Alaska Administrative Code › Title 15 - Revenue › Chapter 55 - Oil and Gas Production Tax and Oil Surcharge › Article 2 - Production Tax Value of Oil and Gas › 15 AAC 55.280 - Adjustments to lease expenditures

Current through May 31, 2024
(a) In adjusting a
				producer's or explorer's lease expenditures for the receipt of a payment or
				credit for the sale or other transfer of an asset under
				AS
				43.55.170(a)(3)(A), if the
				acquisition cost of the asset was incurred during a calendar year for which a
				portion of the producer's or explorer's expenditures was excluded under
				AS
				43.55.165(e)(18) and
				15 AAC 55.275, the amount required to be subtracted from the
				producer's or explorer's lease expenditures under
				AS
				43.55.170(a) is reduced by a
				fraction of the payment or credit received for the sale or transfer of the
				asset as provided in this section. That fraction is equal to the quotient of
				(1) the total of the excluded portions of the producer's or explorer's
				expenditures described in this section for all segments in the state under
				15 AAC 55.206, as applicable, divided by (2) the sum of
				the (A) producer's or explorer's qualified capital expenditures incurred with
				respect to all segments in the state during the calendar year or portion of the
				calendar year for which that excluded portion was excluded, plus (B) the amount
				described in (1) of this subsection.
(b) A fee or other consideration received by
				a producer or by an operator acting for the producer in connection with a
				person's use of a production facility in which the producer has an ownership
				interest or in connection with the producer's management of a production
				facility does not constitute a payment or credit for the use or management of
				the production facility under
				AS
				43.55.170(a)(1) or a
				reimbursement or similar payment that offsets the producer's lease expenditures
				under
				AS
				43.55.170(a)(2), to the
				extent that the fee or other consideration
(1) reimburses the producer for the share of
				the producer's costs to operate or maintain the production facility that is
				attributable to another person's use of the facility, except to the extent the
				producer treats that share of the costs as the producer's lease
				expenditure;
(2) compensates the
				producer for the deferral or loss of the producer's oil or gas production
				resulting from another person's use of the production facility;
(3) reimburses the producer for the
				producer's additional tax liability resulting from the receipt of a fee or
				other consideration in connection with another person's use of the production
				facility or in connection with the producer's management of the production
				facility; or
(4) in the case of a
				production facility in which the producer has an ownership interest,
(A) consists of a contribution of a share of
				new capital investment to acquire, construct, or improve the production
				facility, and is in lieu of an increase in the fee that would otherwise be
				charged to the person making the contribution in connection with that person's
				use of the facility, except to the extent the producer treats that person's
				share of the capital investment as the producer's lease expenditure;
				or
(B) constitutes a charge, as
				determined under (d) of this section, for use of capital invested in the
				production facility before April 1, 2006.