15 AAC 55.900 - Definitions
(a) Unless the context otherwise requires, as
used in this chapter
(1) "department" means
the Department of Revenue;
(2)
"FASB" means the Financial Accounting Standards Board;
(3) "FASB-13" means FASB's Statement of
Financial Accounting Standards No. 13, "Accounting for Leases" (November 1976),
as amended or interpreted by FASB's Statement of Financial Accounting Standards
No. 17, "Accounting for Leases - Initial Direct Costs" (November 1977); FASB's
Statement of Financial Accounting Standards No. 22, "Changes in the Provisions
of Lease Agreements Resulting from Refundings of Tax-Exempt Debt" (June 1978);
FASB's Statement of Financial Accounting Standards No. 23, "Inception of the
Lease" (August 1978); FASB Interpretation No. 19, "Lessee Guarantee of the
Residual Value of Leased Property" (October 1977); and FASB Interpretation No.
21, "Accounting for Leases in a Business Combination" (April 1978);
(4) "LNG transportation facility" means one
or more of the following:
(A) the LNG
liquefaction plant;
(B) gathering
lines to the liquefaction plant;
(C) The LNG regasification plant;
(D) loading and unloading facilities for LNG
tankers;
(E) LNG tankers;
(5) "pipeline facility" means all
facilities incident to the pipeline transportation of oil or gas downstream
from the point of production;
(6)
repealed 5/3/2007;
(7) "sales
delivery point" means
(A) for a producer's
oil or gas sold in a bona fide, arm's-length sale to a third party, the point
of delivery specified under the terms of the contract or agreement for that
sale, except as otherwise provided by
15 AAC 55.151(g)
(B) for a producer's oil to which (A) of this
paragraph does not apply, the point where prevailing value is calculated under
15 AAC 55.171; and
(C) for a producer's gas to which (A) of this
paragraph does not apply, the point where prevailing value is calculated under
15 AAC 55.173;
(8) "same regional market" means
(A) with respect to an oil that a producer
refines or ultimately disposes of in the state, the Alaskan market;
(B) with respect to a producer's oil
delivered to the United States West Coast (including Hawaii), the West Coast
market or, if appropriate, the submarkets on the West Coast (i.e., Puget Sound,
San Francisco Bay, the Long Beach and Los Angeles area, and Hawaii);
(C) with respect to a producer's oil
delivered to the United States Gulf Coast, the Gulf Coast market;
(D) with respect to a producer's oil
delivered to the United States East Coast, the East Coast market;
(E) with respect to a producer's oil
delivered to Puerto Rico or the United States Virgin Islands, the Puerto Rico
and United States Virgin Islands market;
(F) with respect to a producer's oil
delivered to the United States Midcontinent region, the Midcontinent
market;
(G) with respect to a
producer's gas marketed in the state, the Alaskan market or portion of it
served by gas from the same field or area as the producer's gas;
(H) with respect to a producer's gas
delivered by pipeline and marketed in Canada or the Lower 48, the Canadian
market or the Lower 48 market, as applicable, or, if appropriate, any
submarkets in either Canada or the Lower 48;
(I) with respect to a producer's oil marketed
in a foreign country, the market in that foreign country;
(J) with respect to a producer's gas
delivered by an LNG transportation facility and marketed in a foreign country,
the market in that foreign country;
(K) with respect to a producer's gas
delivered by LNG transportation facility and marketed in the United States
outside of the state, the West Coast market for LNG or the Hawaii market for
LNG, as appropriate;
(9)
"ANS" means oil produced in the Alaska North Slope area;
(10) "crude" means oil or unrefined liquid
petroleum consisting principally of oil;
(11) "exchange"
(A) means a disposition of oil by a producer
to a third party in which all or a portion of the full consideration received
is oil or other non-cash consideration; and
(B) includes a related buy-sell agreement,
tied sale, ratio exchange, or other arrangement where the producer's
disposition of the oil to a third party is conditioned on the producer's
purchase or receipt of oil or other non-cash consideration from that third
party;
(12) "GNP
deflator" means the gross national product deflator, as calculated quarterly by
the Bureau of Economic Analysis, Economics and Statistics Administration,
United States Department of Commerce;
(13) "LNG" means liquified natural
gas;
(14) repealed
5/3/2007;
(15) "quality bank
differential" means the difference per barrel between the value of a specified
ANS stream that is commingled with one or more other streams at a pipeline
connection and the value of the commingled pipeline stream, sometimes known as
the reference stream, immediately downstream from that pipeline connection, as
that difference in value is calculated by the person administering the pipeline
quality bank for that pipeline connection;
(16) repealed 5/3/2007;
(17) "TAPS" means Trans Alaska Pipeline
System;
(18) "consolidated
business" means a corporation or group of corporations having more than 50
percent common ownership, direct or indirect, or a group of corporations in
