sec.43Working out wellhead value of geothermal energy

sec.43 Working out wellhead value of geothermal energy

The wellhead value of geothermal energy produced by or for a geothermal producer in a royalty return period is— the amount the geothermal producer could reasonably expect to realise if the geothermal energy were sold on a commercial basis (the projected amount ); less the sum of the following for the period— the operating expenses for the geothermal energy; any negative wellhead value deductable under subsection (2) . If, for a royalty return period, the operating expenses are more than the projected amount— the amount of the excess is a negative wellhead value for the royalty return period; and the negative wellhead value may be deducted under subsection (1) (b) (ii) in a later royalty return period in the same year. To remove any doubt, it is declared that a geothermal producer is not entitled to receive any payment in relation to a negative wellhead value. (sec.43-ssec.1) The wellhead value of geothermal energy produced by or for a geothermal producer in a royalty return period is— the amount the geothermal producer could reasonably expect to realise if the geothermal energy were sold on a commercial basis (the projected amount ); less the sum of the following for the period— the operating expenses for the geothermal energy; any negative wellhead value deductable under subsection (2) . (sec.43-ssec.2) If, for a royalty return period, the operating expenses are more than the projected amount— the amount of the excess is a negative wellhead value for the royalty return period; and the negative wellhead value may be deducted under subsection (1) (b) (ii) in a later royalty return period in the same year. (sec.43-ssec.3) To remove any doubt, it is declared that a geothermal producer is not entitled to receive any payment in relation to a negative wellhead value.

• (a) the amount the geothermal producer could reasonably expect to realise if the geothermal energy were sold on a commercial basis (the projected amount ); less
• (b) the sum of the following for the period— (i) the operating expenses for the geothermal energy; (ii) any negative wellhead value deductable under subsection (2) .
• (i) the operating expenses for the geothermal energy;
• (ii) any negative wellhead value deductable under subsection (2) .
• (i) the operating expenses for the geothermal energy;
• (ii) any negative wellhead value deductable under subsection (2) .
• (a) the amount of the excess is a negative wellhead value for the royalty return period; and
• (b) the negative wellhead value may be deducted under subsection (1) (b) (ii) in a later royalty return period in the same year.