Current through February 27, 2024
(a) If a
lessee, its marketing affiliate, or any affiliate other than a transportation
affiliate transports qualified gas using an LNG transportation affiliate,
transportation costs must be the LNG transportation affiliate's allowable
actual and reasonable costs incurred between the outlet of a liquefaction plant
and the inlet of a regasification plant, as those costs are determined under
(b) - (l) of this section,
11 AAC 25.160, and
11 AAC 25.210. However, if
11 AAC 25.160(b)
applies, the amount determined under
11 AAC 25.160(b)
must be used for transportation costs.
(b) For purposes of (a) of this section, the
applicable costs of transportation are
(1) an
allowance for operating and maintenance expense;
(2) annual depreciation on capital
investment;
(3) a return on capital
investment; and
(4) positioning
costs, amortized over 36 months.
(c) For purposes of (b)(1) of this section,
the allowance for operating and maintenance expense is the amount of expense
actually incurred that is the direct cost of operation and maintenance
attributable to a lessee's qualified gas.
(d) For purposes of (b)(2) and (3) of this
section, a cost of capital allowance that consists of depreciation and a return
on invested capital will be allowed.
(e) For purposes of (b)(2) and (3) of this
section, depreciation and a return on capital investment must be calculated
using the methodology set out in the Department of Revenue publication
Computation of a Cost-of-Capital Allowance under
15 AAC 55.196, Incorporating
Depreciation and Return on Invested Capital for Marine Vessels and
Improvements, Second Edition, dated September 19, 2003; that
publication is adopted by reference except as follows:
(1) the methodology is applied as if the term
"vessel" read "LNG pipeline or tanker";
(2) the useful life for purposes of the
methodology is 30 years;
(3) the
weighted average cost of capital is 0.2 percentage point greater than that
otherwise calculated under the methodology.
(f) A cost of capital allowance under this
section for a vessel will be allowed only for days when the vessel is in
allowable service, in allowable lay up, or in allowable dry dock as provided in
(g) of this section.
(g) For
purposes of this section,
(1) a vessel is in
allowable service if the vessel is
(A) in
service within the meaning given in
15 AAC 55.900, unless the vessel
is in dry dock; or
(B) idle for a
period of fewer than 90 consecutive days immediately before operation in
allowable service under (A) of this paragraph; for purposes of this
subparagraph, a vessel is not idle if it is in dry dock;
(2) a vessel is laid up if it is idle for a
period of 90 or more consecutive days; for purposes of this paragraph, a vessel
is not idle if it is in dry dock;
(3) a vessel is in allowable lay up if the
vessel is laid up during a calendar year, but only to the extent that the total
number of days it is or has been laid up while owned or effectively owned by
the lessee or its affiliate through the end of that calendar year does not
exceed the total number of days it is or has been in allowable service while
owned or effectively owned by the lessee or its affiliate through the end of
that calendar year;
(4) a vessel is
in allowable dry dock if the vessel is in dry dock during a calendar year, but
only for that fraction of the total days in dry dock that equals the sum of the
number of days during the year that the vessel is in allowable service and the
number of days during the year that the vessel is in allowable lay up, divided
by the sum of the number of days during the year that the vessel is in
allowable service, the number of days during the year that the vessel is laid
up, and the number of days during the year that the vessel is in alternative
service;
(5) a vessel is in
alternative service if it is not in lay up, dry dock, or allowable service;
and
(6) if necessary to determine a
vessel's status during a month, the vessel's status at later times will be
considered.
