the purpose of obtaining authorization for the                               
10            governor to execute are not confidential and must be made available to the                                   
11            public at least 90 days before the proposed effective date for the terms; and                                
12                      (B)  the commissioner may share confidential information                                           
13            obtained under this paragraph with members of the legislature, their agents,                                 
14            and contractors on request under confidentiality agreements, either in                                       
15            committees held in executive session or individually;                                                        
16                 (13)  consult with the Alaska Gasline Development Corporation in the                                    
17       development of agreements or contracts under (10) or (11) of this subsection for                                  
18       project services related to a gas treatment plant, pipeline, liquefaction facility, marine                        
19       terminal, or marine transportation services necessary to transport natural gas to                                 
20       market;                                                                                                           
21                 (14)  in consultation with the commissioner of revenue, take                                        
22       custody of gas delivered to the state under AS 43.55.014(b) and manage the                                    
23       project services and disposition and sale of that gas;                                                        
24                 (15)  exercise the powers and do the acts necessary to carry out the                                
25       provisions and objectives of AS 43.90 that relate to this chapter.                                                
26    * Sec. 26. AS 38.05 is amended by adding a new section to read:                                                    
27            Sec. 38.05.023. Terms in an agreement or contract related to a North                                       
28       Slope natural gas project. (a) An agreement or contract to which the state or an                                
29       entity of the state is a party that is negotiated under AS 38.05.020(b)(11) must include                          
30       a requirement that the state or an entity of the state shall have access to data developed                        
31       under the agreement or contract in which the state or an entity of the state has directly                         
01       participated financially. Access by the state or an entity of the state to the data must be                       
02       on the same or substantially similar terms applicable to any other party in a North                               
03       Slope natural gas project.                                                                                        
04            (b)  A proposed agreement or contract associated with a North Slope natural                                  
05       gas project may not include a provision that changes the property tax on property that                            
06       was previously taxable under AS 43.56.                                                                            
07            (c) A proposed agreement or contract associated with a North Slope natural gas                               
08       project must provide the means for allocating infrastructure costs between the state                              
09       and other parties in the project. The allocation must take into consideration the extent                          
10       to which infrastructure is used by the project and used by the public and the difference                          
11       between the normal expected or actual life-cycle costs for the infrastructure as used by                          
12       the project and the expected or actual life-cycle costs of the same infrastructure if                             
13       subject only to general public use. The proposed agreement or contract may not                                    
14       require the state to pay infrastructure costs that are directly related to the project and                        
15       not designed for general public use in a proportionate amount that is greater than the                            
16       state's share of participation in the project.                                                                    
17            (d)  An agreement or contract to which the state or an entity of the state is a                              
18       party that is negotiated under AS 38.05.020(b)(11) must include principles based on                               
19       commercially reasonable terms for delivering natural gas to public utilities in the state                         
20       when the demand for natural gas by the utilities exceeds the amount of the state's                                
21       royalty natural gas and natural gas delivered to the state as payment of tax that is                              
22       available in a North Slope natural gas project.                                                                   
23    * Sec. 27. AS 38.05.180(i) is amended to read:                                                                     
24            (i)  The commissioner may provide for the establishment of an exploration                                    
25       incentive credit system under which a lessee of state land drilling an exploratory well                           
26       on that land may earn credits based on [UPON] the footage drilled and the region in                           
27       which the well is situated. The commissioner may also provide for credits to be earned                            
28       by persons performing geophysical work on state land, if that work is performed                                   
29       during the two seasons immediately preceding an announced lease sale and on land                                  
30       included within the sale area and the geophysical information is made public                                      
31       following the sale. Credits may not exceed 50 percent of the cost of the drilling or                              
01       geophysical work. Credits may be used during a limited period established by the                                  
02       commissioner and may be assigned during that period. Credits may be applied against                               
03       (1) royalty and rental payments for oil and gas or for gas only payable to the state or                           
04       (2) taxes payable under AS 43.55.011 [AS 43.55]. A credit may not exceed 50 percent                           
05       of the payment toward which it is being applied. Amounts due the Alaska permanent                                 
06       fund (AS 37.13.010) shall be calculated before the application of credits under this                              
07       subsection.                                                                                                       
08    * Sec. 28. AS 38.05.180 is amended by adding new subsections to read:                                              
09            (hh)  Notwithstanding (j) of this section, the commissioner may propose                                      
10       modification to a lease from which a lessee has committed gas from that lease to a                                
11       North Slope natural gas project. A modification may be made under this subsection                                 
12       only after the commissioner makes the written determination under (ii) of this section                            
13       that the lease may be modified. If a modification is made, the modification shall be in                           
14       effect during the initial project term that has acquired the major permits required for                           
15       the work plan and budget considered by the commissioner in the written determination                              
16       under (ii) of this section. A modification under this subsection may                                              
17                 (1)  relate to switching between taking the state's royalty gas in value                                
18       and in kind to ensure that the lessee, the state, or another person shall bear                                    
19       proportionate costs for treatment, transportation, and liquefaction to the state's royalty                        
20       gas or gas delivered to the state under AS 43.55.014, and the state's actions do not                              
21       unreasonably interfere with the long-term marketing of natural gas by the lessee, the                             
22       state, or another person;                                                                                         
23                 (2)  provide a method for establishing a fair market value for each                                     
24       component of the state's royalty gas and appropriate adjustments to reflect fair market                           
25       deductions for reasonable costs for treatment, transportation, and liquefaction for the                           
26       state's royalty gas from the North Slope to the destination market; in this paragraph,                            
27       "reasonable costs for treatment, transportation, and liquefaction" may not be greater                             
28       than actual costs;                                                                                                
29                 (3)  modify net profit shares for oil and gas and sliding scale royalty                                 
30       rates for gas by establishing fixed royalty rates that yield a value to the state that the                        
31       commissioner determines to be not less than the value the state would have received                               
01       under the terms of the lease before a modification under this subsection.                                         
02            (ii)  Before making a modification to a lease under (hh) of this section, the                                
03       commissioner shall make a written determination that the lease may be modified. The                               
04       determination by the commissioner must be based on a clear and convincing showing                                 
05       by the lessee that                                                                                                
06                 (1)  the modification                                                                                   
07                      (A)  is in the best interests of the state; and                                                    
08                      (B)  will materially improve the likelihood of a successful North                                  
09            Slope natural gas project;                                                                                   
10                 (2)  a North Slope natural gas project has sufficient                                                   
11                      (A)  financial commitment for a work plan and budget                                               
12            necessary to support major permits and regulatory filings required by state and                              
13            federal agencies; and                                                                                        
14                      (B)  commitment of gas by lessees;                                                                 
15                 (3)  the lease will produce hydrocarbons that will be transported on a                                  
16       North Slope natural gas project during the initial project term; and                                              
17                 (4) the lessee or an affiliate of the lessee has offered to purchase,                                   
18       dispose of, or market the state's royalty gas taken in kind and gas delivered to the state                        
19       under AS 43.55.014 on the same or substantially similar terms as the lessee or an                                 
20       affiliate of the lessee sells, disposes of, or markets the lessee's gas.                                          
21    * Sec. 29. AS 38.05.183(a) is amended to read:                                                                     
22            (a)  The sale, exchange, or other disposal of a mineral obtained by the state as a                           
23       royalty under AS 38.05.182, [OR] the sale, exchange, or other disposal in whole or in                             
24       part of a right to receive future mineral production under a state lease under this                               
25       chapter, or the sale, exchange, or other disposal of gas delivered to the state under                         
26       AS 43.55.014(b) shall be by competitive bid and the sale, exchange, or other disposal                         
27       made to the highest responsible bidder, except that competitive bidding is not required                           
28       when the commissioner, after prior written notice to the Alaska Royalty Oil and Gas                               
29       Development Advisory Board under AS 38.06.050, determines that the best interest of                               
30       the state does not require it or that no competition exists.                                                      
31    * Sec. 30. AS 38.05.183(c) is amended to read:                                                                     
01            (c)  If the commissioner determines that a sale, exchange, or other disposal of a                            
02       mineral obtained by the state as a royalty under AS 38.05.182, [OR] of a right to                             
03       receive future mineral production under a state lease under this chapter, or of gas                           
04       delivered to the state under AS 43.55.014(b) shall be made otherwise than by                                  
05       competitive bid, and the Alaska Royalty Oil and Gas Development Advisory Board                                    
06       has been notified in writing of that determination, the commissioner shall make public                            
07       in writing the specific findings and conclusions on [UPON] which that determination                           
08       is based.                                                                                                         
09    * Sec. 31. AS 38.05.183(d) is amended to read:                                                                     
10            (d)  Oil or gas taken in kind by the state as its royalty share or gas delivered to                      
11       the state under AS 43.55.014(b) may not be sold or otherwise disposed of for export                           
12       from the state until the commissioner determines that the [ROYALTY-IN-KIND] oil                                   
13       or gas is surplus to the present and projected intrastate domestic and industrial needs.                          
14       The commissioner shall make public, in writing, the specific findings and reasons on                              
15       which the determination is based.                                                                                 
16    * Sec. 32. AS 38.05.183(e) is amended to read:                                                                     
17            (e)  When a sale, exchange, or other disposal of oil or gas taken in kind by the                             
18       state as its royalty share, or a sale, exchange, or other disposal in whole or in part of a                       
19       right to receive future royalty oil or gas, under a state lease under this chapter is made                        
20       other than by competitive bid, or when a sale, exchange, or other disposal of gas                             
21       delivered to the state under AS 43.55.014(b) is made other than by competitive                                
22       bid, the sale, exchange, or other disposal shall be awarded by the commissioner to the                        
23       prospective buyer whose proposal offers the maximum benefits to citizens of the state.                            
