1 Table of Contents

1 Table of Contents 1
1.1 List of Tables 2
1.2 List of Figures 2

2 Regime Overview 3

3 State Take Assessment 5

4 Key Fiscal Terms 6
4.1 Bonus Bid 6
4.2 Rental Fees 7
4.3 Royalty 7
4.3.1 Unconventiol Gas Royalty Modification 7
4.3.2 Uneconomic Field Royalty Modification 7
4.3.3 Cook Inlet Royalty Modification 7
4.3.4 Cook Inlet Specific Field Royalty Modification 8
4.3.5 Cook Inlet Specific Field Production Threshold Royalty Modification 8
4.4 Net Profit Sharing Lease 8
4.5 Production Tax 9
4.5.1 2014 Production Tax 9
4.6 Historical Production Taxes 9
4.6.1 Alaska’s Clear and Equitable Share 9
4.7 Property Tax 10
4.8 Corporate Income Tax 10
4.8.1 State Corporate Income Tax 10
4.8.2 Federal Corporate Income Tax 11
4.8.3 Deductions and Depreciation 11
4.9 Branch Profits Tax 12
4.10 State Incentives 12
4.10.1 Cook Inlet Production Tax Limits 12
4.10.2 Initial Production Exemption 12
4.10.3 North Slope New Field Production Tax Basis Reduction 12
4.10.4 Exploration Incentive Credit 12
4.10.5 Altertive Credit for Exploration 12
4.10.6 Qualified Capital Expenditure Credit 13
4.10.7 Cook Inlet Jack-Up Rig Credit 13
4.10.8 Carried-Forward Annual Loss Credit 13
4.10.9 New Area Development Credit 13
4.10.10 Small Producer Credit 13
4.10.11 Producer’s Tax Credit on Volume 14
4.10.12 Transitiol Investment Expenditure Credit 14
4.10.13 Gas Exploration and Development Tax Credit 14
4.10.14 Gas Storage Facility Tax Credit 14
4.10.15 State Application of Federal Tax Credits 14
4.11 Federal Incentives 14
4.11.1 Depletion Allowance 14

5 Regulation and Licensing 15
5.1 Legal Framework 15
5.1.1 Governing Law 15
5.1.2 Contract Type 15
5.1.3 Title to Hydrocarbons 15
5.2 Institutiol Framework 16
5.2.1 Licensing Authority 16
5.2.2 Regulatory Agency 16
5.3 Licensing Process 16
5.4 License Terms 17
5.4.1 Duration 17
5.4.2 Obligations 17

6 Outlook 18

7 Contact Information 19