Section 15.55.205. Calculation of production tax values for oil and gas produced before July 1, 2007.

	(a)  A producer or, under AS 43.55.160(d), an explorer shall calculate a single production tax value for a calendar year, under AS 43.55.160(a)(1), as the provisions of that paragraph read on June 30, 2007, and for a month, under AS 43.55.160(a)(2), as the provisions of that paragraph read on June 30, 2007, for each segment.  
	(b)  The provision of AS 43.55.160(b) that a production tax value may not be less than zero applies to each production tax value calculated for each segment. Adjusted lease expenditures applicable to a segment that exceed the amount of adjusted lease expenditures that may, under AS 43.55.160(b), be deducted in calculating a production tax value for the segment are considered excess adjusted lease expenditures and, except as otherwise provided under 15 AAC 55.223, may not be reallocated to, or deducted in calculating a production tax value for, a different segment. Excess adjusted lease expenditures relating to the calculation of an annual production tax value, but not a monthly production tax value, may be used to establish a  carried-forward annual loss to the extent allowed under AS 43.55.023(b) and 43.55.160(e).  
	(c)  For purposes of this section,  
		(1) except as otherwise provided under (2) of this subsection, each of the following is a segment for a producer:  
			(A) all oil and gas, if any, taxable under AS 43.55.011(e) that the producer produces from leases or properties in the state that include land north of 68 degrees North latitude;  
			(B) all oil and gas, if any, taxable under AS 43.55.011(e) that the producer produces from leases or properties in the state outside the Cook Inlet sedimentary basin no part of which is north of 68 degrees North latitude;  
			(C) oil, if any, taxable under AS 43.55.011(e) that the producer produces from each lease or property in the Cook Inlet sedimentary basin; for purposes of this paragraph, oil produced from each lease or property constitutes a separate segment;  
			(D) gas, if any, taxable under AS 43.55.011(e) that the producer produces from each lease or property in the Cook Inlet sedimentary basin; for purposes of this paragraph, gas produced from each lease or property constitutes a separate segment;  
		(2) if a producer or explorer does not produce any oil or gas from leases or properties in the  
			(A) state that include land north of 68 degrees North latitude, the area of the state north of 68 degrees North latitude is a segment for the producer or explorer;  
			(B) state outside the Cook Inlet sedimentary basin no part of which is north of 68 degrees North latitude, the area of the state outside the Cook Inlet sedimentary basin and not including any land north of 68 degrees North latitude is a segment for the producer or explorer;  
			(C) Cook Inlet sedimentary basin, the Cook Inlet sedimentary basin is a segment for the producer or explorer.  
	(d)  For leases or properties in the Cook Inlet sedimentary basin that first commenced commercial production of oil or gas before April 1, 2006, unless otherwise approved or required by the department, the producer shall continue to treat as a single lease or property each tract, group of tracts, participating area, or unit that the producer consistently treated, subject to final audit resolution, as a single lease or property for purposes of calculating an economic limit factor under former AS 43.55.013. Production of oil or gas from a lease or property in the Cook Inlet sedimentary basin that first commences commercial production of oil or gas on or after April 1, 2006, and that corresponds to a participating area or unit approved by the Department of Natural Resources under AS 38.05.180, other than a lease or property for which the producer calculated an economic limit factor under former AS 43.55.013, must be treated as production from a distinct lease or property.   
	(e)  This section applies to oil and gas produced before July 1, 2007.  

Authorities

43.05.080;43.55.110;43.55.160;43.55.165

Notes

Reference

15 AAC 55.223
15 AAC 55.275
15 AAC 55.280
15 AAC 55.430
15 AAC 55.800

Authority

AS 43.05.080 AS 43.55.110 AS 43.55.160 AS 43.55.165

History

Eff. 5/3/2007, Register 182; am 10/21/2009, Register 192