24       The commissioner shall consider                                                                                   
25                 (1)  the cash value offered;                                                                            
26                 (2)  the projected effects of the sale, exchange, or other disposal on the                              
27       economy of the state;                                                                                             
28                 (3)  the projected benefits of refining or processing the oil or gas in the                             
29       state;                                                                                                            
30                 (4)  the ability of the prospective buyer to provide refined products or                                
31       by-products for distribution and sale in the state with price or supply benefits to the                           
01       citizens of the state; and                                                                                        
02                 (5)  the criteria listed in AS 38.06.070(a).                                                            
03    * Sec. 33. AS 38.05.965 is amended by adding new paragraphs to read:                                               
04                 (26)  "initial project term" means the duration sufficient to support an                                
05       investment decision by the sponsors of a North Slope natural gas project to permit                                
06       realization of a competitive economic return, to enable necessary financing, and to                               
07       support agreements for the sale of hydrocarbons transported on a North Slope natural                              
08       gas project;                                                                                                      
09                 (27)  "North Slope natural gas project" means a project to produce or                                   
10       transport natural gas from state oil and gas and gas only leases that include land north                          
11       of 68 degrees North latitude for transport in a gaseous state from the North Slope;                             
12                 (28)  "project services" means services provided by a gas treatment                                     
13       plant, pipeline, liquefaction facility, or marine terminal, marine transportation                                 
14       services, or other services necessary to transport natural gas to market.                                         
15    * Sec. 34. AS 38.34.020(a) is amended to read:                                                                     
16            (a)  A state agency or entity conducting a review or taking action relating to a                         
17       project under AS 31.25 (Alaska Gasline Development Corporation) [THE IN-                                      
18       STATE NATURAL GAS PIPELINE PROJECT UNDER THIS CHAPTER] shall                                                      
19       expedite the review or action in a manner consistent with the timely completion of the                            
20       project.                                                                                                          
21    * Sec. 35. AS 38.34.020(b) is amended to read:                                                                     
22            (b)  Notwithstanding any contrary provision of law, a state agency or entity                                 
23       may not include in any project certificate, right-of-way, permit, or other authorization                          
24       a term or condition that is not required by law if the in-state gasline project                                   
25       coordinator determines that the term or condition would prevent or impair, in any                                 
26       significant respect, the expeditious construction and operation or expansion of a                             
27       project under AS 31.25 (Alaska Gasline Development Corporation) [THE IN-                                      
28       STATE NATURAL GAS PIPELINE PROJECT].                                                                              
29    * Sec. 36. AS 38.34.020(c) is amended to read:                                                                     
30            (c)  Unless required by law, a state agency or entity may not add to, amend, or                              
31       abrogate any certificate, right-of-way, permit, or other authorization if the in-state                            
01       gasline project coordinator determines that the action would prevent or impair, in any                            
02       significant respect, the expeditious construction, operation, or expansion of a project                       
03       under AS 31.25 (Alaska Gasline Development Corporation) [THE IN-STATE                                         
04       NATURAL GAS PIPELINE PROJECT].                                                                                    
05    * Sec. 37. AS 40.25.100(a) is amended to read:                                                                     
06            (a)  Information in the possession of the Department of Revenue that discloses                               
07       the particulars of the business or affairs of a taxpayer or other person, including                           
08       information under AS 38.05.020(b)(11) that is subject to a confidentiality                                    
09       agreement under AS 38.05.020(b)(12), is not a matter of public record, except as                              
10       provided in AS 43.05.230(i) or for purposes of investigation and law enforcement. The                             
11       information shall be kept confidential except when its production is required in an                               
12       official investigation, administrative adjudication under AS 43.05.405 - 43.05.499, or                            
13       court proceeding. These restrictions do not prohibit the publication of statistics                                
14       presented in a manner that prevents the identification of particular reports and items,                           
15       prohibit the publication of tax lists showing the names of taxpayers who are delinquent                           
16       and relevant information that may assist in the collection of delinquent taxes, or                                
17       prohibit the publication of records, proceedings, and decisions under AS 43.05.405 -                              
18       43.05.499.                                                                                                        
19    * Sec. 38. AS 40.25.100(a), as amended by sec. 37 of this Act, is amended to read:                                 
20            (a)  Information in the possession of the Department of Revenue that discloses                               
21       the particulars of the business or affairs of a taxpayer or other person, including                               
22       information under AS 38.05.020(b)(11) that is subject to a confidentiality agreement                              
23       under AS 38.05.020(b)(12), is not a matter of public record, except as provided in                                
24       AS 43.05.230(i) or (k) or for purposes of investigation and law enforcement. The                              
25       information shall be kept confidential except when its production is required in an                               
26       official investigation, administrative adjudication under AS 43.05.405 - 43.05.499, or                            
27       court proceeding. These restrictions do not prohibit the publication of statistics                                
28       presented in a manner that prevents the identification of particular reports and items,                           
29       prohibit the publication of tax lists showing the names of taxpayers who are delinquent                           
30       and relevant information that may assist in the collection of delinquent taxes, or                                
31       prohibit the publication of records, proceedings, and decisions under AS 43.05.405 -                              
01       43.05.499.                                                                                                        
02    * Sec. 39. AS 40.25.120(a) is amended to read:                                                                     
03            (a)  Every person has a right to inspect a public record in the state, including                             
04       public records in recorders' offices, except                                                                      
05                 (1)  records of vital statistics and adoption proceedings, which shall be                               
06       treated in the manner required by AS 18.50;                                                                       
07                 (2)  records pertaining to juveniles unless disclosure is authorized by                                 
08       law;                                                                                                              
09                 (3)  medical and related public health records;                                                         
10                 (4)  records required to be kept confidential by a federal law or                                       
11       regulation or by state law;                                                                                       
12                 (5)  to the extent the records are required to be kept confidential under                               
13       20 U.S.C. 1232g and the regulations adopted under 20 U.S.C. 1232g in order to secure                              
14       or retain federal assistance;                                                                                     
15                 (6)  records or information compiled for law enforcement purposes, but                                  
16       only to the extent that the production of the law enforcement records or information                              
17                      (A)  could reasonably be expected to interfere with enforcement                                    
18            proceedings;                                                                                                 
19                      (B)  would deprive a person of a right to a fair trial or an                                       
20            impartial adjudication;                                                                                      
21                      (C)  could reasonably be expected to constitute an unwarranted                                     
22            invasion of the personal privacy of a suspect, defendant, victim, or witness;                                
23                      (D)  could reasonably be expected to disclose the identity of a                                    
24            confidential source;                                                                                         
25                      (E)  would disclose confidential techniques and procedures for                                     
26            law enforcement investigations or prosecutions;                                                              
27                      (F)  would disclose guidelines for law enforcement                                                 
28            investigations or prosecutions if the disclosure could reasonably be expected to                             
29            risk circumvention of the law; or                                                                            
30                      (G)  could reasonably be expected to endanger the life or                                          
31            physical safety of an individual;                                                                            
01                 (7)  names, addresses, and other information identifying a person as a                                  
02       participant in the Alaska Higher Education Savings Trust under AS 14.40.802 or the                                
03       advance college tuition savings program under AS 14.40.803 - 14.40.817;                                           
04                 (8)  public records containing information that would disclose or might                                 
05       lead to the disclosure of a component in the process used to execute or adopt an                                  
06       electronic signature if the disclosure would or might cause the electronic signature to                           
07       cease being under the sole control of the person using it;                                                        
08                 (9)  reports submitted under AS 05.25.030 concerning certain                                            
09       collisions, accidents, or other casualties involving boats;                                                       
10                 (10)  records or information pertaining to a plan, program, or                                          
11       procedures for establishing, maintaining, or restoring security in the state, or to a                             
12       detailed description or evaluation of systems, facilities, or infrastructure in the state,                        
13       but only to the extent that the production of the records or information                                          
14                      (A)  could reasonably be expected to interfere with the                                            
15            implementation or enforcement of the security plan, program, or procedures;                                  
16                      (B)  would disclose confidential guidelines for investigations or                                  
17            enforcement and the disclosure could reasonably be expected to risk                                          
18            circumvention of the law; or                                                                                 
19                      (C)  could reasonably be expected to endanger the life or                                          
20            physical safety of an individual or to present a real and substantial risk to the                            
21            public health and welfare;                                                                                   
22                 (11)  the written notification regarding a proposed regulation provided                                 
23       under AS 24.20.105 to the Department of Law and the affected state agency and                                     
24       communications between the Legislative Affairs Agency, the Department of Law, and                                 
25       the affected state agency under AS 24.20.105;                                                                     
26                 (12)  records that are                                                                                  
27                      (A)  proprietary, privileged, or a trade secret in accordance with                                 
28            AS 43.90.150 or 43.90.220(e);                                                                                
29                      (B)  applications that are received under AS 43.90 until notice is                                 
30            published under AS 43.90.160;                                                                                
31                 (13)  information of the Alaska Gasline Development Corporation                                         
01       created under AS 31.25.010 or a subsidiary of the Alaska Gasline Development                                      
02       Corporation that is confidential by law or under a valid confidentiality agreement;                           
03                 (14)  information under AS 38.05.020(b)(11) that is subject to a                                    
04       confidentiality agreement under AS 38.05.020(b)(12).                                                          
05    * Sec. 40. AS 43.05.010 is amended to read:                                                                        
06            Sec. 43.05.010. Duties of commissioner. The commissioner of revenue shall                                  
07                 (1)  exercise general supervision and direct the activities of the                                      
08       Department of Revenue;                                                                                            
09                 (2)  supervise the fiscal affairs and responsibilities of the department;                               
10                 (3)  prescribe uniform rules for investigations and hearings;                                           
11                 (4)  keep a record of all departmental proceedings, record and file all                                 
12       bonds, and assume custody of returns, reports, papers, and documents of the                                       
13       department;                                                                                                       
14                 (5)  adopt a seal and affix it to each order, process, or certificate issued                            
15       by the commissioner;                                                                                              
16                 (6)  keep a record of each order, process, and certificate issued by the                                
17       commissioner, and keep the record open to public inspection at all reasonable times;                              
18                 (7)  hold hearings and investigations necessary for the administration of                               
19       state tax and revenue laws;                                                                                       
20                 (8)  except as provided in AS 43.05.405 - 43.05.499 and in                                              
21       AS 44.64.030, hear and determine appeals of a matter within the jurisdiction of the                               
22       Department of Revenue and enter orders on the appeals that are final unless reversed                              
23       or modified by the courts;                                                                                        
24                 (9)  issue subpoenas to require the attendance of witnesses and the                                     
25       production of necessary books, papers, documents, correspondence, and other things;                               
26                 (10)  order the taking of depositions before a person competent to                                      
27       administer oaths;                                                                                                 
28                 (11)  administer oaths and take acknowledgments;                                                        
29                 (12)  request the attorney general for rulings on the interpretation of the                             
30       tax and revenue laws administered by the department;                                                              
31                 (13)  call upon the attorney general to institute actions for recovery of                               
01       unpaid taxes, fees, excises, additions to tax, penalties, and interest;                                           
02                 (14)  issue warrants for the collection of unpaid tax penalties and                                     
03       interest and take all steps necessary and proper to enforce full and complete                                     
04       compliance with the tax, license, excise, and other revenue laws of the state;                                    
05                 (15)  report to the legislature before February 15 of each year the total                               
06       amount of contributions reported and the total amount of credit claimed during the                                
07       previous calendar year under AS 43.20.014, AS 43.55.019, AS 43.56.018,                                            
08       AS 43.65.018, AS 43.75.018, and AS 43.77.045;                                                                 
09                 (16)  consult with the commissioner of natural resources on                                         
10       negotiation of contracts and development of terms for inclusion in proposed                                   
11       contracts associated with a North Slope natural gas project.                                                  
12    * Sec. 41. AS 43.05.010, as amended by sec. 40 of this Act, is amended to read:                                    
13            Sec. 43.05.010. Duties of commissioner. The commissioner of revenue shall                                  
14                 (1)  exercise general supervision and direct the activities of the                                      
15       Department of Revenue;                                                                                            
16                 (2)  supervise the fiscal affairs and responsibilities of the department;                               
17                 (3)  prescribe uniform rules for investigations and hearings;                                           
18                 (4)  keep a record of all departmental proceedings, record and file all                                 
19       bonds, and assume custody of returns, reports, papers, and documents of the                                       
20       department;                                                                                                       
21                 (5)  adopt a seal and affix it to each order, process, or certificate issued                            
22       by the commissioner;                                                                                              
23                 (6)  keep a record of each order, process, and certificate issued by the                                
24       commissioner, and keep the record open to public inspection at all reasonable times;                              
25                 (7)  hold hearings and investigations necessary for the administration of                               
26       state tax and revenue laws;                                                                                       
27                 (8)  except as provided in AS 43.05.405 - 43.05.499 and in                                              
28       AS 44.64.030, hear and determine appeals of a matter within the jurisdiction of the                               
29       Department of Revenue and enter orders on the appeals that are final unless reversed                              
30       or modified by the courts;                                                                                        
31                 (9)  issue subpoenas to require the attendance of witnesses and the                                     
01       production of necessary books, papers, documents, correspondence, and other things;                               
02                 (10)  order the taking of depositions before a person competent to                                      
03       administer oaths;                                                                                                 
04                 (11)  administer oaths and take acknowledgments;                                                        
05                 (12)  request the attorney general for rulings on the interpretation of the                             
06       tax and revenue laws administered by the department;                                                              
07                 (13)  call upon the attorney general to institute actions for recovery of                               
08       unpaid taxes, fees, excises, additions to tax, penalties, and interest;                                           
09                 (14)  issue warrants for the collection of unpaid tax penalties and                                     
10       interest and take all steps necessary and proper to enforce full and complete                                     
11       compliance with the tax, license, excise, and other revenue laws of the state;                                    
12                 (15)  report to the legislature before February 15 of each year the total                               
13       amount of contributions reported and the total amount of credit claimed during the                                
14       previous calendar year under AS 43.20.014, AS 43.55.019, AS 43.56.018,                                            
15       AS 43.65.018, AS 43.75.018, and AS 43.77.045;                                                                     
16                 (16)  consult with the commissioner of natural resources on negotiation                                 
17       of contracts and development of terms for inclusion in proposed contracts associated                              
18       with a North Slope natural gas project;                                                                       
19                 (17)  direct the disposition of revenue received from gas delivered                                 
