11 AAC 25.270 - Plant costs for LNG
(a) In calculating the monthly value of the
state's royalty share of qualified gas, a lessee may deduct plant costs for
liquefaction and regasification using the same rules for the deduction of plant
costs for processing set out in
11 AAC 25.060 -
11 AAC 25.090 and
11 AAC 25.230 -
11 AAC 25.260, except as provided
in this section. LNG plant costs will be allowed only if they are the actual
and reasonable plant costs incurred and paid by the lessee or its affiliate and
not refunded to the lessee or its affiliate for liquefaction or regasification
of qualified gas between the inlet to the Alaska mainline and
destination.
(b) With respect to
storage, the prohibition set out in
11 AAC 25.260(b)
(3) applies in the case of LNG only after
regasification is complete.
(c) For
purposes of this section, an LNG plant is an affiliate of a lessee if the
lessee and the LNG plant are affiliated at any time during the royalty
reporting period, or were affiliated when the contract with the plant was
executed or an agreement with the plant was made.
(d) In this section, in addition to having
the meaning given in
11 AAC 25.900, "processing"
includes liquefaction and regasification.
Notes
Authority:AS 38.05.020
AS 38.05.180
AS 43.90.310
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