Alaska Administrative Code

(a) The commissioner will, in the commissioner's discretion, audit expenditures by inspecting all reports and other information filed in support of or relating to direct exploration expenditures, whether or not that information is confidential. The commissioner will hold confiden…

A prospective licensee or licensee disagreeing with a decision of the department may appeal under the provisions of 11 AAC 02. Notes 11 AAC 82.963 Eff. 9/22/95, Register 135; am 9/19/2001, Register 159 Authority:AS 38.05.131 AS 38.05.133 AS 44.37.011 State regulations are updated…

The assigning of an oil and gas exploration license is subject to the provisions of 11 AAC 82.605 and 11 AAC 82.615. Notes 11 AAC 82.966 Eff. 9/22/95, Register 135 Authority:AS 38.05.131 AS 38.05.132 AS 38.05.133 State regulations are updated quarterly; we currently have two vers…

The effective date of an assignment of an oil and gas exploration license is as provided for in 11 AAC 82.625. Notes 11 AAC 82.969 Eff. 9/22/95, Register 135 Authority:AS 38.05.131 AS 38.05.132 AS 38.05.133 State regulations are updated quarterly; we currently have two versions a…

The responsibilities of an assignor and an assignee of an oil and gas exploration license are subject to the provisions of 11 AAC 82.630. Notes 11 AAC 82.972 Eff. 9/22/95, Register 135 Authority:AS 38.05.131 AS 38.05.132 AS 38.05.133 State regulations are updated quarterly; we cu…

The commissioner will, in the commissioner's discretion, terminate a license whenever a licensee fails to comply with a provision of an oil and gas exploration license, applicable statutes, regulations, or stipulations and the failure continues for a period of 60 days following w…

(a) After completion of all work commitment obligations, and before the expiration of an oil and gas exploration license, a licensee may request the conversion of all or part of the license into oil and gas leases. (b) A licensee shall submit to the department a written request p…

On or before each anniversary date of an exploration license, a licensee shall submit to the department all geologic and geophysical data obtained under an exploration license. Notes 11 AAC 82.981 Eff. 9/22/95, Register 135 Authority:AS 38.05.131 AS 38.05.132 AS 38.05.133 AS 38.0…

(a) The commissioner will hold confidential all geologic and geophysical data submitted by a licensee until the land from which the data were acquired is no longer subject to an oil and gas exploration license, and provided that the land has not been converted to one or more oil …

In this chapter (1) "audit" means the process of obtaining sufficient competent evidentiary matter through inspection, observation, inquiry, and confirmation to afford a reasonable basis for ascertaining the compliance by the subject of the audit with the applicable law, regulati…

(a) Except as provided in (b) of this section, all land is competitive for oil and gas leasing purposes and may only be leased under competitive procedures provided in 11 AAC 82. (b) The director will consider applications for shallow natural gas leases on a first-come first-serv…

A lessee that drills a well making a discovery of oil or gas in a previously undiscovered pool in the Cook Inlet sedimentary basin and complies with the requirements of 11 AAC 83.1000 - 11 AAC 83.1049 shall pay a royalty of five percent on all production from that pool produced f…

(a) To establish priority as to time and date of discovery of oil or gas in a pool described in 11 AAC 83.1000, the lessee shall file a nonconfidential sworn statement with the commissioner claiming to be the first to have drilled a well making the discovery. (b) The lessee shall…

(a) Within one year of the discovery well completion date, the lessee shall apply to the commissioner for a discovery well certification. The application must be accompanied by evidence to establish the discovery of a previously undiscovered pool and evidence that a well within t…

(a) Within 10 days after receipt of a complete application for discovery well certification, the commissioner will publish notice of the application in a newspaper of general statewide circulation and the division's world wide web page on the Internet. The notice must state that …

(a) The commissioner will revoke the discovery well certification if the commissioner determines that any material information that was supplied in the application for discovery well certification was false or erroneous. If the commissioner revokes the certification, the lessee s…