20       to the state under AS 43.55.014(b) by entering into agreements with the                                       
21       commissioner of natural resources related to the management of the custody and                                
22       disposition of gas delivered to the state under AS 43.55.014(b).                                              
23    * Sec. 42. AS 43.05.230 is amended by adding a new subsection to read:                                             
24            (k)  The name of each person that the department has allowed to make an                                      
25       election under AS 43.55.014(a) and the amount of gas produced from each lease or                                  
26       property to which an effective election under AS 43.55.014 applies is public                                      
27       information.                                                                                                      
28    * Sec. 43. AS 43.20.144(d) is amended to read:                                                                     
29            (d)  The sales factor of a taxpayer subject to this section is a fraction,                                   
30                 (1)  the numerator of which is the sum of the following for the tax                                     
31       period:                                                                                                           
01                      (A)  the tariffs allowed and received by or for the taxpayer for                                   
02            transporting oil or gas by pipeline in this state, regardless of whether the tariffs                         
03            are paid by third parties or by entities within the taxpayer's consolidated                                  
04            business; and                                                                                                
05                      (B)  the total sales of the taxpayer in this state, determined in                                  
06            accordance with AS 43.19 (Multistate Tax Compact), but excluding                                             
07                           (i)  those sales already included in the tariffs described                                
08                 in (A) of this paragraph;                                                                               
09                           (ii)  constructive sales or deemed sales of natural gas                                   
10                 delivered to the state as payment of tax under an election made by                                  
11                 the taxpayer under AS 43.55.014;                                                                    
12                           (iii)  fees, allowed and received, that are paid                                          
13                 between entities within the consolidated business of the taxpayer                                   
14                 for transporting the taxpayer's natural gas; and                                                    
15                 (2)  the denominator of which is the sum of the following for the tax                                   
16       period:                                                                                                           
17                      (A)  the tariffs allowed and received by or for the taxpayer's                                     
18            consolidated business for transporting oil or gas by pipeline everywhere,                                    
19            regardless of whether the tariffs are paid by third parties or by entities within                            
20            the taxpayer's consolidated business; and                                                                    
21                      (B)  the total sales of the taxpayer's consolidated business                                       
22            everywhere, determined in accordance with AS 43.19 (Multistate Tax                                           
23            Compact), but excluding                                                                                      
24                           (i)  those sales already included in the tariffs described                                
25                 in (A) of this paragraph;                                                                           
26                           (ii)  constructive sales or deemed sales of natural gas                                   
27                 delivered to the state as payment of tax under an election made by                                  
28                 the taxpayer under AS 43.55.014 or delivered in another tax                                         
29                 jurisdiction under a law comparable to AS 43.55.014;                                                
30                           (iii)  fees, allowed and received, that are paid                                          
31                 between entities within the consolidated business of the taxpayer                                   
01                 for transporting the taxpayer's natural gas.                                                        
02    * Sec. 44. AS 43.20.144(f) is amended to read:                                                                     
03            (f)  The extraction factor of a taxpayer subject to this section is a fraction,                              
04                 (1)  the numerator of which is the sum of the following for the tax                                     
05       period:                                                                                                           
06                      (A)  the number of barrels of the taxpayer's oil (net of royalty to                                
07            an unrelated party) produced from or allocated to leases or properties of the                                
08            taxpayer in this state; and                                                                                  
09                      (B)  one-sixth of the number of Mcf of the taxpayer's gas,                                     
10            excluding reinjected gas but including gas subject to an election under                                  
11            AS 43.55.014, (net of royalty to an unrelated party) produced from or allocated                          
12            to leases or properties of the taxpayer in this state [, EXCLUDING                                           
13            REINJECTED GAS]; and                                                                                         
14                 (2)  the denominator of which is the sum of the following for the tax                                   
15       period:                                                                                                           
16                      (A)  the number of barrels of oil of the taxpayer's consolidated                                   
17            business (net of royalty to an unrelated party) produced from or allocated to                                
18            leases or properties of the taxpayer's consolidated business everywhere; and                                 
19                      (B)  one-sixth of the number of Mcf of gas, excluding                                          
20            reinjected gas but including gas subject to an election under AS 43.55.014,                              
21            of the taxpayer's consolidated business (net of royalty to an unrelated party)                               
22            produced from or allocated to leases or properties of the taxpayer's                                         
23            consolidated business everywhere [, EXCLUDING REINJECTED GAS].                                               
24    * Sec. 45. AS 43.55.011(e) is amended to read:                                                                     
25            (e)  There is levied on the producer of oil or gas a tax for all oil and gas                                 
26       produced each calendar year from each lease or property in the state, less any oil and                            
27       gas the ownership or right to which is exempt from taxation or constitutes a                                      
28       landowner's royalty interest or for which a tax is levied by AS 43.55.014. Except as                          
29       otherwise provided under (f), (j), (k), (o), and (p) of this section, for oil and gas                         
30       produced                                                                                                      
31                 (1)  before January 1, 2014, the tax is equal to the sum of                                             
01                      (A)  the annual production tax value of the taxable oil and gas                                    
02            as calculated under AS 43.55.160(a)(1) multiplied by 25 percent; and                                         
03                      (B)  the sum, over all months of the calendar year, of the tax                                     
04            amounts determined under (g) of this section;                                                                
05                 (2)  on and after January 1, 2014, and before January 1, 2022, the tax                              
06       is equal to the annual production tax value of the taxable oil and gas as calculated                              
07       under AS 43.55.160(a)(1) multiplied by 35 percent;                                                            
08                 (3)  on and after January 1, 2022, the tax for                                                      
09                      (A)  oil is equal to the annual production tax value of the                                    
10            taxable oil as calculated under AS 43.55.160(h) multiplied by 35 percent;                                
11                      (B)  gas is equal to 13 percent of the gross value at the point                                
12            of production of the taxable gas; if the gross value at the point of                                     
13            production of gas produced from a lease or property is less than zero, that                              
14            gross value at the point of production is considered zero for purposes of                                
15            this subparagraph.                                                                                       
16    * Sec. 46. AS 43.55.011(f) is amended to read:                                                                     
17            (f)  The levy of tax under (e) of this section for                                                       
18                 (1)  oil and gas produced before January 1, 2022, from leases or                                
19       properties that include land north of 68 degrees North latitude, other than [OIL                              
20       AND GAS PRODUCTION SUBJECT TO (i) OF THIS SECTION AND] gas subject                                                
21       to (o) of this section, may not be less than                                                                      
22                      (A) [(1)]  four percent of the gross value at the point of                                     
23            production when the average price per barrel for Alaska North Slope crude oil                                
24            for sale on the United States West Coast during the calendar year for which the                              
25            tax is due is more than $25;                                                                                 
26                      (B) [(2)]  three percent of the gross value at the point of                                    
27            production when the average price per barrel for Alaska North Slope crude oil                                
28            for sale on the United States West Coast during the calendar year for which the                              
29            tax is due is over $20 but not over $25;                                                                     
30                      (C) [(3)]  two percent of the gross value at the point of                                      
31            production when the average price per barrel for Alaska North Slope crude oil                                
01            for sale on the United States West Coast during the calendar year for which the                              
02            tax is due is over $17.50 but not over $20;                                                                  
03                      (D) [(4)]  one percent of the gross value at the point of                                      
04            production when the average price per barrel for Alaska North Slope crude oil                                
05            for sale on the United States West Coast during the calendar year for which the                              
06            tax is due is over $15 but not over $17.50; or                                                               
07                      (E) [(5)]  zero percent of the gross value at the point of                                     
08            production when the average price per barrel for Alaska North Slope crude oil                                
09            for sale on the United States West Coast during the calendar year for which the                              
10            tax is due is $15 or less; and                                                                           
11                 (2)  oil produced on and after January 1, 2022, from leases or                                      
12       properties that include land north of 68 degrees North latitude, may not be less                              
13       than                                                                                                          
14                      (A)  four percent of the gross value at the point of                                           
15            production when the average price per barrel for Alaska North Slope                                      
16            crude oil for sale on the United States West Coast during the calendar                                   
17            year for which the tax is due is more than $25;                                                          
18                      (B)  three percent of the gross value at the point of                                          
19            production when the average price per barrel for Alaska North Slope                                      
20            crude oil for sale on the United States West Coast during the calendar                                   
21            year for which the tax is due is over $20 but not over $25;                                              
22                      (C)  two percent of the gross value at the point of production                                 
23            when the average price per barrel for Alaska North Slope crude oil for                                   
24            sale on the United States West Coast during the calendar year for which                                  
25            the tax is due is over $17.50 but not over $20;                                                          
26                      (D)  one percent of the gross value at the point of production                                 
27            when the average price per barrel for Alaska North Slope crude oil for                                   
28            sale on the United States West Coast during the calendar year for which                                  
29            the tax is due is over $15 but not over $17.50; or                                                       
30                      (E)  zero percent of the gross value at the point of                                           
31            production when the average price per barrel for Alaska North Slope                                      
01            crude oil for sale on the United States West Coast during the calendar                                   
02            year for which the tax is due is $15 or less.                                                            
03    * Sec. 47. AS 43.55 is amended by adding a new section to read:                                                    
04            Sec. 43.55.014. Payment in gas of tax for gas. (a) For gas produced on and                                 
05       after January 1, 2022, other than gas described in (e) of this section, the department                            
06       shall allow a producer to make an election, under regulations adopted by the                                      
07       department, to pay in gas the production tax levied by this section in lieu of the tax                            
08       otherwise levied for the gas by AS 43.55.011(e). An election under this subsection                                
09       applies only to gas produced from oil and gas leases modified under AS 38.05.180(hh)                              
10       from which the commissioner of natural resources has determined to take royalty gas                               
11       in kind under AS 38.05.182.                                                                                       
12            (b)  A production tax levied by this section is equal to 13 percent of the gas                               
13       otherwise taxable under AS 43.55.011(e)(3) produced from each oil and gas lease to                                
14       which an effective election under (a) of this section applies, when and as that gas is                            
15       produced. The producer shall pay the tax in gas by delivering that 13 percent of the                              
16       gas to the state at the point of production.                                                                      
17            (c)  The Department of Natural Resources shall manage under                                                  
18       AS 38.05.020(b)(14) the custody and disposition of gas delivered to the state under (b)                           
19       of this section.                                                                                                  
20            (d)  An assessment under AS 43.05.245 against a producer for an                                              
21       underpayment of a tax levied by this section may be made in terms of an amount of                                 
22       gas or an amount of money, as determined under regulations adopted by the                                         
23       department. If the assessment is made in terms of money, the amount for a month of                                
24       production for an oil and gas lease subject to an effective election under (a) of this                            
25       section is the product of the number of units of gas by which the producer's delivery to                          
26       the state was less than the amount required by (b) of this section, multiplied by the                             
27       average gross value at the point of production for each unit of the gas produced by the                           
28       producer from the lease during the month other than gas that was not subject to tax or                            
29       gas that was delivered to the state under (b) of this section. The department may allow                           
30       a credit or refund under AS 43.05.275 for an overpayment of a tax levied by this                                  
31       section that may be issued in the form of gas or money, as determined under                                       
01       regulations adopted by the department. If the credit or refund is allowed in terms of                             
02       money, the amount of the credit or refund for a month of production for an oil and gas                            
03       lease subject to an effective election under (a) of this section is the product of the                            
04       number of units of gas by which the producer's delivery to the state was more than the                            
05       amount required under (b) of this section, multiplied by the average gross value at the                           
06       point of production for each unit of the gas produced by the producer from the lease                              
07       during the month other than gas that was not subject to tax or gas that was delivered to                          
08       the state under (b) of this section. Interest that is determined as a percentage of the                           
09       amount of a tax underpayment or overpayment and a penalty that is a percentage of                                 
10       the amount of a tax underpayment are calculated as a percentage of the amount of                                  
11       money determined in this subsection. An amount of gas that was less than the amount                               
12       required to be delivered to the state under (b) of this section or an amount of gas that                          
13       was more than the amount required to be delivered to the state under (b) of this section                          
14       that is adjusted as provided by a gas balancing agreement to which the state is a party                           
15       under AS 38.05.020(b)(11) is not subject to assessment under AS 43.05.245 or a credit                             
16       or refund under AS 43.05.275. In this subsection, "unit" means a unit of measurement                              
17       for gas identified by the department under regulations adopted by the department and                              
18       may be expressed as 1,000 cubic feet, 1,000,000 British thermal units, or another                                 
19       appropriate unit of measurement specified by the department under regulations                                     
20       adopted by the department.                                                                                        
21            (e)  This section does not apply to gas that, under AS 43.55.020(e), is                                      
22       considered as gas produced from a lease or property for the purpose of AS 43.55.011 -                             
23       43.55.180.                                                                                                        
24    * Sec. 48. AS 43.55.019(a) is amended to read:                                                                     
25            (a)  A producer of oil or gas is allowed a credit against the tax levied by                              
26       AS 43.55.011(e) [DUE UNDER THIS CHAPTER] for cash contributions accepted for                                  
27                 (1)  direct instruction, research, and educational support purposes,                                    
28       including library and museum acquisitions, and contributions to endowment, by an                                  
29       Alaska university foundation or by a nonprofit, public or private, Alaska two-year or                             
30       four-year college accredited by a regional accreditation association;                                             
31                 (2)  secondary school level vocational education courses, programs, and                                 
01       facilities by a school district in the state;                                                                     
02                 (3)  vocational education courses, programs, equipment, and facilities                              
03       by a state-operated vocational technical education and training school, a nonprofit                           
04       regional training center recognized by the Department of Labor and Workforce                                  
05       Development, and an apprenticeship program in the state that is registered with                               
06       the United States Department of Labor under 29 U.S.C. 50 - 50b (National                                      
07       Apprenticeship Act);                                                                                          
08                 (4)  a facility or an annual intercollegiate sports tournament by a                                     
09       nonprofit, public or private, Alaska two-year or four-year college accredited by a                                
10       regional accreditation association;                                                                               
11                 (5)  Alaska Native cultural or heritage programs and educational                                        
12       support, including mentoring and tutoring, provided by a nonprofit agency for public                              
13       school staff and for students who are in grades kindergarten through 12 in the state;                             
14                 (6)  education, research, rehabilitation, and facilities by an institution                              
15       that is located in the state and that qualifies as a coastal ecosystem learning center                            
16       under the Coastal America Partnership established by the federal government; and                                  
17                 (7)  the Alaska higher education investment fund under AS 37.14.750.                                    
