reglab/statecodes huggingface dataset:
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 1 - General Oil and Gas Lease Provisions › 11 AAC 83.180 - Default

Current through May 31, 2024
(a) Whenever the lessee of a lease on which
				  there is no well capable of producing oil or gas in paying quantities fails to
				  comply with any provision of the lease or applicable regulations other than the
				  payment of rental and the failure to comply continues for 60 days after receipt
				  of notice to the lessee of the failure to comply, the director may terminate
				  the lease by mailing notice of the termination to the lessee. Termination is
				  effective upon giving the notice.
(b) Whenever the lessee of a lease on which
				  there is a well capable of producing oil or gas in paying quantities fails to
				  comply with any of the provisions of the lease or applicable regulations and
				  the failure continues for a period of 60 days following notice to the lessee of
				  the failure to comply, the lease may be cancelled by judicial proceedings
				  instituted for that purpose in any court of competent jurisdiction having
				  jurisdiction over the land covered by the lease or any part of it.
Authority:
AS
						38.05.020
AS 38.05.035
AS
						38.05.145(a)
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 1 - General Oil and Gas Lease Provisions › 11 AAC 83.182 - Royalty bidding

Current through May 31, 2024
If the commissioner selects a method of bidding in which
					 the royalty share reserved to the state is the bid variable, the commissioner
					 will set a minimum fixed cash bonus in an amount to be announced no later than
					 the date of the notice of sale.
Authority:
AS
						38.05.020
AS
						38.05.180
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 1 - General Oil and Gas Lease Provisions › 11 AAC 83.183 - Sliding scale royalty

Current through May 31, 2024
If the commissioner selects a method of bidding which sets
					 a royalty reserved to the state, either fixed or as the bid variable, based on
					 a sliding scale, the sliding scale will be determined, according to a method
					 chosen at the commissioner's discretion which will be based on volume of
					 production or other factors. The method chosen by the commissioner will
					 consider the prolongation of the economic life of the oil and gas reservoir or
					 reservoirs underlying the sale area or lease to which the sliding scale is to
					 be applied.
Authority:
AS
						38.05.020
AS
						38.05.180
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 1 - General Oil and Gas Lease Provisions › 11 AAC 83.185 - Royalty reduction

Current through May 31, 2024
An application for a reduction of royalty on leases under
					 AS
					 38.05.180(j) must comply
					 with 11 AAC 88.105 and state all the
					 facts entitling the applicant to relief.
Before Register 71, October 1979, the substance of
						11 AAC 83.185 appeared in
						11 AAC 82.665. The history note
						for 11 AAC 83.185 reflects the history
						of the section under the
						11 AAC 82.665 section
						number.
Authority:
AS
						38.05.020(b)
AS
						38.05.145(a)
AS
						38.05.180(j)
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 1 - General Oil and Gas Lease Provisions › 11 AAC 83.190 - Extension by commitment to an approved unit

Current through May 31, 2024
If, on or before the expiration date of the primary term of
					 a lease, the lease is committed to a unit agreement approved by the state, the
					 lease will be extended for so long as it remains subject to the unit
					 agreement.
Authority:
AS
						38.05.020(b)
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 2 - Net Profit Share Leasing › 11 AAC 83.201 - Purpose

Current through May 31, 2024
11 AAC 83.201 -
					 11 AAC 83.295 establish procedures
					 to be used by the lessee in calculating net profit share payments due the state
					 for the production of oil and gas from any state net profit share lease (NPSL)
					 issued by the department. The purpose of
					 11 AAC 83.201 -
					 11 AAC 83.295 is to allow a lessee
					 to recover development costs, with interest, and operating costs, for each NPSL
					 from production revenue for each NPSL before any net profit share payments
					 become due the state from the lessee.
Authority:
AS
						38.05.020
AS
						38.05.180
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 2 - Net Profit Share Leasing › 11 AAC 83.202 - Payment due state

Current through May 31, 2024
The net profit share payment due the state each month under
					 a NPSL equals the balance in the net profit payment account for that month,
					 defined in
					 11 AAC 83.214, multiplied by the
					 net profit share rate, defined in
					 11 AAC 83.204.
Authority:
AS
						38.05.020
AS
						38.05.180
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 2 - Net Profit Share Leasing › 11 AAC 83.204 - Net profit share rate

Current through May 31, 2024
The net profit share rate is the fixed percentage share of
					 the net profit payment account, defined in
					 11 AAC 83.214, payable to the
					 state. The net profit share rate is determined through competitive bidding or
					 by the commissioner as a condition of sale.
Authority:
AS
						38.05.020
AS
						38.05.180
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 2 - Net Profit Share Leasing › 11 AAC 83.207 - Accounting system

