Royalty Reports

  • Oil and Gas Royalty Payments 11 AAC 04.010-199

    Net Profit Share Lease Payments 11 AAC 83.201-295

    For a copy of the regulations dealing with the method and instructions for payment of oil and gas royalties, NPSL payments, rents, and bonuses, please contact Jim Stouffer at Division of Oil and Gas, 550 W. 7th Ave, Suite 1100, Anchorage, Alaska 99501, 907-269-8796, or e-mail Jim Stouffer.

    Current Royalty Reporting Regulations are available online in HTML format here. Or search for 11 AAC 04 here.

    Current NPSL Reporting Regulations are available online in HTML format here. Or search for 11 AAC 83 here.

    Current Reporting Instructions are available here

    Royalty Reports

    A complete "Oil Royalty Report" and "Gas Royalty Report" filing consists of the following parts:

    Current Production Month Reporting

    1. Royalty Operator Report: O1
    2. Royalty Valuation Report: A1
    3. Royalty Payment Summary Report: S1
    4. Supplemental Information as requested

    Prior Production Month Revisions:

    Revisions may be made to any of the above reports if necessary to correct previously filed reports or supplemental reports.

    Royalty Payment(s)

    Payment may be made as a lump sum for all "Oil Report" and "Gas Report" royalties, or as segregated payments by Product Groups, or segregated payments by Accounting Units.

    According to 11 AAC 04.030 each lessee must file, monthly, all reports required for the current production month for each active Accounting Unit in which they have lease ownership. An Accounting Unit is any Operation, Lease, Unit, or Participating Area that constitutes a single production, financial and reporting entity.

    A single lessee may file and pay for all lessees in an Accounting Unit. However, all lessees in the Accounting Unit must formally agree in writing to this reporting and payment arrangement. This arrangement must be approved, in writing, by the Commissioner of Natural Resources.

    NOTE: According to all lease agreements, it is the ultimate responsibility of each lessee to ensure that their royalty obligation on each of their leases has been met, regardless of any operating or payment agreements in effect.

    Royalty reports(O-1, A-1 and S-1) will be filed electronically and consist of real numbers and not formulas. Electronically filed reports must follow the royalty report instructions and provisions.

    All payments must be submitted electronically using Automated Clearing House (ACH) payment procedures. Wire transfers are an acceptable alternative.

    An Administrative Fee of $75.00 per day will be assessed for each Accounting Unit with inaccurate, incomplete or missing reports according to regulation 11 AAC 04.080

    Net Profit Share Lease Reports

    A complete Net Profit Share Lease(NPSL) report filing consists of the following parts:

    Current Production Month Reporting

    1. Volume Value Report: VV
    2. Account Report: AC
    3. Petroleum Production Tax Lease Allowance Report: PT
    4. Supplemental Information as requested

    Prior Production Month Revisions

    Revisions may be made to any of the above reports if necessary to correct previously filed reports or supplemental information.

    NPSL Payments

    Payment may be made as a lump sum for all NPSL leases or as segregated payments by Lease or Report Code.

    According to 11 AAC 83.245 each lessee must file all reports required for the current production month for each NPSL Lease in which they have ownership no later than 60 days following the end of each month.

    NPSL reports (VV, AC, PT and S-1) will be filed electronically and consist of real numbers and not formulas. Electronically filed reports must follow the report instructions and provisions. All payments must be submutted electronically using Automated Clearing House (ACH) payment procedures. Wire transfers are an acceptable alternative.