C. The cost of producing oil and gas after drilling is complete but before the oil and gas is removed from the property.
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to pronunciationLegal Definition -
The cost of producing oil and gas after drilling is complete but beofre the oil and gas is removed from the property, including transportation costs, labor costs, costs of supervision, supplies, costs of operating the pumps, electricity, repairs, depreciations, certains royalties payable to the lease, taxes and other incidental expenses.
Black's Law Dictionary® Eighth Edition © 2004
Current Usage -
A LUKOIL net income reached a record of $9,511 million in 2007, which is an increase of 27.1% y-o-y. EBITDA was $15,388 million, which is 25.1% higher y-o-y. Revenue from sales rose by 21.0%, to $81,891 million. Operating expenses rose by $1,520 million y-o-y. This growth was mainly caused by real appreciation of the ruble against the dollar (which was 20.0% for the 12-months period ended December 31, 2007); change in operating expenses in crude oil and refined products inventory originated within the Group; amendments to Russian excise regulating legislation (starting from January 1, 2007 the Company pays excise to third-party refineries as part of the processing fee, this excise is then included into the operating expenses); increase in hydrocarbon output and refinery throughputs. However, lifting costs per barrel of production in 4Q 2007 were 1% lower q-o-q and the same as in 2Q 2007. Lifting costs per barrel of production in 2007 amounted to $3.58 per barrel, which is 16.1% higher y-o-y. The growth equals real appreciation of the ruble against the dollar (y-o-y). April 10, 2008 Oil & Gas Eurasia