Section 15.55.181. Comparison of actual and reasonable costs of transportation for oil and gas produced after June 30, 2007.

	(a)  Except as otherwise provided under (b) of this section, for purposes of determining the lower of actual costs of transportation or reasonable costs of transportation under AS 43.55.150(b), if the department finds under AS 43.55.150(b) that a condition in  
		(1) AS 43.55.150(a)(1) or (2) is present, the actual costs of transporting the producer's oil or gas from the point where the oil or gas is tendered into the transportation facility to the point where the oil or gas is delivered from the facility are compared to the reasonable costs of transporting the producer's oil or gas from the point where the oil or gas is tendered into the transportation facility to the point where the oil or gas is delivered from the facility;  
		(2) AS 43.55.150(a)(3) is present, the actual costs of transporting the producer's oil or gas by the method or under the terms the department finds to be not reasonable are compared to the reasonable costs of transporting the producer's oil or gas for that portion of the transportation of the oil or gas as to which the department finds the method or terms of the actual transportation used are not reasonable.  
	(b)  If different filed tariff rates for intrastate transportation and for interstate transportation apply to the transportation of oil or gas from a given point where that oil or gas is tendered into a regulated transportation facility to a given point where it is delivered from the facility, the comparison of actual costs of transportation and reasonable costs of transportation under (a) of this section is made separately for the intrastate transportation and the interstate transportation of the oil or gas.  
	(c)  For purposes of determining the lower of actual costs of transportation or reasonable costs of transportation under AS 43.55.150(b) in the case of transportation for which actual costs of transportation are determined under 15 AAC 55.193(b)(1) or (5), if the tariff rate has a materially different rate structure or capital recovery profile than the reasonable costs of transportation determined under 15 AAC 55.193(c)(5), the department may allow or require the comparison of actual costs and reasonable costs to be made using comparable rate structures and capital recovery profiles.  
	(d)  For purposes of AS 43.55.150 and this section, a physical pipeline is a single transportation facility regardless of whether multiple carriers own interests in the pipeline, file separate tariffs for transporting oil or gas in the pipeline, or enter into separate contracts with shippers to transport oil or gas in the pipeline.  
	(e)  On or after January 1 of a calendar year during which a producer expects to produce oil or gas for which the producer may be required under AS 43.55.150(b) to calculate the gross value at the point of production of oil or gas using the lower of the actual costs of transportation or the reasonable costs of transportation of the oil or gas, if the reasonable costs of transportation are determined under 15 AAC 55.193(c)(5) or (e) - (j), the producer may request in writing the department's determination of the reasonable costs of transportation. The department will provide the department's determination to the producer no later than the later of July 1 of the calendar year or 180 days after the department receives the producer's request. Regardless of whether the department receives a request under this subsection, the department may at any time determine the reasonable costs of transportation of oil or gas under AS 43.55.150(b).  
	(f)  This section applies to oil and gas produced after June 30, 2007.  

Authorities

43.05.080;43.55.020;43.55.110;43.55.150

Notes

Reference

15 AAC 55.800

Authority

AS 43.05.080 AS 43.55.020 AS 43.55.110 AS 43.55.150

History

Eff. 4/30/2010, Register 194