Current through May 31, 2024
(a) The lessee of a NPSL shall establish and
				  maintain on a monthly, accrual basis, in addition to its own standard
				  accounting system for itself or joint operators, an accounting system for that
				  NPSL in accordance with
				  11 AAC 83.201 -
				  11 AAC 83.295 for the purpose of
				  the reporting and payment requirements established in
				  11 AAC 83.245. The accounting
				  system consists of three accounts: the development account, the production
				  revenue account and the net profit payment account. These accounts allow a
				  lessee to accumulate and recover development costs under
				  11 AAC 83.219, with interest
				  compounded monthly, and to apply it against the NPSL production revenue account
				  under 11 AAC 83.209 from which direct
				  operating expenses, and royalties under
				  11 AAC 83.240 and
				  11 AAC 83.242, respectively, are
				  deducted before any net profit share payments under
				  11 AAC 83.202 become due to the
				  state from the lessee.
(b) The
				  lessee's books and records relating to the NPSL accounting system and the
				  financial accounting system for itself or joint operators must be available for
				  inspection and copying by representatives and agents of the state during normal
				  business hours.
Authority:
AS
						38.05.020
AS
						38.05.180
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 2 - Net Profit Share Leasing › 11 AAC 83.209 - Production revenue account

Current through May 31, 2024
(a) A NPSL's
				  production revenue account for a month is credited with the production revenue
				  under 11 AAC 83.222 for the NPSL during
				  a month.
(b) For a month during
				  which or after commercial production commences from the NPSL and for which the
				  monthly production tax net revenue under
				  11 AAC 83.241(c)
				  is negative, a NPSL's production revenue account is credited with a net loss
				  credit. For purposes of this subsection, a net loss credit is the following
				  percentage of the negative monthly production tax net revenue: 20 percent if
				  the month is after March 2006 and before July 2007, 25 percent if the month is
				  after June 2007 and before January 2014, or 35 percent if the month is after
				  December 2013. The commissioner may approve a discount to the net loss credit
				  if the lessee shows by clear and convincing evidence that the lessee cannot
				  either
(1) use the negative monthly
				  production tax net revenue to reduce its own production tax liability for the
				  calendar year under AS 43.55; or
(2) realize the full value of the credit by using or selling a tax
				  credit under AS 43.55 based on the negative monthly production tax net
				  revenue.
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 2 - Net Profit Share Leasing › 11 AAC 83.212 - Development account

Current through May 31, 2024
(a) The beginning balance in the development
				  account for a NPSL at the time the NPSL is issued by the state is zero. For
				  each month thereafter the beginning balance in the development account for the
				  NPSL equals the ending balance in that account for the previous
				  month.
(b) The NPSL development
				  account for a month is debited by the amount of the NPSL's development costs
				  under 11 AAC 83.219 during that month
				  less
(1) any exploration incentive credits
				  that are applied against oil and gas royalties payable in value, rental
				  payments to the state, or taxes payable under AS 43.55; and
(2) development account credits calculated
				  under 11 AAC 83.220.
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 2 - Net Profit Share Leasing › 11 AAC 83.214 - Net profit payment account

Current through May 31, 2024
The net profit payment account for a NPSL in any month
					 equals the amount, if any, transferred for that month from the NPSL's
					 development account under
					 11 AAC 83.212(e).
					 Each amount so transferred is a credit in the net profit payment account. If
					 for a month no transfer is made from the NPSL's development account under
					 11 AAC 83.212(e),
					 the balance in the NPSL's net profit payment account for that month is
					 zero.
Authority:
AS
						38.05.020
AS
						38.05.180
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 2 - Net Profit Share Leasing › 11 AAC 83.217 - Exclusions from accounts

Current through May 31, 2024
The following costs will be excluded in determining net
					 profit share payments due the state:
(1) lease acquisition costs in the form of a
				  cash bonus;
(2) expense of
				  handling, investigating and settling litigation or claims against the state,
				  discharging liens held by the state, paying judgments and amounts for
				  settlement of claims against the state incurred in or resulting from a net
				  profit share lease operation or necessary to protect or recover the net profit
				  share lease property;
(3) any
				  franchise tax, value added tax or any tax based on or measured by net income
				  imposed upon the lessee;
(4)
				  expenses incurred in the preparation and audit of a net profit share payment to
				  the state;
(5) any expense incurred
				  before the effective date of the NPSL; and
(6) net profit share payments to the
				  state.
Authority:
AS
						38.05.020
AS
						38.05.180
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 2 - Net Profit Share Leasing › 11 AAC 83.219 - Development costs

