Title 15 . Revenue

Chapter 55 . (Repealed)

Section 225. Oil and gas exploration tax credit claim

15 AAC 55.225. Oil and gas exploration tax credit claim

(a) An application for an exploration tax credit for a particular exploration activity may, on a form provided by the department, be filed by

(1) a single explorer that

(A) holds the entire interest in the particular well or seismic or geophysical exploration activity; and

(B) incurred 100 percent of the expenditures for which the credit is claimed; or

(2) a designated joint applicant that is authorized in a writing, signed by each explorer that incurred expenditures, to file a joint tax credit application on behalf of all those explorers; a joint application must be for the total qualified expenditures incurred by all the explorers for the exploration activity for which the credit is claimed and must include a copy of the written authorization signed by each explorer.

(b) A tax credit application for an exploration well must include the following information:

(1) the applicant's name, permanent contact address, and telephone number;

(2) if the applicant is a designated joint applicant, under (a)(2) of this section, the name and address of each explorer represented in the application and the percentage of the total qualified exploration expenditures incurred by each explorer;

(3) a description of the exploration activities for which the credit is claimed;

(4) an accounting of the qualified exploration expenditures for which credit is claimed;

(5) the date the exploration well was spudded, the date it was drilled, and the completion date;

(6) the bottom hole location and the surface location of the exploration well;

(7) for an application under AS 43.55.025 (b) and (c), the

(A) bottom hole location of the nearest preexisting well,

(B) date the nearest preexisting well was drilled,

(C) completion date of the nearest preexisting well; and

(D) the distance between the bottom hole location of the exploration well and the bottom hole location of the nearest preexisting well, measured as a horizontal distance between the surface location directly above the bottom hole location of each well;

(8) if the exploration well is within a unit boundary,

(A) identification of the unit; and

(B) a copy of the plan of exploration or plan of development that was in effect for the unit on May 13, 2003;

(9) for an application under AS 43.55.025 (b) and (d),

(A) identification of the nearest unit that is under a plan of development; and

(B) the distance between the bottom hole location of the exploration well and the outer boundary of the nearest unit that is under a plan of development,

(i) as the boundary was delineated on July 1, 2003; and

(ii) measured as a horizontal distance between the surface location directly above the bottom hole location of the well and the nearest point on the outer boundary of the unit;

(10) a survey plat that graphically identifies all the locations, distances, and dates required under this subsection;

(11) a copy of the Well Completion or Recompletion Report and Log (Form 10-407) for the exploration well filed with the Alaska Oil and Gas Conservation Commission under 20 AAC 25.070 and, if the application is for expenditures that qualify under AS 43.55.025 (c)(2), a copy of the Well Completion or Recompletion Report and Log for the nearest preexisting well;

(12) the written agreements required under AS 43.55.025 (f)(2);

(13) other information requested by the department, as the department considers necessary for reviewing the application.

(c) A tax credit application for a particular seismic or geophysical exploration activity must include the following information:

(1) the name, permanent contact address, and telephone number of the applicant;

(2) if the applicant is a designated joint applicant, under (a)(2) of this section, the name and address of each explorer represented in the application and the percentage of the total qualified exploration expenditures incurred by each explorer;

(3) a description of the seismic or geophysical exploration activities for which the credit is claimed;

(4) an accounting of the qualified exploration expenditures for which credit is claimed;

(5) the date of and location where the seismic or geophysical activity occurred;

(6) a statement verifying

(A) that the seismic or geophysical exploration activities occurred outside of the boundaries of a unit that is under a plan of exploration or a plan of development; or

(B) the percentage of the seismic or geophysical exploration activities that occurred inside the unit boundary, if a portion of those activities crossed into the boundary of a unit;

(7) the written agreements required under AS 43.55.025 (f)(2);

(8) other information requested by the department, as the department considers necessary for reviewing the application.

(d) An applicant under this section shall retain, and make available to the department upon request, all financial and technical source documents and records supporting the credit claimed for an exploration well or seismic or geophysical exploration activities, including the rig logs, daily drilling logs, and activity logs.

(e) After the six-month application period in AS 43.55.025 (f) has expired, the department will issue one or more production tax credit certificates for the qualified expenditures allowed under AS 43.55.025 .

(f) The department may allocate claimed expenditures between exploration and non-exploration activities, and will deny a claimed exploration expenditure that it determines not to be reasonably required or not incurred for qualified exploration activities.

History: Eff. 1/1/2004, Register 168

Authority: AS 43.05.080

AS 43.55.025

AS 43.55.110