SB 3001 Summary

• Reduces oil and gas production tax on North Slope (north of 68° North latitude) production by 30% for the first 10 years of production and 40% for other North Slope production, reducing taxable values at the point of production.

• Changes the maximum progressive tax rate from 50% to 35% on monthly production when average monthly value exceeds $92.50 per BTU barrel.

• Modifies capital expenditure tax credits to allow full 20% credit without annual limitation (eliminates previous half-year restriction) and extends well lease expenditure credits to apply after December 31, 2012.

• Changes transferable tax credit certificates from two certificates (one immediate, one delayed) to a single certificate for the full credit amount available for immediate use.

• Establishes monthly installment payment requirements for oil and gas production taxes with specific calculation methods for different production categories.