Alaska Administrative Code
Title 11 - Natural Resources
Part 6 - Lands
Chapter 83 - Oil and Gas Leasing
Article 2 - Net Profit Share Leasing
11 AAC 83.245 - Reporting and payment requirements

(a) Repealed 2/13/2010.

(b) Each lessee shall file NPSL reports, including supporting documentation as required, on forms prescribed by the department, together with the appropriate payment, if any, due the state on each NPSL, not later than 60 days following the end of each month. If the due date falls on a Saturday, Sunday, or state or federal holiday, the NPSL reports are due on the next business day. If two or more lessees hold a working interest in the same NPSL, they may, with the consent of the commissioner, appoint a designated operator of that NPSL to be responsible for the reporting requirements in this subsection before commercial production commences. The NPSL reports must contain the following information:

(c) Repealed 8/15/82.

(d) Interest will be charged at a variable rate per year equal to the prime rate as announced from time to time by the Bank of America, San Francisco, California, plus 1.25 percent a year on the amount of the net profit share payment due the state from the due date of the net profit share payment until the payment is received by the state.

(e) Records pertaining to development costs incurred before the start of commercial production, which are not included in NPSL reports filed under (b) of this section, must be kept and maintained for four years after the expiration of the calendar year in which commercial production begins or until abandonment of the lease if no commercial production begins. Records of the information required in (b) of this section, including a lessee's standard or joint accounting system records, must be kept and maintained for six years after the expiration of the calendar year in which the NPSL reports were filed with the state under (b) of this section. However, records of information required in (b) of this section, including standard or joint accounting system records, relating to abandonment cost amortization, must be kept and maintained from the date of issuance of the lease until three years following abandonment of the lease. Upon request by the state, the lessee shall make all records required by this section available for inspection and copying by authorized representatives of the state during normal business hours.

(f) Upon notice to the lessee, the state has the authority to audit the lessee's records of financial transactions, including the lessee's standard or joint accounting system records, inventories and other records pertaining to net profit share leasing operations. The audit period will remain open for the same period of time as specified in (e) of this section for record retention. If the commissioner determines there has been a showing of fraud or misrepresentation, then the audit period will remain open. Where possible, the auditor for the state will coordinate audit efforts with any other non-operators.

(g) Not later than May 14, 2010, each lessee shall file amended NPSL reports under this section covering each month after March 2006 for which an item described in (b)(1) - (5) of this section is affected by the retroactive application of a provision listed in 11 AAC 83.290, as that section read on August 10, 2017.

(h) The division will charge an administrative fee of $75 per day for failure to