of the oil and tax regime in Alaska, and answered questions.
of the oil and gas tax regime in Alaska, and answered questions.
Taxation - Status Report" dated 1/30/17, and answered questions.
an update on the status of the state's oil and gas tax regime.
create  a different  market with  more  activity and  competition.
deduct  expenditures  from zero  and  convert  them to  a  credit.
operating losses must be recognized and understood.
its new CEO.  All of Great Bear's employees live in Anchorage.
"definitely moving in that direction."
liabilities, given the state's financial difficulties.
disincentive for another, and urged for fairness.
of -  a "promise"  made by  the state  through the credit  regime.
on the status of a company.
is that the industry is better equipped than DNR to assess risk.
it's  important   to  my  company  and  to   our  State.
production    companies    in   the    United    States.
energy  security for  Alaska's  largest population  hub.
this...Policy  matters, the  current system is  working.
depleted,  and   importing  natural  gas  may   become  necessary.
and offshore on the King Salmon platform.
BENJAMIN   JOHNSON,   President/CEO,    BlueCrest   Energy,   Inc.
fields  such  as BlueCrest  Cosmopolitan  are  under  development.
summer,  and a  second new  well may  be producing  by late  fall.
committee work with industry to wisely develop Alaska's wealth.
CO-CHAIR TARR inquired as to which credits benefit BlueCrest.
credit liability against its total investment in Cook Inlet.
has received  $26 million  in total tax  credit payments  to date.
REPRESENTATIVE BIRCH asked for the range of the ERD rig.
and about one and one-half miles deep.
tax credit certificates to a major company.
equity, exclusive of Cook Inlet exploration.
Inlet, and has no return on equity for investors so far.
same well in Alaska is three times more expensive.
integral part of what the government levies in its tax program.
would have offset any taxes due from producers.
is probably outside the expectations of the bill.
poorer if under the Senate Bill 21 tax regime since FY 07.
Representative Parish's repeated question, he said yes.
of tough for us to [arrive] at.
fields to 4 percent of the gross value of oil.
for us here ... under the current price regime."
determine state revenue in a very low-price environment.
CO-CHAIR TARR discussed the three ways of "hardening the floor"
included in Senate Bill 21.
credits (slides 44 and 45).
credit on slides 44 and 45.
at $1.4 billion in FY 17.
state may seek to do so.
will not happen without state assistance now.
diversify the North Slope and create competition.
concluded the state's interest is best served by producing oil.
royalty, and  royalty is a fixed  number:  12.5 percent  of gross.
and the net profit is $1, so that is a 400 percent tax.
year, with the intent to allow the state to defer cash payments.
per year and overages will accrue for a future liability.
will ensue quickly, followed by a tax liability.
one should look at the total non-producer share.
the state is deductible against federal corporate income tax.
complex to administer (slide 47).
Slope net operating loss credits (slide 48).
have had to make  back all of its investment  from future profits.
2014,  and the  total assessments  for 2007  were $387.3  million.
assessments  have  been paid,  settled,  or appealed  (slide  55).
cover years of high revenue and high progressivity (slide 56).
state was underpaid in taxes in the amount of over $300 million.
made and agreement is found "somewhere in the middle."
third, one-third," and reached 40-50 percent.
government take at this time is in the "mid-60s."
attributed to a previous testifier.
information that PPT credits were selling in a 70 percent range.
Resources Standing Committee meeting was adjourned at 8:02 p.m.