Section 15.55.180. Choice of methods for determining reasonable cost of transportation for oil and gas produced before July 1, 2007.

	(a)  Except as provided in (b) of this section, the reasonable cost of transportation is the actual cost of transportation as determined in 15 AAC 55.191(a) and (b), if the actual costs incurred are ordinary and necessary transportation expenses.  
	(b)  The reasonable cost of transportation is the fair market value as defined in 15 AAC 55.191(h) if all of the following conditions exist:  
		(1) the parties to the transportation of oil or gas are affiliated;  
		(2) the contract for the transportation of oil or gas is not an arm's-length transaction or is not representative of the market value of the transportation; and  
		(3) the method of transportation of oil or gas is not reasonable in view of existing alternative methods of transportation.  
	(c)  This section applies to oil and gas produced before July 1, 2007.  

Authorities

43.05.080;43.55.020;43.55.110;43.55.150

Notes

Reference

15 AAC 55.151
15 AAC 55.191

Authority

AS 43.05.080 AS 43.55.020 AS 43.55.110 AS 43.55.150

History

Eff. 1/6/80, Register 73; am 1/1/95, Register 132; am 1/1/2000, Register 152; am 4/30/2010, Register 194