Alaska tax: Text of Proposed Regulation 15 AAC 55.810 and 55.811 Heating Value of Gas

The section heading of 15 AAC 55.810 is changed:

15 AAC 55.810. Heating value of gas produced before {effective date of regulation}.
15 AAC 55.810 is amended by adding a new subsection to read:

(d) This section applies to gas produced before {effective date of regulation}. (Eff. 5/3/2007, Register 182; am ___/___/_____, Register ____)

Authority: AS 43.05.080 AS 43.55.110 AS 43.55.900

15 AAC 55 is amended by adding a new section to read:
15 AAC 55.811. Heating value of gas produced on or after {effective date of regulation}. (a) For purposes of AS 43.55 and this chapter, the heating value of gas must be determined by

(1) sampling the gas in accordance with
(A) Gas Processors Association Standard 2166-05, Obtaining Natural Gas Samples for Analysis by Gas Chromatography, which is adopted by reference, in the case of spot sampling;
(B) American Petroleum Institute, Manual of Petroleum Measurement Standards, chapter 14, section 1 (sixth edition), as revised as of February 2006, which is adopted by reference, in the case of composite sampling or continuous analysis;

(2) determining the composition of the gas sample in accordance with Gas Processors Association Standard 2261-00, Analysis for Natural Gas and Similar Gaseous Mixtures by Gas Chromatography, which is adopted by reference;

(3) determining the water vapor content of the gas sample in accordance with ASTM International Standard D 1143-95 (2006), Standard Test Method for Water Vapor Content of Gaseous Fuels by Measurement of Dew-Point Temperature, or ASTM International Standard D 5454-04, Standard Test Method for Water Vapor Content of Gaseous Fuels Using Electronic Moisture Analyzers, which are adopted by reference, and;

(4) ) calculating the gross heating value in BTU per cubic foot of the gas sample in accordance with Gas Processors Association Standard 2172-96, Calculation of Gross Heating Value, Relative Density and Compressibility Factor for Natural Gas Mixtures from Compositional Analysis, and Gas Processors Association Standard 2145-09, Table of Physical Properties for Hydrocarbons and Other Compounds of Interest to the Natural Gas Industry, which are adopted by reference; in the case of a discrepancy between Standard 2172-96 and Standard 2145-09, Standard 2145-09 controls.
(b) Except as otherwise provided under (c) of this section, gas produced from each lease or property must be separately sampled under (a) of this section
(1) by composite sampling or continuous analysis if the rate of gas production from the lease or property under normal operating conditions exceeds 1,000 Mcf per day;
(2) otherwise by spot sampling at least once per month.
(c) If gas from two or more leases or properties is produced through a common separation facility, the department may allow the producer to treat the leases or properties as a single lease or property for purposes of the sampling requirements of (b) of this section. The department's approval under this subsection may be subject to reasonable conditions, including requirements to take and analyze periodic spot samples at well test separators and to separately estimate the heating value of the gas produced from each of the leases or properties from the heating value of the commingled sample based on known differences in the composition of the gas.
(d) This section applies to gas produced on or after {effective date of the regulation}. (Eff. ___/___/_____, Register ____)

Authority: AS 43.05.080 AS 43.55.110 AS 43.55.900

Editor's Note: Copies of the Petroleum Measurement Standards published by the American Petroleum Institute, standards for analysis established by the Gas Processors Association, and the ASTM International Standards may be reviewed during business hours at the department's offices located in the Atwood Building at 550 W. 7th Avenue, Anchorage, Alaska. To obtain a copy of the American Petroleum Institute's standards, write to the American Petroleum Institute at 1220 L Street, NW, Washington, DC 20005-4070, for the Gas Processors standards, write to the Gas Processors Association, 6526 East 60th Street, Tulsa, Oklahoma 74145, and for the ASTM
International Standards, write to ASTM International, P.O. Box C700, West Conshohocken, PA, 19428-2959.