27The comparable uncontrolled price

27  The comparable uncontrolled price  (1) A comparable uncontrolled price, or CUP, in relation to a relevant transaction for a volume or mass of project sales gas, is a price for sales gas under a transaction (the other transaction) where:  (a) the Commissioner is satisfied that the parties to the other transaction dealt with each other at arm’s length in relation to the other transaction; and  (b) the Commissioner is satisfied that the other transaction is comparable to the relevant transaction; and  (c) the other transaction was entered into in a market that the Commissioner is satisfied is a relevant market; and  (d) if subsection (4) applies (subject to subsection (5))—the price has been adjusted under subsection (4). Relevant transaction  (2) For the purposes of this section, a relevant transaction, for a volume or mass of project sales gas, is:  (a) a sale of the gas to which paragraph 24(1)(d) of the Act applies; or  (b) an act by which the gas becomes an excluded commodity to which paragraph 24(1)(e) of the Act applies. Comparable transactions  (3) In determining, for the purposes of paragraph (1)(b), whether the other transaction is comparable to the relevant transaction, the Commissioner must have regard to all relevant factors, including the following:  (a) the functions performed, assets used and risks borne by:  (i) the entities involved in the relevant transaction; and  (ii) the entities involved in the other transaction;  (b) the characteristics of any property or services transferred;  (c) the terms of any relevant contracts:  (i) between the parties to the relevant transaction; and  (ii) between the parties to the other transaction;  (d) the economic circumstances;  (e) the business strategies of:  (i) the entities involved in the relevant transaction; and  (ii) the entities involved in the other transaction.  (4) If the Commissioner is satisfied:  (a) that, to the extent (if any) that the other transaction differs from the relevant transaction, a reasonably accurate adjustment can be made to the price obtained for the other transaction in order to eliminate the effect of the difference; and  (b) that it is necessary to make the adjustment in order to identify a comparable uncontrolled price in relation to the relevant transaction; the Commissioner may:  (c) make the adjustment; and  (d) treat the other transaction, as adjusted, as comparable to the relevant transaction for the purposes of this section.  (5) However, the Commissioner need not, and must not, make an adjustment under subsection (4) to account for a difference between the relevant transaction and the other transaction that arose only because:  (a) the parties to the other transaction dealt with each other at arm’s length in relation to the other transaction; but  (b) the parties to the relevant transaction did not deal with each other at arm’s length in relation to the relevant transaction.  (6) The Commissioner may be satisfied that the other transaction is comparable to the relevant transaction even if:  (a) the parties to the other transaction dealt with each other at arm’s length in relation to the other transaction; but  (b) the parties to the relevant transaction did not deal with each other at arm’s length in relation to the relevant transaction. Relevant markets  (7) In determining, for the purposes of paragraph (1)(c), whether a market is a relevant market, the Commissioner must have regard to the following:  (a) the demand and supply characteristics of the market, including:  (i) the composition of sales gas sold in the market; and  (ii) geographic differences between the production facilities and the product delivery point of the sales gas sold in the market; and  (iii) the end use for the sales gas sold in the market;  (b) the terms of contracts usual in the market, including volumes, discounts, exchange exposures and other relevant conditions that would reasonably be considered to affect the price;  (c) market strategies;  (d) the existence of spot sales (including market penetration sales) below or above marginal cost;  (e) processing costs;  (f) technology used in processing;  (g) any other factors that it would be reasonable to consider.