which common control exists, either direct or indirect, as evidenced by an
arrangement, contract, or agreement;
(19) "in service" means
(A) engaged in transporting oil or gas
produced in the state;
(B)
returning to the state from a voyage that transported oil or gas produced in
the state; or
(C) engaged in the
ordinary and necessary operations incurred to transport oil or gas produced in
the state;
(20) "field
topping plant" means a facility into which a portion of a stream of hydrocarbon
liquids is diverted and run, where distillation techniques are used to separate
and remove certain liquid hydrocarbon fractions from the diverted liquids, and
from which the remaining fractions of those hydrocarbon liquids are returned
and blended back into the stream of undiverted hydrocarbon liquids at a point
upstream of the point that constitutes the point of production for the
undiverted liquids;
(21) "Mcf"
means 1,000 cubic feet of gas;
(22)
"qualified capital expenditure" has the meaning given in
AS
43.55.023(o);
(23) "oil or gas development operations"
means the physical operations conducted in the field to
(A) drill and complete wells to produce oil
or gas or to support oil or gas production, including installation of a drill
pad or structure; or
(B) install
oil or gas production equipment or facilities;
(24) "oil or gas exploration operations"
means the physical operations conducted in the field to
(A) drill and obtain subsurface information
from an exploration well, including installation of a drill pad or structure;
or
(B) explore for oil or gas using
geological or geophysical exploration techniques;
(25) repealed 12/4/2010;
(26) "oil or gas production operations"
(A) means the physical operations conducted
in the field to
(i) lift oil or gas to the
surface;
(ii) gather, separate,
treat, and store on the surface well fluids upstream of the point of
production; in this sub-subparagraph, "treat" does not include performing gas
treatment as defined in
AS
43.55.900;
(iii) perform gas processing upstream of the
point of production;
(iv) meter oil
or gas upstream of the point of production; and
(v) inject fluids in the reservoir from which
the oil or gas is being produced, for reservoir pressure maintenance,
repressuring, or enhanced recovery purposes;
(B) does not include compression of gas for
the purpose of gas treatment as defined in
AS
43.55.900 or of transporting gas to a
market;
(27)
"destination market" means a location or area where gas produced from leases or
properties in the state, or any one of its components, is or can be physically
bought, sold, transported, processed, or, in the case of LNG, regasified in the
market;
(28) "downstream gas plant"
means a facility that extracts and recovers liquid hydrocarbons from gas by gas
processing downstream of the point of production of the gas;
(29) "downstream gas processing" means gas
processing that occurs in a downstream gas plant;
(30) "downstream gas processing cost
allowance" means an allowance for the cost of downstream gas processing
determined by the department under
15 AAC 55.173(o);
(31) "FERC" means Federal Energy Regulatory
Commission;
(32) "first destination
market with reasonable liquidity" means a destination market that the
department has determined meets the criteria established in
15 AAC 55.173(n);
(33) "gas plant products"
(A) means separate marketable elements,
compounds, or mixtures, whether in liquid, gaseous, or solid form, that can be
derived by downstream gas processing of gas;
(B) includes
(i) propane;
(ii) butane;
(iii) isobutane;
(iv) pentane;
(v) ethane;
(vi) any NGL mix; in this sub-subparagraph,
"NGL mix" means a mixture containing two or more NGLs;
(vii) condensate;
(viii) carbon dioxide or other
non-hydrocarbon gases;
(C) does not include residue gas;
(34) "gas processing" has the
meaning given in
AS
43.55.900;
(35) "gas treatment" has the meaning given in
AS
43.55.900;
(36) "gas treatment plant" means a facility
that performs gas treatment;
(37)
"Lower 48" means the 48 contiguous states and the District of
Columbia;
(38) "MMBTU" means one
million British thermal units;
(39)
"NGL" means a liquid hydrocarbon that is extracted and recovered from gas by
downstream gas processing;
(40)
"producer" has the meaning given in
AS
43.55.900;
(41) "regasification cost allowance" means an
allowance for the cost of regasification of LNG delivered outside the state
determined by the department in
15 AAC 55.173(o);
(42) "residue gas" means hydrocarbon gas that
consists principally of methane after extraction of liquid hydrocarbons in a
downstream gas plant;
(43) "oil and
gas lease" has the meaning given in
AS
43.55.900;
(44) "municipal entity" has the meaning given
in
AS
43.55.895(c);
(45) "direct contractor" means a person,
other than an employee of the applicant whose salaries and wages are considered
a direct cost under
AS
43.55.165, with whom an applicant under
AS
43.55.028(g)(2) maintains a
contractual relationship for work performed in connection with the applicant's
major expenditures allowed for the credit certificates claimed for the cash
purchase under AS 43 .55.028.
