Meaning of sales value
14 Meaning of sales value
(1) The sales value, of petroleum produced from a project area in a royalty year, is the revenue received or receivable for the petroleum, minus the shipping costs of the petroleum.
(2) Despite subsection (1), the sales value of the petroleum is the market value of the petroleum if:
(a) no revenue is received or receivable by the licensee, permittee or operator for the sale of the petroleum; or
the petroleum is, in the royalty year:
not sold; or
(ii) sold as a petroleum product that was further refined or processed after the first saleable point; or
the sale of the petroleum is not on arm's length terms.
In this section:
revenue, received or receivable for the petroleum, means:
(a) the gross proceeds received or receivable by the licensee, permittee, operator or related party (or applied to their benefit) in Australian dollars or Australian Dollar Equivalent for the petroleum; or
(b) the proceeds received from an insurer in the case of loss of, or damage to, the petroleum, net of any excess or deductible paid in relation to the loss.
This Act’s bill:Explanatory statementSecond reading speech
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