18    * Sec. 49. AS 43.55.019(a), as amended by sec. 21, ch. 92, SLA 2010, sec. 14, ch. 7,                               
19 FSSLA 2011, sec. 17, ch. 74, SLA 2012, and sec. 48 of this Act, is amended to read:                                     
20            (a)  A producer of oil or gas is allowed a credit against the tax levied by                              
21       AS 43.55.011(e) for cash contributions accepted                                                               
22                 (1)  for direct instruction, research, and educational support purposes,                                
23       including library and museum acquisitions, and contributions to endowment, by an                                  
24       Alaska university foundation or by a nonprofit, public or private, Alaska two-year or                             
25       four-year college accredited by a regional accreditation association;                                             
26                 (2)  for secondary school level vocational education courses, programs,                                 
27       and facilities by a school district in the state;                                                                 
28                 (3)  for vocational education courses, programs, equipment, and                                     
29       facilities by                                                                                                 
30                      (A)  a [STATE-OPERATED] vocational technical education                                         
31            and training school in the state that offers programs approved by the                                    
01            United States Department of Veterans Affairs and the Alaska Commission                                   
02            on Postsecondary Education;                                                                              
03                      (B)  a nonprofit regional training center recognized by the                                    
04            Department of Labor and Workforce Development; or                                                        
05                      (C)  an apprenticeship program in the state that is                                            
06            registered with the United States Department of Labor under 29 U.S.C. 50                                 
07            - 50b (National Apprenticeship Act); and                                                                 
08                 (4)  for the Alaska higher education investment fund under                                              
09       AS 37.14.750.                                                                                                     
10    * Sec. 50. AS 43.55.019(e) is amended to read:                                                                     
11            (e)  The credit under this section may not reduce a person's tax liability under                             
12       AS 43.55.011(e) [THIS CHAPTER] to below zero for any tax year. An unused credit                               
13       or portion of a credit not used under this section for a tax year may not be sold, traded,                        
14       transferred, or applied in a subsequent tax year.                                                                 
15    * Sec. 51. AS 43.55.020(a) is amended to read:                                                                     
16            (a)  For a calendar year, a producer subject to tax under AS 43.55.011 shall pay                             
17       the tax as follows:                                                                                               
18                 (1)  for oil and gas produced before January 1, 2014, an installment                                
19       payment of the estimated tax levied by AS 43.55.011(e), net of any tax credits applied                            
20       as allowed by law, is due for each month of the calendar year on the last day of the                              
21       following month; except as otherwise provided under (2) of this subsection, the                                   
22       amount of the installment payment is the sum of the following amounts, less 1/12 of                               
23       the tax credits that are allowed by law to be applied against the tax levied by                                   
24       AS 43.55.011(e) for the calendar year, but the amount of the installment payment may                              
25       not be less than zero:                                                                                            
26                      (A)  for oil and gas not subject to AS 43.55.011(o) or (p)                                         
27            produced from leases or properties in the state outside the Cook Inlet                                       
28            sedimentary basin, other than leases or properties subject to AS 43.55.011(f),                               
29            the greater of                                                                                               
30                           (i)  zero; or                                                                                 
31                           (ii)  the sum of 25 percent and the tax rate calculated for                                   
01                 the month under AS 43.55.011(g) multiplied by the remainder obtained                                    
02                 by subtracting 1/12 of the producer's adjusted lease expenditures for the                               
03                 calendar year of production under AS 43.55.165 and 43.55.170 that are                                   
04                 deductible for the oil and gas under AS 43.55.160 from the gross value                                  
05                 at the point of production of the oil and gas produced from the leases or                               
06                 properties during the month for which the installment payment is                                        
07                 calculated;                                                                                             
08                      (B)  for oil and gas produced from leases or properties subject                                    
09            to AS 43.55.011(f), the greatest of                                                                          
10                           (i)  zero;                                                                                    
11                           (ii)  zero percent, one percent, two percent, three                                           
12                 percent, or four percent, as applicable, of the gross value at the point of                             
13                 production of the oil and gas produced from the leases or properties                                    
14                 during the month for which the installment payment is calculated; or                                    
15                           (iii)  the sum of 25 percent and the tax rate calculated for                                  
16                 the month under AS 43.55.011(g) multiplied by the remainder obtained                                    
17                 by subtracting 1/12 of the producer's adjusted lease expenditures for the                               
18                 calendar year of production under AS 43.55.165 and 43.55.170 that are                                   
19                 deductible for the oil and gas under AS 43.55.160 from the gross value                                  
20                 at the point of production of the oil and gas produced from those leases                                
21                 or properties during the month for which the installment payment is                                     
22                 calculated;                                                                                             
23                      (C)  for oil or gas subject to AS 43.55.011(j), (k), or (o), for                                   
24            each lease or property, the greater of                                                                       
25                           (i)  zero; or                                                                                 
26                           (ii)  the sum of 25 percent and the tax rate calculated for                                   
27                 the month under AS 43.55.011(g) multiplied by the remainder obtained                                    
28                 by subtracting 1/12 of the producer's adjusted lease expenditures for the                               
29                 calendar year of production under AS 43.55.165 and 43.55.170 that are                                   
30                 deductible under AS 43.55.160 for the oil or gas, respectively,                                         
31                 produced from the lease or property from the gross value at the point of                                
01                 production of the oil or gas, respectively, produced from the lease or                                  
02                 property during the month for which the installment payment is                                          
03                 calculated;                                                                                             
04                      (D)  for oil and gas subject to AS 43.55.011(p), the lesser of                                     
05                           (i)  the sum of 25 percent and the tax rate calculated for                                    
06                 the month under AS 43.55.011(g) multiplied by the remainder obtained                                    
07                 by subtracting 1/12 of the producer's adjusted lease expenditures for the                               
08                 calendar year of production under AS 43.55.165 and 43.55.170 that are                                   
09                 deductible for the oil and gas under AS 43.55.160 from the gross value                                  
10                 at the point of production of the oil and gas produced from the leases or                               
11                 properties during the month for which the installment payment is                                        
12                 calculated, but not less than zero; or                                                                  
13                           (ii)  four percent of the gross value at the point of                                         
14                 production of the oil and gas produced from the leases or properties                                    
15                 during the month, but not less than zero;                                                               
16                 (2)  an amount calculated under (1)(C) of this subsection for oil or gas                                
17       subject to AS 43.55.011(j), (k), or (o) may not exceed the product obtained by                                    
18       carrying out the calculation set out in AS 43.55.011(j)(1) or (2) or 43.55.011(o), as                             
19       applicable, for gas or set out in AS 43.55.011(k)(1) or (2), as applicable, for oil, but                          
20       substituting in AS 43.55.011(j)(1)(A) or (2)(A) or 43.55.011(o), as applicable, the                               
21       amount of taxable gas produced during the month for the amount of taxable gas                                     
22       produced during the calendar year and substituting in AS 43.55.011(k)(1)(A) or                                    
23       (2)(A), as applicable, the amount of taxable oil produced during the month for the                                
24       amount of taxable oil produced during the calendar year;                                                          
25                 (3)  an installment payment of the estimated tax levied by                                              
26       AS 43.55.011(i) for each lease or property is due for each month of the calendar year                             
27       on the last day of the following month; the amount of the installment payment is the                              
28       sum of                                                                                                            
29                      (A)  the applicable tax rate for oil provided under                                                
30            AS 43.55.011(i), multiplied by the gross value at the point of production of the                             
31            oil taxable under AS 43.55.011(i) and produced from the lease or property                                    
01            during the month; and                                                                                        
02                      (B)  the applicable tax rate for gas provided under                                                
03            AS 43.55.011(i), multiplied by the gross value at the point of production of the                             
04            gas taxable under AS 43.55.011(i) and produced from the lease or property                                    
05            during the month;                                                                                            
06                 (4)  any amount of tax levied by AS 43.55.011, net of any credits                                       
07       applied as allowed by law, that exceeds the total of the amounts due as installment                               
08       payments of estimated tax is due on March 31 of the year following the calendar year                              
09       of production;                                                                                                    
10                 (5)  for oil and gas produced on and after January 1, 2014, and before                          
11       January 1, 2022, an installment payment of the estimated tax levied by                                        
12       AS 43.55.011(e), net of any tax credits applied as allowed by law, is due for each                                
13       month of the calendar year on the last day of the following month; except as otherwise                            
14       provided under (6) of this subsection, the amount of the installment payment is the                               
15       sum of the following amounts, less 1/12 of the tax credits that are allowed by law to be                          
16       applied against the tax levied by AS 43.55.011(e) for the calendar year, but the amount                           
17       of the installment payment may not be less than zero:                                                             
18                      (A)  for oil and gas not subject to AS 43.55.011(o) or (p)                                         
19            produced from leases or properties in the state outside the Cook Inlet                                       
20            sedimentary basin, other than leases or properties subject to AS 43.55.011(f),                               
21            the greater of                                                                                               
22                           (i)  zero; or                                                                                 
23                           (ii)  35 percent multiplied by the remainder obtained by                                      
24                 subtracting 1/12 of the producer's adjusted lease expenditures for the                                  
25                 calendar year of production under AS 43.55.165 and 43.55.170 that are                                   
26                 deductible for the oil and gas under AS 43.55.160 from the gross value                                  
27                 at the point of production of the oil and gas produced from the leases or                               
28                 properties during the month for which the installment payment is                                        
29                 calculated;                                                                                             
30                      (B)  for oil and gas produced from leases or properties subject                                    
31            to AS 43.55.011(f), the greatest of                                                                          
01                           (i)  zero;                                                                                    
02                           (ii)  zero percent, one percent, two percent, three                                           
03                 percent, or four percent, as applicable, of the gross value at the point of                             
04                 production of the oil and gas produced from the leases or properties                                    
05                 during the month for which the installment payment is calculated; or                                    
06                           (iii)  35 percent multiplied by the remainder obtained by                                     
07                 subtracting 1/12 of the producer's adjusted lease expenditures for the                                  
08                 calendar year of production under AS 43.55.165 and 43.55.170 that are                                   
09                 deductible for the oil and gas under AS 43.55.160 from the gross value                                  
10                 at the point of production of the oil and gas produced from those leases                                
11                 or properties during the month for which the installment payment is                                     
12                 calculated, except that, for the purposes of this calculation, a reduction                              
13                 from the gross value at the point of production may apply for oil and                                   
14                 gas subject to AS 43.55.160(f) or (g);                                                                  
15                      (C)  for oil or gas subject to AS 43.55.011(j), (k), or (o), for                                   
16            each lease or property, the greater of                                                                       
17                           (i)  zero; or                                                                                 
18                           (ii)  35 percent multiplied by the remainder obtained by                                      
19                 subtracting 1/12 of the producer's adjusted lease expenditures for the                                  
20                 calendar year of production under AS 43.55.165 and 43.55.170 that are                                   
21                 deductible under AS 43.55.160 for the oil or gas, respectively,                                         
22                 produced from the lease or property from the gross value at the point of                                
23                 production of the oil or gas, respectively, produced from the lease or                                  
24                 property during the month for which the installment payment is                                          
25                 calculated;                                                                                             
26                      (D)  for oil and gas subject to AS 43.55.011(p), the lesser of                                     
27                           (i)  35 percent multiplied by the remainder obtained by                                       
28                 subtracting 1/12 of the producer's adjusted lease expenditures for the                                  
29                 calendar year of production under AS 43.55.165 and 43.55.170 that are                                   
30                 deductible for the oil and gas under AS 43.55.160 from the gross value                                  
31                 at the point of production of the oil and gas produced from the leases or                               
01                 properties during the month for which the installment payment is                                        
02                 calculated, but not less than zero; or                                                                  
03                           (ii)  four percent of the gross value at the point of                                         
04                 production of the oil and gas produced from the leases or properties                                    
05                 during the month, but not less than zero;                                                               
06                 (6)  an amount calculated under (5)(C) of this subsection for oil or gas                                
07       subject to AS 43.55.011(j), (k), or (o) may not exceed the product obtained by                                    
08       carrying out the calculation set out in AS 43.55.011(j)(1) or (2) or 43.55.011(o), as                             
09       applicable, for gas or set out in AS 43.55.011(k)(1) or (2), as applicable, for oil, but                          
10       substituting in AS 43.55.011(j)(1)(A) or (2)(A) or 43.55.011(o), as applicable, the                               
11       amount of taxable gas produced during the month for the amount of taxable gas                                     
12       produced during the calendar year and substituting in AS 43.55.011(k)(1)(A) or                                    
13       (2)(A), as applicable, the amount of taxable oil produced during the month for the                                
14       amount of taxable oil produced during the calendar year;                                                      
15                 (7)  for oil and gas produced on or after January 1, 2022, an                                       
16       installment payment of the estimated tax levied by AS 43.55.011(e), net of any tax                            
17       credits applied as allowed by law, is due for each month of the calendar year on                              
18       the last day of the following month; the amount of the installment payment is the                             
19       sum of the following amounts, less 1/12 of the tax credits that are allowed by law                            
20       to be applied against the tax levied by AS 43.55.011(e) for the calendar year, but                            
21       the amount of the installment payment may not be less than zero:                                              
22                      (A)  for oil produced from leases or properties that include                                   
23            land north of 68 degrees North latitude, the greatest of                                                 
24                           (i)  zero;                                                                                
25                           (ii)  zero percent, one percent, two percent, three                                       
26                 percent, or four percent, as applicable, of the gross value at the                                  
27                 point of production of the oil produced from the leases or                                          
28                 properties during the month for which the installment payment is                                    
29                 calculated; or                                                                                      
30                           (iii)  35 percent multiplied by the remainder obtained                                    
31                 by subtracting 1/12 of the producer's adjusted lease expenditures                                   
01                 for the calendar year of production under AS 43.55.165 and                                          
02                 43.55.170 that are deductible for the oil under AS 43.55.160(h)(1)                                  
03                 from the gross value at the point of production of the oil produced                                 
04                 from those leases or properties during the month for which the                                      
05                 installment payment is calculated, except that, for the purposes of                                 
06                 this calculation, a reduction from the gross value at the point of                                  
07                 production may apply for oil subject to AS 43.55.160(f) or                                          
08                 43.55.160(f) and (g);                                                                               
09                      (B)  for oil produced before or during the last calendar year                                  
10            under AS 43.55.024(b) for which the producer could take a tax credit                                     
11            under AS 43.55.024(a), from leases or properties in the state outside the                                
12            Cook Inlet sedimentary basin, no part of which is north of 68 degrees                                    
13            North latitude, other than leases or properties subject to AS 43.55.011(p),                              
14            the greater of                                                                                           
15                           (i)  zero; or                                                                             
16                           (ii)  35 percent multiplied by the remainder obtained                                     
17                 by subtracting 1/12 of the producer's adjusted lease expenditures                                   
18                 for the calendar year of production under AS 43.55.165 and                                          
19                 43.55.170 that are deductible for the oil under AS 43.55.160(h)(2)                                  
20                 from the gross value at the point of production of the oil produced                                 
21                 from the leases or properties during the month for which the                                        
22                 installment payment is calculated;                                                                  
23                      (C)  for oil and gas produced from leases or properties                                        
24            subject to AS 43.55.011(p), except as otherwise provided under (8) of this                               
25            subsection, the sum of                                                                                   
26                           (i)  35 percent multiplied by the remainder obtained                                      
27                 by subtracting 1/12 of the producer's adjusted lease expenditures                                   
28                 for the calendar year of production under AS 43.55.165 and                                          
29                 43.55.170 that are deductible for the oil under AS 43.55.160(h)(3)                                  
30                 from the gross value at the point of production of the oil produced                                 
31                 from the leases or properties during the month for which the                                        
01                 installment payment is calculated, but not less than zero; and                                      
02                           (ii)  13 percent of the gross value at the point of                                       
03                 production of the gas produced from the leases or properties                                        
04                 during the month, but not less than zero;                                                           
05                      (D)  for oil produced from leases or properties in the state,                                  
06            no part of which is north of 68 degrees North latitude, other than leases or                             
07            properties subject to (B) or (C) of this paragraph, the greater of                                       
08                           (i)  zero; or                                                                             
09                           (ii)  35 percent multiplied by the remainder obtained                                     
10                 by subtracting 1/12 of the producer's adjusted lease expenditures                                   
11                 for the calendar year of production under AS 43.55.165 and                                          
12                 43.55.170 that are deductible for the oil under AS 43.55.160(h)(4)                                  
13                 from the gross value at the point of production of the oil produced                                 
14                 from the leases or properties during the month for which the                                        
15                 installment payment is calculated;                                                                  
16                      (E)  for gas produced from each lease or property in the                                       
17            state, other than a lease or property subject to AS 43.55.011(p), 13 percent                             
18            of the gross value at the point of production of the gas produced from the                               
19            lease or property during the month for which the installment payment is                                  
20            calculated, but not less than zero;                                                                      
21                 (8)  an amount calculated under (7)(C) of this subsection may not                                   
22       exceed four percent of the gross value at the point of production of the oil and gas                          
23       produced from leases or properties subject to AS 43.55.011(p) during the month                                
24       for which the installment payment is calculated;                                                              
25                 (9)  for purposes of the calculation under (1)(B)(ii), (5)(B)(ii), and                              
26       (7)(A)(ii) of this subsection, the applicable percentage of the gross value at the                            
27       point of production is determined under AS 43.55.011(f)(1) or (2) but substituting                            
28       the phrase "month for which the installment payment is calculated" in                                         
29       AS 43.55.011(f)(1) and (2) for the phrase "calendar year for which the tax is                                 
30       due." [.]                                                                                                     
31    * Sec. 52. AS 43.55.020(g) is amended to read:                                                                     
01            (g)  Notwithstanding any contrary provision of AS 43.05.225,                                                 
02                 (1)  before January 1, 2014, an unpaid amount of an installment                                         
03       payment required under (a)(1) - (3) of this section that is not paid when due bears                               
04       interest (A) at the rate provided for an underpayment under 26 U.S.C. 6621 (Internal                              
05       Revenue Code), as amended, compounded daily, from the date the installment                                        
06       payment is due until March 31 following the calendar year of production, and (B) as                               
07       provided for a delinquent tax under AS 43.05.225 after that March 31; interest accrued                            
08       under (A) of this paragraph that remains unpaid after that March 31 is treated as an                              
09       addition to tax that bears interest under (B) of this paragraph; an unpaid amount of tax                          
10       due under (a)(4) of this section that is not paid when due bears interest as provided for                         
11       a delinquent tax under AS 43.05.225;                                                                              
12                 (2)  on and after January 1, 2014, an unpaid amount of an installment                                   
13       payment required under (a)(3), (5), [OR] (6), or (7) of this section that is not paid                         
14       when due bears interest (A) at the rate provided for an underpayment under 26 U.S.C.                              
