15 AAC 56.100. Production property

(a) Property used or committed by agreement for use in the production of gas or unrefined oil, or in the operation or maintenance of facilities for the production of gas or unrefined oil will be valued on a replacement cost less depreciation basis. Depreciation will be based upon the economic life of proven reserves, with due consideration given to the elapsed life of the facilities. Replacement cost will be calculated by the use of accepted appraisal techniques or other acceptable methods. The economic life of proven reserves will be established each year using petroleum engineering methods.

(b) Production properties include but are not limited to wells, gathering lines, tank batteries, separators, treators, pumping equipment, compressors, platforms, camps, buildings, rolling stock, and all related support and service facilities and equipment.

History: Eff. 3/1/75, Register 53

Authority: AS 43.05.080

AS 43.56.060

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