11 AAC 25.230 - Processing costs
(a) In calculating the monthly value of the
state's royalty share of qualified gas , a lessee may deduct processing costs
only to the extent authorized by
11 AAC 25.060 -
11 AAC 25.090 and
11 AAC 25.230 -
11 AAC 25.260. Processing costs
will be allowed only if they are the actual and reasonable processing costs
incurred and paid by the lessee or its affiliate and not refunded to the lessee
or its affiliate for processing qualified gas between the inlet to the Alaska
mainline and destination.
(b) A
processing allowance may not be deducted from the value of unprocessed gas,
residue gas, methane, or condensate in calculating the monthly value of the
state's royalty share of qualified gas.
(c) If the commissioner establishes a quality
differential under
11 AAC 25.140(b)
that a lessee may elect to take in lieu of a processing allowance , a lessee may
not take both the quality differential and a processing allowance in
calculating the monthly value of the state's royalty share of qualified
gas.
(d) For purposes of
11 AAC 25.230 -
11 AAC 25.260, a processing plant
is an affiliate of a lessee if the lessee and the processing plant are
affiliated at any time during the royalty reporting period, or were affiliated
when the contract for processing was executed or an agreement for processing
was made.
Notes
Authority:AS 38.05.020
AS 38.05.180
AS 43.90.310
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