LEASE (NPSL) ACCOUNT REPORT (AC FORM) (Current as of January, 2014) 1. Reporting Instructions Overview of the AC Form The Net-Profit-Share Lease Account Report (AC) Form includes revenue and cost activity for the NPSL in total. The AC Form contains three sections corresponding to the three NPSL accounts for which data is reported. The three accounts are the: Development Account (DV), Net Profit Payment Account (NP), and Production Revenue Account (PR). The Account” portion of the AC Form contains data on development cost “Development beginning balances, for exploration, construction, rents, licenses, drilling and development related expenses. The Payment Account” portion contains data on the net profit rate for “Net-Profit the lease and the amount of the net profit payment that is due. The Revenue Account” “Production portion contains data on production revenue, taxes, credits and administrative and operating costs as they affect production revenue balances. Reporting on the AC Form includes breakouts of items that are unique to the entire lease and those items that are specific to an Unit.” “Accounting Accounting Unit: An "Accounting Unit" is any Operation,” Operation,” or Area” “Lease “Tract “Participating that constitutes a single production, financial and reporting entity. DO&G assigns Unit” “Accounting designations for any operation from which a petroleum product is produced for any length of time. DO&G identifies Units” as or based on whether a lessee produces “Accounting “Active” “Inactive” or has produced oil, gas, or associated substances from the Unit.” DO&G considers “Accounting Units” with intermittent production in Status” even during periods of no “Accounting “Active production. Once an Unit” becomes it remains until the “Accounting “Active” “Active” “Accounting Unit” is “Abandoned.” Electronic Filers: Each lessee must designate an electronic filer. Contact the Royalty Accounting Section at 269-8800 or via email at and request your myAlaska user logon and password. Do not set up a myAlaska account on your own. All new myAlaska accounts for the purposes of conducting business with DO&G must be prescreened and set up by DO&G. Reporting Responsibility: According to lease agreements, it is the ultimate responsibility of each lessee to ensure that their oil and gas royalty and net-profit-share reporting and payment obligations are met on each of their leases, regardless of any operating or payment agreements in effect.
LEASE (NPSL) ACCOUNT REPORT (AC FORM) (Current as of January, 2014) 1. Reporting Instructions Overview of the AC Form The Net-Profit-Share Lease Account Report (AC) Form includes revenue and cost activity for the NPSL in total. The AC Form contains three sections corresponding to the three NPSL accounts for which data is reported. The three accounts are the: Development Account (DV), Net Profit Payment Account (NP), and Production Revenue Account (PR). The “Development Account” portion of the AC Form contains data on development cost beginning balances, for exploration, construction, rents, licenses, drilling and development related expenses. The “Net-Profit Payment Account” portion contains data on the net profit rate for the lease and the amount of the net profit payment that is due. The “Production Revenue Account” portion contains data on production revenue, taxes, credits and administrative and operating costs as they affect production revenue balances. Reporting on the AC Form includes breakouts of items that are unique to the entire lease and those items that are specific to an “Accounting Unit.” Accounting Unit: An "Accounting Unit" is any “Lease Operation,” “Tract Operation,” or “Participating Area” that constitutes a single production, financial and reporting entity. DO&G assigns “Accounting Unit” designations for any operation from which a petroleum product is produced for any length of time. DO&G identifies “Accounting Units” as “Active” or “Inactive” based on whether a lessee produces or has produced oil, gas, or associated substances from the “Accounting Unit.” DO&G considers “Accounting Units” with intermittent production in “Active Status” even during periods of no production. Once an “Accounting Unit” becomes “Active” it remains “Active” until the “Accounting Unit” is “Abandoned.” Electronic Filers: Each lessee must designate an electronic filer. Contact the Royalty Accounting Section at 269-8800 or via email at and request your myAlaska user logon and password. Do not set up a myAlaska account on your own. All new myAlaska accounts for the purposes of conducting business with DO&G must be prescreened and set up by DO&G. Reporting Responsibility: According to lease agreements, it is the ultimate responsibility of each lessee to ensure that their oil and gas royalty and net-profit-share reporting and payment obligations are met on each of their leases, regardless of any operating or payment agreements in effect.
ReportingSectII_C_AC_201401.docx