11 AAC 83.207. Accounting system

(a) The lessee of a NPSL shall establish and maintain on a monthly, accrual basis, in addition to its own standard accounting system for itself or joint operators, an accounting system for that NPSL in accordance with 11 AAC 83.201 - 11 AAC 83.295 for the purpose of the reporting and payment requirements established in 11 AAC 83.245. The accounting system consists of three accounts: the development account, the production revenue account and the net profit payment account. These accounts allow a lessee to accumulate and recover development costs under 11 AAC 83.219, with interest compounded monthly, and to apply it against the NPSL production revenue account under 11 AAC 83.209 from which direct operating expenses, and royalties under 11 AAC 83.240 and 11 AAC 83.242, respectively, are deducted before any net profit share payments under 11 AAC 83.202 become due to the state from the lessee.

(b) The lessee's books and records relating to the NPSL accounting system and the financial accounting system for itself or joint operators must be available for inspection and copying by representatives and agents of the state during normal business hours.

History: Eff. 11/9/79, Register 72

Authority: AS 38.05.020

AS 38.05.180

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