Section 15 AAC 55.356 - Alternative oil and gas exploration tax credit claim for expenditures for work performed after June 30, 2008, and for certain seismic exploration work performed before July 1, 2003(a) An application for an alternative oil and gas exploration tax credit under AS 43.55.025 for a particular exploration activity may, on a form provided by the department, be filed by (1) a single explorer that (A) holds the entire interest in the particular well or seismic or other geophysical exploration activity; and(B) incurred 100 percent of the expenditures for which the credit is claimed; or(2) a designated joint applicant that is authorized in a writing, signed by each explorer that incurred expenditures, to file a joint tax credit application on behalf of all those explorers; a joint application must be for the total qualified expenditures incurred by all the explorers for the exploration activity for which the credit is claimed and must include a copy of the written authorization signed by each explorer.(b) An application for a tax credit for an exploration well must include the following information: (1) the applicant's name, permanent contact address, and telephone number;(2) if the applicant is a designated joint applicant, under (a)(2) of this section, the name and address of each explorer represented in the application and the percentage of the total qualified exploration expenditures incurred by each explorer;(3) a description of the exploration activities for which the credit is claimed;(4) an accounting of the qualified exploration expenditures for which credit is claimed;(5) the date the exploration well was spudded, the dates drilling occurred, and the date the well was completed, suspended, or abandoned as reported to the Alaska Oil and Gas Conservation Commission under 20 AAC 25.070;(6) the bottom hole location and the surface location of the exploration well;(7) for an application for a tax credit requiring qualification under AS 43.55.025(b) and (c), (A) the determination of the commissioner of natural resources under(i)AS 43.55.025(c)(2)(A)(iii) that the geological objective of the well is a potential oil or gas trap that is distinctly separate from any trap that has been tested by a preexisting well; and(ii)AS 43.55.025(c)(2)(C) that the well was consistent with achieving the explorer's stated geological objective; if the determination is not available before the application deadline under 15 AAC 55.351(a), it may instead be submitted as a later supplement to the filed application; and(B) for a well other than a well to explore a Cook Inlet prospect, the spud date and bottom hole location of the nearest preexisting well and the distance between the bottom hole location of the exploration well and the bottom hole location of the nearest preexisting well;(8) if the exploration well is within a unit boundary,(A) identification of the unit; and(B) if a plan of exploration or plan of development was in effect for the unit before May 14, 2003, a copy of the plan;(9) for an application for a tax credit requiring qualification under AS 43.55.025(b) and (d), (A) identification of the nearest unit that is under a plan of development; and(B) the distance between the bottom hole location of the exploration well and the outer boundary of the nearest unit that is under a plan of development, as the boundary was delineated on July 1, 2003;(10) a survey plat that graphically identifies all the locations, distances, and dates required to be reported under this subsection;(11) a copy of the Well Completion or Recompletion Report and Log (Form 10-407) for the exploration well filed with the Alaska Oil and Gas Conservation Commission under 20 AAC 25.070, or a copy of a well completion report that is substantially similar to that filing and that is filed with a federal agency; in addition, if the application is for expenditures that qualify under AS 43.55.025(c), the application must include a copy of the Well Completion or Recompletion Report and Log (Form 10-407) for the nearest preexisting well, or the substantially similar federal filing;(12) the written agreements required under AS 43.55.025(f)(2);(13) other information requested by the department, as the department considers necessary for reviewing the application.(c) An application for a tax credit requiring qualification under AS 43.55.025(b) and (e) or under AS 43.55.025(k) for a particular seismic or other geophysical exploration activity must include the following information: (1) the name, permanent contact address, and telephone number of the applicant;(2) if the applicant is a designated joint applicant, under (a)(2) of this section, the name and address of each explorer represented in the application and the percentage of the total qualified exploration expenditures incurred by each explorer;(3) a description of the seismic or other geophysical exploration activities for which the credit is claimed;(4) an accounting of the qualified exploration expenditures for which credit is claimed;(5) the date and location where the seismic or other geophysical activity occurred;(6) a statement verifying (A) that the seismic or other geophysical exploration activities occurred outside of the boundaries of a unit that is under a plan of exploration or a plan of development or, in the case of seismic exploration under AS 43.55.025(k), outside of the boundaries of a production unit; or(B) the percentage of the seismic or other geophysical exploration activities that occurred inside the unit boundary, if a portion of those activities crossed into the boundary of a unit;(7) the written agreements required under AS 43.55.025(f)(2);(8) in the case of seismic exploration under AS 43.55.025(k), a written statement from the Department of Natural Resources that the commissioner of natural resources considers acquiring the seismic exploration data for public distribution to be in the best interest of the state;(9) other information requested by the department, as the department considers necessary for reviewing the application.(d) An applicant under this section shall retain, and make available to the department upon request, all financial and technical source documents and records supporting the credit claimed for an exploration well or seismic or other geophysical exploration activities, including the rig logs, daily drilling logs, and activity logs.(e) If the department determines that all data required to be submitted to the Department of Natural Resources under AS 43.55.025 have been submitted, and, except for a credit under AS 43.55.025(k), after the six-month application period in AS 43.55.025(f) has expired, the department will issue one or more production tax credit certificates for the qualified expenditures allowed under AS 43.55.025. A conditional tax credit certificate issued under AS 43.55.025(q) expires on the date the department denies the application for a production tax credit certificate under AS 43.55.025(f) or the date the department issues the production tax credit certificate under AS 43.55.025(f). The department will issue a conditional tax credit certificate under AS 43.55.025(q) on and after July 1, 2017 for an application for a tax credit certificate under AS 43.55.025(f) for exploration expenditures incurred before July 1, 2017 if (1) the application is submitted to the department on or after July 1 , 2017; or(2) the applicant requests a conditional tax credit certificate for an application submitted before July 1, 2017 and the department has not(A) denied the application; or(B) issued a production tax credit certificate under AS 43.55.025(f). (f) The department may allocate claimed expenditures between exploration and non-exploration activities, and will deny a claimed exploration expenditure that it determines not to be reasonably required or not incurred for qualified exploration activities.(g) This section applies to exploration expenditures for work performed after June 30, 2008 and before July 1, 2016, and to seismic exploration expenditures under AS 43 .55.025(k) for work performed before July 1, 2003, except that exploration expenditures for work conducted outside of the Cook Inlet sedimentary basin and south of 68 degrees North latitude must be incurred for work performed (1) after June 30, 2008 and before January 1, 2022 for a tax credit under AS 43.55.025(a)(1), (2), or (3);(2) after June 30, 2008 and before January 1, 2018 for a tax credit under AS 43.55.025(a)(4); or(3) as provided in (h) of this section.(h)AS 43.55.025(a)(6) exploration expenditures that qualify under AS 43.55.025(m) must be incurred for work performed after June 1, 2012 for a well spudded before July 1, 2017.Eff. 12/25/2009, Register 192; am 3/1/2017, Register 221, April 2017; am 1/1/2018,Register 224, January 2018Authority:AS 43.05.080
AS 43.55.025
AS 43.55.110