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Alaska Administrative Code (Last Updated: January 12, 2017) |
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Title 11. Natural Resources. |
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Part 11.1. Office of the Commissioner. |
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Chapter 11.25. Royalty Election Under Alaska Gasline Inducement Act. |
Section 11.25.060. Monthly value of state's royalty share of qualified gas and reporting.
Latest version.
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(a) The monthly value of the state's royalty share of qualified gas is the destination value of the qualified gas determined under 11 AAC 25.100 - 11 AAC 25.120, with adjustments to value for differences in location and quality as provided under 11 AAC 25.130 - 11 AAC 25.150, and changes in volume caused by pipeline, plant, and tanker in-kind fuel requirements, gains, and losses as provided under 11 AAC 25.090, less (1) transportation costs allowed under 11 AAC 25.160 - 11 AAC 25.220; (2) processing costs allowed under 11 AAC 25.230 - 11 AAC 25.260; (3) LNG plant costs allowed under 11 AAC 25.270; (4) deductions allowed by the 1980 Prudhoe Bay Royalty Settlement Agreement for Prudhoe Bay gas covered by that agreement, except that, consistent with the 1995 ANS Royalty Settlement Agreements, a cost or expense of Prudhoe Bay's Central Gas Facility may not be deducted; and (5) deductions for cleaning and dehydration for qualified gas taken in kind from DL-1 leases not covered by the 1980 Prudhoe Bay Royalty Settlement Agreement, as provided by the superior court in In the Matter of ANS Royalty Litigation, 1JU-77-847 Civil (April 6, 1979); in this paragraph, "DL-1 lease" means an oil and gas lease issued by the state before January 1, 1979 on form DL-1. (b) A lessee must report the monthly value of qualified gas for each lease and destination. For each lease, a lessee shall report (1) the quantity of each component of qualified gas produced from that lease during the royalty reporting period; (2) the quantity and destination value for each component of unprocessed gas delivered to each destination for unprocessed gas; (3) the quantity and destination value for residue gas at each destination for residue gas; (4) the quantity and destination value for each gas plant product at each destination for gas plant products; (5) the quantity and destination value for LNG at each destination for LNG; (6) the allowance for transportation costs allocated to residue gas, gas plant products, unprocessed gas, and LNG for each destination; (7) the allowance for unused capacity deductions allocated to residue gas, gas plant products, unprocessed gas, and LNG for each destination; (8) the allowance for processing costs for gas plant products for each destination; (9) the allowance for LNG plant costs for each LNG plant and each LNG destination; (10) each adjustment to gas quantity to meet the in-kind fuel requirements of a pipeline, plant, or tanker, or to account for pipeline gains and losses, plant gains and losses, or tanker gains and losses, if the adjustment is allowed under 11 AAC 25.090; (11) each quality bank, NGL bank, or similar payment or credit required by 11 AAC 25.150; and (12) deductions under (a)(4) or (5) of this section allocated to residue gas, gas plant products, unprocessed gas, and LNG for each destination. (c) For each lease for which a lessee reports under this chapter, the monthly value of the state's royalty share of each of the following may not be less than zero: (1) residue gas; (2) gas plant products; (3) unprocessed gas; (4) LNG. (d) For purposes of this chapter, a lessee shall report condensate as a gas plant product, except that a processing allowance may not be taken for condensate. (e) In calculating the monthly value of the state's royalty share of qualified gas under this chapter, an expense or allowance may not be deducted more than once, and an adjustment, cost, or deduction other than those set out in this section may not be taken. (f) Unless a provision of this chapter authorizes or requires a different method of allocation, an allocation of costs must be based upon generally accepted accounting principles.
Authorities
38.05.020;38.05.180;43.90.310