Document ID: chunk:federal_register_of_legislation:C2012A00018:clause:2_8:p1
Version: federal_register_of_legislation:C2012A00018
Segment Type: clause
Provision Reference: sch 2 cl 8 (pt 1/2)
Character Range: 61366–64036

8  Alternative valuation method for coal seam gas projects
 (1) This clause applies if:
 (a) under Part 2, the market value approach is the valuation approach for an interest in an onshore petroleum project; and
 (b) the project includes a known reserve of coal seam gas; and
 (c) either:
 (i) the interest, or another interest in the project, was acquired, by any person, between 1 July 2007 and 2 May 2010; or
 (ii) a company that held the interest, or another interest in the project, was acquired, by any person, between 1 July 2007 and 2 May 2010; and
 (d) the person who chose the market value approach in relation to the interest (the interest holder) chooses under subclause (4) of this clause to apply the alternative valuation method for coal seam gas projects.
 (2) For the purposes of paragraph 7(2)(b), the amount worked out under this subclause is:
where:
estimated reserves is:
 (a) if paragraph (b) does not apply—the most recent approved estimate, made before 2 May 2010, of the proved, probable and possible reserves of coal seam gas for the project, expressed in gigajoules; or
 (b) if the interest holder does not hold the entire interest in the project—the portion of that estimate, expressed in gigajoules, of those reserves that reflects the interest holder's interest in the project.
production since estimate is:
 (a) if paragraph (b) does not apply—the amount of coal seam gas produced from the project, expressed in gigajoules, between the day on which that approved estimate was made and 2 May 2010; or
 (b) if the interest holder does not hold the entire interest in the project—the portion of that production, expressed in gigajoules, that reflects the interest holder's interest in the project.
 (3) To be an approved estimate for the purposes of subclause (2), an estimate of the proved, probable and possible reserves of coal seam gas for the project must have been:
 (a) determined in accordance with the requirements of the document known as the Petroleum Resources Management System, issued by the Society of Petroleum Engineers, as in force at the time the estimate was made; and
 (b) independently certified as being determined in accordance with the requirements of that document as so in force.
 (4) The interest holder may choose to apply the alternative valuation method for coal seam gas projects.
 (5) The choice is not valid unless the interest holder gives it to the Commissioner:
 (a) in the approved form; and
 (b) on or before 30 August 2013, or within a further time that the Commissioner allows.
 (6) The choice is irrevocable, and applies to:
 (a) the year of tax commencing on 1 July 2012; and
 (b) all later years of