11 AAC 83.231. Extraordinary production revenue or loss

(a) A lessee's extraordinary production revenue or loss for a lease is fully recognized for purposes of this chapter in the month in which it is realized. Multiple realizations of extraordinary production revenue or loss by a lessee during a single month are cumulative, with revenues added to revenues and losses to losses, and with revenues and losses offset against each other.

(b) A retroactive decrease or increase in the tariff or fee allowed to be charged by a regulated carrier for transporting a lessee's oil and gas produced from the lease results in extraordinary production revenue or loss, respectively, for that NPSL, which is realized for purposes of this chapter at the time the retroactive change takes effect.

(c) A retroactive increase or decrease in the sales price in a bona fide, arm's-length sale of a lessee's oil and gas produced from the lease results in extraordinary production revenue or loss, respectively, for that lessee, which is realized for purposes of this chapter at the time the retroactive change takes effect.

(d) The amount of a lessee's extraordinary production revenue or loss under (b) or (c) of this section for the NPSL is the amount of the increase or decrease, respectively, in the value at the point of production for the lessee's oil and gas from that lease to which the retroactive tariff change or change in sales price applies, offset by any corresponding increase or decrease in costs or expenses under 11 AAC 83.219 - 11 AAC 83.242 that change as the result of changing the value at the point of production for that oil and gas.

History: Eff. 11/9/79, Register 72

Authority: AS 38.05.020

AS 38.05.180

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