In 11 AAC 83.1000 - 11 AAC 83.1049, unless the context clearly requires a different meaning: (1) "commissioner" means the commissioner of the Department of Natural Resources or the commissioner's designee; (2) "Cook Inlet" means the area bounded by (A) the north boundary of Towns…

"Production in paying quantities," as used in 11 AAC 83.100 - 11 AAC 83.295 and 11 AAC 83.400 - 11 AAC 83.910, means production in such quantity as to enable the operator to realize a profit. For purposes of the habendum clause of a lease, that is, for the purpose of keeping the …

(a) Rental payments are due in accordance with the rental provisions of the lease. (b) The department will credit an overpayment of rent to the next year's rental. (c) All oil and gas leases are conditioned upon payment of the annual rental in advance on or before the beginning o…

For a lease that is expired but otherwise remains subject to a pending application or appeal, the lessee must continue to pay annual rental at the previous year's rental rate, on or before the anniversary of the lease, during the application or appeal process. If, upon resolution…

Notes 11 AAC 83.115 Repealed 6/28/81. State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compa…

Notes 11 AAC 83.120 Repealed 6/28/81. State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compa…

(a) If drilling, including redrilling, sidetracking, or other means necessary to reach the originally proposed bottom hole location, has commenced on or before the expiration date of the primary term of the lease and is continued through that date with reasonable diligence, the l…

If production occurs in paying quantities during the primary term of any lease, and if at the end of the primary term or at any time prior to the end of the primary term that production has ceased, or if production ceases at any time after the expiration of the primary term, then…

No lease covering land on which there is a well capable of producing oil or gas in paying quantities will expire because the lessee fails to produce oil or gas, unless the commissioner gives notice to the lessee or operator allowing a reasonable time, which will not be less than …

If any lease or a portion of one is eliminated from the unit plan or recovery program, or if the unit plan or recovery program is terminated, then the lease or portion of it so eliminated continues in full force and effect as may be provided in the unit or cooperative agreement, …

The commissioner will include a directional drilling clause in all oil and gas leases that have been issued or that may be subsequently issued by the state. The clause will provide that actual drilling from a well located off the leased premises, but to be completed or bottomed o…

(a) Every oil and gas lease or exploration license must reserve to Alaska the right to dispose of to others the surface of the leased land subject to the lease or the licensed land subject to the license, and the right to authorize others by grant, lease, or permit, subject to th…

(a) If the commissioner finds that reports or information required under AS 31.05.035(a) contain significant information relating to the valuation of unleased land within a three-mile radius of the well from which these reports or information were obtained, the commissioner will,…

Each lessee, licensee of a state-issued oil and gas exploration license, or permittee is required to pay any damage that becomes payable under AS 38.05.130 and shall indemnify Alaska and hold it harmless from and against any claims, demands, liabilities, and expenses arising from…

(a) Except as provided in (b) of this section, a plan of operations for all or part of the leased area or area subject to an oil and gas exploration license must be approved by the commissioner before any operations may be undertaken on or in the leased or licensed area. (b) A pl…

(a) Before operations commence on a state oil and gas lease, a bond in the amount of at least $10,000 must be furnished to the department. (b) The commissioner will, in his discretion, after notice and an opportunity to be heard, require a bond in a reasonable amount greater than…

(a) If all or any part, as shown on the division leasing plats when the lease was issued, of the land covered by a lease is land that has been selected by Alaska under laws of the United States granting land to Alaska but the land has not been patented to Alaska by the United Sta…

(a) Any lease on which there is no well capable of producing oil or gas in paying quantities terminates by operation of law if any rental due is not timely paid on or before each anniversary date of the lease, except where the provisions of 11 AAC 83.620 are applicable. (b) For p…

(a) The commissioner will reinstate a lease automatically terminated under 11 AAC 83.170 if he finds that the failure to pay rental was justifiable and not due to lack of reasonable diligence by the lessee and the rental is paid within 15 days after receipt of notice of the termi…