(46)
"workforce" means employees who are resident workers as well as employees who
do not meet the definition of resident worker.
(b) Unless the context otherwise requires, as
used in this chapter and in AS 43.55,
(1)
"area" means a geographic region or geologic province, including the Cook Inlet
basin or the North Slope of the state;
(2) "field" means that part of an area
underlain by one or more overlapping, contiguous, or superimposed pools,
including Prudhoe Bay field or Middle Ground Shoal field in the
state;
(3) repealed
4/30/2010;
(4) repealed
5/3/2007;
(5) repealed
5/3/2007;
(6) repealed
5/3/2007;
(7) repealed
5/3/2007;
(8) "abandoned" has the
meaning given in
20 AAC 25.990;
(9) "bottom hole" has the meaning given the
term "bottom-hole location" in
20 AAC 25.990;
(10) "completion date" means, for
(A) an exploration well, the earliest of the
dates drilling ceased on the well site, the well was abandoned, or the well was
suspended; and
(B) a preexisting
well, the date the well was completed and equipped for producing
fluids;
(11)
"exploration unit" means a unit that
(A)
contains state land and is under a plan of exploration; or
(B) does not contain state land and from
which commercial production has not commenced;
(12) "exploration well" means a well drilled
to discover or to delineate a pool or to gain structural or stratigraphic
information to aid in exploring for oil and gas;
(13) "explorer" has the meaning given in
AS
43.55.900; "explorer" does not include a
drilling contractor, operator, or other person that does not hold an interest
in the exploration well or seismic or geophysical work;
(14) "plan of exploration" means a plan
submitted in accordance with
11 AAC 83.341;
(15) "plan of development" means a plan
submitted in accordance with
11 AAC 83.343;
(16) "production unit" means a unit that
(A) contains state land and is under a plan
of development; or
(B) does not
contain state land and from which commercial production has
commenced;
(17) "new oil
or gas reserves" means previously undiscovered oil or gas reserves;
(18) "reserves" means unproduced but
recoverable oil or gas in place in a formation;
(19) "suspended" has the meaning given in
20 AAC 25.990;
(20) repealed 10/21/2009;
(21) "commercial production" means production
for purposes of sale or other beneficial use of oil or gas other than use
associated with the exploration and development of the field in which the lease
or property lies, except if the sale or beneficial use is incidental to the
testing of an unproved well or unproved completion interval;
(22) "taxable under
AS
43.55.011(e)," when used in
reference to oil or gas or both, means produced from a lease or property in the
state but excluding any oil and gas in which the federal government or the
state has an ownership interest or the ownership or right to which constitutes
a landowner's royalty interest; this paragraph does not apply to
AS
43.55.895(b);
(23) repealed 1/1/2022;
(24) "taxable under
AS
43.55.011(i)," when used in
reference to oil or gas or both, means produced from a lease or property in the
state the ownership or right to which constitutes a landowner's royalty
interest, but excluding oil and gas the ownership or right to which is exempt
from taxation;
(25) "other land"
means, with respect to costs of exploration, land the right to explore for oil
or gas deposits within which, or the right to drill a stratigraphic test well
on which, has been granted by license or permit by the property owner to the
producer or explorer that incurs, or on behalf of whom is incurred, the costs
of that exploration;
(26)
"affiliated" means, with respect to two or more persons, occupying a
relationship in which one person controls another, is controlled by another, or
is under common control with another, and includes the relationship between a
person and a division of the person that operates as a functional
unit;
(27) "control" has the
meaning given in
AS
43.90.900.
(28) "sells to another party," when used in
reference to oil or gas of a producer that is a municipal entity under
AS
43.55.895, means sells to a person other than
the producer.
(29) except in
AS
43.55.160(a) and (h) subject
to
AS
43.55.165(l), "lease
expenditure" does not include a carried-forward annual loss as defined in
AS
43.55.165(s)(1).
(c) As used in AS 43.55,
"agreement for unitization or pooling" means an agreement under which two or
more persons owning working interests in a mineral interest in oil or gas or
both agree to have the interests operated on a unified basis and further agree
to share in production on a stipulated percentage or fractional basis
regardless of the interest or interests from which the oil or gas is actually
recovered and produced.
(d) As used
in the definition of "producer" in
AS
43.55.900, "owner" includes
(1) a proprietorship;
(2) a partnership;
(3) a joint venture;
(4) a limited liability company;
(5) a corporation; and
(6) any entity that is affiliated with the
owner.
Notes
Authority:AS 43.05.080
AS 43.55.011
AS 43.55.020
AS 43.55.023
AS 43.55.024
AS 43.55.025
AS 43.55.028
AS 43.55.110
AS 43.55.150
AS 43.55.160
AS 43.55.165
AS 43.55.170
AS 43.55.895
AS 43.55.900
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