Competitive Framework for Alaska: 2012

Terms for Natural Gas Gas from fields with existing oil production Any condensates and other liquids from natural gas production could be dealt with as new light oil production. For gas the fiscal package could be: • Flat 25% PPT 20% tax credit 15% allowance of the gross value of the gas revenues Severance feature starting at $ 8/MMBtu at 0.05% per $1 per MMBtu, and after $ 20/MMBtu at 0.1% (which means that on a Btu equivalent the severance feature is much stronger for gas than for oil) A floor net back gas price of $ 3.00 per MMBtu for PPT purposes and a floor price for liquids and condensates of $ 70 per barrel. 96

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