15       6621 (Internal Revenue Code), as amended, compounded daily, from the date the                                     
16       installment payment is due until March 31 following the calendar year of production,                              
17       and (B) as provided for a delinquent tax under AS 43.05.225 after that March 31;                                  
18       interest accrued under (A) of this paragraph that remains unpaid after that March 31 is                           
19       treated as an addition to tax that bears interest under (B) of this paragraph; an unpaid                          
20       amount of tax due under (a)(4) of this section that is not paid when due bears interest                           
21       as provided for a delinquent tax under AS 43.05.225.                                                              
22    * Sec. 53. AS 43.55.020(h) is amended to read:                                                                     
23            (h)  Notwithstanding any contrary provision of AS 43.05.280,                                                 
24                 (1)  an overpayment of an installment payment required under (a)(1),                                
25       (2), (3), (5), (6), or (7) [(a)(1) - (3), (5) OR (6)] of this section bears interest at the rate              
26       provided for an overpayment under 26 U.S.C. 6621 (Internal Revenue Code), as                                      
27       amended, compounded daily, from the later of the date the installment payment is due                              
28       or the date the overpayment is made, until the earlier of                                                         
29                      (A)  the date it is refunded or is applied to an underpayment; or                                  
30                      (B)  March 31 following the calendar year of production;                                           
31                 (2)  except as provided under (1) of this subsection, interest with                                     
01       respect to an overpayment is allowed only on any net overpayment of the payments                                  
02       required under (a) of this section that remains after the later of March 31 following the                         
03       calendar year of production or the date that the statement required under                                         
04       AS 43.55.030(a) is filed;                                                                                         
05                 (3)  interest is allowed under (2) of this subsection only from a date that                             
06       is 90 days after the later of March 31 following the calendar year of production or the                           
07       date that the statement required under AS 43.55.030(a) is filed; interest is not allowed                          
08       if the overpayment was refunded within the 90-day period;                                                         
09                 (4)  interest under (2) and (3) of this subsection is paid at the rate and in                           
10       the manner provided in AS 43.05.225(1).                                                                           
11    * Sec. 54. AS 43.55.020(l) is amended to read:                                                                     
12            (l)  For oil and gas produced on [ON] and after January 1, 2014, and before                          
13       January 1, 2022, in making settlement with the royalty owner for oil and gas that is                          
14       taxable under AS 43.55.011, the producer may deduct the amount of the tax paid on                                 
15       taxable royalty oil and gas, or may deduct taxable royalty oil or gas equivalent in                               
16       value at the time the tax becomes due to the amount of the tax paid. If the total                                 
17       deductions of installment payments of estimated tax for a calendar year exceed the                                
18       actual tax for that calendar year, the producer shall, before April 1 of the following                            
19       year, refund the excess to the royalty owner. Unless otherwise agreed between the                                 
20       producer and the royalty owner, the amount of the tax paid under AS 43.55.011(e) on                               
21       taxable royalty oil and gas for a calendar year, other than oil and gas the ownership or                          
22       right to which constitutes a landowner's royalty interest, is considered to be the gross                          
23       value at the point of production of the taxable royalty oil and gas produced during the                           
24       calendar year multiplied by a figure that is a quotient, in which                                                 
25                 (1)  the numerator is the producer's total tax liability under                                          
26       AS 43.55.011(e)(2) [AS 43.55.011(e)] for the calendar year of production; and                                 
27                 (2)  the denominator is the total gross value at the point of production                                
28       of the oil and gas taxable under AS 43.55.011(e) produced by the producer from all                                
29       leases and properties in the state during the calendar year.                                                      
30    * Sec. 55. AS 43.55.020 is amended by adding a new subsection to read:                                             
31            (m)  For oil and gas produced on and after January 1, 2022, in making                                        
01       settlement with the royalty owner for oil and gas that is taxable under AS 43.55.011,                             
02       the producer may deduct the amount of the tax paid on taxable royalty oil and gas, or                             
03       may deduct taxable royalty oil or gas equivalent in value at the time the tax becomes                             
04       due to the amount of the tax paid. If the total deductions of installment payments of                             
05       estimated tax for a calendar year exceed the actual tax for that calendar year, the                               
06       producer shall, before April 1 of the following year, refund the excess to the royalty                            
07       owner. In making settlement with the royalty owner for gas that is taxable under                                  
08       AS 43.55.014, the producer may deduct the amount of the gas paid as in-kind tax on                                
09       taxable royalty gas or may deduct the gross value at the point of production of the gas                           
10       paid as in-kind tax on taxable royalty gas. Unless otherwise agreed between the                                   
11       producer and the royalty owner, the amount of the tax paid under AS 43.55.011(e) on                               
12       taxable royalty oil for a calendar year, other than oil the ownership or right to which                           
13       constitutes a landowner's royalty interest, is considered to be the gross value at the                            
14       point of production of the taxable royalty oil produced during the calendar year                                  
15       multiplied by a figure that is a quotient, in which                                                               
16                 (1)  the numerator is the producer's total tax liability under                                          
17       AS 43.55.011(e)(3)(A) for the calendar year of production; and                                                    
18                 (2)  the denominator is the total gross value at the point of production                                
19       of the oil taxable under AS 43.55.011(e) produced by the producer from all leases and                             
20       properties in the state during the calendar year.                                                                 
21    * Sec. 56. AS 43.55.030(a) is amended to read:                                                                     
22            (a)  A producer that produces oil or gas from a lease or property in the state                               
23       during a calendar year, whether or not any tax payment is due under AS 43.55.020(a)                               
24       for that oil or gas, shall file with the department on March 31 of the following year a                           
25       statement, under oath, in a form prescribed by the department, giving, with other                                 
26       information required, the following:                                                                              
27                 (1)  a description of each lease or property from which oil or gas was                                  
28       produced, by name, legal description, lease number, or accounting codes assigned by                               
29       the department;                                                                                                   
30                 (2)  the names of the producer and, if different, the person paying the                                 
31       tax, if any;                                                                                                      
01                 (3)  the gross amount of oil and the gross amount of gas produced from                                  
02       each lease or property, separately identifying the gross amount of gas produced                               
03       from each oil and gas lease to which an effective election under AS 43.55.014(a)                              
04       applies, the amount of gas delivered to the state under AS 43.55.014(b), and the                              
05       percentage of the gross amount of oil and gas owned by the producer;                                              
06                 (4)  the gross value at the point of production of the oil and of the gas                               
07       produced from each lease or property owned by the producer and the costs of                                       
08       transportation of the oil and gas;                                                                                
09                 (5)  the name of the first purchaser and the price received for the oil and                             
10       for the gas, unless relieved from this requirement in whole or in part by the                                     
11       department;                                                                                                       
12                 (6)  the producer's qualified capital expenditures, as defined in                                       
13       AS 43.55.023, other lease expenditures under AS 43.55.165, and adjustments or other                               
14       payments or credits under AS 43.55.170;                                                                           
15                 (7)  the production tax values of the oil and gas under AS 43.55.160(a)                             
16       or of the oil under AS 43.55.160(h), as applicable [AS 43.55.160];                                            
17                 (8)  any claims for tax credits to be applied; and                                                      
18                 (9)  calculations showing the amounts, if any, that were or are due                                     
19       under AS 43.55.020(a) and interest on any underpayment or overpayment.                                            
20    * Sec. 57. AS 43.55.160(a) is amended to read:                                                                     
21            (a)  For oil and gas produced before January 1, 2022, except [EXCEPT] as                                 
22       provided in (b), (f), and (g) of this section, for the purposes of                                                
23                 (1)  AS 43.55.011(e)(1) and (2) [AS 43.55.011(e)], the annual                                       
24       production tax value of taxable oil, gas, or oil and gas produced during a calendar year                          
25       in a category for which a separate annual production tax value is required to be                                  
26       calculated under this paragraph is the gross value at the point of production of that oil,                        
27       gas, or oil and gas taxable under AS 43.55.011(e), less the producer's lease                                      
28       expenditures under AS 43.55.165 for the calendar year applicable to the oil, gas, or oil                          
29       and gas in that category produced by the producer during the calendar year, as                                    
30       adjusted under AS 43.55.170; a separate annual production tax value shall be                                      
31       calculated for                                                                                                    
01                      (A)  oil and gas produced from leases or properties in the state                                   
02            that include land north of 68 degrees North latitude, other than gas produced                                
03            before 2022 and used in the state;                                                                           
04                      (B)  oil and gas produced from leases or properties in the state                                   
05            outside the Cook Inlet sedimentary basin, no part of which is north of 68                                    
06            degrees North latitude and that qualifies for a tax credit under AS 43.55.024(a)                             
07            and (b); this subparagraph does not apply to                                                                 
08                           (i)  gas produced before 2022 and used in the state; or                                       
09                           (ii)  oil and gas subject to AS 43.55.011(p);                                                 
10                      (C)  oil produced before 2022 from each lease or property in the                                   
11            Cook Inlet sedimentary basin;                                                                                
12                      (D)  gas produced before 2022 from each lease or property in                                       
13            the Cook Inlet sedimentary basin;                                                                            
14                      (E)  gas produced before 2022 from each lease or property in                                       
15            the state outside the Cook Inlet sedimentary basin and used in the state, other                              
16            than gas subject to AS 43.55.011(p);                                                                         
17                      (F)  oil and gas subject to AS 43.55.011(p) produced from                                          
18            leases or properties in the state;                                                                           
19                      (G)  oil and gas produced from leases or properties in the state                                   
20            no part of which is north of 68 degrees North latitude, other than oil or gas                                
21            described in (B), (C), (D), (E), or (F) of this paragraph;                                                   
22                 (2)  AS 43.55.011(g), for oil and gas produced before January 1, 2014,                                  
23       the monthly production tax value of the taxable                                                                   
24                      (A)  oil and gas produced during a month from leases or                                            
25            properties in the state that include land north of 68 degrees North latitude is the                          
26            gross value at the point of production of the oil and gas taxable under                                      
27            AS 43.55.011(e) and produced by the producer from those leases or properties,                                
28            less 1/12 of the producer's lease expenditures under AS 43.55.165 for the                                    
29            calendar year applicable to the oil and gas produced by the producer from                                    
30            those leases or properties, as adjusted under AS 43.55.170; this subparagraph                                
31            does not apply to gas subject to AS 43.55.011(o);                                                            
01                      (B)  oil and gas produced during a month from leases or                                            
02            properties in the state outside the Cook Inlet sedimentary basin, no part of                                 
03            which is north of 68 degrees North latitude, is the gross value at the point of                              
04            production of the oil and gas taxable under AS 43.55.011(e) and produced by                                  
05            the producer from those leases or properties, less 1/12 of the producer's lease                              
06            expenditures under AS 43.55.165 for the calendar year applicable to the oil and                              
07            gas produced by the producer from those leases or properties, as adjusted under                              
08            AS 43.55.170; this subparagraph does not apply to gas subject to                                             
09            AS 43.55.011(o);                                                                                             
10                      (C)  oil produced during a month from a lease or property in the                                   
11            Cook Inlet sedimentary basin is the gross value at the point of production of                                
12            the oil taxable under AS 43.55.011(e) and produced by the producer from that                                 
13            lease or property, less 1/12 of the producer's lease expenditures under                                      
14            AS 43.55.165 for the calendar year applicable to the oil produced by the                                     
15            producer from that lease or property, as adjusted under AS 43.55.170;                                        
16                      (D)  gas produced during a month from a lease or property in                                       
17            the Cook Inlet sedimentary basin is the gross value at the point of production                               
18            of the gas taxable under AS 43.55.011(e) and produced by the producer from                                   
19            that lease or property, less 1/12 of the producer's lease expenditures under                                 
20            AS 43.55.165 for the calendar year applicable to the gas produced by the                                     
21            producer from that lease or property, as adjusted under AS 43.55.170;                                        
22                      (E)  gas produced during a month from a lease or property                                          
23            outside the Cook Inlet sedimentary basin and used in the state is the gross                                  
24            value at the point of production of that gas taxable under AS 43.55.011(e) and                               
25            produced by the producer from that lease or property, less 1/12 of the                                       
26            producer's lease expenditures under AS 43.55.165 for the calendar year                                       
27            applicable to that gas produced by the producer from that lease or property, as                              
28            adjusted under AS 43.55.170.                                                                                 
29    * Sec. 58. AS 43.55.160(e) is amended to read:                                                                     
30            (e)  Any adjusted lease expenditures under AS 43.55.165 and 43.55.170 that                                   
31       would otherwise be deductible by a producer in a calendar year but whose deduction                                
01       would cause an annual production tax value calculated under (a)(1) or (h) of this                             
02       section of taxable oil or gas produced during the calendar year to be less than zero                              
03       may be used to establish a carried-forward annual loss under AS 43.55.023(b).                                     
