Section 11 AAC 83.209 - Production revenue account(a) A NPSL's production revenue account for a month is credited with the production revenue under 11 AAC 83.222 for the NPSL during a month. (b) For a month during which or after commercial production commences from the NPSL and for which the monthly production tax net revenue under 11 AAC 83.241(c) is negative, a NPSL's production revenue account is credited with a net loss credit. For purposes of this subsection, a net loss credit is the following percentage of the negative monthly production tax net revenue: 20 percent if the month is after March 2006 and before July 2007, 25 percent if the month is after June 2007 and before January 2014, or 35 percent if the month is after December 2013. The commissioner may approve a discount to the net loss credit if the lessee shows by clear and convincing evidence that the lessee cannot either (1) use the negative monthly production tax net revenue to reduce its own production tax liability for the calendar year under AS 43.55; or (2) realize the full value of the credit by using or selling a tax credit under AS 43.55 based on the negative monthly production tax net revenue. (c) A NPSL's production revenue account for a month is debited with (1) the NPSL's direct operating costs under 11 AAC 83.240 for that month; and (2) the NPSL's royalty payments, as specified in 11 AAC 83.242, for that month. (d) If the credits to the production revenue account for the NPSL during a month equal or exceed the debits that month to that account, an amount equal to that excess, if any, is credited that month to the development account of that NPSL and the same amount debited to the NPSL's production revenue account so the ending balance in the production revenue account that month is zero. If the debits to the production revenue account for a NPSL during a month exceed the credits that month to that account, an amount equal to that excess is carried forward as a debit to the production revenue account of the NPSL for the following month.Eff. 11/9/79, Register 72; am 2/13/2010, Register 193; am 1/9/2014, Register 209, April 2014The provisions of 11 AAC 83.209(c) and (d) were originally 11 AAC 83.209(b) and (c). Those provisions were re-lettered as of January 9, 2014, Register 209.
The provisions of 11 AAC 83.209(b) and (c) [now (c) and (d)] did not appear in print from Register 193 (April 2010) through Register 207 (October 2013), due to a printing error. As of Register 208 (January 2014), the regulations attorney made a technical revision under AS 44.62.125(b)(6), to restore 11 AAC 83.209(b) and (c) [now (c) and (d)] to print.
Authority:AS 38.05.020
AS 38.05.180