PRT: administration: returns by participators - PRT 1A
FA87\S62 (as amended by FA08\S106)
A participator in a field who is required by OTA75\SCH2\PARA2 to make a return for a chargeable period is also required under FA87\S62(4) to deliver an additional return on form PRT 1A of all relevant sales of category 2 oil (see OT05305) within the period ending two months after the end of that chargeable period. The requirement to deliver the additional return within this two-month timescale continues even if LB Oil & Gas has agreed to an extension of the time allowed for the delivery of the participator’s PRT1 return.
The main purpose of the return is to ensure that as much data as possible is included in LB Oil & Gas databases from which the statutory market values for category 2 oils (which include condensates and LPG’s) are calculated.
Each company need complete only a single form PRT1A, even if it is a participator in more than one field.
Participators are required to return all ‘relevant sales of category 2 oil’ (see below) as defined in FA87/S62(6) stating
- Hydrocarbon Type for Category 2 Oil (for crude enter the relevant blend)
- the name of the seller
- the name of the buyer
- the date of the sale contract
- the date which, under the contract, was the date (or, as the case may be, the latest date) for delivery of the category 2 oil and the date on which the category 2 oil was actually delivered
- the quantity of category 2 oil actually sold and, if it is different, the quantity of category 2 oil contracted to be sold
- the price receivable for that category 2 oil
- the contract type for Crude. State whether Term, Spot, Dated or Forward. Condensates and LPGs state whether Spot or Term
- Formula pricing for that Category 2 oil to be given in full in separate column on PRT1A form. State what agency price report used/blend period and what quote.
- How is that category 2 oil sold (i.e. FOB or CIF etc)
- Place of delivery and such other particulars required by the Board.
A ‘relevant sale of category 2 oil’ is a contract for the sale of category 2 oil at arm’s length to which the participator, or any company resident in the UK and their associates is a party, as seller or buyer, being a sale of category 2 oil
- for delivery at any time within the chargeable period to which the return relates and
- details of which are not included on the form PRT1 for the period; and
- which is for the delivery of at least 500 metric tonnes of category 2 oil
In addition to the submission of the paper forms, some companies supply disks containing PRT 1 and PRT 1A returns data for direct upload into the LB Oil & Gas PRT system. The disk is not a statutory return and is regarded as a supplement to the paper return.
Another method used by companies is our secure electronic transfer by ‘Shared Workspace’. Any company wishing to pursue this method of submission should contact LB Oil & Gas in the first instance.
Both schemes are voluntary and LB Oil & Gas is eager to encourage all participators to participate as electronic input of the data aids swift examination of the return.
For all chargeable periods ending before 30 June 2008 a participator was required by FA87/S62 to deliver an additional return of all relevant sales of oil including category 1 oils. The amendment restricting the requirement to return only relevant sales of category 2 oils recognises the fact that the calculation of category 1 values is based on price assessments of three Price Reporting Agencies (see OT05319). Therefore for all periods ending on or after 30 June 2008 there is no longer the need for companies to provide data for relevant sales of category 1 oils.