Section 11 AAC 83.245 - Reporting and payment requirements(b) Each lessee shall file NPSL reports, including supporting documentation as required, on forms prescribed by the department, together with the appropriate payment, if any, due the state on each NPSL, not later than 60 days following the end of each month. If the due date falls on a Saturday, Sunday, or state or federal holiday, the NPSL reports are due on the next business day. If two or more lessees hold a working interest in the same NPSL, they may, with the consent of the commissioner, appoint a designated operator of that NPSL to be responsible for the reporting requirements in this subsection before commercial production commences. The NPSL reports must contain the following information: (1) the volume and dispositions of all oil and gas production saved, removed, or sold for the production period;(2) the value of oil or gas removed or sold;(3) the amount and description of items in the NPSL accounts as defined in 11 AAC 83.209, 11 AAC 83.212, and 11 AAC 83.214, and the balance of the accounts for the month;(4) the monthly profit share of the lessee and the monthly net profit payment due the state; and(5) the calculations required under 11 AAC 83.220 and 11 AAC 83.241.(d) Interest will be charged at a variable rate per year equal to the prime rate as announced from time to time by the Bank of America, San Francisco, California, plus 1.25 percent a year on the amount of the net profit share payment due the state from the due date of the net profit share payment until the payment is received by the state.(e) Records pertaining to development costs incurred before the start of commercial production, which are not included in NPSL reports filed under (b) of this section, must be kept and maintained for four years after the expiration of the calendar year in which commercial production begins or until abandonment of the lease if no commercial production begins. Records of the information required in (b) of this section, including a lessee's standard or joint accounting system records, must be kept and maintained for six years after the expiration of the calendar year in which the NPSL reports were filed with the state under (b) of this section. However, records of information required in (b) of this section, including standard or joint accounting system records, relating to abandonment cost amortization, must be kept and maintained from the date of issuance of the lease until three years following abandonment of the lease. Upon request by the state, the lessee shall make all records required by this section available for inspection and copying by authorized representatives of the state during normal business hours.(f) Upon notice to the lessee, the state has the authority to audit the lessee's records of financial transactions, including the lessee's standard or joint accounting system records, inventories and other records pertaining to net profit share leasing operations. The audit period will remain open for the same period of time as specified in (e) of this section for record retention. If the commissioner determines there has been a showing of fraud or misrepresentation, then the audit period will remain open. Where possible, the auditor for the state will coordinate audit efforts with any other non-operators.(g) Not later than May 14, 2010, each lessee shall file amended NPSL reports under this section covering each month after March 2006 for which an item described in (b)(1) - (5) of this section is affected by the retroactive application of a provision listed in 11 AAC 83.290, as that section read on August 10, 2017.(h) The division will charge an administrative fee of $75 per day for failure to (1) submit a complete set of original NPSL reports required under this section, beginning on the first day after the division provides notice to the lessee that the administrative fee will begin to accrue; (2) submit revisions to a NPSL report filed under this section for that NPSL resulting from settlements, lease administrative actions, or NPSL accounting reconciliations, beginning on the 31st day after the division provides notice to the lessee that a revision must be submitted not later than 30 days after the notice; or (3) make NPSL payments when due under this section, beginning on the first day after the division provides notice to the lessee that the administrative fee will begin to accrue.Eff. 11/9/79, Register 72; am 8/15/82, Register 83; am 2/13/2010, Register 193; am 1/9/2014, Register 209, April 2014; am 8/10/2017,Register 223, October 2017Forms and instructions for making NPSL payments, and filling NPSL reports and supporting documentation required to comply with 11 AAC 83, can be obtained at the Anchorage office of the Department of Natural Resources, Division of Oil and Gas, 550 West 7th Avenue, Suite 1100, or can be found on the department's website at www.dog.dnr.alaska.gov/Royalty/ReportingInstructions.htm.
Authority:AS 38.05.020
AS 38.05.180