Alaska Administrative Code › Title 15 - Revenue › Chapter 55 - Oil and Gas Production Tax and Oil Surcharge › Article 6 - General Provisions › 15 AAC 55.900 - Definitions

Current through May 31, 2024
(a) Unless the context otherwise requires, as
				used in this chapter
(1) "department" means
				the Department of Revenue;
(2)
				"FASB" means the Financial Accounting Standards Board;
(3) "FASB-13" means FASB's Statement of
				Financial Accounting Standards No. 13, "Accounting for Leases" (November 1976),
				as amended or interpreted by FASB's Statement of Financial Accounting Standards
				No. 17, "Accounting for Leases - Initial Direct Costs" (November 1977); FASB's
				Statement of Financial Accounting Standards No. 22, "Changes in the Provisions
				of Lease Agreements Resulting from Refundings of Tax-Exempt Debt" (June 1978);
				FASB's Statement of Financial Accounting Standards No. 23, "Inception of the
				Lease" (August 1978); FASB Interpretation No. 19, "Lessee Guarantee of the
				Residual Value of Leased Property" (October 1977); and FASB Interpretation No.
				21, "Accounting for Leases in a Business Combination" (April 1978);
(4) "LNG transportation facility" means one
				or more of the following:
(A) the LNG
				liquefaction plant;
(B) gathering
				lines to the liquefaction plant;
(C) The LNG regasification plant;
(D) loading and unloading facilities for LNG
				tankers;
(E) LNG tankers;
(5) "pipeline facility" means all
				facilities incident to the pipeline transportation of oil or gas downstream
				from the point of production;
(6)
				repealed 5/3/2007;
(7) "sales
				delivery point" means
(A) for a producer's
				oil or gas sold in a bona fide, arm's-length sale to a third party, the point
				of delivery specified under the terms of the contract or agreement for that
				sale, except as otherwise provided by
				15 AAC 55.151(g)
(B) for a producer's oil to which (A) of this
				paragraph does not apply, the point where prevailing value is calculated under
				15 AAC 55.171; and
(C) for a producer's gas to which (A) of this
				paragraph does not apply, the point where prevailing value is calculated under
				15 AAC 55.173;
(8) "same regional market" means
(A) with respect to an oil that a producer
				refines or ultimately disposes of in the state, the Alaskan market;
(B) with respect to a producer's oil
				delivered to the United States West Coast (including Hawaii), the West Coast
				market or, if appropriate, the submarkets on the West Coast (i.e., Puget Sound,
				San Francisco Bay, the Long Beach and Los Angeles area, and Hawaii);
(C) with respect to a producer's oil
				delivered to the United States Gulf Coast, the Gulf Coast market;
(D) with respect to a producer's oil
				delivered to the United States East Coast, the East Coast market;
(E) with respect to a producer's oil
				delivered to Puerto Rico or the United States Virgin Islands, the Puerto Rico
				and United States Virgin Islands market;
(F) with respect to a producer's oil
				delivered to the United States Midcontinent region, the Midcontinent
				market;
(G) with respect to a
				producer's gas marketed in the state, the Alaskan market or portion of it
				served by gas from the same field or area as the producer's gas;
(H) with respect to a producer's gas
				delivered by pipeline and marketed in Canada or the Lower 48, the Canadian
				market or the Lower 48 market, as applicable, or, if appropriate, any
				submarkets in either Canada or the Lower 48;
(I) with respect to a producer's oil marketed
				in a foreign country, the market in that foreign country;
(J) with respect to a producer's gas
				delivered by an LNG transportation facility and marketed in a foreign country,
				the market in that foreign country;
(K) with respect to a producer's gas
				delivered by LNG transportation facility and marketed in the United States
				outside of the state, the West Coast market for LNG or the Hawaii market for
				LNG, as appropriate;
(9)
				"ANS" means oil produced in the Alaska North Slope area;
(10) "crude" means oil or unrefined liquid
				petroleum consisting principally of oil;
(11) "exchange"
(A) means a disposition of oil by a producer
				to a third party in which all or a portion of the full consideration received
				is oil or other non-cash consideration; and
(B) includes a related buy-sell agreement,
				tied sale, ratio exchange, or other arrangement where the producer's
				disposition of the oil to a third party is conditioned on the producer's
				purchase or receipt of oil or other non-cash consideration from that third
				party;
(12) "GNP
				deflator" means the gross national product deflator, as calculated quarterly by
				the Bureau of Economic Analysis, Economics and Statistics Administration,
				United States Department of Commerce;
(13) "LNG" means liquified natural
				gas;
(14) repealed
				5/3/2007;
(15) "quality bank
				differential" means the difference per barrel between the value of a specified
				ANS stream that is commingled with one or more other streams at a pipeline
				connection and the value of the commingled pipeline stream, sometimes known as
				the reference stream, immediately downstream from that pipeline connection, as
				that difference in value is calculated by the person administering the pipeline
				quality bank for that pipeline connection;
(16) repealed 5/3/2007;
(17) "TAPS" means Trans Alaska Pipeline
				System;
(18) "consolidated
				business" means a corporation or group of corporations having more than 50
				percent common ownership, direct or indirect, or a group of corporations in
