Matthew Kissinger
104:02 - 105:02
“it starts with a temporary tax abatement that would expire once the project achieves either 500 million standard cubic feet per day of throughput or five years from commencing commercial operations, whichever is first. It also sets out an alternative volumetric tax, which is $0.06 per thousand standard cubic feet flowing through the pipeline and $0.12 for gas flowing through the GTP and $0.12 for Gas flowing through the LNG facility. However, that is then weighted by the total proportion of capital that each of those segments it constitutes of the total project capital.”
- Speaker
- Matthew Kissinger
- Timestamp
- 104:02 – 105:02
- Community
- Alaska News
- Captured at
From the transcript
Section 18 is really where the tax, the alternative volumetric tax comes in as well as a temporary tax abatement. So it starts with a temporary tax abatement that would expire once the project achieves either 500 million standard cubic feet per day of throughput or five years from commencing commercial operations, whichever is first. It also sets out an alternative volumetric tax, which is $0.06 per thousand standard cubic feet flowing through the pipeline and $0.12 for gas flowing through the GTP and $0.12 for Gas flowing through the LNG facility. However, that is then weighted by the total proportion of capital that each of those segments it constitutes of the total project capital. So, for example, if the LNG plant is 40% of the project capital, that it would be 40% times the 0.12 in the alternative volumetric tax.
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