Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 83 - Oil and Gas Leasing › Article 2 - Net Profit Share Leasing › 11 AAC 83.295 - Definitions

Current through May 31, 2024
Unless the context clearly requires a different meaning, in
					 11 AAC 83.201 -
					 11 AAC 83.295
(1) "abandonment cost" means those costs that
				  will be incurred by the lessee to meet state and/or federal requirements to
				  satisfactorily restore the lease, to plug and abandon the well and remove
				  personal property within a reasonable time;
(2) "Btu-equivalent" means a barrel of oil or
				  six Mcf of gas; except if the Btu-equivalents of the proved reserves of oil
				  originally in place in the field that includes a particular NPSL, do not exceed
				  20 percent of the Btu-equivalents of the proved reserves of gas originally in
				  place in that field, or vice versa, then "Btu-equivalent" will be understood to
				  refer to the unit of production (barrel of oil or Mcf of gas) of the dominant
				  reserve of that field for purposes of this chapter; however, if a lessee uses a
				  similar but different unit of production for its unit-of-production
				  amortization or depreciation for financial accounting purposes, the
				  "Btu-equivalent" will be understood to refer to the unit of production used in
				  that amortization or depreciation;
(3) "capital lease" means a lease classified
				  as a capital lease from the standpoint of the lessee under FASB-13;
(4) "CDS vessel" means a United States flag
				  vessel built for use in foreign trade which receives (while it is so used) a
				  subsidy for the differential in construction costs between building it in the
				  United States and building it elsewhere;
(5) "CDS/ODS vessel" means a United States
				  flag vessel built for use in foreign trade which receives (while it is so used)
				  both the subsidy for a CDS vessel and the subsidy for an ODS vessel;
(6) "commissioner" means the commissioner of
				  the Department of Natural Resources, State of Alaska, or his
				  designee;
(7) "commercial
				  production" means the production of oil and gas for purposes of sale or other
				  beneficial use, except when the sale or beneficial use is incidental to the
				  testing of an unproved well or unproved completion interval;
(8) "credit" means an entry used within the
				  context of generally accepted accounting procedures;
(9) "debit" means an entry used within the
				  context of generally accepted accounting procedures;
(10) "department" means the Department of
				  Natural Resources, State of Alaska;
(11) "entitlements treatment" refers to the
				  issuance, purchase, sale or use of whole and/or fractional entitlements
				  associated with refining a particular run of oil pursuant to  10 CFR 211 and
				  212, or to the treatment of that oil under any other program having a similar
				  effect that the United States Department of Energy may adopt or administer as a
				  replacement or continuation of the present entitlements program;
(12) "FASB" means the Financial Accounting
				  Standards Board;
(13) "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);
(14)
				  "FERC" means the Federal Energy Regulatory Commission of the United States
				  Department of Energy, or the agency succeeding to its regulatory
				  functions;
(15) "gross share" means
				  the volume of production attributable to a production interest before any
				  deductions for royalty in-value and royalty in-kind due the state that may be
				  chargeable to that production interest;
(16) "Jones Act vessel" means a United States
				  flag vessel built for use in domestic trade;
(17) "lessee" means an individual or
				  individuals, a corporation, or, collectively, two or more corporations or
				  individuals, that hold a working interest in a NPSL;
(18) "LNG" means a cryogenic liquid formed
				  from normally gaseous hydrocarbons, chiefly methane;
(19) "LNG transportation facility" means any
				  or all of the following when they are parts of a system to transport LNG: the
				  LNG liquefaction plant, gathering lines to that plant, loading and unloading
				  facilities for LNG tankers, LNG tankers themselves and facilities to regasify
				  the LNG;
(20) "Mcf" or "Mcf of gas"
				  means one thousand cubic feet of gas measured at 60 degrees Fahrenheit and
				  14.65 pounds per square inch (absolute);
(21) "ODS vessel" means a United States flag
				  vessel built for use in foreign trade, that receives (while it is so used) a
				  subsidy for the differential in operating costs between being manned by United
				  States crews and being manned by foreign crews;
(22) "oil and gas" may, if appropriate, refer
				  to either oil or gas, as well as meaning both of them in other
				  contexts;
(23) "point of
				  production" means
(A) for oil, the automatic
				  custody transfer meter or unit through which the oil enters into the facilities
				  of a carrier pipeline or other transportation carrier; and, in the absence of
				  an automatic custody transfer meter or unit, the "point of production" for oil
				  is the outlet flange of the tank gauge (or, in the absence of an automatic
				  transfer meter or a tank gauge, another mechanism or device to measure the
				  quantity of oil that has been approved by the department for this purpose)
				  through which the oil is tendered and accepted into the facilities of a carrier
				  pipeline or other transportation carrier;
(B) for gas recovered in association with
				  oil, the meter on or nearest (measured along the course taken by the gas) to
				  the NPSL from which the gas is recovered, at which meter the sales stream of
				  gas is measured with sufficient accuracy and at appropriate temperature,
				  pressure and other condition for purposes of sale, regardless of whether the
				  particular gas in question is actually sold at that meter;
(C) for gas not recovered from or in
				  association with oil, the point where it is accurately metered or measured, or
				  if the gas is sold on the NPSL premises from which it is recovered, then the
				  point of such sale;