sec.41Meaning of operating expenses

sec.41 Meaning of operating expenses

The operating expenses , for geothermal energy produced by or for a geothermal producer in a royalty return period, means each of the following— a toll, tariff or other charge paid or payable by the geothermal producer to a third party for producing the geothermal energy during the royalty return period if the charges are worked out— on a commercial basis; or if the Minister believes another basis for working out the charges is a more practical basis—on the other basis; depreciation of capital costs on an operating plant or pipeline owned by the geothermal producer and used for producing the geothermal energy or transporting it from the wellhead of the geothermal well in which it was produced to the point of its disposal, allocated over— 10 years; or if the Minister believes a shorter period is appropriate having regard to the expected potential for geothermal production from the well in which the geothermal energy was produced—the shorter period decided by the Minister; an operating cost incurred, or to be incurred, by the geothermal producer that relates directly to— treating, processing or refining the geothermal energy; or transporting the geothermal energy to the point of its disposal; catering, accommodation and travel costs for personnel communication costs consumable stores used at the site at which the energy is produced costs associated with transporting the geothermal energy, including a reasonable share of road maintenance and repairs, motor vehicle costs, wharfage and harbour fees geothermal energy storage costs geothermal tenure rents personnel wages and salaries repairs and maintenance of, and insurance costs for, operating plant and pipelines used to produce geothermal energy or transporting it from the wellhead to the point of its disposal another expense incurred, or to be incurred, by the geothermal producer in relation to the operation of the site at which the geothermal energy was produced that is approved by the Minister for the purpose of this section. However, expenses are not operating expenses under subsection (1) if the expenses are any of the following— an expense incurred by the geothermal producer in producing the geothermal energy; lifting costs office overhead costs for an office that is not located in the area of the geothermal tenure or at the site at which geothermal energy is produced; marketing costs for producing geothermal energy; Commonwealth excise levies; a civil penalty, or interest on an amount, payable by the geothermal producer under the Act . (sec.41-ssec.1) The operating expenses , for geothermal energy produced by or for a geothermal producer in a royalty return period, means each of the following— a toll, tariff or other charge paid or payable by the geothermal producer to a third party for producing the geothermal energy during the royalty return period if the charges are worked out— on a commercial basis; or if the Minister believes another basis for working out the charges is a more practical basis—on the other basis; depreciation of capital costs on an operating plant or pipeline owned by the geothermal producer and used for producing the geothermal energy or transporting it from the wellhead of the geothermal well in which it was produced to the point of its disposal, allocated over— 10 years; or if the Minister believes a shorter period is appropriate having regard to the expected potential for geothermal production from the well in which the geothermal energy was produced—the shorter period decided by the Minister; an operating cost incurred, or to be incurred, by the geothermal producer that relates directly to— treating, processing or refining the geothermal energy; or transporting the geothermal energy to the point of its disposal; catering, accommodation and travel costs for personnel communication costs consumable stores used at the site at which the energy is produced costs associated with transporting the geothermal energy, including a reasonable share of road maintenance and repairs, motor vehicle costs, wharfage and harbour fees geothermal energy storage costs geothermal tenure rents personnel wages and salaries repairs and maintenance of, and insurance costs for, operating plant and pipelines used to produce geothermal energy or transporting it from the wellhead to the point of its disposal another expense incurred, or to be incurred, by the geothermal producer in relation to the operation of the site at which the geothermal energy was produced that is approved by the Minister for the purpose of this section. (sec.41-ssec.2) However, expenses are not operating expenses under subsection (1) if the expenses are any of the following— an expense incurred by the geothermal producer in producing the geothermal energy; lifting costs office overhead costs for an office that is not located in the area of the geothermal tenure or at the site at which geothermal energy is produced; marketing costs for producing geothermal energy; Commonwealth excise levies; a civil penalty, or interest on an amount, payable by the geothermal producer under the Act .