Current through May 31, 2024
(a) The development costs that are incurred
				  by or for a lessee for a NPSL are a debit to the lessee's NPSL development
				  account.
(b) The lessee's
				  development costs for a NPSL equal direct charges, as defined in
				  11 AAC 83.243, that are not
				  excluded under
				  11 AAC 83.217 and that are
				  directly attributable to a NPSL for
(1)
				  geological, geophysical, geotechnical and geochemical examinations and other
				  investigations on or adjacent to the NPSL relating to pre and post drilling
				  operations on the NPSL;
(2) cost of
				  design of construction projects, as defined in the approved "Plan of
				  Operation";
(3) accumulated cost of
				  capital work in progress, on or adjacent to the NPSL or on a contractor's
				  premises;
(4) rentals and other
				  payments directly attributable to the NPSL such as lease rental, licenses or
				  permits, renewal or extension fees, and other similar payments required and
				  made to maintain the interest of the lessee in the NPSL;
(5) drilling costs for wells bottomed on the
				  NPSL;
(6) costs to acquire,
				  construct and/or install facilities and equipment on or in support of the NPSL
				  that directly result in or are necessary for continued or enhanced production
				  from the NPSL;
(7) that portion of
				  the full consideration given by the lessee in acquiring a production interest
				  in the NPSL that is properly attributable to the wells, facilities and
				  equipment on or in support of the NPSL which directly result in or are
				  necessary for continued or enhanced production from the NPSL, as opposed to the
				  consideration given for the lease itself; the lessee transferring the
				  production interest must credit his development account for a like
				  amount;
(8) before the commencement
				  of commercial production, ad valorem tax paid to the state (net of all credits
				  and refunds for municipal ad valorem taxes on the same property) for property
				  used in the drilling described in (5) of this subsection or for property
				  described in (6) of this subsection, that is installed or constructed before
				  the commencement of commercial production and ad valorem and other taxes paid
				  to one or more municipalities that were incurred directly as the result of, and
				  in the course of, the drilling described in (5) of this subsection and/or the
				  acquisition, installation or construction of property described in (6) of this
				  subsection before the commencement of commercial production but excluding any
				  windfall profits, franchise or income taxes.
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 2 - Net Profit Share Leasing › 11 AAC 83.220 - Development account credits

Current through May 31, 2024
(a) For purposes of
				  (b) and (c) of this section, a lessee's qualified development costs are
				  development costs as defined in
				  11 AAC 83.219 less
(1) general overhead and administrative
				  expense;
(2) ad valorem
				  tax;
(3) lease rentals;
(4) capital access fees for use of a
				  production facility in existence before the commencement of commercial
				  production from the NPSL; and
(5)
				  the product of $.30 multiplied by the amount of the lessee's working interest
				  Btu-equivalents of oil and gas produced during the month, including any
				  overriding royalty share of oil and gas but not including the state's royalty
				  share of oil or gas.
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 2 - Net Profit Share Leasing › 11 AAC 83.222 - Production revenue

Current through May 31, 2024
A lessee's production revenue during a month from each NPSL
					 is
(1) the value at the point of
				  production of the lessee's gross share of the oil and gas produced from that
				  lease; however, oil or gas that is used, flared or unavoidably lost in the
				  production operations for the NPSL or that is injected into a reservoir in the
				  course of the operations for the same field for purposes of repressuring or
				  conservation, (if any) may not be included in determining the lessee's
				  production revenue from that NPSL; and
(2) all extraordinary production revenue or
				  loss as defined in
				  11 AAC 83.231.
Authority:
AS
						38.05.020
AS
						38.05.180
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 2 - Net Profit Share Leasing › 11 AAC 83.223 - Unitization

Current through May 31, 2024
If all or part of a NPSL is included within a participating
					 area of a unit, a cooperative drilling agreement, or other similar arrangement,
					 such that production (in kind or in value) or expenses are attributed to the
					 NPSL for activities of the unit, any formula or method of allocation governing
					 the attribution of that production or expenses must be approved by the
					 commissioner before it may take effect, unless that formula or other method of
					 allocation is imposed and mandated by the Oil and Gas Conservation Commission
					 under AS 31.
Authority:
AS
						38.05.020
AS
						38.05.180
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 2 - Net Profit Share Leasing › 11 AAC 83.224 - Valuation of oil or gas

