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 55.213 - Methodologies under AS 43.55.160 (f)(3)

Current through May 31, 2024
(a) This section
				sets out requirements that must be met by a methodology to be accepted by the
				department under
				15 AAC 55.212(f) (1).
(b) A methodology must provide for
				determining the amounts of oil and gas recovered each month from wells with
				producing intervals that are all within the acreage added to an existing
				participating area by
(1) continuous metering
				of the oil and of the gas, before commingling with produced fluids from other
				wells, by one or more multiphase flow metering systems that are demonstrated
				with a 90 percent or higher level of confidence to be accurate within plus or
				minus five percent and that meet standards and requirements relating to
				operation, procedures. equipment and materials, software, installation,
				performance, calibration, testing, field verification, monitoring, maintenance,
				sampling, correction to standard conditions, and reporting that the department
				determines are appropriate for the purposes of AS 43.55,160(f)(3); in
				determining what standards and requirements are appropriate, the department
				will consider the relevant portions of the first edition of chapter 20.3 of the
				American Petroleum Institute
Manual of Petroleum Measurement
				Standards
(January 2013), which is adopted by reference for that
				purpose; the accuracy standard of plus or minus five percent in this paragraph
				applies to oil, except that the accuracy standard applies to gas rather than
				oil during a time period during which the gross value at the point of
				production of the gas produced from the acreage added to the existing
				participating area, other than gas produced before 2022 that is used in the
				state and gas produced after 2021, exceeds the gross value at the point of
				production of the oil produced from that acreage;
(2)continuous metering of the oil and of the
				gas, after mechanical separation and before commingling with produced fluids
				from other wells, that
(A) uses equipment and
				procedures that are sufficient for custody transfer purposes; and
(B) is regulated by the Alaska Oil and Gas
				Conservation Commission under
				20 AAC 25.228 as the measurement of oil and gas severed
				from the property or unit;
(3) continuous metering of the oil and of the
				gas, after mechanical separation and before commingling with produced fluids
				from other wells, that
(A) uses equipment and
				procedures that are sufficient for custody transfer purposes;
(B) is not regulated by the Alaska Oil and
				Gas Conservation Commission under
				20 AAC 25.228 as the measurement of oil and gas severed
				from the property or unit; and
(C)
				meets the standards and requirements of
				20 AAC 25.228, adopted by reference as amended from time
				to time, except that for this purpose the term "commission" in
				20 AAC 25.228 is replaced with the term "Department of
				Revenue"; or
(4) another
				method of continuous metering of the oil and of the gas, before commingling
				with produced fluids from other wells, that
(A) is demonstrated with a 90 percent or
				higher level of confidence to meet the accuracy standard of plus or minus five
				percent set out in (1) of this subsection; and
(B) meets standards and requirements relating
				to operation, procedures, equipment and materials, software, installation,
				performance, calibration, testing, field verification, monitoring, maintenance,
				sampling, correction to standard conditions, and reporting that the department
				determines are appropriate for the purposes of
				AS
				43.55.160(f)(3).