Competitive Framework for Alaska: 2012

PVM Proposal for New Production The main advantages of the PVM Proposal are: Much easier to administer Can be consolidated with existing production, so no need for ring fencing • An “architecture” which permits other resources to be added to the fiscal terms • No excessive tax rates, in fact a combined rate of 55.75%. • No excessive price progressivity • No excessive exploration support No nonsensical cross subsidization of gas based on BOE values Reduced negative PPT characteristics 80

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