Current through May 31, 2024
(a) Except as
				  provided in (e) of this section, this section applies to all oil and gas
				  produced on a NPSL whether or not the oil or gas is removed from the
				  NPSL.
(b) Except when (c) of this
				  section applies, the gross value at the point of production for all oil and gas
				  is the sales price under
				  11 AAC 83.226 less the reasonable
				  costs of transportation under
				  11 AAC 83.228 and
				  11 AAC 83.229 from the point of
				  production to the sales delivery point. When (c) of this section applies, the
				  gross value at the point of production is the prevailing value as determined
				  under 11 AAC 83.227 less the reasonable
				  costs of transportation under
				  11 AAC 83.228 and
				  11 AAC 83.229 from the point of
				  production to the sales delivery point.
(c) Prevailing value must be used if the oil
				  or gas is sold or exchanged under circumstances where the sales price is
				  substantially lower than the prevailing value for oil or gas of like kind,
				  character and quality being sold at sales delivery points in the same market or
				  in a comparable market if there are no sales of significant quantities in the
				  same market; for the purposes of this subsection
(1) "circumstances" refers to instances where
				  terms of a contract set a single price for oil or gas without adjustments tied
				  to market conditions for periods of longer than six years, or where the terms
				  of a contract set prices which do not reasonably reflect market conditions for
				  that field or area prevailing at the time the contract is executed or
				  renegotiated, or where fraud or an intent to evade the net profit share payment
				  is demonstrated; and
(2) the
				  determination of a "substantially lower" price is to be made by analyzing the
				  cash value of consideration received for oil or gas and taking into account any
				  asserted difference between sales price and prevailing value, the quantity of
				  oil or gas involved in the transaction, and the duration of the contract giving
				  rise to the claim.
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 2 - Net Profit Share Leasing › 11 AAC 83.226 - Sales price

Current through May 31, 2024
(a) Sales price under this chapter for the
				  first bona fide, arm's length sales to a third party is the cash value of the
				  full consideration given in receipt for the lessee's oil or gas sold.
(b) Sales price under this chapter for all
				  transactions other than those set forth in (a) of this section is the greater
				  of
(1) the cash value of the full
				  consideration given in receipt for the lessee's oil or gas used, exchanged, or
				  otherwise transferred to another party; or
(2) the sales price attributable to that
				  transaction entered on a lessee's books in accordance with the generally
				  accepted accounting principles, consistently applied.
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 2 - Net Profit Share Leasing › 11 AAC 83.227 - Prevailing value

Current through May 31, 2024
(a) For a lessee's oil, the prevailing value
				  is the arithmetic average acquisition cost CIF (at the refinery inlet in the
				  same market in which the lessee's Alaska oil is refined) based on the sales
				  price of like oil sold in up to three third-party, arm's-length transactions
				  selected by the department, if disclosure of the sales price information is
				  permitted by the parties to those transactions at the time of an audit of the
				  lessee. In this subsection, "like oil" means an oil of substantially similar
				  quality produced in the same general area of the state and subject to the same
				  federal price controls, if any, as the oil for which the prevailing value is to
				  be determined.
(b) If the
				  information under (a) of this section may not be disclosed or is unavailable,
				  then the prevailing value for purposes of this chapter equals the arithmetic
				  average acquisition cost CIF, (at the refinery inlet in the same market in
				  which the lessee's Alaska oil is refined) of up to six oils selected by the
				  department, including
(1) up to three domestic
				  oils of substantially similar quality which are sold in significant quantities
				  in the same market or near the same market; and
(2) up to three imported oils of
				  substantially similar quality which are sold in significant quantities in the
				  same market or near the same market.
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 2 - Net Profit Share Leasing › 11 AAC 83.228 - Choice of methods for determining reasonable costs of transportation

Current through May 31, 2024
(a)
				  Except as provided in (b) of this section, the reasonable cost of
				  transportation is the actual cost of transportation as determined in
				  11 AAC 83.229.
(b) The reasonable cost of transportation is
				  the fair market value as defined in
				  11 AAC 83.229, when 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.
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 2 - Net Profit Share Leasing › 11 AAC 83.229 - Calculation of reasonable costs of transportation

