US Alaska Upstream Fiscal and Regulatory Report - Budget Problems May Force Fiscal Regime Changes

1 Table of Contents

• 1.1. List of Tables
• 1.2. List of Figures

2. Regime Overview

3. State Take Assessment

4. Key Fiscal Terms

• 4.1. Cash Bonus Bid (Lease)
• 4.2. Rental Fees
• 4.3. Royalty
  • 4.3.1. Royalty Modifications
  • 4.3.2. Unconventional Gas Royalty Modification
  • 4.3.3. Uneconomic Field Royalty Modification
  • 4.3.4. Cook Inlet Royalty Modifications
  • 4.3.5. Cook Inlet Specific Field Production Threshold Royalty Modification
• 4.4. Net Profit Sharing Lease
• 4.5. More Alaska Production Act Production Tax (2014 Onward)
  • 4.5.1. Taxation Caps
  • 4.5.2. Taxation of Non-Governmental Royalties
  • 4.5.3. Determination of Gross Value at the Point of Production (GVPP)
  • 4.5.4. Gross Value Reduction for Production North of 68N Latitude
  • 4.5.5. MAPA Production Tax in Relation to Other Taxes
• 4.6. Historical Production Taxes
  • 4.6.1. Alaska’s Clear and Equitable Share (ACES) Production Tax (July 2007-December 31, 2013)
  • 4.6.2. Petroleum Profits Tax (2006-2007)
  • 4.6.3. Economic Limit Factor (ELF) Production Tax I and II (1977-2006)
• 4.7. Property Tax (Municipalities)
• 4.8. Corporate Income Tax
  • 4.8.1. State Corporate Income Tax
  • 4.8.2. State Corporate Income Tax Deductions and Depreciation
  • 4.8.3. Federal Corporate Income Tax
  • 4.8.4. Federal Corporate Income Tax Deductions and Depreciation
  • 4.8.5. Withholding Tax
• 4.9. Branch Profits Tax
• 4.10. State Tax Credits
  • 4.10.1. Per-Barrel Tax Credit
  • 4.10.2. Alternative Credit for Exploration
  • 4.10.3. Qualified Capital Expenditure Credit & Well Lease Expenditure Credit
  • 4.10.4. Cook Inlet Jack-Up Rig Credit (Expired on June 30, 2016)
  • 4.10.5. Frontier Basin Credit (Expired in June 2016)
  • 4.10.6. Exploration Incentive Credit (Expired on December 31, 2016)
  • 4.10.7. Carried-Forward Annual Loss Credit (Expired on December 31, 2017)
  • 4.10.8. Small Producers Credit
  • 4.10.9. New Area Development Credit (Unusable Because No Licensee Was in the Position to Claim It)
  • 4.10.10. Gas Exploration and Development Tax Credit (Expired on January 1, 2016)
  • 4.10.11. Internal Revenue Code Credits Adopted by Reference
  • 4.10.12. LNG Storage Facility Tax Credit
  • 4.10.13. Oil and Gas Industry Service Expenditure Credit
  • 4.10.14. Education Credit (Until December 31, 2024)
  • 4.10.15. Transitional Investment Expenditure Credit (Expired December 31, 2013)

5. Regulation and Licensing

• 5.1. Legal Framework
  • 5.1.1. Governing Laws
  • 5.1.2. Contract Type
  • 5.1.3. Title to Hydrocarbons
• 5.2. Institutional Framework
  • 5.2.1. Licensing Authority
  • 5.2.2. Regulatory Agency
• 5.3. Licensing Process
  • 5.3.1. Lease Licensing Process (State Lands)
  • 5.3.2. Exploratory License Process (State Lands)
  • 5.3.3. Federal Lease Sales in the National Petroleum Reserve in Alaska (NPR-A)
• 5.4. License Terms
  • 5.4.1. Duration
  • 5.4.2. Area
  • 5.4.3. Obligations for Exploration Licenses
  • 5.4.4. Obligation for Leases

6. Outlook

7. Appendix

• 7.1. References
• 7.2. Contact Us