Units & Pipelines
Hilcorp's working ownership percentage in the Liberty Unit.
What is 100%?
Hilcorp Alaska, LLC = 50%
BP Exploration (Alaska) (Owned by Hilcorp Alaska, LLC) = 50%
The three requirements of a producer's costs to be considered lease expenditures.
(1) Costs must be incurred upstream of the point of production.
(2) Costs must be ordinary and necessary.
(3) Costs must be direct costs to explore, develop, or produce oil or gas deposits.
[AS 43.55.165(a)(1)(B)]
Large-diameter pipe lowered into an openhole and cemented in place.
What is a casing?
True or False?
Interest under AS 43.05.225 is compounded daily.
False.
Interest under AS 43.05.225 is compounded quarterly, hence why we call it "quarterly interest."
The operator of the Quokka Unit, located on the North Slope.
Who is Oil Search (Santos)?
(Oil Search holds 51% WIO and Repsol holds the other 49% WIO).
Statute that states costs incurred for the containment, control, or cleanup of an unpermitted release of a hazardous substance are not lease expenditures.
What is AS 43.55.165(e)(16)?
The structure used to support the crown blocks and the drillstring of a drilling rig.
What is a derrick?
True or False.
Producers are required to provide their oil invoices to OGP via their OGP Contract Database in ROL.
False.
Producers are only required to provide GAS sales invoices monthly [15 AAC 55.173(g)].
Producers ARE required to provide contracts to support the sale and transportation of both oil and gas monthly [AS 43.55.030(f)(6) and 15 AAC 55.520(c)].
The owner(s) of the Endicott Pipeline Company (EPC).
Who are Harvest Alaska (Hilcorp - 89.48%) and UNOCAL (Chevron - 10.52%)?
The three types of lease expenditures that are not overhead bearing.
What are ad valorem taxes, net profit share lease payments, and payments in lieu of taxes [15 AAC 55.217(a)]?
To start the well drilling process by removing rock, dirt and other sedimentary material with the drill bit.
What is to spud?
Statute that states an underpayment of a required installment payment not paid when due bears interest under 26 U.S.C. 6621 of the Internal Revenue Code.
What is AS 43.55.020(g) for over/under interest.
[AS 43.55.020(h) is the statute for the "over" part of over/under interest]
Current working interest owner(s) of the Duck Island Unit.
Who are Hilcorp and Chevron?
WIO is dependent on property:
ENDI: Hilcorp = 89.46% and Chevron = 10.54%
EXP3: Hilcorp = 99.75% and Chevron = 0.25%
DI02: Hilcorp = 100%
DIEI: Hilcorp = 100%
A producer has an invoice for contract labor that includes administrative costs. Are the administrative costs direct costs to explore, develop, or produce oil and gas deposits?
Yes - Administrative costs can be considered overhead since they are the contractor's ordinary and necessary costs for operations and are allowable lease expenditures under 15 AAC 55.260(a)(11).
A large valve at the top of a well that may be closed if the drilling crew loses control of formation fluids.
What is a blowout preventer (BOP)?
Regulation for carried-forward annual losses (CFALs) incurred after December 31, 2017, to explore, develop, or produce oil or gas deposits outside the Cook Inlet sedimentary basin.
What is 15 AAC 55.217?
The PRODUCING units that have properties eligible for GVR.
(Eligible as of January 1, 2024)
What are Colville River and Moose's Tooth?
The three types of costs that an operator is not required to bill out to partners.
What are net profit share lease (NPSL) payments, insurance premiums, and transportation costs related reservoir and recovery purposes?
[15 AAC 55.260(d)]
Onshore, two elevated truss-like structures having triangular cross sections. This structure supports drill pipe, drill collars, or casing above the ground.
What is a pipe rack?
The date the DOR Director signed the crude oil topping plant (COTP) memorandum that changes how DOR treats the taxable of COTP oil.
What is April 20, 2020?