Current through May 31, 2024
(a) Reasonable
				  costs of transportation shall be calculated from the point of production to the
				  sales delivery point.
(b)
				  Reasonable costs of transportation under
				  11 AAC 83.228(a)
				  are actual costs of transportation. The actual costs of transportation are
(1) in the case of transportation of oil or
				  gas by a regulated carrier, the tariff on file with the FERC or other
				  regulatory agency having jurisdiction that is applicable to that transportation
				  of the oil or gas by the carrier, from the point where that oil or gas is
				  tendered into the facilities of the carrier to the point where it is delivered
				  from the facilities of the carrier;
(2) in the case of transportation of oil by a
				  tanker or other vessel that is not owned or effectively owned by the lessee
(A) for a single voyage charter, the
				  reasonable cost for that transportation is, for purposes of this chapter, the
				  charter fee for that vessel, plus any voyage and port costs not included in
				  that fee that are incurred with respect to that transportation during the term
				  of the charter and that are borne by the lessee plus the positioning cost, if
				  any, borne by the lessee for that vessel;
(B) for a consecutive voyage charter or a
				  time charter, the reasonable cost for that transportation is, for purposes of
				  this chapter, the charter fee for that vessel, plus any voyage and port costs
				  not included in that fee that are incurred with respect to that transportation
				  during the term of the charter and that are borne by the lessee, plus the
				  positioning cost (amortized over the lesser of 36 months or the term of the
				  charter in the case of a time charter, and amortized on the basis of the number
				  of voyages in the case of a consecutive voyage charter), if any, borne by the
				  lessee for that vessel;
(C) for a
				  contract of affreightment, the reasonable cost for that transportation is, for
				  purposes of this chapter, the affreightment fee specified in that contract,
				  plus any voyage and port costs and any positioning costs not included in that
				  fee that are incurred with respect to that transportation during the term of
				  the contract of affreightment and that are borne by the lessee.
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 2 - Net Profit Share Leasing › 11 AAC 83.231 - Extraordinary production revenue or loss

Current through May 31, 2024
(a) A lessee's
				  extraordinary production revenue or loss for a lease under (b) or (c) of this
				  section is fully recognized for purposes of this chapter in the month in which
				  it is realized. Multiple realizations of extraordinary production revenue or
				  loss by a lessee during a single month are cumulative, with revenues added to
				  revenues and losses to losses, and with revenues and losses offset against each
				  other.
(b) A retroactive decrease
				  or increase in the tariff or fee allowed to be charged by a regulated carrier
				  for transporting a lessee's oil and gas produced from the lease results in
				  extraordinary production revenue or loss, respectively, for that NPSL, which is
				  realized for purposes of this chapter at the time the retroactive change takes
				  effect.
(c) A retroactive increase
				  or decrease in the sales price in a bona fide, arm's-length sale of a lessee's
				  oil and gas produced from the lease results in extraordinary production revenue
				  or loss, respectively, for that lessee, which is realized for purposes of this
				  chapter at the time the retroactive change takes effect.
(d) The amount of a lessee's extraordinary
				  production revenue or loss under (b) or (c) of this section for the NPSL is the
				  amount of the increase or decrease, respectively, in the value at the point of
				  production for the lessee's oil and gas from that lease to which the
				  retroactive tariff change or change in sales price applies, offset by any
				  corresponding increase or decrease in costs or expenses under
				  11 AAC 83.219 -
				  11 AAC 83.242 that change as the
				  result of changing the value at the point of production for that oil and
				  gas.
Authority:
AS
						38.05.020
AS
						38.05.180
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 2 - Net Profit Share Leasing › 11 AAC 83.232 - Development account and production revenue account - In general

Current through May 31, 2024
(a)
				  Unless otherwise specified, a lessee's costs under this chapter are regarded as
				  being incurred on an accrual basis.
(b) When a lessee incurs costs under this
				  chapter and part or all of those costs are reimbursable to the lessee from one
				  or more third parties, only the unreimbursed portion of those costs of the
				  lessee may be used in calculating that debit.
Authority:
AS
						38.05.020
AS
						38.05.180
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 2 - Net Profit Share Leasing › 11 AAC 83.235 - Redetermination of volume allocations

Current through May 31, 2024
A retroactive redetermination of the quantity of oil or gas
					 previously allocated to a NPSL or to a NPSL lessee's working interest
					 ownership, including a retroactive redetermination of royalty or overriding
					 royalty volumes, is not an extraordinary production revenue or loss under
					 11 AAC 83.231. When the quantity
					 of oil or gas previously allocated to a NPSL or to a NPSL lessee's working
					 interest ownership is retroactively redetermined due to a retroactive change
					 approved by the commissioner in volumetric tract production allocation factors
					 or due to the correction of a volumetric error, all revenues, costs, and
					 expenses previously determined by volumetric tract production allocation
					 factors, including interest on the development account, must be retroactively
					 restated for the development account, the production revenue account, and the
					 net profit payment account in accordance with that quantity redetermination.
					 Expenditures previously allocated to a NPSL on a reasonable basis other than
					 volumetric tract production factors are not required to be restated
					 retroactively.
Authority:
AS
						38.05.020
AS
						38.05.180
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 2 - Net Profit Share Leasing › 11 AAC 83.240 - Direct operating costs

