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(a) The sales price for purposes of this chapter for first sales of a taxpayer's oil or gas to one or more third parties is the cash value of the full consideration being given in receipt for that oil in those sales.
(b) If a taxpayer's oil or gas is being sold to an affiliate of that taxpayer (as opposed to being transferred from one division to another within the same corporate person), the sales price of that oil or gas for purposes of this chapter is the greater of
(1) the cash value of the full consideration given in receipt for the oil or gas so sold; or
(2) the price attributable to that sale which is entered on the taxpayer's books and records in accordance with generally accepted accounting principles, consistently applied.
(c) If a taxpayer's oil or gas is retained by the taxpayer or is transferred from the production division to another division within the same corporate person, the sales price of that oil or gas for purposes of this chapter is the price attributable to the production division for that oil or gas which is entered on the taxpayer's books and records in accordance with generally accepted accounting principles, consistently applied.
(d) If a taxpayer exchanges oil or gas with a third party, the sales price of that oil or gas for purposes of this chapter is
(1) the price prescribed in the exchange agreement for the taxpayer's oil or gas for purposes of settling accounts and cashing out any net exchange balances in the taxpayer's favor (to illustrate what is meant by a net exchange balance in the taxpayer's favor, suppose the exchange is for oil on a barrel-for-barrel basis and the taxpayer's volume to the third party exceeds the volume received from the third party; the amount of that excess would be the net exchange balance in the taxpayer's favor); or
(2) if there is no such price prescribed in the exchange agreement, the price attributable to the oil or gas received by the taxpayer which is entered on the taxpayer's books in accordance with generally accepted accounting principles, consistently applied.
History: Eff. 5/21/81, Register 78
Authority: AS 43.05.080
Art. IV, § 18
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Last modified 7/05/2006