PRT: valuation of non-arm's length disposals and appropriations - gas - valuation of light gases from 1 January 1994 - current approaches
The following pages look at the current approaches to the valuation of light gases. Several of them were considered inappropriate for use in earlier periods and may well be inappropriate for future periods. The LB Oil & Gas approach to valuing gas varies in the light of the individual circumstances of the disposal in question. It is perfectly possible, in the current market, for two participators in the same field to dispose of their gas in different ways. If both types of sale are to be found in the arm’s length market and each can be considered appropriate to the type of disposal then both can be acceptable to LB Oil & Gas for the purposes of determining a value under OTA75\SCH3\PARA3A.
However, there is a general set of principles which is applied to all disposals. Broadly LB Oil & Gas’s approach to the valuation of light gases is as detailed in OT05392 et seq.