Alaska Administrative Code
Title 11 - Natural Resources
Part 3 - Oil and Gas
Chapter 25 - Royalty Election Under Alaska Gasline Inducement Act
11 AAC 25.130 - Location differentials

(a) The commissioner will establish location differentials to

(b) To establish a location differential, the commissioner will consider

(c) The commissioner will give notice of location differentials established under this section by posting a list on the department's website. The commissioner may add to, replace, or remove entries on the list of location differentials by posting a revised list of location differentials on the department's website at least 15 days before the first day of a royalty reporting period affected by the action. A location differential posted by the commissioner to the department's website under this section is not subject to retroactive change.

(d) If the commissioner is notified in writing at least three months before a first shipment that a lessee or its affiliate will transport qualified gas to a destination upstream of a first destination market, the commissioner will post a location differential for that destination on the department's website at least 15 days before the first day of a royalty reporting period affected by the posting.

(e) If the commissioner is not notified in writing at least three months before a first shipment that a lessee or its affiliate will transport qualified gas to a destination, and the commissioner has not posted a location differential for the destination on the department's website, the destination value and location differential for that destination may be adjusted by the commissioner based on the criteria for destination value set out in this chapter and the criteria for location differentials set out in this section. An adjustment under this subsection is retroactive to the date of first shipment.