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 55.214 - Duration of gross value reductions

Current through May 31, 2024
(a) This section
				implements the time limits established by
				AS
				43.55.160(f) and (g) for
				reductions under those provisions in the gross value at the point of production
				of oil and gas.
(b) This subsection
				applies to (1) oil and gas that meet the criteria for a gross value reduction
				under AS
				43.55.160(f)(1) or under
				AS
				43.55.160(f)(1) and (g) if
				any oil or gas was produced before January 1, 2017, from the qualifying lease
				or property; (2) oil and gas that meet the criteria for a gross value reduction
				under AS
				43.55.160(f)(2) if any oil
				or gas was produced before January 1, 2017, from the qualifying participating
				area; and (3) oil and gas that meet the criteria for a gross value reduction
				under AS
				43.55.160(f)(3) if any oil
				or gas was produced before January 1, 2017, from the qualifying acreage added
				to a participating area. The period for which oil and gas produced from the
				qualifying lease or property, qualifying participating area, or qualifying
				acreage added to a participating area, respectively, may receive a gross value
				reduction ends on the earlier of December 31, 2022, or the alternate expiration
				date determined under (g) of this section.
(c) This subsection applies to oil and gas
				that meet the criteria for a gross value reduction under
				AS
				43.55.160(f)(1) or under
				AS
				43.55.160(f)(1) and (g) if
				no oil or gas was produced before January 1, 2017, from the qualifying lease or
				property. The period for which oil and gas produced from the qualifying lease
				or property may receive a gross value reduction begins on the first day that
				regular production of oil or gas commences from a well producing from the lease
				or property and ends on the date provided under (t) of this section.
(d) This subsection applies to oil and gas
				that meet the criteria for a gross value reduction under
				AS
				43.55.160(f)(2) if no oil or
				gas was produced before January 1, 2017, from the qualifying participating
				area. The period for which oil and gas produced from the qualifying
				participating area may receive a gross value reduction begins on the first day
				that regular production of oil or gas commences from a well producing from the
				participating area and ends on the date provided under (t) of this section.
				However, if before establishment of the qualifying participating area, regular
				production of oil or gas commenced from one or more wells producing from a
				tract or tracts to be included in the participating area,
(1) the period begins on the date the
				participating area is established, unless none of those wells is still
				producing on that date, and ends on the date provided under (f) of this
				section;
(2) if none of those wells
				is still producing on the date the participating area is established, the
				period begins on the earlier of the day any of the wells resumes production
				after the participating area is established, or the first day on or after the
				participating area is established that regular production of oil or gas
				commences from a well producing from the participating area, and ends on the
				date provided under (f) of this section.