Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 2 - Net Profit Share Leasing › 11 AAC 83.243 - Direct charges

Current through May 31, 2024
For the purposes of this chapter, direct charges are
(1) lease rentals paid by lessee to the state
				  for the operations of the NPSL, but excluding net profit share payments to the
				  state;
(2) labor, which includes
				  (A) salaries and wages of lessee's employees including supervisors and
				  technical employees such as geologists, geophysicists, engineers, and drilling
				  and construction supervisors directly employed on, or in transit to or from,
				  the NPSL in lease operations, including earned or compensatory time off; and
				  (B) salaries and wages of technical employees including engineers,
				  technologists, draftsmen, engineering clerks, landmen, and other personnel
				  performing technical services within the technical organizations who are either
				  temporarily or permanently assigned to, and directly employed in NPSL
				  operations; charges for these technical personnel must be limited to that
				  portion of the salaries and wages attributable to the time actually devoted to
				  the NPSL operations; these charges may be made on a per diem basis as approved
				  by the parties;
(3) lessee's cost
				  of holiday, vacation, sickness, and disability benefits and other customary
				  allowances paid to the employees whose salaries and wages are chargeable to the
				  appropriate NPSL account under (2) of this section; costs under this paragraph
				  may be charged on a "when and as-paid basis" or by "percentage assessment" on
				  the amount of salaries and wages chargeable to the appropriate NPSL account
				  under this paragraph; if percentage assessment is used, the rate must be based
				  on the lessee's cost experience;
(4) expenditures or contributions made under
				  assessments imposed by governmental authority which are applicable to the
				  lessee's labor cost of salaries and wages chargeable to the appropriate NPSL
				  account under (2) and (3) of this section;
(5) reasonable personal expenses of those
				  employees whose salaries and wages are chargeable to the appropriate NPSL
				  account under (2) and (3) of this section and for which expenses the employees
				  are reimbursed under lessee's usual practice;
(6) the lessee's current costs for
				  established plans for employee group life insurance, hospitalization, pension,
				  retirement, stock purchase, thrift, bonus, and other similar benefit plans,
				  applicable to the lessee's labor costs chargeable to the NPSL account under (2)
				  and (3) of this section, provided that these costs do not exceed the percent
				  most recently recommended by the Council of Petroleum Accountants Societies of
				  North America;
(7) material
				  purchased or furnished by lessee for use on the NPSL as provided under
				  11 AAC 83.244 so far as it is
				  reasonably practical and consistent with efficient and economical operation;
				  however, only such material as may be required for immediate use may be
				  purchased for or transferred to the NPSL, and the accumulation of surplus
				  stocks must be avoided;
(8)
				  transportation of employees and material necessary for operations on the NPSL
				  with the following limitations:
(A) if
				  material is moved to the NPSL from the lessee's warehouse or other properties,
				  no charge may be made to the appropriate NPSL account for a distance greater
				  than the distance from the nearest reliable supply store, recognized barge
				  terminal, railway or air cargo receiving point where like material is normally
				  available, unless that charge is provided for by
				  11 AAC 83.244(3);
(B) if surplus material is moved to lessee's
				  warehouse or other storage point, no charge may be made to the appropriate NPSL
				  account for a distance greater than the distance to the nearest reliable supply
				  store, recognized barge terminal, railway or air cargo receiving point; no
				  charge may be made to the appropriate NPSL account for moving material to other
				  properties belonging to lessee;
(C)
				  however, under (A) and (B) of this paragraph there may be no equalization of
				  actual gross trucking cost of $400 or less, excluding accessorial
				  charges;