1. (a) For purposes of AS 43.55.024(c) and 43.55.028(e)(4), a producer's average daily production of oil and gas during a calendar year is calculated by dividing the total amount of oil and gas, in BTU equivalent barrels, produced by the producer from all leases or properties in the state during the calendar year and taxable under AS 43.55.011(e), by the total number of days in the calendar year. However, if a producer

   1. (1) did not have commercial production of oil or gas from a lease or property in the state before January 2 of the calendar year, the number of days counted as the denominator in that calculation does not include days in the calendar year before the producer commenced commercial production;
   2. (2) ceases all commercial production of oil and gas from leases or properties in the state on or before December 31 of the calendar year, the number of days counted as the denominator in that calculation does not include days in the calendar year after and including the date the producer ceases commercial production.
2. (b) As used in AS 43.55.028(e)(4) and (a) and (c) of this section, "average daily production of oil and gas" has the same meaning as "average amount of oil and gas produced a day" as used in AS 43.55.024(c).
3. (c) Regardless of whether a producer is a municipal entity, a producer's average daily production of oil and gas taxable under AS 43.55.011(e) is calculated for purposes of AS 43.55.024(c) and 43.55.028(e)(4) using the total of all oil and gas produced from leases or properties in the state by the producer during the calendar year, excluding only oil and 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.

(Eff. 5/3/2007, Register 182; am 10/21/2009, Register 192; am 3/1/2017, Register 221)

Authority: AS 43.05.080, AS 43.55.028, AS 43.55.895, AS 43.55.024, AS 43.55.110