Title 15 . Revenue

Chapter 21 . (Repealed)

Section 320. Extraordinary operating revenues and losses (oil pipelines)

15 AAC 21.320. Extraordinary operating revenues and losses (oil pipelines)

(a) A retroactive increase or decrease in the tariff(s) legally allowed to be charged by an oil pipeline results in extraordinary operating revenues or extraordinary operating losses, respectively, for that pipeline, which are fully recognized for purposes of this chapter at the time the retroactive tariff change takes effect. The amount of the extraordinary operating revenues or extraordinary operating losses equals the difference between the operating revenues actually received under the tariff(s) previously charged and the operating revenues that would have been received under the tariff(s) as retroactively changed, during the period to which the change applies.

(b) A catastrophic loss of oil being transported by a pipeline, for which that pipeline is liable, may result in extraordinary operating losses for that pipeline. The amount of those extraordinary operating losses equals the pipeline's costs, unreimbursed by insurance or from one or more third parties and not included in account 570 of FERC's Uniform System of Accounts for oil pipelines, for damage to pipeline property, for repayment to shippers for lost oil, and for damage or cleanup of spilled oil. These extraordinary operating losses are fully recognized for purposes of this chapter in the year when the oil is lost.

(c) The costs of permanently terminating operations or removing part or all of the facilities and equipment of a pipeline result in extraordinary operating losses for that pipeline. The amount of these extraordinary operating losses which may be taken in any one taxable year is the unreimbursed termination and removal costs for the pipeline that are actually incurred that year, offset by the salvage value, if any, of the removed facilities and equipment and offset to the extent of any amounts allowed to be deducted before termination and removal under 15 AAC 21.350(a) by the taxpayer.

(d) If under (c) of this section or 15 AAC 21.350(a) , unreimbursed, estimated termination and removal costs for a pipeline are not actually expended or the deduction of those amounts is disallowed by FERC or other authority having jurisdiction, then the amount allowed or allowable as a deduction must be recaptured as extraordinary operating revenue.

History: Eff. 2/22/79, Register 69; am 5/21/81, Register 78

Authority: AS 43.05.080

AS 43.19.010 ,

Art. IV, § 18

AS 43.21.020