Section 15 AAC 55.208 - Calculation of adjusted lease expenditures and production tax value for a municipal entity(a) An annual production tax value is not calculated under AS 43.55.160(a)(1) or (h) for oil or gas produced by a municipal entity that it does not sell to another party. The calculation of an annual production tax value under AS 43.55.160(a)(1) or (h) for oil or gas produced by a municipal entity that it sells to another party is subject to the provisions of this section.(b) For each category of oil, gas, or oil and gas for which the calculation of an annual production tax value is specified under AS 43.55.160(a)(1)(A) - (G) and for each category of oil for which the calculation of an annual production tax value is specified under AS 43.55.160(h)(1) - (4), a municipal entity that produces oil or gas within that category during a calendar year that it sells to another party shall calculate a fraction, the numerator of which is equal to the amount of oil, gas, or oil and gas produced by the municipal entity in that category during the calendar year, in BTU equivalent barrels, that it sells to another party, other than oil or 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, and the denominator of which is equal to the total amount of oil, gas, or oil and gas produced by the municipal entity in that category during the calendar year, in BTU equivalent barrels, other than oil or 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. Subject to AS 43.55.160(b), the amount of adjusted lease expenditures that is deductible from the gross value at the point of production of the oil, gas, or oil and gas in that category that the municipal entity sells to another party equals the product of the amount of adjusted lease expenditures that are described in the applicable provision of AS 43.55.160(a) or (h) for that category, multiplied by the fraction calculated under this subsection for that calendar year for that category.(c) The only adjusted lease expenditures incurred by a municipal entity that may be used to establish a carried-forward annual loss under AS 43.55.023(b)(1), as the provisions of that paragraph read before January 1, 2018, subject to the provisions of AS 43.55.023(b)(2), as the provisions of that paragraph read before January 1,2018, for lease expenditures incurred before January 1, 2018, or AS 43.55.165(a)(3), subject to the provisions of AS 43.55.160(e), for lease expenditures incurred after December 31, 2017. are the portion, if any, of the amount of adjusted lease expenditures calculated under (b) of this section that would otherwise be deductible in calculating an annual production tax value but whose deduction would cause the annual production tax value to be less than zero.Eff. 3/1/2017, Register 221, April 2017; am 12/6/2018, Register 228, January 2019 Authority:AS 43.05.080
AS 43.55.023
AS 43.55.110
AS 43.55.160
AS 43.55.165
AS 43.55.895