Deductible costs
17 Deductible costs
(1) The amount that may be deducted in a royalty year for the purpose of calculating the gross value at the wellhead in relation to petroleum produced from a project area (the deductible costs), is the amount calculated in accordance with the formula in subsection (2) and as provided by subsection (3).
The formula is:
DC = AC + CFD – R
where:
DC is the amount of the deductible costs.
AC is the amount of the allowable costs.
CFD is the amount of the balance of any deductions allowed to be carried forward under subsection (3).
R is the amount of any allowable costs the licensee, permittee or operator has received as reimbursement or compensation.
(3) If the amount of the deductible costs of petroleum produced in a project area in a royalty year exceeds the deduction cap, the amount of the excess may be:
carried forward; and
applied as a deductible cost in a later royalty year.
This Act’s bill:Explanatory statementSecond reading speech
The statute text is free to read above. View subscription options to unlock the case-law research tools for each provision.