Competitive Framework for Alaska: 2012

Terms for Ultra Heavy Oil Proposed Terms For heavy oil the fiscal system could be based on the same PPT as follows: ● PPT based on a flat rate of 25% ● 20% tax credit • A 25% allowance based on the gross value of the heavy oil as special deduction for the determination of the PPT • A severance feature starting at $ 160 per barrel at 0.05% per barrel increase up to $200 and thereafter 0.1% per barrel increase up to a maximum of 10% A floor price for the purpose of calculating PPT of $ 55 per barrel escalated with inflation. 91

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