04       However, the department shall provide by regulation a method to ensure that, for a                                
05       period for which a producer's tax liability is limited by AS 43.55.011(j), (k), (o), or                           
06       (p), any adjusted lease expenditures under AS 43.55.165 and 43.55.170 that would                                  
07       otherwise be deductible by a producer for that period but whose deduction would                                   
08       cause a production tax value calculated under (a)(1)(C), (D), (E), or (F), or (h)(3) of                       
09       this section to be less than zero are accounted for as though the adjusted lease                                  
10       expenditures had first been used as deductions in calculating the production tax values                           
11       of oil or gas subject to any of the limitations under AS 43.55.011(j), (k), (o), or (p) that                      
12       have positive production tax values so as to reduce the tax liability calculated without                          
13       regard to the limitation to the maximum amount provided for under the applicable                                  
14       provision of AS 43.55.011(j), (k), (o), or (p). Only the amount of those adjusted lease                           
15       expenditures remaining after the accounting provided for under this subsection may be                             
16       used to establish a carried-forward annual loss under AS 43.55.023(b). In this                                    
17       subsection, "producer" includes "explorer."                                                                       
18    * Sec. 59. AS 43.55.160(f) is amended to read:                                                                     
19            (f)  On and after January 1, 2014, in the calculation of an annual production tax                            
20       value of a producer under (a)(1)(A) or (h)(1) [(a)(1)] of this section, the gross value at                    
21       the point of production of oil or gas produced from a lease or property north of 68                               
22       degrees North latitude meeting one or more of the following criteria is reduced by 20                             
23       percent: (1) the oil or gas is produced from a lease or property that does not contain a                          
24       lease that was within a unit on January 1, 2003; (2) the oil or gas is produced from a                            
25       participating area established after December 31, 2011, that is within a unit formed                              
26       under AS 38.05.180(p) before January 1, 2003, if the participating area does not                                  
27       contain a reservoir that had previously been in a participating area established before                           
28       December 31, 2011; (3) the oil or gas is produced from acreage that was added to an                               
29       existing participating area by the Department of Natural Resources on and after                                   
30       January 1, 2014, and the producer demonstrates to the department that the volume of                               
31       oil or gas produced is from acreage added to an existing participating area. This                                 
01       subsection does not apply to gas produced before 2022 that is used in the state or to                         
02       gas produced on and after January 1, 2022. A reduction under this subsection may                              
03       not reduce the gross value at the point of production below zero. In this subsection,                             
04       "participating area" means a reservoir or portion of a reservoir producing or                                     
05       contributing to production as approved by the Department of Natural Resources.                                    
06    * Sec. 60. AS 43.55.160(g) is amended to read:                                                                     
07            (g)  On and after January 1, 2014, in addition to the reduction under (f) of this                            
08       section, in the calculation of an annual production tax value of a producer under                                 
09       (a)(1)(A) or (h)(1) [(a)(1)] of this section, the gross value at the point of production of                   
10       oil or gas produced from a lease or property north of 68 degrees North latitude that                          
11       does not contain a lease that was within a unit on January 1, 2003, is reduced by 10                              
12       percent if the oil or gas is produced from a unit made up solely of leases that have a                            
13       royalty share of more than 12.5 percent in amount or value of the production removed                              
14       or sold from the lease as determined under AS 38.05.180(f). This subsection does not                              
15       apply if the royalty obligation for one or more of the leases in the unit has been                                
16       reduced to 12.5 percent or less under AS 38.05.180(j) for all or part of the calendar                             
17       year for which the annual production tax value is calculated. This subsection does not                            
18       apply to gas produced before 2022 that is used in the state or to gas produced on and                         
19       after January 1, 2022. A reduction under this subsection may not reduce the gross                             
20       value at the point of production below zero.                                                                      
21    * Sec. 61. AS 43.55.160 is amended by adding a new subsection to read:                                             
22            (h)  For oil produced on and after January 1, 2022, except as provided in (b),                               
23       (f), and (g) of this section, for the purposes of AS 43.55.011(e)(3), the annual                                  
24       production tax value of oil taxable under AS 43.55.011(e) produced by a producer                                  
25       during a calendar year                                                                                            
26                 (1)  from leases or properties in the state that include land north of 68                               
27       degrees North latitude is the gross value at the point of production of that oil, less the                        
28       producer's lease expenditures under AS 43.55.165 for the calendar year incurred to                                
29       explore for, develop, or produce oil and gas deposits located in the state north of 68                            
30       degrees North latitude or located in leases or properties in the state that include land                          
31       north of 68 degrees North latitude, as adjusted under AS 43.55.170;                                               
01                 (2)  before or during the last calendar year under AS 43.55.024(b) for                                  
02       which the producer could take a tax credit under AS 43.55.024(a), from leases or                                  
03       properties in the state outside the Cook Inlet sedimentary basin, no part of which is                             
04       north of 68 degrees North latitude, other than leases or properties subject to                                    
05       AS 43.55.011(p), is the gross value at the point of production of that oil, less the                              
06       producer's lease expenditures under AS 43.55.165 for the calendar year incurred to                                
07       explore for, develop, or produce oil and gas deposits located in the state outside the                            
08       Cook Inlet sedimentary basin and south of 68 degrees North latitude, other than oil                               
09       and gas deposits located in a lease or property that includes land north of 68 degrees                            
10       North latitude or that is subject to AS 43.55.011(p) or, before January 1, 2027, from                             
11       which commercial production has not begun, as adjusted under AS 43.55.170;                                        
12                 (3)  from leases or properties subject to AS 43.55.011(p) is the gross                                  
13       value at the point of production of that oil, less the producer's lease expenditures under                        
14       AS 43.55.165 for the calendar year incurred to explore for, develop, or produce oil and                           
15       gas deposits located in leases or properties subject to AS 43.55.011(p) or, before                                
16       January 1, 2027, located in leases or properties in the state outside the Cook Inlet                              
17       sedimentary basin, no part of which is north of 68 degrees North latitude from which                              
18       commercial production has not begun, as adjusted under AS 43.55.170;                                              
19                 (4)  from leases or properties in the state no part of which is north of 68                             
20       degrees North latitude, other than leases or properties subject to (2) or (3) of this                             
21       subsection, is the gross value at the point of production of that oil less the producer's                         
22       lease expenditures under AS 43.55.165 for the calendar year incurred to explore for,                              
23       develop, or produce oil and gas deposits located in the state south of 68 degrees North                           
24       latitude, other than oil and gas deposits located in a lease or property in the state that                        
25       includes land north of 68 degrees North latitude, and excluding lease expenditures that                           
26       are deductible under (2) or (3) of this subsection or would be deductible under (2) or                            
27       (3) of this subsection if not prohibited by (b) of this section, as adjusted under                                
28       AS 43.55.170.                                                                                                     
29    * Sec. 62. AS 43.55.165(e) is amended to read:                                                                     
30            (e)  For purposes of this section, lease expenditures do not include                                         
31                 (1)  depreciation, depletion, or amortization;                                                          
01                 (2)  oil or gas royalty payments, production payments, lease profit                                     
02       shares, or other payments or distributions of a share of oil or gas production, profit, or                        
03       revenue, except that a producer's lease expenditures applicable to oil and gas produced                           
04       from a lease issued under AS 38.05.180(f)(3)(B), (D), or (E) include the share of net                             
05       profit paid to the state under that lease;                                                                        
06                 (3)  taxes based on or measured by net income;                                                          
07                 (4)  interest or other financing charges or costs of raising equity or debt                             
08       capital;                                                                                                          
09                 (5)  acquisition costs for a lease or property or exploration license;                                  
10                 (6)  costs arising from fraud, wilful misconduct, gross negligence,                                     
11       violation of law, or failure to comply with an obligation under a lease, permit, or                               
12       license issued by the state or federal government;                                                                
13                 (7)  fines or penalties imposed by law;                                                                 
14                 (8)  costs of arbitration, litigation, or other dispute resolution activities                           
15       that involve the state or concern the rights or obligations among owners of interests in,                         
16       or rights to production from, one or more leases or properties or a unit;                                         
17                 (9)  costs incurred in organizing a partnership, joint venture, or other                                
18       business entity or arrangement;                                                                                   
19                 (10)  amounts paid to indemnify the state; the exclusion provided by                                    
20       this paragraph does not apply to the costs of obtaining insurance or a surety bond from                           
21       a third-party insurer or surety;                                                                                  
22                 (11)  surcharges levied under AS 43.55.201 or 43.55.300;                                                
23                 (12)  an expenditure otherwise deductible under (b) of this section that                                
24       is a result of an internal transfer, a transaction with an affiliate, or a transaction                            
25       between related parties, or is otherwise not an arm's length transaction, unless the                              
26       producer establishes to the satisfaction of the department that the amount of the                                 
27       expenditure does not exceed the fair market value of the expenditure;                                             
28                 (13)  an expenditure incurred to purchase an interest in any corporation,                               
29       partnership, limited liability company, business trust, or any other business entity,                             
30       whether or not the transaction is treated as an asset sale for federal income tax                                 
31       purposes;                                                                                                         
01                 (14)  a tax levied under AS 43.55.011 or 43.55.014;                                                 
02                 (15)  costs incurred for dismantlement, removal, surrender, or                                          
03       abandonment of a facility, pipeline, well pad, platform, or other structure, or for the                           
04       restoration of a lease, field, unit, area, tract of land, body of water, or right-of-way in                       
05       conjunction with dismantlement, removal, surrender, or abandonment; a cost is not                                 
06       excluded under this paragraph if the dismantlement, removal, surrender, or                                        
07       abandonment for which the cost is incurred is undertaken for the purpose of replacing,                            
08       renovating, or improving the facility, pipeline, well pad, platform, or other structure;                          
09                 (16)  costs incurred for containment, control, cleanup, or removal in                                   
10       connection with any unpermitted release of oil or a hazardous substance and any                                   
11       liability for damages imposed on the producer or explorer for that unpermitted release;                           
12       this paragraph does not apply to the cost of developing and maintaining an oil                                    
13       discharge prevention and contingency plan under AS 46.04.030;                                                     
14                 (17)  costs incurred to satisfy a work commitment under an exploration                                  
15       license under AS 38.05.132;                                                                                       
16                 (18)  that portion of expenditures, that would otherwise be qualified                                   
17       capital expenditures, as defined in AS 43.55.023, incurred during a calendar year that                            
18       are less than the product of $0.30 multiplied by the total taxable production from each                           
19       lease or property, in BTU equivalent barrels, during that calendar year, except that,                             
20       when a portion of a calendar year is subject to this provision, the expenditures and                              
21       volumes shall be prorated within that calendar year;                                                              
22                 (19)  costs incurred for repair, replacement, or deferred maintenance of                                
23       a facility, a pipeline, a structure, or equipment, other than a well, that results in or is                       
24       undertaken in response to a failure, problem, or event that results in an unscheduled                             
25       interruption of, or reduction in the rate of, oil or gas production; or costs incurred for                        
26       repair, replacement, or deferred maintenance of a facility, a pipeline, a structure, or                           
27       equipment, other than a well, that is undertaken in response to, or is otherwise                                  
28       associated with, an unpermitted release of a hazardous substance or of gas; however,                              
29       costs under this paragraph that would otherwise constitute lease expenditures under (a)                           
30       and (b) of this section may be treated as lease expenditures if the department                                    
31       determines that the repair or replacement is solely necessitated by an act of war, by an                          
01       unanticipated grave natural disaster or other natural phenomenon of an exceptional,                               
02       inevitable, and irresistible character, the effects of which could not have been                                  
03       prevented or avoided by the exercise of due care or foresight, or by an intentional or                            
04       negligent act or omission of a third party, other than a party or its agents in privity of                        
05       contract with, or employed by, the producer or an operator acting for the producer, but                           
06       only if the producer or operator, as applicable, exercised due care in operating and                              
07       maintaining the facility, pipeline, structure, or equipment, and took reasonable                                  
08       precautions against the act or omission of the third party and against the consequences                           
09       of the act or omission; in this paragraph,                                                                        
10                      (A)  "costs incurred for repair, replacement, or deferred                                          
11            maintenance of a facility, a pipeline, a structure, or equipment" includes costs                             
12            to dismantle and remove the facility, pipeline, structure, or equipment that is                              
13            being replaced;                                                                                              
14                      (B)  "hazardous substance" has the meaning given in                                                
15            AS 46.03.826;                                                                                                
16                      (C)  "replacement" includes renovation or improvement;                                             
17                 (20)  costs incurred to construct, acquire, or operate a refinery or crude                              
18       oil topping plant, regardless of whether the products of the refinery or topping plant                            
