Title 15 . Revenue

Chapter 55 . (Repealed)

Section 50. Gas run through a gas processing plant

15 AAC 55.050. Gas run through a gas processing plant

For gas that has been run through a gas processing plant, the comparison of the cents-per-Mcf amount under AS 43.55.016 (c) and the percentage-of-value amount under AS 43.55.016 (b) may not be made by comparing cents-per-Mcf to percentage-of-value for the residue gas separately from the extracted liquids. The percentage-of-value amount is to be based on the full consideration received by the producer for that gas in an arm's length transaction, or, in the absence of an arm's length transaction, the sum of the value of the liquids extracted from the gas at the plant and the value of the residue gas less a reasonable allowance for processing the gas at the plant and for transporting the gas to the plant, as set out in 15 AAC 55.052 if applicable. The cents-per-Mcf amount is to be based on the volume of gas delivered to the gas processing plant, minus the sum of

(1) the volume of residue gas used in the operation of a lease or property in drilling for or producing oil or gas;

(2) the volume of residue gas injected into a reservoir for repressuring; and

(3) that portion of the residue gas used as fuel in the processing plant, calculated by multiplying the total volume of residue gas used as fuel in the processing plant times the ratio of the sum of the volume, in Mcf equivalent, of non-taxable NGLs and the volume of non-taxable residue gas to the sum of the volume, in Mcf equivalent, of both taxable and non-taxable NGLs and the volume of both taxable and non-taxable residue gas other than residue gas used as fuel in the plant.

History: Eff. 7/1/77, Register 63; am 11/25/77, Register 64; am 1/1/2000, Register 152

Authority: AS 43.05.080

AS 43.55.016

AS 43.55.110

AS 43.55.900