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Royalty Accounting
The primary purpose of leasing
state lands is to provide for oil and gas development
and the subsequent economic benefits for the
state and its residents. The Royalty Accounting
Section oversees the accounting, analysis,
and audit of all oil and gas royalties received
through Alaska oil and gas production. Either
25% or 50% of the royalty collected from state
leases is deposited in the Permanent Fund.
The remainder goes to the General Fund and
the School Fund. Money received for settlements
of past royalties due is placed in the Budget
Reserve Fund.
The royalty rate varies, according to the
terms of the lease agreement, from 5% to 60%
but is most often 12.5%. Some leases receive
royalty rate reductions for new discoveries
or economic considerations. Royalty is paid
based on the agreed value of the oil or gas
removed from the lease, the volume removed
and the lease's royalty rate. Lease owners
have agreements with the state as to what expenses
can be deducted before calculating royalty
due. The state will determine if the royalty
must be paid "in-value" (RIV), i.e. cash or "in-kind" (RIK),
i.e. with actual oil or gas. The RIK is then
sold by the state.
Some older leases require a minimum royalty
payment if the lease is capable of producing.
If the lease's royalty payments do not meet
the minimum royalty due, an additional payment
must be made. All lease owners must prepay
an annual rent for the lease. If the royalty
due is less than the rent already paid then
no additional royalty is due. Royalty payments
are made the month after the production has
occurred. Reporting royalty information must
follow established regulations and procedures.
Royalty
Reporting
New royalty reporting
directions and report forms.
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Royalty
Value
Chart showing
the weighted average value, received
by the state, of oil per barrel
and gas per cubic foot for the
two previous months and year-to-date
totals. |
Royalty-in-Kind
The state receives
a royalty share of oil and gas produced.
When it takes its royalty in-kind,
the state takes physical possession
of its royalty share of the oil and
gas produced by the lessee and sells
it. |
Revenues
Choose from low and high resolution graphs of revenues received from
oil and gas leases in recent years. |
O&G
Volumes
Chart listing volumes
of royalty oil and gas pruduced from
the North Slope and Cook Inlet state
leases for the past two months and year-to-date
totals. |
Funds
Received
Chart showing
revenue received from oil and gas
leases by revenue type for the
previous two months and year-to-date
totals. |
Distribution
of Funds
Chart showing the
distribution of money received
from oil and gas leases for the
past two months and the year-to-date
totals. |
Royalty
Production
View low or high
resolution graphs of Gross Oil
and NGL Production from State Lands. |
Monthly Summary
Oil and gas production volumes and royalty revenues are arranged by producing unit or field or by the lease owner. |
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Maintained By: Jim Stouffer |
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