Competitive Framework for Alaska: 2012

Concept of Government Take During the seminar the concept of "government take" will be used frequently. Following is an example of the calculation of the government take for a 10% royalty. Gross Revenues $ 100 per barrel Costs $ 20 per barrel Divisible Income Royalty 10% $ 80 per barrel $ 10 per barrel Government Take: ($10 / $80) x 100% = 12.5% The Government Take in this seminar is presented on an undiscounted and real basis using an escalation and inflation rate of 2% and is based on price and cost data as contained in Volume 3 of World Rating of Oil and Gas Terms. 9

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