Section 15.90.220. Calculation of gas production tax obligation.

	(a)  For purposes of AS 43.90.320, the amount for a calendar year of a producer's gas production tax obligation that is calculated under the gas production tax in effect at the start of the first binding open season held under AS 43.90,  and that applies to production taxes that are levied on North Slope gas produced during the calendar year and transported as described in 15 AAC 90.210(a)(1) - (3) equals TE + TU + TI, as reduced by the application of tax credits under (c) of this section, and  
where  
		(1) TE equals the amount of tax calculated under (b)(4) or (5) of this section, as applicable;  
		(2) TU equals the amount of tax under AS 43.55.011(e) for North Slope gas that is  
			(A) taxable under AS 43.55.011(e);  
			(B) produced by the producer during the calendar year;  
			(C) produced before 2022;  
			(D) transported as described in 15 AAC 90.210(a)(1) - (3); and  
			(E) used in the state;  
		(3) TI equals the amount of tax under AS 43.55.011(i) for North Slope gas  
			(A) that is taxable under AS 43.55.011(i);  
			(B) that is produced by the producer during the calendar year;  
			(C) the ownership or right to which constitutes a landowner's royalty; and  
			(D) that is transported as described in 15 AAC 90.210(a)(1) - (3).  
	(b)  The calculations required to determine TE under (a)(1) of this section are as follows:  
		(1) first, the tax levied by AS 43.55.011(e) is calculated for North Slope oil and North Slope gas produced by the producer during the calendar year, other than gas produced before 2022 and used in the state;  
		(2) second, the applicable minimum amount of tax under AS 43.55.011(f) is calculated for North Slope oil and North Slope gas produced by the producer during the calendar year;  
		(3) third, the amounts calculated under (1) and (2) of this subsection are compared;  
		(4) if the minimum amount of tax calculated under (2) of this subsection exceeds the amount calculated under (1) of this subsection, the applicable percentage under AS 43.55.011(f) is multiplied by the greater of  
			(A) zero; or  
			(B) the gross value at the point of production of the North Slope gas that  
				(i) is taxable under AS 43.55.011(e);  
				(ii) is produced by the producer during the calendar year;  
				(iii) is transported as described in 15 AAC 90.210(a)(1) - (3); and  
				(iv) is not gas produced before 2022 and used in the state;  
		(5) if the minimum amount of tax calculated under (2) of this subsection does not exceed the amount calculated under (1) of this subsection, the amount calculated under (1) of this subsection is multiplied by the fraction: GCG / (GCG + GOG + GVO), where  
			(A) GCG equals the greater of  
				(i) zero; or  
				(ii) the value described in (4)(B) of this subsection;  
			(B) GOG equals the gross value at the point of production of North Slope gas that  
				(i) is taxable under AS 43.55.011(e);  
				(ii) is produced by the producer during the calendar year;  
				(iii) is not transported as described in 15 AAC 90.210(a)(1) - (3); and  
				(iv) is not gas produced before 2022 and used in the state;  
			(C) GVO equals the gross value at the point of production of North Slope oil that  
				(i) is taxable under AS 43.55.011(e); and  
				(ii) is produced by the producer during the calendar year.  
	(c)  A tax credit available to be applied for a calendar year against a tax levied under AS 43.55.011 for North Slope oil and gas or for North Slope gas must be allocated, proportional to the respective gross values at the point of production of the gas or oil, between  
		(1) North Slope gas transported as described in 15 AAC 90.210(a)(1) - (3); and  
		(2) other gas or oil produced from leases or properties in the state against a tax levied under AS 43.55.011 for which the tax credit is also available to be applied.  
	(d)  A calculation under this section is made under the provisions of AS 43.55  as those provisions were in effect at the start of the first binding open season held under AS 43.90.  
	(e)  In this section, "North Slope oil" means oil produced from a lease or property in the state north of 68 degrees North latitude.  

Authorities

43.90.300;43.90.320;43.90.330;43.90.410

Notes

Authority

AS 43.90.300 AS 43.90.320 AS 43.90.330 AS 43.90.410

History

Eff. 4/30/2010, Register 194