Code of Federal Regulations Title 18. Conservation of Power and Water Resources 18 CFR Pt. 2, App. C—Nationwide Proceeding Computation of Federal Income Tax Allowance Independent Producers, Pipeline Affiliates and Pipeline Producers Continental U.S.–1972 Data (Docket No. R–478)

PRODUCTION, EXPLORATION AND DEVELOPMENT COSTS

2

Direct and indirect lease costs and expenses.

1-A

01

1,694,893,558

1,694,893,558

57,287,938

$144,679,567

$19,763,791

$221,731,296

90.33

207,740,782

2

Taxes (except income and production).

A-1

02

210,335,720

210,335,720

16,507,630

20,431,444

4,360,024

41,299,098

9.33

39,323,337

4

Production taxes

1-A

03

479,424,297

27,124,210

96,699,673

10,005,599

133,829,482

90.33

124,478,624

5

Other lease expenses

1-A

04

61,102,433

61,102,433

17,527,077

24,988,900

336,427

42,852,404

90.33

40,435,977

6

Depletion, depreciation and amortization.

1-A

05

1,716,823,070

1,716,823,070

105,999,777

297,881,312

25,502,048

429,383,137

90.33

400,578,014

7

Corporate general expense

1-A

06

278,845,909

278,845,909

13,611,337

25,077,796

3,579,728

42,268,861

90.33

39,843,838

8

Area, district, division and field expense.

1-A

07

261,718,417

26,178,417

7,207,320

21,758,604

2,778,944

31,744,868

90.33

29,640,811

9

Miscellaneous lease revenues

1-A

09

(12,203,136)

(12,203,136)

(1,348,729)

(2,768,788)

(314,067)

(4,431,584)

90.33

(4,163,842)

10

Return on production rate base at 15 percent.

1-A

13

2,505,272,672

2,505,272,672

186,055,524

427,939,601

69,857,212

663,852,337

90.33

622,470,578

11

Exploration and development costs and expenses.

1-A

15

1,673,945,853

1,673,945,853

594,971,262

12

Return on exploration rate base at 15 percent.

1-A

16

588,558,894

588,558,894

234,604,103

13

Regulatory commission expense including return.

1-A

17

6,514,279

6,514,279

6,514,852

14

15

Total computed revenue

9,465,231,966

8,985,807,669

2,336,439,376

16

(gross income)

17

18

REVENUE DEDUCTIONS

19

Direct and indirect lease costs and expenses.

1-A

01

1,694,893,558

1,694,893,558

207,740,872

20

Taxes (except income and production).

1-A

02

210,335,720

210,335,720

39,323,377

21

Production taxes

1-A

03

479,424,297

124,478,624

22

Other lease expenses

1-A

04

61,102,433

61,102,433

40,435,977

23

Book depletion

⁷(283,121,142)

283,121,242

24,287,986

61,675,828

6,177,596

92,141,410

90.33

86,177,357

24

Depreciation expense

1-A

05

⁷(654,604,447)

654,604,447

30,223,586

94,010,520

7,007,662

131,241,768

90.33

122,150,951

25

Amortization of capitalized IDC

⁷(779,097,382)

779,097,382

51,488,205

142,194,964

12,316,790

205,999,959

90.33

192,249,706

26

Corporate general expense

1-A

06

278,845,909

278,845,909

39,843,838

27

Area, district, division and field expense.

1-A

07

261,718,417

261,718,417

29,640,811

28

Miscellaneous lease revenues

1-A

09

(12,203,136)

(12,203,136)

(4,163,842)

29

Exploration and development costs and expenses.

1,673,945,853

1,673,945,853

594,971,262

30

Regulatory commission expense

4-A

01

6,384,384

6,394,384

6,394,384

31

32

Total book expenses

6,371,380,505

5,891,856,209

1,479,243,227

33

34

Production net income (line 15 less line 32).

3,093,951,461

3,093,951,460

857,190,149

35

36

TAX ADJUSTMENT– ADD (DEDUCT)

37

Amortization of capitalized IDC

779,097,282

779,097,382

192,249,706

38

Estimated IDC capitalized in 1972.

⁸

(1,470,935,857)

(1,470,935,857)

(362,967,445)

39

Interest expense (calculated)

⁹(243,846,540)

(243,846,540)

(60,587,136)

40

41

Taxable income

2,158,266,445

2,158,266,445

625,891,274

42

43

Federal income tax at 48 percent.

1,992,245,949

1,992,245,949

¹⁰577,745,791