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 55.208 - Calculation of adjusted lease expenditures and production tax value for a municipal entity

Current through May 31, 2024
(a) An annual production tax value is not
				calculated under
				AS
				43.55.160(a)(1) or (h) for
				oil or gas produced by a municipal entity that it does not sell to another
				party. The calculation of an annual production tax value under
				AS
				43.55.160(a)(1) or (h) for
				oil or gas produced by a municipal entity that it sells to another party is
				subject to the provisions of this section.
(b) For each category of oil, gas, or oil and
				gas for which the calculation of an annual production tax value is specified
				under
				AS
				43.55.160(a)(1)(A) - (G) and
				for each category of oil for which the calculation of an annual production tax
				value is specified under
				AS
				43.55.160(h)(1) - (4), a
				municipal entity that produces oil or gas within that category during a
				calendar year that it sells to another party shall calculate a fraction, the
				numerator of which is equal to the amount of oil, gas, or oil and gas produced
				by the municipal entity in that category during the calendar year, in BTU
				equivalent barrels, that it sells to another party, other than oil or gas in
				which the federal government or the state has an ownership interest or the
				ownership or right to which constitutes a landowner's royalty interest, and the
				denominator of which is equal to the total amount of oil, gas, or oil and gas
				produced by the municipal entity in that category during the calendar year, in
				BTU equivalent barrels, other than oil or gas in which the federal government
				or the state has an ownership interest or the ownership or right to which
				constitutes a landowner's royalty interest. Subject to
				AS
				43.55.160(b), the amount of
				adjusted lease expenditures that is deductible from the gross value at the
				point of production of the oil, gas, or oil and gas in that category that the
				municipal entity sells to another party equals the product of the amount of
				adjusted lease expenditures that are described in the applicable provision of
				AS
				43.55.160(a) or (h) for that
				category, multiplied by the fraction calculated under this subsection for that
				calendar year for that category.
(c) The only adjusted lease expenditures
				incurred by a municipal entity that may be used to establish a carried-forward
				annual loss under
				AS
				43.55.023(b)(1), as the
				provisions of that paragraph read before January 1, 2018, subject to the
				provisions of
				AS
				43.55.023(b)(2), as the
				provisions of that paragraph read before January 1,2018, for lease expenditures
				incurred before January 1, 2018, or
				AS
				43.55.165(a)(3), subject to
				the provisions of
				AS
				43.55.160(e), for lease
				expenditures incurred after December 31, 2017. are the portion, if any, of the
				amount of adjusted lease expenditures calculated under (b) of this section that
				would otherwise be deductible in calculating an annual production tax value but
				whose deduction would cause the annual production tax value to be less than
				zero.
Authority:
AS
					 43.05.080
AS
					 43.55.023
AS
					 43.55.110
AS
					 43.55.160
AS
					 43.55.165
AS
					 43.55.895