				which common control exists, either direct or indirect, as evidenced by an
				arrangement, contract, or agreement;
(19) "in service" means
(A) engaged in transporting oil or gas
				produced in the state;
(B)
				returning to the state from a voyage that transported oil or gas produced in
				the state; or
(C) engaged in the
				ordinary and necessary operations incurred to transport oil or gas produced in
				the state;
(20) "field
				topping plant" means a facility into which a portion of a stream of hydrocarbon
				liquids is diverted and run, where distillation techniques are used to separate
				and remove certain liquid hydrocarbon fractions from the diverted liquids, and
				from which the remaining fractions of those hydrocarbon liquids are returned
				and blended back into the stream of undiverted hydrocarbon liquids at a point
				upstream of the point that constitutes the point of production for the
				undiverted liquids;
(21) "Mcf"
				means 1,000 cubic feet of gas;
(22)
				"qualified capital expenditure" has the meaning given in
				AS
				43.55.023(o);
(23) "oil or gas development operations"
				means the physical operations conducted in the field to
(A) drill and complete wells to produce oil
				or gas or to support oil or gas production, including installation of a drill
				pad or structure; or
(B) install
				oil or gas production equipment or facilities;
(24) "oil or gas exploration operations"
				means the physical operations conducted in the field to
(A) drill and obtain subsurface information
				from an exploration well, including installation of a drill pad or structure;
				or
(B) explore for oil or gas using
				geological or geophysical exploration techniques;
(25) repealed 12/4/2010;
(26) "oil or gas production operations"
(A) means the physical operations conducted
				in the field to
(i) lift oil or gas to the
				surface;
(ii) gather, separate,
				treat, and store on the surface well fluids upstream of the point of
				production; in this sub-subparagraph, "treat" does not include performing gas
				treatment as defined in
				AS
				43.55.900;
(iii) perform gas processing upstream of the
				point of production;
(iv) meter oil
				or gas upstream of the point of production; and
(v) inject fluids in the reservoir from which
				the oil or gas is being produced, for reservoir pressure maintenance,
				repressuring, or enhanced recovery purposes;
(B) does not include compression of gas for
				the purpose of gas treatment as defined in
				AS
				43.55.900 or of transporting gas to a
				market;
(27)
				"destination market" means a location or area where gas produced from leases or
				properties in the state, or any one of its components, is or can be physically
				bought, sold, transported, processed, or, in the case of LNG, regasified in the
				market;
(28) "downstream gas plant"
				means a facility that extracts and recovers liquid hydrocarbons from gas by gas
				processing downstream of the point of production of the gas;
(29) "downstream gas processing" means gas
				processing that occurs in a downstream gas plant;
(30) "downstream gas processing cost
				allowance" means an allowance for the cost of downstream gas processing
				determined by the department under
				15 AAC 55.173(o);
(31) "FERC" means Federal Energy Regulatory
				Commission;
(32) "first destination
				market with reasonable liquidity" means a destination market that the
				department has determined meets the criteria established in
				15 AAC 55.173(n);
(33) "gas plant products"
(A) means separate marketable elements,
				compounds, or mixtures, whether in liquid, gaseous, or solid form, that can be
				derived by downstream gas processing of gas;
(B) includes
(i) propane;
(ii) butane;
(iii) isobutane;
(iv) pentane;
(v) ethane;
(vi) any NGL mix; in this sub-subparagraph,
				"NGL mix" means a mixture containing two or more NGLs;
(vii) condensate;
(viii) carbon dioxide or other
				non-hydrocarbon gases;
(C) does not include residue gas;
(34) "gas processing" has the
				meaning given in
				AS
				43.55.900;
(35) "gas treatment" has the meaning given in
				AS
				43.55.900;
(36) "gas treatment plant" means a facility
				that performs gas treatment;
(37)
				"Lower 48" means the 48 contiguous states and the District of
				Columbia;
(38) "MMBTU" means one
				million British thermal units;
(39)
				"NGL" means a liquid hydrocarbon that is extracted and recovered from gas by
				downstream gas processing;
(40)
				"producer" has the meaning given in
				AS
				43.55.900;
(41) "regasification cost allowance" means an
				allowance for the cost of regasification of LNG delivered outside the state
				determined by the department in
				15 AAC 55.173(o);
(42) "residue gas" means hydrocarbon gas that
				consists principally of methane after extraction of liquid hydrocarbons in a
				downstream gas plant;
(43) "oil and
				gas lease" has the meaning given in
				AS
				43.55.900;
(44) "municipal entity" has the meaning given
				in
				AS
				43.55.895(c);
(45) "direct contractor" means a person,
				other than an employee of the applicant whose salaries and wages are considered
				a direct cost under
				AS
				43.55.165, with whom an applicant under
				AS
				43.55.028(g)(2) maintains a
				contractual relationship for work performed in connection with the applicant's
				major expenditures allowed for the credit certificates claimed for the cash
				purchase under AS 43 .55.028.
(46)
				"workforce" means employees who are resident workers as well as employees who
				do not meet the definition of resident worker.