Document ID: chunk:federal_register_of_legislation:C2008C00563:schedule:1:p4
Version: federal_register_of_legislation:C2008C00563
Segment Type: schedule
Provision Reference: sch 1 (pt 4/5)
Character Range: 16508–19510

(including expenditure in respect of geological and geophysical surveys and exploration, development and appraisal drilling); or

           (b) where that financial year is the first financial year to which the relevant resource rent royalty agreement that relates to that production unit applies—expenditure incurred in the immediately preceding financial year—
                 (i) in respect of exploration, development and appraisal drilling programs relating to the exploration for, or the determination of the existence, location, extent, quality or occurrence of, petroleum the source of which forms, or would form, part of that production unit; or
                 (ii) in relation to the equipment of production wells drilled in accordance with those programs;

        "eligible expenditure", in relation to market petroleum produced from a production unit which is disposed of in a financial year, means eligible normal expenditure and eligible exceptional expenditure relating to that petroleum;

        "eligible normal expenditure", in relation to market petroleum produced from a production unit which is disposed of in a financial year, means expenditure incurred in the production of the petroleum (whether capital expenditure, expenditure on administration, operations, exploration, marketing, research, or rehabilitation of the environment or other expenditure) but does not include—
 (a) eligible exceptional expenditure;
 (b) expenditure relating to loans or the acquisition of capital;
 (c) expenditure relating to depreciation charges and taxes on income;
 (d) expenditure by way of payments for entering a joint venture;
 (e) expenditure by way of payment of a royalty known as an override royalty; or
 (f) other expenditure not directly related to the production of the petroleum;

        "financial year", in relation to a resource rent royalty agreement, means—
 (a) in the case of an agreement that relates to a production unit that includes at least one source of petroleum from which petroleum for commercial use was produced before 25 June 1985—a period agreed upon by the State Minister and the relevant producer; or
 (b) in any other case—a period of 12 months commencing on 1 July;

        "gross receipts", in relation to market petroleum produced from a production unit which is disposed of in a financial year, means the sum of—
 (a) the proceeds of the sale of that market petroleum which was sold; and
 (b) the value of the market petroleum which was not, and is not to be, sold, other than—
 (i) market petroleum flared or vented with the approval of the State Minister;
 (ii) market petroleum used by the relevant producer for the purposes of active operations of the production unit; and
 (iii) market petroleum which is otherwise lost, not being market petroleum to which the provision required by paragraph 1 (g) applies;

        "long‑term bond rate", in relation to a financial year, means the average of the weighted average yield of the longest term