Current through May 31, 2024
(a) The direct operating costs during a month
				  that are incurred by or for a lessee for the NPSL are a debit to the production
				  revenue account.
(b) After
				  commencement of commercial production from the NPSL, the direct operating costs
				  for that NPSL are
(1) the direct charges under
				  11 AAC 83.243 that are not
				  excluded under
				  11 AAC 83.217, that have not been
				  charged as a development cost under
				  11 AAC 83.219, and that are
				  incurred for the operation of the wells and equipment on or in support of the
				  NPSL which directly result in or are necessary for continued production from
				  the NPSL;
(2) general overhead and
				  administrative expenses in the manner and amount provided in (d) of this
				  section;
(3) abandonment costs in
				  the manner and amount provided in (e) of this section;
(4) the amount of
(A) liability for taxes imposed on the value
				  of production or on sales from the NPSL that are incurred by, or on behalf of,
				  a lessee for a month before April 2006;
(B) the production tax lease allowance
				  calculated for the NPSL under
				  11 AAC 83.241 for a month after
				  March 2006;
(5) the
				  amount of tax paid during a month to the state (net of credits or refunds made
				  that month for municipal ad valorem taxes on the same properties) and the total
				  amount paid that month for municipal ad valorem taxes which are based on the
				  value of a lessee's properties used directly in the production, gathering,
				  treatment, or preparation for pipeline shipment of oil and gas from a NPSL that
				  is in commercial production before those payments to the state or any
				  municipality are made.
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 2 - Net Profit Share Leasing › 11 AAC 83.241 - Production tax lease allowance

Current through May 31, 2024
(a) The production
				  tax lease allowance for purposes of
				  11 AAC 83.240(b)
				  is the greater of zero or the amount calculated by subtracting the tax credit,
				  if any, under (b) of this section from the production tax before credits. The
				  production tax before credits is the greater of the following two amounts:
(1) the sum of either (A) or (B) of this
				  paragraph, depending on the month of production, and (C) of this paragraph.
(A) For a month before September 2017, the
				  monthly production tax net revenue under (c) of this section multiplied by the
				  net profit deductibility factor under (e) of this section multiplied by
(i) 22.5 percent, for a month before July
				  2007;
(ii) 25 percent, for a month
				  after June 2007 and before January 2014; or
(iii) 35 percent, for a month after December
				  2013 and before September 2017; or
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 2 - Net Profit Share Leasing › 11 AAC 83.242 - Royalty

Current through May 31, 2024
(a) The amount of royalty in value to the
				  state, if any, for each NPSL that is accrued during a month by or for a lessee,
				  including a shut-in or minimum royalty, is a debit to the lessee's production
				  revenue account.
(b) The value at
				  the point of production (determined on the basis of the value at the point of
				  production for the lessee's production interest at the time the royalty is
				  delivered) of royalty to the state for a NPSL that is delivered in kind by or
				  for a lessee during a month is a debit to the lessee's production revenue
				  account.
(c) For purposes of this
				  section, "royalty" does not include the lessee's net profit share payment due
				  the state.
Authority:
AS
						38.05.020
AS
						38.05.180
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 2 - Net Profit Share Leasing › 11 AAC 83.245 - Reporting and payment requirements

Current through May 31, 2024
(a) Repealed
				  2/13/2010.
(b) Each lessee shall
				  file NPSL reports, including supporting documentation as required, on forms
				  prescribed by the department, together with the appropriate payment, if any,
				  due the state on each NPSL, not later than 60 days following the end of each
				  month. If the due date falls on a Saturday, Sunday, or state or federal
				  holiday, the NPSL reports are due on the next business day. If two or more
				  lessees hold a working interest in the same NPSL, they may, with the consent of
				  the commissioner, appoint a designated operator of that NPSL to be responsible
				  for the reporting requirements in this subsection before commercial production
				  commences. The NPSL reports must contain the following information:
(1) the volume and dispositions of all oil
				  and gas production saved, removed, or sold for the production period;
(2) the value of oil or gas removed or
				  sold;
(3) the amount and
				  description of items in the NPSL accounts as defined in
				  11 AAC 83.209,
				  11 AAC 83.212, and
				  11 AAC 83.214, and the balance of
				  the accounts for the month;
(4) the
				  monthly profit share of the lessee and the monthly net profit payment due the
				  state; and
(5) the calculations
				  required under
				  11 AAC 83.220 and
				  11 AAC 83.241.
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 2 - Net Profit Share Leasing › 11 AAC 83.246 - Waiver of administrative fee