(h) The
following requirements apply to the timing of changes in vessel status:
(1) a vessel changing from operation in
allowable service to lay up or operation in alterative service begins lay up or
operation in alternative service on the day after the last day of cargo
discharge in allowable service;
(2)
a vessel changing from operation in alternative service to lay up or operation
in allowable service begins lay up or operation in allowable service on the day
after the last day of cargo discharge in alternative service;
(3) a vessel changing from lay up to
operation in allowable service or operation in alternative service begins
operation in allowable service or operation in alternative service on the day
after the vessel departs from the location where the vessel was laid
up;
(4) a vessel going into dry
dock begins dry dock status on the day after the last day of cargo discharge
or, if going into dry dock from lay up, on the day after the vessel departs
from the location where the vessel was laid up;
(5) a vessel finishing dry dock changes from
dry dock status to the immediately subsequent status on the day after the
vessel departs the dry dock facility;
(6) a vessel begins operation in allowable
service on the day that its useful life begins or, in the case of a used vessel
newly acquired by a lessee or its affiliate, on the day that its remaining
useful life for that lessee or its affiliate begins, if the vessel proceeds
directly to enter operation in allowable service; otherwise, the vessel begins
operation in alternative service on the day specified in this paragraph; for
purposes of this paragraph, the beginning of a vessel's useful life or
remaining useful life is determined in accordance with generally accepted
accounting principles.
(i) Allowable voyage and port costs for a
vessel are costs actually incurred for the following purposes:
(1) fuel for the vessel while in port and at
sea not to exceed the actual cost if purchased from a third party, or if the
fuel is not purchased from a third party, the spot market price of comparable
fuel as reported in the latest Platt's Oilgram Price
Reportpublished on or before the date of the fuel purchase for the
market nearest the point of refueling, plus related allowable fuel taxes and
handling charges;
(2) stores and
provisions for the vessel and its captain and crew;
(3) wages and benefits of the vessel's
captain and crew;
(4) routine
maintenance;
(5) drydocking costs,
expensed in the year paid;
(6) port
and dock fees;
(7)
demurrage;
(8) tug and pilotage
fees;
(9) marine agents' fees in
port;
(10) lightering;
(11) transshipment charges;
(12) customs fees and duties;
(13) taxes incurred due to the ownership and
operation of the vessel, except for income taxes and other taxes (including
certain franchise taxes) measured by income;
(14) regular and customary gratuities that
are also legal;
(15) insurance
premiums actually paid to third-party insurers;
(16) loading and unloading inspection
fees;
(17) a reasonable management
fee for operating a vessel; this fee is set at six percent of the allowable
costs set out in (1) - (3) of this subsection; this set fee covers all general
and administrative costs related to vessel operations, including all costs for
accounting services, clerical services, administrative services, secretarial
services, data processing services, legal services, corporate and operations
management, overhead pass-throughs, facility costs and depreciation, corporate
planning, risk management, environmental planning and risk evaluation, public
affairs, governmental affairs, political affairs, dues and subscriptions,
long-range scheduling, and long-range planning; additional deductions will not
be allowed for these costs;
(18)
other costs directly associated with the operation or maintenance of a vessel,
including costs for port services and operations, cargo scheduling and
planning, fleet staffing, fleet scheduling, fleet staff training, fleet safety,
engineering for repair, engineering for maintenance, engineering for
drydocking, quality assurance for vessel operations, communication systems,
navigation systems, United States Coast Guard certifications, and utility
services; these costs include costs for personnel performing the functions
listed and the first level of supervision of these personnel.
(j) For purposes of this section,
allowable voyage and port costs for a vessel do not include taxes or fees on
the receipt of LNG at a marine terminal from a vessel.
(k) The lessee's actual or reasonable marine
transportation cost, as otherwise determined under this section, for a lessee
that transports gas produced in the state through a charter, contract of
affreightment, sublease, or other arrangement on behalf of a person not
affiliated with the lessee, in addition to the cost of transporting the
lessee's own gas produced in the state, includes the cost of transporting that
non-affiliated person's gas produced in the state and is reduced by the revenue
received by the lessee for providing that transportation.
(l) In this section, "positioning cost"
includes the cost borne by the lessee for placing an LNG tanker into position
before the LNG tanker's first voyage in service for that lessee.
Platt's Oilgram Price Report is published by McGraw-Hill,
Inc., 1221 Avenue of the Americas, New York, New York
10020.
Authority:AS
38.05.020
AS 38.05.180
AS
43.90.310
