(a)
The monthly value of the state's royalty share of qualified gas is the
destination value of the qualified gas determined under
11 AAC 25.100 -
11 AAC 25.120, with adjustments to
value for differences in location and quality as provided under
11 AAC 25.130 -
11 AAC 25.150, and changes in
volume caused by pipeline, plant, and tanker in-kind fuel requirements, gains,
and losses as provided under
11 AAC 25.090, less
(1) transportation costs allowed under
11 AAC 25.160 -
11 AAC 25.220;
(2) processing costs allowed under
11 AAC 25.230 -
11 AAC 25.260;
(3) LNG plant costs allowed under
11 AAC 25.270;
(4) deductions allowed by the 1980 Prudhoe
Bay Royalty Settlement Agreement for Prudhoe Bay gas covered by that agreement,
except that, consistent with the 1995 ANS Royalty Settlement Agreements, a cost
or expense of Prudhoe Bay's Central Gas Facility may not be deducted;
and
(5) deductions for cleaning and
dehydration for qualified gas taken in kind from DL-1 leases not covered by the
1980 Prudhoe Bay Royalty Settlement Agreement, as provided by the superior
court in In the Matter of ANS Royalty Litigation, 1JU-77-847 Civil (April 6,
1979); in this paragraph, "DL-1 lease" means an oil and gas lease issued by the
state before January 1, 1979 on form DL-1.
(b) A lessee must report the monthly value of
qualified gas for each lease and destination. For each lease, a lessee shall
report
(1) the quantity of each component of
qualified gas produced from that lease during the royalty reporting
period;
(2) the quantity and
destination value for each component of unprocessed gas delivered to each
destination for unprocessed gas;
(3) the quantity and destination value for
residue gas at each destination for residue gas;
(4) the quantity and destination value for
each gas plant product at each destination for gas plant products;
(5) the quantity and destination value for
LNG at each destination for LNG;
(6) the allowance for transportation costs
allocated to residue gas, gas plant products, unprocessed gas, and LNG for each
destination;
(7) the allowance for
unused capacity deductions allocated to residue gas, gas plant products,
unprocessed gas, and LNG for each destination;
(8) the allowance for processing costs for
gas plant products for each destination;
(9) the allowance for LNG plant costs for
each LNG plant and each LNG destination;
(10) each adjustment to gas quantity to meet
the in-kind fuel requirements of a pipeline, plant, or tanker, or to account
for pipeline gains and losses, plant gains and losses, or tanker gains and
losses, if the adjustment is allowed under
11 AAC 25.090;
(11) each quality bank, NGL bank, or similar
payment or credit required by
11 AAC 25.150; and
(12) deductions under (a)(4) or (5) of this
section allocated to residue gas, gas plant products, unprocessed gas, and LNG
for each destination.
(c) For each lease for which a lessee reports
under this chapter, the monthly value of the state's royalty share of each of
the following may not be less than zero:
(d) For purposes of this chapter, a lessee
shall report condensate as a gas plant product, except that a processing
allowance may not be taken for condensate.
(e) In calculating the monthly value of the
state's royalty share of qualified gas under this chapter, an expense or
allowance may not be deducted more than once, and an adjustment, cost, or
deduction other than those set out in this section may not be taken.
(f) Unless a provision of this chapter
authorizes or requires a different method of allocation, an allocation of costs
must be based upon generally accepted accounting principles.
