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GGD-85-12 [i] (1984-12-10)

handle is hein.gao/gaobabewe0001 and id is 1 raw text is: 
FirsnCTD - bNot to be relesed eutslde the General
Acco ioocqg Oi1ce except on the basls  f snl  c anareval







Report To The Honorable Bill Nelson

House Of Representatives


Response To Questions About The Windfall

Profit Tax On Alaskan North

Slope Crude Oil


1 lii s riepor  di  scr i bs  iow  o i I prod u cers a re d eterrm i n i ng
te It 'iei)val I ri  of Sadleroclhit oil, which is the starting
1  1 o i ci(:liutilatin g  the  windfall profit tax  Under the
  Oil Windflall Profit Tax Act of 1980, oil producers pay
a NIx o th tl' if:ttereiic' ebtween the free market price of a
bair rel of oil ,nd  its  controlled  selling  price  tinder De-
p a r ml er t: of I n:r iy regulations with certain adjustments.
Sadlioc li:i oil is from  the  Prudhoe  Bay field, which  is
Ioi ali'(:: o  Alaska's North  Slope and is the field with the
!ilirt!t~s  volti (::ri i: oil production  in  the  United  States.

Moit: Pr dhiJ(lliii Bay prodluIGers are rising net back methods
to ealisi[ ito oil's removal price. Net-back generally
involves v.1lt0iii  Alaskao  oil on the basis of the market
valor' of   oil it) deli ve ry areas, such as the U S  G ulf
((::tA  ol tire We:1st (oast, 01(d their deducting the costs of
tiir:'  Ii:: u  s :t u   Ie  Alask;ii:)  il to i te  various  refi  eries  or
tit r  k et ':,

l J  t~ ' teIwo  IRHS  revi '   ruli gs issued  to ensure con-
si i : cy   .1iriing   :r(di cers, diff erences  still exist aiiiong
1: P rillid HBay producers  (,t: bthack practices. IRS plans
to develii ard is ' ii  early  1985  further guidance to
pro(:u  l s (irs l I  Ir ov l p:: l:e  (J(t:eri inations.


      / 1/
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III 1111 111
    125908


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    GAO/GGD-85-12
DECEMBER 10, 1984

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