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Alert Juneau Tax Division Office Mailing Address Update 

All mail sent to the Tax Division office in Juneau through the U.S. Postal Service must be addressed to P.O. Box 110420, Juneau, AK 99811. Beginning Oct. 1, the Post Office will not deliver mail to the division’s Willoughby Avenue address, and the mail will be returned to the sender. In those cases, tax returns and payments may miss their filing deadline. This change does not affect the Anchorage Tax Division office.

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Oil Conservation Surcharges
2017 Annual Report

Oil Conservation Surcharges Reports

AS 43.55.201 – 300


Conservation surcharges apply to all oil production in Alaska and are in addition to oil and gas production taxes. Surcharges apply to each barrel of oil produced in the state less any oil the ownership or right to which is exempt from taxation.

Rate and Disposition of Revenue

Each taxable barrel (bbl) of oil is subject to the following two surcharges:

  • Conservation surcharge (AS 43.55.201) of $0.01 per barrel. Revenue derived from this surcharge may be appropriated to the response account in the oil and hazardous substance release prevention and response fund. The surcharge is suspended when the balance of the fund is over $50 million per AS 43.55.221.

  • Additional conservation surcharge (AS 43.55.300) or $0.04 per barrel. Revenue derived from this additional surcharge may be appropriated to the oil and hazardous substance release prevention account in the oil and hazardous substance release prevention and response fund.


1989 – Following the grounding of the Exxon Valdez, this tax was enacted in order to provide a hazardous substance release emergency fund. A $0.05/bbl hazardous release surcharge is imposed on oil production until the newly created hazardous substance release fund achieves a balance of $50 million.

1994 – The hazardous release surcharge is modified to the so-called “split nickel” with an ongoing charge of $0.03/bbl and an additional charge of $0.02/bbl whenever the hazardous substance release fund balance falls below $50 million.

2006 – The Alaska Legislature set the conservation surcharge rate at $0.01/bbl and the additional conservation surcharge rate at $0.04/bbl.

Fiscal Year 2017 Statistics*

*The oil conservation surcharge is reported on the same return and by the same taxpayers as Alaska’s oil and gas production tax (AS 43.55). The Department of Revenue’s Tax Division has not segregated program cost and staffing related to each individual tax. The division reports the total production tax cost and staffing in the Oil and Gas Production Tax section.

See Oil & Gas Production for Oil Conservation Surcharges data.

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