In my latest State Tax Notes column, I provide an update on H.B. 331, which was passed by the State Legislature in 2018 to create a mechanism to finance the purchase of some $700 million in outstanding rebatable tax credits. I also look at continuing budget tensions in the state, efforts to reduce and simplify
Alaska Oil and Gas Conservation Commission Proposes Repeal of Certain Alaska Administrative Code Regulations
The Alaska Oil and Gas Conservation Commission (AOGCC) has proposed a repeal of regulation changes in 20 AAC 25. of the Alaska Administrative Code. Specific regulations proposed for repeal are as follows: 20 AAC 25.037 well control requirements for other drilling and completion operations; 20 AAC 25.047 reserve pits and tankage; 20 AAC 25.225 potential
Update on Alaska’s Efforts to Finance Oil and Gas Tax Credit Purchases
In my most recent column for State Tax Notes, I provide an update on H.B. 331, which was passed by the State Legislature in 2018 to create a mechanism for the issuance of up to $1 billion in bonds to finance oil and gas tax credit purchases. I also look at budget tensions created
Alaska DNR Issues Notice of Public Scoping for Possible Appeal Regulations Revisions
The Alaska Department of Natural Resources (DNR) is soliciting public comment regarding potential regulation revisions involving the process for filing and handling appeals and requests for reconsideration under 11 AAC 02.
No specific regulations are being proposed at this time. Rather, DNR is seeking public input and suggestions before the department begins drafting proposed regulations.
Rental Rate Increases Go into Effect for State of Alaska Mining Claims, Leasehold Locations, Prospecting Sites, and Mining Leases
New rental rates are now in effect for state mining claims, leasehold locations, prospecting sites, and mining leases in Alaska. The new rental rates became effective on August 30, 2019, and thus are applicable to the rental year that commenced on September 1, 2019.
These increases were made by the State of Alaska Department of
National Park Service Regulations Do Not Apply to Inholdings in Alaska
Alaska is different—it has moose hunters on hovercrafts, many large national parks, and certain unique federal laws. Last week the U.S. Supreme Court unanimously held that National Park Service laws and regulations of general applicability do not apply to inholdings within Alaska’s national parks. Sturgeon v. Frost, 587 U.S. ___ (2019).
While on a moose hunting trip twelve years ago, John Sturgeon was repairing his hovercraft on a section of the Nation River within the Yukon-Charley Rivers National Preserve (a unit of the National Park System) when park rangers ordered him to stop using the hovercraft in the preserve. Mr. Sturgeon left that day without the benefit of his hovercraft and without a moose. He later sued, arguing that the Park Service ban on hovercrafts did not apply to the Nation River, a navigable river the bed of which is owned by the State of Alaska.
This case arose under the Alaska National Interest Lands Conservation Act of 1980 (ANILCA). When the federal government designated national park lands in ANILCA, it swept tracts of nonfederal lands (state, Alaska Native corporation, and private inholdings) within the park boundaries. ANILCA provides that no state, Native, or private inholdings “shall be subject to the regulations applicable solely to public lands within [conservation system] units.” 16 U.S.C. § 3103(c). Nonetheless, the federal government claimed that the Park Service could regulate the inholdings like park lands.
Continue Reading National Park Service Regulations Do Not Apply to Inholdings in Alaska
Earthquake Disrupts Mining Filings and Payments: What You Need to Know
The 2018 deadline to record affidavits of labor and pay rental on State of Alaska mining claims was disrupted by a 7.0 earthquake near Anchorage at 8:29 a.m. on Friday, November 30. As a result of the earthquake, the Department of Natural Resources’ Anchorage office and the State of Alaska Recorder’s Office closed, preventing the
How Will Alaska Pay its Rebatable Production Tax Credits?
Alaska’s rebatable production tax credit program was created by state legislators to be an incentive for explorers and small producers to invest in oil and gas exploration and production in the state but was hurt by its own success when oil prices dropped. The legislature repealed the program but a queue of valid outstanding credits
The Battle Over the Alaska Oil and Gas Production Tax Credit
Alaska’s oil and gas production tax has been subject to continuing debate and change as lawmakers and policymakers struggle with balancing budgets in times of volatile oil prices while also encouraging the investment necessary to monetize the state’s resources to run its government, create jobs, build and maintain infrastructure, and promote economic activity. In my
Alaska Department of Natural Resources Seeks Input on Mining Regulations – Comments Due 4/29/16
The Alaska DNR is requesting public comments on its mining regulations for establishing and maintaining mining claims – 11 AAC Chapter 86. These regulations (as well as related regulations at 11 AAC 82 and 11 AAC 88) establish or address many of the requirements for locating claims on state lands, performing assessment work, paying rent,