A BILL
FOR AN ACT ENTITLED

?An Act relating to the oil and gas production tax, tax payments, and tax credits.?

BE IT ENACTED BY THE PEOPLE OF THE STATE OF ALASKA:

*Section 1. The uncodi?ed law of the State of Alaska is amended by adding a new
section to read:

SHORT TITLE. This Act shall be known as the ?Fair Share Act.?
Notwithstanding Any Other Statutory Provisions to the Contrary, the Oil and Gas
Production Tax in AS 43.55 Shall Be Amended as Follows:

*Section 2, Applicability. The provisions in Sections 3 and 4 only apply to oil
produced from ?elds, units, and nonunitized reservoirs north of 68 degrees north latitude
that have produced in excess of 40,000 barrels of oil per day in the previous calendar year
and in excess of 400,000,000 barrels of total cumulative oil production. For other oil
production, the tax shall be unchanged by this Act.

*Section 3, Alternative Gross Minimum Tax. For oil production from ?elds, units,
and nonunitized reservoirs that meet the conditions in Sec. 2, the amount of tax due for
each calendar month shall be no less than:

10 percent of the gross value at the point of production when the average
per-barrel price for Alaska North Slope crude oil for sale on the United States West Coast
(La. Basin) during the calendar month for which the tax is due is less than $50;

an additional 1 percent of the gross value at the point of production for each
$5 increment by which the average per-barrel price for Alaska North Slope crude oil for
sale on the United States West Coast (La. Basin) during the calendar month for which the
tax is due is equal to or exceeds $50. The maximum tax rate calculated in this section
shall not exceed 15 percent, which is reached when the price per barrel is equal to or
exceeds $70; and

No credits, carried-forward lease expenditures, including operating losses, or
other offsets may reduce the amount of tax due below the amounts calculated in this

section.

The Fair Share Act
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*Section 4, Tax on Production Tax Value. For production from ?elds, units, and
nonunitized reservoirs that meet the conditions in Sec. 2:

The per-taxable-barrel credit in AS 43.55.024(i) and shall not be used; and

An additional production tax shall be paid for each month for which the
producer?s average Production Tax Value of taxable oil is equal to or more than
$50. The additional tax shall be the difference between the average Production
Tax Value of a barrel of oil and $50, multiplied by the volume of taxable oil produced by
the producer for the month, multiplied by 15 percent.

*Section 5, Separate Treatment. For each producer, the taxes set forth in Sections 3
and 4 shall be calculated separately for the following:

For oil and for gas;

For each calendar month (annual lease expenditures shall be divided equally
among the 12 months of the tax year); and

For each of the ?elds, units, and nonunitized reservoirs, the lease expenditures
shall be calculated, deducted, and carried forward separately.

*Section 6, Greater-0f. For each producer, for each month, and for each of the ?elds,
units, and nonunitized reservoirs, the tax due shall be the greater of the tax under Section
3 or Section 4.

*Section 7, Public Records. All ?lings and supporting information provided by each
producer to the Department relating to the calculation and payment of the taxes set forth
in Sections 3 and 4 shall be a matter of public record.

*Section 8, Scope of Initiative. Nothing in this Act authorizes or requires the
Legislature to dedicate revenue, to make or repeal appropriations, to enact local or special
legislation, or to perform any unconstitutional aet. While not required by this Act, the
revenues from this Act could be used to funds essential government services, capital
projects, the permanent fund, and permanent fund dividends.

*Section 9, Severability. The provisions of this Act are independent and severable, and
if any provision of this Act or applicability of any provision to any person or
circumstance shall be found to be invalid, the remainder of this Act shall not be affected

and shall be given effect to the fullest extent practicable.

The Fair Share Act
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