Alaska Administrative Code

Alaska Administrative Code Title 1 - General Provisions Title 2 - Administration Title 3 - Commerce, Community, and Economic Development Title 4 - Education and Early Development Title 5 - Fish and Game Title 6 - Governor's Office Title 7 - Health and Social Services Title 8 - La…

The following costs will be excluded in determining net profit share payments due the state: (1) lease acquisition costs in the form of a cash bonus; (2) expense of handling, investigating and settling litigation or claims against the state, discharging liens held by the state, p…

(a) The development costs that are incurred by or for a lessee for a NPSL are a debit to the lessee's NPSL development account. (b) The lessee's development costs for a NPSL equal direct charges, as defined in 11 AAC 83.243, that are not excluded under 11 AAC 83.217 and that are …

(a) For purposes of (b) and (c) of this section, a lessee's qualified development costs are development costs as defined in 11 AAC 83.219 less (1) general overhead and administrative expense; (2) ad valorem tax; (3) lease rentals; (4) capital access fees for use of a production f…

A lessee's production revenue during a month from each NPSL is (1) the value at the point of production of the lessee's gross share of the oil and gas produced from that lease; however, oil or gas that is used, flared or unavoidably lost in the production operations for the NPSL …

If all or part of a NPSL is included within a participating area of a unit, a cooperative drilling agreement, or other similar arrangement, such that production (in kind or in value) or expenses are attributed to the NPSL for activities of the unit, any formula or method of alloc…

(a) Except as provided in (e) of this section, this section applies to all oil and gas produced on a NPSL whether or not the oil or gas is removed from the NPSL. (b) Except when (c) of this section applies, the gross value at the point of production for all oil and gas is the sal…

Alaska Administrative Code Title 1 - General Provisions Title 2 - Administration Title 3 - Commerce, Community, and Economic Development Title 4 - Education and Early Development Title 5 - Fish and Game Title 6 - Governor's Office Title 7 - Health and Social Services Title 8 - La…

(a) Sales price under this chapter for the first bona fide, arm's length sales to a third party is the cash value of the full consideration given in receipt for the lessee's oil or gas sold. (b) Sales price under this chapter for all transactions other than those set forth in (a)…

(a) For a lessee's oil, the prevailing value is the arithmetic average acquisition cost CIF (at the refinery inlet in the same market in which the lessee's Alaska oil is refined) based on the sales price of like oil sold in up to three third-party, arm's-length transactions selec…

(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 cond…

(a) Reasonable costs of transportation shall be calculated from the point of production to the sales delivery point. (b) Reasonable costs of transportation under 11 AAC 83.228(a) are actual costs of transportation. The actual costs of transportation are (1) in the case of transpo…

Alaska Administrative Code Title 1 - General Provisions Title 2 - Administration Title 3 - Commerce, Community, and Economic Development Title 4 - Education and Early Development Title 5 - Fish and Game Title 6 - Governor's Office Title 7 - Health and Social Services Title 8 - La…

(a) A lessee's extraordinary production revenue or loss for a lease under (b) or (c) of this section is fully recognized for purposes of this chapter in the month in which it is realized. Multiple realizations of extraordinary production revenue or loss by a lessee during a singl…

(a) Unless otherwise specified, a lessee's costs under this chapter are regarded as being incurred on an accrual basis. (b) When a lessee incurs costs under this chapter and part or all of those costs are reimbursable to the lessee from one or more third parties, only the unreimb…

A retroactive redetermination of the quantity of oil or gas previously allocated to a NPSL or to a NPSL lessee's working interest ownership, including a retroactive redetermination of royalty or overriding royalty volumes, is not an extraordinary production revenue or loss under …

(a) The direct operating costs during a month that are incurred by or for a lessee for the NPSL are a debit to the production revenue account. (b) After commencement of commercial production from the NPSL, the direct operating costs for that NPSL are(1) the direct charges under 1…

(a) The production tax lease allowance for purposes of 11 AAC 83.240(b) is the greater of zero or the amount calculated by subtracting the tax credit, if any, under (b) of this section from the production tax before credits. The production tax before credits is the greater of the…

(a) The amount of royalty in value to the state, if any, for each NPSL that is accrued during a month by or for a lessee, including a shut-in or minimum royalty, is a debit to the lessee's production revenue account. (b) The value at the point of production (determined on the bas…

For the purposes of this chapter, direct charges are (1) lease rentals paid by lessee to the state for the operations of the NPSL, but excluding net profit share payments to the state; (2) labor, which includes (A) salaries and wages of lessee's employees including supervisors an…

Material purchases, transfers and dispositions by a lessee for use on a NPSL must be priced according to the following standards: (1) Material purchased must be charged at the price paid by lessee after deduction of all discounts received. In case of material found to be defectiv…

(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 mont…

(a) The commissioner may waive an administrative fee under 11 AAC 83.245(h) if a lessee provides sufficient facts to establish a reasonable cause for a delayed or incomplete NPSL report, failure to pay NPSL payments when due, or failure to submit revisions. (b) A lessee must appl…