(a) Whenever the lessee of a lease on which there is no well capable of producing oil or gas in paying quantities fails to comply with any provision of the lease or applicable regulations other than the payment of rental and the failure to comply continues for 60 days after recei…

If the commissioner selects a method of bidding in which the royalty share reserved to the state is the bid variable, the commissioner will set a minimum fixed cash bonus in an amount to be announced no later than the date of the notice of sale. Notes 11 AAC 83.182 Eff. 11/9/79, …

If the commissioner selects a method of bidding which sets a royalty reserved to the state, either fixed or as the bid variable, based on a sliding scale, the sliding scale will be determined, according to a method chosen at the commissioner's discretion which will be based on vo…

An application for a reduction of royalty on leases under AS 38.05.180(j) must comply with 11 AAC 88.105 and state all the facts entitling the applicant to relief. Notes 11 AAC 83.185 Eff. 9/5/74, Register 51; am 7/22/79, Register 71; am 2/21/98, Register 145 Before Register 71, …

If, on or before the expiration date of the primary term of a lease, the lease is committed to a unit agreement approved by the state, the lease will be extended for so long as it remains subject to the unit agreement. Notes 11 AAC 83.190 Eff. 7/22/79, Register 71 Authority:AS 38…

Alaska Administrative Code Title 1 - General Provisions Title 2 - Administration Title 3 - Commerce, Community, and Economic Development Title 4 - Education and Early Development Title 5 - Fish and Game Title 6 - Governor's Office Title 7 - Health and Social Services Title 8 - La…

11 AAC 83.201 - 11 AAC 83.295 establish procedures to be used by the lessee in calculating net profit share payments due the state for the production of oil and gas from any state net profit share lease (NPSL) issued by the department. The purpose of 11 AAC 83.201 - 11 AAC 83.295…

The net profit share payment due the state each month under a NPSL equals the balance in the net profit payment account for that month, defined in 11 AAC 83.214, multiplied by the net profit share rate, defined in 11 AAC 83.204. Notes 11 AAC 83.202 Eff. 11/9/79, Register 72; am 8…

The net profit share rate is the fixed percentage share of the net profit payment account, defined in 11 AAC 83.214, payable to the state. The net profit share rate is determined through competitive bidding or by the commissioner as a condition of sale. Notes 11 AAC 83.204 Eff. 1…

Alaska Administrative Code Title 1 - General Provisions Title 2 - Administration Title 3 - Commerce, Community, and Economic Development Title 4 - Education and Early Development Title 5 - Fish and Game Title 6 - Governor's Office Title 7 - Health and Social Services Title 8 - La…

(a) The lessee of a NPSL shall establish and maintain on a monthly, accrual basis, in addition to its own standard accounting system for itself or joint operators, an accounting system for that NPSL in accordance with 11 AAC 83.201 - 11 AAC 83.295 for the purpose of the reporting…

(a) A NPSL's production revenue account for a month is credited with the production revenue under 11 AAC 83.222 for the NPSL during a month. (b) For a month during which or after commercial production commences from the NPSL and for which the monthly production tax net revenue un…

Alaska Administrative Code Title 1 - General Provisions Title 2 - Administration Title 3 - Commerce, Community, and Economic Development Title 4 - Education and Early Development Title 5 - Fish and Game Title 6 - Governor's Office Title 7 - Health and Social Services Title 8 - La…

(a) The beginning balance in the development account for a NPSL at the time the NPSL is issued by the state is zero. For each month thereafter the beginning balance in the development account for the NPSL equals the ending balance in that account for the previous month. (b) The N…

The net profit payment account for a NPSL in any month equals the amount, if any, transferred for that month from the NPSL's development account under 11 AAC 83.212(e). Each amount so transferred is a credit in the net profit payment account. If for a month no transfer is made fr…