Alaska Administrative Code › Title 15 - Revenue › Chapter 55 - Oil and Gas Production Tax and Oil Surcharge › Article 1 - Gross Value at the Point of Production of Oil and Gas › 15 AAC 55.193 - Calculation of costs of transportation for oil and gas produced after June 30, 2007

Current through May 31, 2024
(a) Costs of transportation are the ordinary
				and necessary costs incurred to transport the oil or gas from the point of
				production to the sales delivery point.
(b) Actual costs of transportation under
				AS
				43.55.150(a) are
(1) if transportation of oil or gas is by a
				regulated carrier, the tariff rate that is on file with the Regulatory
				Commission of Alaska or another regulatory agency having jurisdiction, and that
				is applicable to and paid for that transportation of the oil or gas, from the
				point where that oil or gas is tendered into the facility of the carrier to the
				point where it is delivered from the facility of the carrier; for purposes of
				this paragraph, "carrier" includes a person providing gas treatment in a
				regulated gas treatment plant;
(2)
				if transportation of oil is by a vessel that is not owned or effectively owned,
				in whole or in part, by the producer of that oil
(A) for a single voyage charter, the total
				costs under the charter for that vessel, plus any voyage and port costs as
				provided in (d) of this section if those voyage and port costs are incurred for
				that transportation during the term of the charter, are not included in the
				charter fee, and are borne by the producer, plus the positioning costs, if any,
				borne by the producer for that vessel;
(B) for a consecutive voyage charter or a
				time charter, the total costs under the charter for that vessel, plus any
				voyage and port costs as provided in (d) of this section if those voyage and
				port costs are incurred for that transportation during the term of the charter,
				are not included in the charter fee, and are borne by the producer, plus the
				positioning cost, if any, borne by the producer for that vessel; the
				positioning cost must be 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; or
(C) for a contract of affreightment, the
				total costs under the contract, plus any voyage and port costs as provided in
				(d) of this section if those voyage and port costs are incurred for that
				transportation during the contract of affreightment, are not included in the
				charter fee, and are borne by the producer, plus any positioning costs not
				included in that fee that are incurred with respect to that transportation
				during the contract of affreightment and that are borne by the
				producer;
(3) if
				transportation of oil is by a vessel that is owned or effectively owned, in
				whole or in part, by the producer of that oil, the sum of
(A) voyage and port costs incurred with
				respect to that transportation, as provided in (d) of this section;
(B) the positioning cost, amortized over 36
				months, for that vessel; and
(C)
				depreciation of the vessel and a cost of capital allowance calculated under
				15 AAC 55.196(d);
(D) repealed 1/1/2020;
(4) in the case of transportation of gas as
				liquefied natural gas (LNG) by an LNG transportation facility not subject to
				tariff regulations of the Federal Energy Regulatory Commission or another
				federal agency, a state, territory, or possession of the United States, or a
				foreign nation,
(A) if the producer does not
				own or effectively own, in whole or in part, the LNG transportation facility,
				the amount charged to the producer for that LNG transportation;
(B) if the producer owns or effectively owns,
				in whole or in part, the LNG transportation facility, the sum of
(i) the direct operating costs of the LNG
				transportation facility incurred with respect to the producer's gas; for an LNG
				tanker, direct operating costs consist of the tanker's voyage and port costs as
				provided in (d) of this section;
(ii) the positioning cost, amortized over 36
				months, in the case of an LNG tanker; and
(iii) depreciation of the LNG transportation
				facility and a cost of capital allowance calculated under
				15 AAC 55.196(d);
(iv) repealed 1/1/2020;
(5) if transportation of oil or
				gas is by a nonregulated pipeline facility or gas treatment plant that is not
				owned or effectively owned, in whole or in part, by the producer of that oil or
				gas, the transportation fee specified in the contract;
(6) if transportation of oil or gas is by a
				nonregulated pipeline facility or gas treatment plant that is owned or
				effectively owned, in whole or in part, by the producer of that oil or gas, the
				costs calculated using the methodology under
				15 AAC 55.197.