Royalty Accounting

  • The primary purpose of leasing state lands is to provide for oil and gas development and the subsequent economic benefits for the state and its residents. The Royalty Accounting and Audit Sections oversees the accounting, analysis, and audit of all oil and gas royalties and net profit share lease (NPSL) payments received through Alaska oil and gas production. Depending on the term of the lease, either 25% or 50% of the revenues collected is deposited in the Permanent Fund. The remainder goes to the General Fund and the School Fund. Money received for settlements of past royalties due is placed in the Constitutional Budget Reserve Fund. Current year information on the sources of oil and gas revenues and the distribution to state funds is available through the highlighted links and updated monthly

    The royalty rate varies, according to the terms of the lease agreement, from 5% to 60% but is most often 12.5%. Some leases receive royalty rate reductions for new discoveries or economic considerations. Royalty is paid based on the value of the oil or gas removed from the lease, the volume removed and the lease's royalty rate. Large lease owners have agreements with the state as to what expenses can be deducted from the sales value to calculate royalty due. Royalty payments are made the month after the production has occurred. Lessee reporting of royalty information must follow established regulations and procedures.

    Net profit share leases(NPSLs) are leases whose terms include the requirement that the State receive a percentage share of net production income in addition to royalty. The lessee is allowed to recover allowable development and operating costs before the lease enters "payout" and begins remitting a share of income to the State. There are currently 10 NPS leases that have reached payout status. Information about filing NPSL reports are available here.

    Historical information and graphs related to royalty production reflect the declining production volumes from 1988 to 2009. Historical information and graphs related to royalty and lease revenues reflect the value that the state has received from oil and gas production from 1990 to 2009.

    The state receives a royalty share of oil and gas produced. When it takes its royalty-in-kind, the state takes physical posession of its royalty share of the oil and gas produced by the lessee and sells it. The conditions for the sale of royalty in kind must adhere to state regulation and statutes.

    Summary information on royalty values and volumes for the current year is updated monthly.

    Information related to royalty and NPSL report filing including forms, royalty accounting contact information and filing is located at Royalty Reporting Instructions page.

    Weighted Average and Volume Reports

    Volumes and Weighted Average Royalty Value Reports

    Information on volumes and royalty values by area and product is available by accessing the reports below. The reports reflect the most current information on volumes and values as reported by lessees. This information is subject to revision as lease owners file reports that amend royalty value. These reports present information for the seventy two production months prior to the run date. If prior year information is needed, you can contact the Division of Oil and Gas, Royalty Section.

    Annual Royalty Volumes and Dollars Reports

    Information on volumes and total royalty due from lessees by unit is available by accessing the reports below. The reports reflect the most current information on volumes and values as reported by lessees. This information is subject to revision as lease owners file reports that amend royalty value. These reports present information for the six calendar years of production months prior to the run date and reflect the royalty due for that time period, not necessarily the year that the royalty was actually received. The total value received does not reflect the monies received from the sale of the State's royalty taken in kind. That information is available here. If information for prior years is needed, you can contact the Division of Oil and Gas, Royalty Section.

    Choose a Report

    Select the type of report you want:-
    i. Report on Volumes and Royalty Values by Area and Product (Volume & Value Report) or
    ii. Report on Volume and Total Royalty due from Lessees (Annual Royalty Volumes & Amounts Report)

    Volume & Value Report        Annual Royalty Volumes & Amounts
    Product/Location
    Format