(a) If, as a result of an inspection of records under 11 AAC 83.245(e) or an audit under 11 AAC 83.245(f), the commissioner determines that (1) the method of allocating costs and production to a NPSL within a unit is improper, (2) there is an error or an improper cost claimed in …

(a) A lessee who disagrees with and wishes to protest the commissioner's redetermination issued under 11 AAC 83.247, shall file a written protest with the department. To preserve the lessee's rights and to receive consideration by the department, this written protest must (1) be …

(a) Upon receipt of the lessee's written protest, the department will designate a conference officer who will promptly schedule the informal conference with the lessee. A lessee wishing to present facts and financial information regarding its NPSL in support of its position must …

(a) The department will hold a formal hearing for a lessee(1) when the lessee files a timely protest fulfilling the requirements of 11 AAC 83.250(a) and (b), waiving the right to an informal conference in favor of a formal hearing; (2) when the lessee files a request for a formal…

A lessee disagreeing with the decision of the department under 11 AAC 83.255 may appeal the decision to a court having jurisdiction to hear such appeals as provided in AS 44.62.560 and AS 44.62.570. Notes 11 AAC 83.257 Eff. 11/9/79, Register 72 Authority:AS 38.05.020 AS 38.05.180…

(a) Except as otherwise as provided, the following provisions apply retroactively to April 1, 2006: (1)11 AAC 83.209(b); (2)11 AAC 83.212(b)(2); (3)11 AAC 83.220; (4)11 AAC 83.240(b)(4)(B); (5)11 AAC 83.241(a) - (e) except as amended effective August 10, 2017; (b) The provisions …

Unless the context clearly requires a different meaning, in 11 AAC 83.201 - 11 AAC 83.295 (1) "abandonment cost" means those costs that will be incurred by the lessee to meet state and/or federal requirements to satisfactorily restore the lease, to plug and abandon the well and r…

Notes 11 AAC 83.300 Repealed 6/28/81. State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compa…

(a)11 AAC 83.301 - 11 AAC 83.395 establish standards and procedures governing the submission of applications to the commissioner and criteria for approval of unit agreements for state oil and gas leases, and standards to be followed by a state lessee in conducting lease operation…

(a) The commissioner will approve a proposed unit agreement for state oil and gas leases if he makes a written finding that the agreement is necessary or advisable to protect the public interest considering the provisions of AS 38.05.180(p) and this section. The commissioner will…

Notes 11 AAC 83.305 Repealed 6/28/81. State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compa…

Any person owning an interest in a lease which is proposed to be committed to a unit which would include a state oil and gas lease may propose a unit agreement by applying to the commissioner for approval of the agreement. The following items constitute a complete application for…

Notes 11 AAC 83.310 Repealed 6/28/81. State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compa…

Within 10 days after receipt of a complete application for approval of a unit agreement, expansion of an approved unit under 11 AAC 83.356, or extension of the unit term under 11 AAC 83.336(a) (2), the commissioner will publish notice of the application in a newspaper of general …

Notes 11 AAC 83.315 Repealed 6/28/81. State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compa…

(a) Within 60 days after the close of the public comment period required by 11 AAC 83.311, the commissioner will issue a written decision approving or disapproving the unit agreement, in which he states the basis for his decision after considering the provisions of 11 AAC 83.303.…

Notes 11 AAC 83.320 Repealed 6/28/81. State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compa…

In submitting an application under 11 AAC 83.301 - 11 AAC 83.395, the applicant must provide five copies of the nonconfidential portions of the pertinent agreement, plan, modification, or other instrument or document for which approval is sought and two copies of any confidential…

Notes 11 AAC 83.325 Repealed 6/28/81. State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compa…

(a) Except as provided in 11 AAC 83.393, and as otherwise provided in this section, a unit agreement must be executed on, or in a manner consistent with, a standard state unit agreement form. (b) The commissioner will allow a modification of the standard state unit agreement form…

(a) The record owners of any right, title or interest in the oil or gas reservoirs or potential hydrocarbon accumulations to be included in a unit are the proper parties to the unit agreement. All proper parties must be invited to join the unit agreement. (b) Where authorized by …

Notes 11 AAC 83.330 Repealed 6/28/81. State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compa…

(a) A unit operator must be qualified to hold a lease as provided in 11 AAC 82.200 - 11 AAC 82.205, and must be qualified to fulfill the duties and obligations prescribed in the unit agreement. (b) The unit operator may be a working-interest owner in the unit area or may be a par…

Notes 11 AAC 83.335 Repealed 6/28/81. State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compa…

(a) A unit agreement becomes effective upon approval by the commissioner and automatically terminates five years from the effective date unless (1) a unit well in the unit area has been certified as capable of producing hydrocarbons in paying quantities, in which case the unit ag…

Notes 11 AAC 83.340 Repealed 6/28/81. State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compa…

(a) Unless a unit plan of development is filed under 11 AAC 83.343, a unit plan of exploration must be filed for approval by the commissioner as an exhibit to the unit agreement under 11 AAC 83.306. The plan must describe the applicant's proposed exploration activities, including…