35 Miss. Code R. § 8-02-02-202

Current through June 25, 2024
Section 35-8-02-02-202

Marketing costs and third party transportation are those costs incurred by the producer to get the unmarketable gas to a salable state and /or deliver the gas from the mouth of the well to the market. Deductible marketing costs are limited to:

1. Sweetening which is defined as any activity that removes acid gases, such as hydrogen sulfide and carbon dioxide, from the well stream. Sweetening includes absorption, stabilization, thermal and catalytic conversions, chemical reaction and regeneration;
2. Dehydration which is defined as any activity which removes water vapor that

is commonly associated with raw natural gas;

3. Compression which is defined as any activity associated with processing or transporting gas which mechanically increases the pressure of natural gas;
4. Third party transportation which will only be an allowable deduction if the actual charges are for trucking, barging, and pipeline fee charged the producer by an entity other than the purchaser.

35 Miss. Code. R. § 8-02-02-202

Adopted 7/9/2015