Current through May 31, 2024
(a) The
				  commissioner may waive an administrative fee under
				  11 AAC 83.245(h)
				  if a lessee provides sufficient facts to establish a reasonable cause for a
				  delayed or incomplete NPSL report, failure to pay NPSL payments when due, or
				  failure to submit revisions.
(b) A
				  lessee must apply for a waiver of an administrative fee by filing a written
				  statement of facts to establish reasonable cause for noncompliance. The lessee
				  must file the statement with the division not later than 10 days after the
				  division notifies the lessee that an administrative fee is due under
				  11 AAC 83.245(h).
(c) Circumstances that may constitute
				  reasonable cause are limited to
(1) a war,
				  riot, rebellion, act of God, or other disaster that made compliance
				  impossible;
(2) acts or omissions
				  by a third party that were beyond the control of the lessee, and that made
				  noncompliance unavoidable;
(3) the
				  taking by the lessee, in good faith, of all steps and precautions reasonably
				  necessary to ensure compliance.
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 2 - Net Profit Share Leasing › 11 AAC 83.247 - Redetermination

Current through May 31, 2024
(a) If, as a result of an inspection of
				  records under
				  11 AAC 83.245(e)
				  or an audit under
				  11 AAC 83.245(f),
				  the commissioner determines that (1) the method of allocating costs and
				  production to a NPSL within a unit is improper, (2) there is an error or an
				  improper cost claimed in a net profit share lease account, or (3) there is an
				  error in the net profit share payment due the state, the commissioner will
				  redetermine the net profit, recalculate the net profit share payment due the
				  state, and notify the lessee of the redetermination.
(b) In the event of an underpayment, the
				  lessee shall pay any additional amount of net profit share payment due the
				  state plus interest at a variable rate per year equal to the prime rate
				  prevailing during the month of the underpayment, as announced from time to time
				  by the Bank of America, San Francisco, California, plus 1.25 percent a year. In
				  the event of an overpayment, the state will return the overage to the lessee
				  plus interest at a variable rate per year equal to the prime rate prevailing
				  during the month of the overpayment, as announced from time to time by the Bank
				  of America, San Francisco, California, plus 1.25 percent a year, or the lessee
				  may claim a credit in the same amount to be applied to the next profit share
				  payment.
Authority:
AS
						38.05.020
AS
						38.05.180
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 2 - Net Profit Share Leasing › 11 AAC 83.250 - Lessee protests

Current through May 31, 2024
(a) A lessee who disagrees with and wishes to
				  protest the commissioner's redetermination issued under
				  11 AAC 83.247, shall file a
				  written protest with the department. To preserve the lessee's rights and to
				  receive consideration by the department, this written protest must
(1) be filed within 60 days after the date of
				  the department's notice of redetermination with which the lessee disagrees or
				  is aggrieved;
(2) be mailed,
				  electronically mailed, or personally de livered to: Office of the Commissioner,
				  Alaska Department of Natural Resources, 550 W. 7th
				  Avenue, Suite 1400, Anchorage, AK 99501, or DNRappeals@alaska.gov.
(3) state what action by the department it is
				  that the lessee is protesting and what relief the lessee seeks;
(4) state the grounds for the lessee's
				  protest, including the facts (if any) at issue, the legal authority (statutes,
				  regulations and case law), and any generally accepted accounting principles
				  that support the lessee's protest;
(5) state whether the lessee wants an
				  informal conference or waives its right to an informal conference in favor of a
				  formal hearing.
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 2 - Net Profit Share Leasing › 11 AAC 83.252 - Informal conferences

Current through May 31, 2024
(a) Upon receipt of the lessee's written
				  protest, the department will designate a conference officer who will promptly
				  schedule the informal conference with the lessee. A lessee wishing to present
				  facts and financial information regarding its NPSL in support of its position
				  must bring all pertinent books, records and other documents to the conference
				  or must make them readily available for examination by the conference officer.
				  The conference officer may copy any of the books, records and other documents
				  brought to the conference or made available for the conference officer's
				  examination.
(b) A lessee whose
				  protest turns solely on one or more findings of material fact and who has
				  waived its right to an informal conference in favor of a formal hearing, may be
				  required to attend an informal conference prior to going to a formal hearing if
				  the department believes the disagreement over material facts can be resolved at
				  the conference level.
(c) After
				  considering the facts, financial information and arguments presented by the
				  lessee at the informal conference, the officer will make a recommendation. The
				  conference officer is not authorized to compromise or waive the net profit
				  share payment that is protested by the lessee; however, upon a conference
				  officer's recommendation that a correction of the department's original action
				  is warranted, the department will make the recommended correction and promptly
				  notify the lessee in writing of the correction.
(d) A lessee dissatisfied with the conference
				  officer's recommendation and wishing to continue its protest in the matter,
				  shall, within 30 days after the date of the department's notice of its action
				  on the conference officer's recommendation, file a written request for a formal
				  hearing before the department. Failure to file a timely request waives the
				  lessee's right to further consideration of its protest before the
				  department.
(e) A conference
				  officer's recommendation is not a final administrative determination of the
				  lessee's protest by the department.
Authority:
AS
						38.05.020
AS
						38.05.180
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 2 - Net Profit Share Leasing › 11 AAC 83.255 - Formal hearings

