OT62400 | Transferable Tax History - DSA estimate must be reasonable

DSAs are third party agreements. We would therefore expect them to be prepared on a commercial basis and therefore to provide a reasonable estimate of the present day costs of decommissioning, subject to the adjustments described at OT62200.

However, if you believe that the estimates used in the DSA are not reasonable you should seek advice from the Oil and Gas Tax policy and technical team in BAI.

In considering whether the estimates used in the DSA are a reasonable estimate of the costs of decommissioning the asset, you can refer to available regulatory and commercial data from third party sources about the likely costs of decommissioning the asset in question.