PETROLEUM RESOURCE RENT TAX ASSESSMENT REGULATIONS 2005 (REPEALED)

PART 4 - THE SUBSTITUTE PRICES  

REGULATION 23   NETBACK PRICE  

23(1)    
The netback price of an assessable gas for a taxpayer who is a participant in an integrated operation in a year of tax is:

EPVal − ((DCC × QC) + DOC) QAG

−

DPC QTDG

where:

DCC
(downstream capital costs) is the total amount of downstream capital costs incurred by the participants and allocated to the year of tax (see regulation 25 ).

DOC
(downstream operating costs) is the total amount of downstream operating costs incurred by the participants in the year of tax (see regulation 25 ).

DPC
(downstream personal costs) is the total amount of downstream personal costs of the taxpayer for the year of tax.

EPVal
(end product value) is the total market value in the year of tax of:

(a) for an integrated GTL operation - the project liquid produced; or

(b) for an integrated GTE operation - the project electricity produced.

QAG
(quantity of assessable gas) is the quantity, measured by volume or mass, of the assessable gas that was produced in the operation in the year of tax.

QC
(quantity coefficient) is:

(a) for an integrated operation that measures by volume - the volume coefficient for the year of tax; and

(b) for an integrated operation that measures by mass - the mass coefficient for the year of tax.

QTDG
(quantity of taxpayer ' s downstream gas) is the quantity, measured by volume or mass, of the assessable gas that was produced in the operation in the year of tax and:

(a) for an integrated GTL operation - processed into project liquid that the taxpayer was entitled to receive (including any of that gas that was used in that processing); or

(b) for an integrated GTE operation - consumed in the production of project electricity that the taxpayer was entitled to receive.

23(2)    
If the taxpayer sells a quantity of project liquid or project electricity from the operation as part of the operation in the year of tax, and the sale is an arm ' s length transaction, the market value of the quantity is taken to be the amount received for the sale.

23(3)    
For a quantity of project liquid or project electricity to which subregulation (2) does not apply, the market value of the quantity is the market value at the end of the downstream stage.

23(4)    
If the Commissioner is not satisfied that sufficient information is available to determine a market value for subregulation (3), the market value of the quantity of project liquid or project electricity is the amount determined by the Commissioner as fair and reasonable.

23(5)    
If the value of QTDG is zero, the value of DPC divided by QTDG is taken to be zero.