Current through May 31, 2024
(a) The department will hold a formal hearing
				  for a lessee
(1) when the lessee files a
				  timely protest fulfilling the requirements of
				  11 AAC 83.250(a) and (b), waiving the right to an informal
				  conference in favor of a formal hearing;
(2) when the lessee files a request for a
				  formal hearing within 30 days after the date of the conference officer's
				  recommendation regarding that lessee's protest, if the request for a formal
				  hearing fulfills the requirements of (b) of this section; or
(3) when, under the facts and circumstances
				  of a particular case, it appears appropriate to the department to conduct a
				  formal hearing.
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 2 - Net Profit Share Leasing › 11 AAC 83.257 - Appeals

Current through May 31, 2024
A lessee disagreeing with the decision of the department
					 under 11 AAC 83.255 may appeal the
					 decision to a court having jurisdiction to hear such appeals as provided in
					 AS
					 44.62.560 and
					 AS
					 44.62.570.
Authority:
AS
						38.05.020
AS
						38.05.180
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 2 - Net Profit Share Leasing › 11 AAC 83.290 - Retroactive application of regulations

Current through May 31, 2024
(a) Except as
				  otherwise as provided, the following provisions apply retroactively to April 1,
				  2006:
(1)11 AAC 83.209(b);
(2)11 AAC 83.212(b)(2);
(3)11 AAC 83.220;
(4)11 AAC 83.240(b)(4)(B);
(5)11 AAC 83.241(a)
				  - (e) except as amended effective August 10, 2017;
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 3 - Unitization › 11 AAC 83.301 - Purpose

Current through May 31, 2024
(a)11 AAC 83.301 -
				  11 AAC 83.395 establish standards
				  and procedures governing the submission of applications to the commissioner and
				  criteria for approval of unit agreements for state oil and gas leases, and
				  standards to be followed by a state lessee in conducting lease operations under
				  an oil and gas unit agreement approved by the commissioner.
(b)11 AAC 83.301 -
				  11 AAC 83.395 apply to an existing
				  oil and gas lease or approved unit agreement where not inconsistent with the
				  lease or unit agreement or regulations in effect on the effective date of the
				  lease or unit agreement.
Authority:
AS
						38.05.020
AS 38.05.145
AS
						38.05.180
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 3 - Unitization › 11 AAC 83.303 - Criteria

Current through May 31, 2024
(a) The commissioner will approve a proposed
				  unit agreement for state oil and gas leases if he makes a written finding that
				  the agreement is necessary or advisable to protect the public interest
				  considering the provisions of
				  AS
				  38.05.180(p) and this
				  section. The commissioner will approve a proposed unit agreement upon a written
				  finding that it will
(1) promote conservation
				  of all natural resources, including all or part of an oil or gas pool, field,
				  or like area;
(2) promote the
				  prevention of economic and physical waste; and
(3) provide for the protection of all parties
				  of interest, including the state.
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 3 - Unitization › 11 AAC 83.306 - Application for unit approval

Current through May 31, 2024
Any person owning an interest in a lease which is proposed
					 to be committed to a unit which would include a state oil and gas lease may
					 propose a unit agreement by applying to the commissioner for approval of the
					 agreement. The following items constitute a complete application for
					 approval:
(1) the unit agreement,
				  including exhibits required under
				  11 AAC 83.341 or
				  11 AAC 83.343, executed by the
				  proper parties;
(2) the unit
				  operating agreement executed by the working-interest owners, which is submitted
				  for information only and does not require the commissioner's approval for
				  adoption or amendment;
(3) evidence
				  of reasonable effort made to obtain joinder of any proper party who has refused
				  to join the unit agreement;
(4) all
				  pertinent geological, geophysical, engineering, and well data, and
				  interpretations of those data, directly supporting the application;
(5) an explanation of proposed modifications,
				  if any, of the standard state unit agreement form; and
(6) the application fee prescribed by 11 AAC 05.110.
Authority:
AS
						38.05.020
AS 38.05.035
AS 38.05.145
AS
						38.05.180