19       are used in oil or gas exploration, development, or production operations; however, if                            
20       a producer owns a refinery or crude oil topping plant that is located on or near the                              
21       premises of the producer's lease or property in the state and that processes the                                  
22       producer's oil produced from that lease or property into a product that the producer                              
23       uses in the operation of the lease or property in drilling for or producing oil or gas, the                       
24       producer's lease expenditures include the amount calculated by subtracting from the                               
25       fair market value of the product used the prevailing value, as determined under                                   
26       AS 43.55.020(f), of the oil that is processed;                                                                    
27                 (21)  costs of lobbying, public relations, public relations advertising, or                             
28       policy advocacy.                                                                                                  
29    * Sec. 63. AS 43.55.900(10) is amended to read:                                                                    
30                 (10)  "gas processing plant" means a facility that                                                      
31                      (A)  extracts and recovers liquid hydrocarbons from a gaseous                                      
01            mixture of hydrocarbons by gas processing; and                                                               
02                      (B)  is located upstream of the inlet of any pipeline                                      
03            transporting gas to a gas treatment plant and upstream of the inlet of any gas                       
04            pipeline system transporting gas to a market;                                                                
05    * Sec. 64. AS 43.55.900(20) is amended to read:                                                                    
06                 (20)  "point of production" means                                                                       
07                      (A)  for oil, the automatic custody transfer meter or device                                       
08            through which the oil enters into the facilities of a carrier pipeline or other                              
09            transportation carrier in a condition of pipeline quality; in the absence of an                              
10            automatic custody transfer meter or device, "point of production" means the                                  
11            mechanism or device to measure the quantity of oil that has been approved by                                 
12            the department for that purpose, through which the oil is tendered and accepted                              
13            in a condition of pipeline quality into the facilities of a carrier pipeline or other                        
14            transportation carrier or into a field topping plant;                                                        
15                      (B)  for gas [, OTHER THAN GAS DESCRIBED IN (C) OF                                                 
16            THIS PARAGRAPH,] that is                                                                                     
17                           (i)  not subjected to or recovered by mechanical                                              
18                 separation or run through a gas processing plant, the farthest upstream                             
19                 of the following locations: the first point where the gas is accurately                             
20                 metered, the inlet of any pipeline transporting the gas to a gas                                
21                 treatment plant, or the inlet of any gas pipeline system                                            
22                 transporting the gas to a market;                                                                   
23                           (ii)  subjected to or recovered by mechanical separation                                      
24                 but not run through a gas processing plant, the farthest upstream of                                
25                 the following locations: the first point where the gas is accurately                                
26                 metered after completion of mechanical separation, the inlet of any                               
27                 pipeline transporting the gas after completion of mechanical                                        
28                 separation to a gas treatment plant, or the inlet of any gas pipeline                               
29                 system transporting the gas after completion of mechanical                                          
30                 separation to a market;                                                                             
31                           (iii)  run through a gas processing plant, the farthest                                   
01                 upstream of the following locations: the first point where the gas is                               
02                 accurately metered downstream of the gas processing plant, the inlet                            
03                 of any pipeline downstream of the gas processing plant                                              
04                 transporting the gas to a gas treatment plant, or the inlet of any gas                              
05                 pipeline system downstream of the gas processing plant                                              
06                 transporting the gas to a market [;                                                                 
07                      (C)  FOR GAS RUN THROUGH AN INTEGRATED GAS                                                         
08            PROCESSING PLANT AND GAS TREATMENT FACILITY THAT DOES                                                        
09            NOT ACCURATELY METER THE GAS AFTER THE GAS PROCESSING                                                        
10            AND BEFORE THE GAS TREATMENT, THE FIRST POINT WHERE GAS                                                      
11            PROCESSING IS COMPLETED OR WHERE GAS TREATMENT BEGINS,                                                       
12            WHICHEVER IS FURTHER UPSTREAM];                                                                            
13    * Sec. 65. AS 43.55.900 is amended by adding a new paragraph to read:                                              
14                 (25)  "gas treatment plant" means a facility that performs gas treatment,                               
15       regardless of whether the facility also performs gas processing.                                                  
16    * Sec. 66. AS 43.56.010(c) is amended to read:                                                                     
17            (c)  If the total value of assessed property of a municipality taxing under                                  
18       AS 29.45.080(c) exceeds the product of the percentage, as determined in                                       
19       AS 29.45.080(f), [225 PERCENT] of the average per capita assessed full and true                               
20       value of property in the state, to be determined by the department and reported to each                           
21       municipality by January 15 of each year, multiplied by the number of residents of the                             
22       taxing municipality, the department shall designate the portion of the tax base against                           
23       which the local tax may be applied.                                                                               
24    * Sec. 67. AS 43.90.900(18) is amended to read:                                                                    
25                 (18)  "point of production" has the meaning given in AS 43.55.900 as                                
26       that section read on June 8, 2007;                                                                            
27    * Sec. 68. AS 43.98.030(c) is amended to read:                                                                     
28            (c)  A taxpayer acquiring a transferable tax credit certificate may use the credit                           
29       or a portion of the credit to offset taxes imposed under AS 21.09.210, AS 21.66.110,                              
30       AS 43.20, AS 43.55.011 [AS 43.55], AS 43.56, AS 43.65, AS 43.75, and AS 43.77.                                
31       Except as provided in (e) of this section, any portion of the credit not used may be                              
01       used at a later period or transferred under (b) of this section.                                                  
02    * Sec. 69. AS 43.98.050 is amended to read:                                                                        
03            Sec. 43.98.050. Duties. The duties of the board include the following:                                     
04                 (1)  establish and maintain a salient collection of information related to                              
05       oil and gas exploration, development, and production in the state and related to tax                              
06       structures, rates, and credits in other regions with oil and gas resources;                                       
07                 (2)  review historical, current, and potential levels of investment in the                              
08       state's oil and gas sector;                                                                                       
09                 (3)  identify factors that affect investment in oil and gas exploration,                                
10       development, and production in the state, including tax structure, rates, and credits;                            
11       royalty requirements; infrastructure; workforce availability; and regulatory                                      
12       requirements;                                                                                                     
13                 (4)  review the competitive position of the state to attract and maintain                               
14       investment in the oil and gas sector in the state as compared to the competitive                                  
15       position of other regions with oil and gas resources;                                                             
16                 (5)  in order to facilitate the work of the board, establish procedures to                              
17       accept and keep confidential information that is beneficial to the work of the board,                             
18       including the creation of a secure data room and confidentiality agreements to be                                 
19       signed by individuals having access to confidential information;                                                  
20                 (6)  make written findings and recommendations to the Alaska State                                      
21       Legislature before                                                                                                
22                      (A)  January 31, 2015, or as soon thereafter as practicable,                                       
23            regarding                                                                                                    
24                           (i)  changes to the state's regulatory environment and                                        
25                 permitting structure that would be conducive to encouraging increased                                   
26                 investment while protecting the interests of the people of the state and                                
27                 the environment;                                                                                        
28                           (ii)  the status of the oil and gas industry labor pool in                                    
29                 the state and the effectiveness of workforce development efforts by the                                 
30                 state;                                                                                                  
31                           (iii)  the status of the oil-and-gas-related infrastructure                                   
01                 of the state, including a description of infrastructure deficiencies; and                               
02                           (iv)  the competitiveness of the state's fiscal oil and gas                                   
03                 tax regime when compared to other regions of the world;                                                 
04                      (B)  January 15, 2017, regarding                                                               
05                           (i)  the state's tax structure and rates on oil and gas                                   
06                 produced south of 68 degrees North latitude;                                                        
07                           (ii)  a tax structure that takes into account the unique                                  
08                 economic circumstances for each oil and gas producing area south                                    
09                 of 68 degrees North latitude;                                                                       
10                           (iii)  a reduction in the gross value at the point of                                     
11                 production for oil and gas produced south of 68 degrees North                                       
12                 latitude that is similar to the reduction in gross value at the point of                            
13                 production in AS 43.55.160(f) and (g);                                                              
14                           (iv)  other incentives for oil and gas production south                                   
15                 of 68 degrees North latitude;                                                                       
16                      (C)  January 31, 2021, or as soon thereafter as practicable,                                   
17            regarding                                                                                                    
18                           (i)  changes to the state's fiscal regime that would be                                       
19                 conducive to increased and ongoing long-term investment in and                                          
20                 development of the state's oil and gas resources;                                                       
21                           (ii)  alternative means for increasing the state's ability to                                 
22                 attract and maintain investment in and development of the state's oil                                   
23                 and gas resources; and                                                                                  
24                           (iii)  a review of the current effectiveness and future                                       
25                 value of any provisions of the state's oil and gas tax laws that are                                    
26                 expiring in the next five years.                                                                        
27    * Sec. 70. Section 1(b), ch. 11, SLA 2013, is amended to read:                                                     
28            (b)  It is the intent of the legislature that                                                                
29                 (1)  the Alaska Gasline Development Corporation, in its new placement                                   
30       as an independent public corporation of the state, shall be treated for all purposes as                           
31       the transfer of a corporation within the state and not as the creation of a new entity by                         
01       the State of Alaska;                                                                                              
02                 (2)  the Board of Directors of the Alaska Gasline Development                                           
03       Corporation commit to governing the Alaska Gasline Development Corporation so as                                  
04       to affect positively as many Alaskans as possible, including those in rural and coastal                           
05       communities, and to extend opportunities for all Alaskans to benefit from the natural                             
06       gas resources of the state, including propane and associated gas-related hydrocarbons                             
07       other than oil;                                                                                                   
08                 (3)  to the maximum extent permitted by law, in developing a natural                                    
09       gas pipeline, the Alaska Gasline Development Corporation shall procure services,                                  
10       labor, products, and natural resources from qualified businesses located in the state,                            
11       including organizations owned by Alaska Natives and municipal organizations directly                              
12       affected by the project, if those persons are competitive;                                                        
13                 (4)  the Alaska Gasline Development Corporation in its participation                                
14       in an Alaska liquefied natural gas project as defined in AS 31.25.390 or a natural                            
15       gas pipeline shall, to the maximum extent permitted by law,                                                   
16                      (A)  hire qualified residents from throughout the state for                                        
17            management, engineering, construction, operations, maintenance, and other                                    
18            positions for a natural gas pipeline project;                                                                
19                      (B)  establish hiring facilities in the state or use existing hiring                               
20            facilities in the state; and                                                                                 
21                      (C)  use, as far as practicable, the job centers and associated                                    
22            services operated by the Department of Labor and Workforce Development                                       
23            and an Internet-based labor exchange system operated by the state; and                                       
24                 (5) the Alaska Gasline Development Corporation and its subsidiaries                                     
25       shall wind up and dissolve when no bonds, notes, or other obligations are outstanding                             
26       and the Alaska Gasline Development Corporation or a subsidiary of the Alaska                                      
27       Gasline Development Corporation is no longer engaged in the development, financing,                               
28       construction, or operation of an in-state natural gas pipeline.                                                   
29    * Sec. 71. AS 31.25.080(f) is repealed.                                                                            
30    * Sec. 72. The uncodified law of the State of Alaska is amended by adding a new section to                         
31 read:                                                                                                                   
01       INFRASTRUCTURE. (a) The Department of Transportation and Public Facilities                                        
02 shall, in consultation with the Alaska Gasline Development Corporation, evaluate the design                             
03 and construction of a new, separate bridge across the Yukon River that would accommodate                                
04 both vehicular traffic and a gas pipeline resulting from an Alaska liquefied natural gas project.                       
