The state will take its royalty gas in the form of gas rather than the value of the gas. The rate will be at the rate negotiated by the state when it sold the leases that produce the gas.

In place of the current production tax, the state will take 7.25 percent of the non-royalty gas in the form of gas rather than the value of the tax gas.

In total then the state will receive about 19.7 percent of the gas going into the pipeline, and will be responsible for selling this gas. That percentage will fluctuate as new fields come into production.

The producers will pay the state an upstream facilities payment that is based on both an oil payment and a gas payment. This payment will be in lieu of the current property tax. The payment is assessed on all barrels of hydrocarbon liquids and varies from field to field but averages approximately $0.50 per barrel for all current and future hydrocarbon liquid production. The assessment is adjusted annually for CPI measured inflation. The gas production facilities payment will be equal to $.021 per mcf escalated at 80 percent of CPI inflation.

There will be a midstream facilities (mainline and gas treatment plant) payment equal to $0.024 per mmbtu for gas entering the mainline; a $0.01 per mmbtu payment for gas flowing from the GTP into the mainline, and a payment of $0.0003 per mcf per mile for gas transported to the mainline.

Payments to political subdivision to replace property and other taxes will be made in proportion to the relative amount of the asset within their borders proportionate to their mill rate compared to 20 mills (current state-wide petroleum tax levy and municipality cap).

Municipal Impact Payments of $125 million will be paid to the state and affected municipalities over a period of six years.

The existing state corporate income tax, with minor exceptions, will be locked in for the duration of the fiscal contract.

The state will pay an upstream cost allowance of $.224 per mcf for cleaning and dehydrating and compressing the gas and transporting it to the Gas Treatment Plant. This allowance will be adjusted for CPI inflation.

The fiscal terms are set beginning with the contract's effective date until 35 years after the first flow of gas except for the provisions relating to the PPT, Ad Valorem taxes and SCIT (oil). In those cases, the initial term is 30 years from the contract's effective date with possible extensions. The term may be extended due to force majeure interruptions, but cannot exceed 45 years