I agree-and Just look at this tax structure...

 "at a $50 per barrel taxable value, SB 21 assigns a 35 percent base tax rate, or $17.50 per barrel. Subtract the $8 per barrel “progressivity credit,” when production tax value (PTV or cash flow) is less than $80/barrel, and the resulting production tax is 19 percent. The SB21 production tax on “new” oil at this PTV is reduced another $5 per barrel to a production tax of only 9 percent. In addition, the Gross Value Reduction of 20 percent applied before calculating the production tax on “new oil” reduces the production tax to only $1 per barrel or 2 percent." 

When this was discussed in the House, no one knew why the $8 "progressivity" credit was added.

"New" oil is given away basically for free and oil cos demanded secrecy on how much new oil they take.  And there are no meters, cause it's 'too hard and too expensive'
http://www.adn.com/energy/article/public-comment-alaska-oil-tax-cut-conoco-wants-secrecy-new-oil-incentive/2013/09/03/