
Marie Evans
107:08 - 108:17
"when you look at 4355.900, those definitions for the point of production for gas were specifically changed and modified back when SB 138 was passed. And I believe if we were to walk through those definitions together, you would see that it is clear that the point of production for gas is like one of three locations"
“when you look at 4355.900, those definitions for the point of production for gas were specifically changed and modified back when SB 138 was passed. And I believe if we were to walk through those definitions together, you would see that it is clear that the point of production for gas is like one of three locations”
Some costs, as you are well aware, are just listed as exclusions. For example, myself, I'm not a deductible lease expenditure by any means. So if we're looking at what costs are deductible for gas, one of the places we would go is to look at how do we define defines the point of production for gas. And when you look at 4355.900, those definitions for the point of production for gas were specifically changed and modified back when SB 138 was passed. And I believe if we were to walk through those definitions together, you would see that it is clear that the point of production for gas is like one of three locations, and it depends on where the gas was measured, separated, processed, or treated.
Three major North Slope producers told the Alaska Senate Finance Committee they signed gas sale precedent agreements for Alaska LNG Phase 1 and will sell at the lease line. That structure means midstream pipeline and treatment costs won't be deductible against oil production tax.
