Alaska Administrative Code
Title 11 - Natural Resources
Part 6 - Lands
Chapter 83 - Oil and Gas Leasing
Article 2 - Net Profit Share Leasing
11 AAC 83.228 - Choice of methods for determining reasonable costs of transportation
Universal Citation: 11 AK Admin Code 83.228
Current through February 24, 2025
(a) Except as provided in (b) of this section, the reasonable cost of transportation is the actual cost of transportation as determined in 11 AAC 83.229.
(b) The reasonable cost of transportation is the fair market value as defined in 11 AAC 83.229, when all of the following conditions exist:
(1) the parties to
the transportation of oil or gas are affiliated;
(2) the contract for the transportation of
oil or gas is not an arm's-length transaction or is not representative of the
market value of the transportation; and
(3) the method of transportation of oil or
gas is not reasonable in view of existing alternative methods of
transportation.
Authority:AS 38.05.020
AS 38.05.180
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