05       (b)  The Department of Transportation and Public Facilities shall, in consultation with                           
06 the Alaska Gasline Development Corporation and the Department of Natural Resources,                                     
07 evaluate existing bridges and infrastructure and bridges and infrastructure constructed to                              
08 accommodate a gas pipeline resulting from an Alaska liquefied natural gas project and                                   
09 determine whether the bridge or infrastructure could also be constructed for transportation                             
10 uses, including vehicular traffic.                                                                                      
11    * Sec. 73. The uncodified law of the State of Alaska is amended by adding a new section to                         
12 read:                                                                                                                   
13       REPORT AND RECOMMENDATIONS BY THE COMMISSIONER OF                                                                 
14 NATURAL RESOURCES ON THE DELIVERY AND AVAILABILITY OF NORTH                                                             
15 SLOPE NATURAL GAS IN THE STATE; IDENTIFICATION OF RISKS AND                                                             
16 RECOMMENDATIONS FOR MITIGATION. (a) The commissioner of natural resources in                                            
17 consultation with the Alaska Gasline Development Corporation shall prepare and make                                     
18 available to the legislature a report on a plan and alternatives to make North Slope natural gas                        
19 available for delivery and use in the state. The report must address                                                    
20            (1)  the means by which North Slope natural gas may be delivered for use in                                  
21 the state;                                                                                                              
22            (2)  the anticipated benefits, risks, and liabilities to the state associated with the                       
23 sale by the state to utilities and other customers in the state of natural gas received by the state                    
24 as royalty in kind or as payment of tax;                                                                                
25            (3)  the effect and consequences, including the fiscal effect and liability to third                         
26 parties, of the state's transport of a reduced amount of natural gas south of an in-state delivery                      
27 point or underutilizing capacity in a liquefied natural gas plant;                                                      
28            (4)  the costs, benefits, and risks associated with building a pipeline with a                               
29 mainline diameter larger than 42 inches, including the effect of the increased diameter on                              
30 compression, fuel, and other costs; the anticipated allocation of the cost of an increased                              
31 diameter among project participants and the options for and effects of the state or participants                        
01 in the project funding the increased diameter; a quantification of the potential benefits from                          
02 the increased diameter that may include increased exploration activity by parties and                                   
03 nonparties to the project and increased royalties and taxes from additional production                                  
04 transported in the increased capacity; and whether natural gas transported in the additional                            
05 capacity is likely to be produced from federal or state land; and                                                       
06            (5)  other issues the commissioner of natural resources determines are relevant                              
07 to the delivery and use of North Slope natural gas in the state and should be considered by the                         
08 legislature.                                                                                                            
09       (b)  In conjunction with the report in (a) of this section, the commissioner of natural                           
10 resources shall recommend the means for eliminating or minimizing the risks and liabilities                             
11 identified in the report.                                                                                               
12       (c)  The commissioner of natural resources shall make the report and                                              
13 recommendations required by this section available to the legislature on or before the date a                           
14 firm transportation services agreement in a North Slope natural gas project to which the state                          
15 is a party is submitted to the legislature for approval.                                                                
16       (d)  In this section, "North Slope natural gas project" has the meaning given in                                  
17 AS 38.05.965, as amended by sec. 33 of this Act.                                                                        
18    * Sec. 74. The uncodified law of the State of Alaska is amended by adding a new section to                         
19 read:                                                                                                                   
20       REQUESTING THE GOVERNOR TO ESTABLISH AN ADVISORY PLANNING                                                         
21 GROUP. (a) The legislature requests the governor to establish an advisory planning group                                
22 under AS 44.19.145 to advise the governor on municipal involvement in a North Slope                                     
23 natural gas project. Members of the advisory planning group may include representatives of                              
24 municipalities, the commissioner of natural resources, the commissioner of revenue,                                     
25 representatives of oil and gas and gas only lessees on the North Slope, and representatives of                          
26 other persons expected to be directly involved in the development of a North Slope natural                              
27 gas project.                                                                                                            
28       (b)  The advisory planning group shall review available information, hold public                                  
29 meetings, and provide annual reports by December 15 of each year to the governor that                                   
30 include                                                                                                                 
31            (1)  the potential impact and benefits of new infrastructure for North Slope                                 
01 natural gas development, whether designed to provide natural gas for in-state sale or for                               
02 export, or both, on communities in the state, including consideration of tax structure under                            
03 AS 29.45 and AS 43.56, and consideration of other payments before construction of new                                   
04 infrastructure associated with North Slope natural gas development;                                                     
05            (2)  recommendations for changes to the oil and gas exploration, production,                                 
06 and pipeline transportation property taxes under AS 43.56 related to infrastructure for                                 
07 commercialization of natural gas that would facilitate development of a major natural gas                               
08 project and mitigate financial impacts to communities affected by development of a North                                
09 Slope natural gas project;                                                                                              
10            (3)  recommendations for changes to AS 29.45.080 related to the                                              
11 commercialization of natural gas that would facilitate development of a North Slope natural                             
12 gas project and mitigate financial impacts to communities affected by a North Slope natural                             
13 gas project;                                                                                                            
14            (4)  recommendations for legislative or other options to minimize the financial                              
15 impact to communities in proximity to North Slope natural gas project infrastructure during                             
16 construction of a natural gas pipeline and associated infrastructure; and                                               
17            (5)  recommendations on the impact and benefits to communities not in                                        
18 proximity to a North Slope natural gas project.                                                                         
19       (c)  In this section, "North Slope natural gas project" has the meaning given in                                  
20 AS 38.05.965, as amended by sec. 33 of this Act.                                                                        
21    * Sec. 75. The uncodified law of the State of Alaska is amended by adding a new section to                         
22 read:                                                                                                                   
23       PLAN AND RECOMMENDATIONS TO THE LEGISLATURE ON                                                                    
24 INFRASTRUCTURE NEEDED TO DELIVER AFFORDABLE ENERGY TO AREAS IN                                                          
25 THE STATE THAT DO NOT HAVE DIRECT ACCESS TO A NORTH SLOPE NATURAL                                                       
26 GAS PIPELINE. (a) The Alaska Energy Authority, in consultation with the Alaska Gasline                                  
27 Development Corporation, the Alaska Industrial Development and Export Authority, and the                                
28 Department of Revenue, shall, after considering the state energy policy under AS 44.99.115                              
29 and sec. 1, ch. 82, SLA 2010, develop a plan for developing infrastructure to deliver more                              
30 affordable energy to areas of the state that are not expected to have direct access to a North                          
31 Slope natural gas pipeline. The plan must identify ownership options, different energy                                  
01 sources, including fossil fuels, hydro projects, tidal, and other alternative energy sources, and                       
02 describe and recommend the means for generating, delivering, receiving, and storing energy                              
03 in the most cost-efficient manner. For those citizens for whom there is no economically viable                          
04 infrastructure available, the plan must recommend the means for directly underwriting the                               
05 energy costs of the citizens to make their energy costs more affordable. The Alaska Energy                              
06 Authority may consider the development of regional energy systems that can receive and store                            
07 bulk fuel in quantity and distribute that fuel as needed within the region.                                             
08       (b)  The Alaska Energy Authority, in consultation with the Department of Revenue,                                 
09 shall recommend a plan for funding the design, development, and construction of the required                            
10 infrastructure and may identify a source of rent, royalty, income, or tax received by the state                         
11 that may be appropriated by the legislature to implement the plan.                                                      
12       (c)  The Alaska Energy Authority shall provide the plan and suggested legislation for                             
13 the design, development, construction, and financing of the required infrastructure to the                              
14 legislature before January 1, 2017.                                                                                     
15    * Sec. 76. The uncodified law of the State of Alaska is amended by adding a new section to                         
16 read:                                                                                                                   
17       DEVELOPMENT OF A PLAN FOR MUNICIPALITIES, REGIONAL                                                                
18 CORPORATIONS, AND RESIDENTS TO PARTICIPATE IN THE OWNERSHIP OF A                                                        
19 NORTH SLOPE NATURAL GAS PIPELINE; IDENTIFICATION OF AND REPORT ON                                                       
20 FINANCING OPTIONS FOR STATE OWNERSHIP AND PARTICIPATION IN A                                                            
21 NORTH SLOPE NATURAL GAS PROJECT. (a) The commissioner of revenue shall identify                                         
22 and report to the legislature on a range of financing options for state acquisition of an                               
23 ownership interest and participation in a North Slope natural gas project. The report must                              
24 include a description of the risk associated with each option and the effect of each option on                          
25 the bonding capacity and bond rating of the state. In this subsection, "North Slope natural gas                         
26 project" has the meaning given in AS 38.05.965, as amended by sec. 33 of this Act.                                      
27       (b)  The commissioner shall make an interim draft of the report described in (a) of this                          
28 section available to the legislature on the first day of the First Regular Session of the Twenty-                       
29 Ninth Alaska State Legislature, and a final report at the time the commissioner of natural                              
30 resources submits the first agreement or contract to the legislature for approval under                                 
31 AS 38.05.020(b)(11), enacted by sec. 24 of this Act.                                                                    
01       (c)  At the time the commissioner of natural resources submits the first agreement or                             
02 contract to the legislature for approval under AS 38.05.020(b)(11), enacted by sec. 24 of this                          
03 Act, the commissioner of revenue shall present a plan and suggested legislation to allow a                              
04 municipality, regional corporation, or resident of the state to participate as a co-owner in a                          
05 North Slope natural gas pipeline. The plan must include the recommendations and analysis by                             
06 the commissioner as to                                                                                                  
07            (1)  the means by which a municipality, regional corporation, or resident may                                
08 invest in the North Slope natural gas pipeline; for a resident, the means may include providing                         
09 an option to designate an amount of a permanent fund dividend to be deducted for the                                    
10 investment;                                                                                                             
11            (2)  whether the ownership interest in a North Slope natural gas pipeline should                             
12 be acquired from the portion of a North Slope natural gas pipeline acquired by the state,                               
13 through the purchase of stock in a publicly traded corporation that invests in a North Slope                            
14 natural gas pipeline, or some other means;                                                                              
15            (3)  the means for providing notice to a municipality, regional corporation, or                              
16 resident receiving an ownership interest that explains the type of ownership interest and the                           
17 rights and obligations related to that ownership interest;                                                              
18            (4)  whether the ownership interest received by a municipality, regional                                     
19 corporation, or resident may be transferred or assigned to another person and the means for                             
20 transferring the interest;                                                                                              
21            (5)  the means by which the proportional share of a dividend or other income                                 
22 may be distributed to a municipality, regional corporation, resident, or transferee of an interest                      
23 if the municipality, regional corporation, or resident receives an ownership interest acquired                          
24 by the state in a North Slope natural gas pipeline and the state receives a dividend or other                           
25 income from its ownership interest, and whether the payment should be subject to interest if                            
26 not timely distributed;                                                                                                 
27            (6)  the means by which the commissioner may identify a publicly traded                                      
28 corporation that has an ownership interest in a North Slope natural gas pipeline that is subject                        
29 to investment by a municipality, regional corporation, or resident under the proposed plan;                             
30            (7)  the means by which an individual may qualify as a resident for purposes of                              
31 investing in an ownership interest;                                                                                     
01            (8)  whether the ownership interest held by a municipality, regional                                         
02 corporation, or resident would be subject to project assessments;                                                       
03            (9)  how cash calls for the project and the expansion of the project would be                                
04 managed;                                                                                                                
05            (10)  the income tax consequences to the holder of an ownership interest,                                    
06 including the timing and recognition of income related to the ownership interest, including                             
07 differentiating income related to the ownership interest from the receipt of dividends or other                         
08 distributions;                                                                                                          
09            (11)  the risk that the receipt of a benefit from the project by a person other                              
10 than the state would make income received from the project by the state subject to federal                              
11 income tax; and                                                                                                         
12            (12)  constitutional issues that may be implicated by restricting ownership                                  
13 interests under the plan to residents and municipalities in the state.                                                  
14       (d)  In this section,                                                                                             
15            (1)  "municipality" has the meaning given in AS 01.10.060;                                                   
16            (2)  "North Slope natural gas pipeline" means a natural gas pipeline project that                            
17 transports natural gas produced in the state north of 68 degrees North latitude to a market in                          
18 the state or to tidewater for export from the state including a facility in the state for liquefying                    
19 natural gas for transport;                                                                                              
20            (3)  "regional corporation" means a regional corporation organized under 43                                  
21 U.S.C. 1606(a), as amended.                                                                                             
22    * Sec. 77. The uncodified law of the State of Alaska is amended by adding a new section to                         
23 read:                                                                                                                   
24       LEGISLATIVE BRIEFINGS. Before the first flow of gas in a North Slope natural gas                                  
25 project developed under the authority of this Act, the parties to the project shall, at least once                      
26 every four months, provide briefings to interested legislators, legislative staff, and legislative                      
27 consultants on the progress of a North Slope natural gas project developed under the authority                          
28 of this Act. A briefing under this section must be accompanied by a written report provided by                          
29 the Department of Natural Resources of the amount of money the state may be obligated to                                
30 pay a third party under an agreement or contract under AS 38.05.020(b)(10) or (11) if a North                           
31 Slope natural gas project is terminated before the first flow of gas in the project.                                    
01    * Sec. 78. The uncodified law of the State of Alaska is amended by adding a new section to                         
02 read:                                                                                                                   
03       APPLICABILITY. Sections 1 - 6 and 66 apply to tax years beginning after                                           
04 December 31, 2014.                                                                                                      
05    * Sec. 79. The uncodified law of the State of Alaska is amended by adding a new section to                         
06 read:                                                                                                                   
07       TRANSITION: REGULATIONS. The Department of Revenue and the Department of                                          
08 Natural Resources may adopt regulations to implement this Act. The regulations take effect                              
09 under AS 44.62 (Administrative Procedure Act), but not before the effective date of the                                 
10 provisions of this Act being implemented.                                                                               
11    * Sec. 80. Sections 7 - 24, 27, 33 - 37, 39, 40, 48, 50, 67 - 77, and 79 of this Act take effect                   
12 immediately under AS 01.10.070(c).                                                                                      
13    * Sec. 81. Sections 1 - 6, 66, and 78 take effect July 1, 2014.                                                    
14    * Sec. 82. Section 49 of this Act takes effect January 1, 2021.                                                    
15    * Sec. 83. Except as provided in secs. 80 - 82 of this Act, this Act takes effect January 1,                       
16 2015.                                                                                                                   
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