Alaska Administrative Code

(a) A unit plan of development must be filed for approval as an exhibit to the unit agreement if a participating area is proposed for the unit area under 11 AAC 83.351, or when a reservoir has become sufficiently delineated so that a prudent operator would initiate development ac…

Notes 11 AAC 83.345 Repealed 6/28/81.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) Except as provided in (b) of this section, a unit plan of operations for all or part of the unit area must be approved by the commissioner before any operations may be undertaken on or in the unit area. (b) A unit plan of operations will not be required by the commissioner fo…

Notes 11 AAC 83.350 Repealed 6/28/81.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) At least 90 days before sustained unit production from a reservoir, the unit operator shall submit to the commissioner for approval a description of the proposed participating area, based on subdivisions of the public land or its aliquot parts. The participating area may incl…

Notes 11 AAC 83.355 Repealed 6/28/81.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) A unit must encompass the minimum area required to include all or part of one or more oil or gas reservoirs, or all or part of one or more potential hydrocarbon accumulations. (b) 10 years after sustained unit production begins, the unit area must be contracted to include onl…

Notes 11 AAC 83.360 Repealed 6/28/81.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…

For the purposes of 11 AAC 83.301 - 11 AAC 83.395, a well will be considered capable of producing hydrocarbons in paying quantities, as defined in 11 AAC 83.395, when so certified by the commissioner following application by the lessee or unit operator. The commissioner will requ…

Notes 11 AAC 83.365 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…

Any revision of the unit operating agreement must be submitted to the commissioner before it takes effect. The unit agreement controls the respective rights and obligations of the unit operator, the working-interest owners, the State of Alaska, and royalty interest owners other t…

Notes 11 AAC 83.370 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) The proposed or revised division of interest or formula allocating hydrocarbon production and unit operating costs among the leases in the unit area may not take effect until approved by the commissioner in writing. When requested by the commissioner, the lessees or unit oper…

(a) Except as otherwise provided in this section and 11 AAC 83.356, where only a portion of a lease is committed to a unit agreement approved or prescribed by the commissioner, the commitment constitutes a severance of the lease as to the unitized and nonunitized portions of the …

(a) Failure to comply with any of the terms of an approved unit agreement, including any plans of exploration, development, or operations which are a part of the unit agreement, is a default under the unit agreement. (b) The commissioner will give notice to the unit operator and …

Notes 11 AAC 83.375 Repealed 3/18/83. 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…

Each signature on the unit agreement must be notarized or attested by at least two witnesses. Corporate or other signatures made in a representative capacity must be accompanied by evidence of the authority of the signatory to act on behalf of the principal or by a reference to s…

The parties may execute any number of counterparts of a unit agreement or may execute a ratification, joinder, or consent in a separate instrument. These documents have the same effect as if all parties signed the same instrument. Notes 11 AAC 83.380 Eff. 9/5/74, Register 51; am …

If approved by the commissioner, the counterparts of each instrument or document submitted for approval will be returned to the applicant with the commissioner's approval noted on the approved counterparts. Notes 11 AAC 83.383 Eff. 9/5/74, Register 51; am 7/22/79, Register 71; am…

Any modification of an approved unit agreement is subject to the commissioner's approval. Notes 11 AAC 83.385 Eff. 9/5/74, Register 51; am 7/22/79, Register 71; am 6/28/81, Register 78 Authority:AS 38.05.020 AS 38.05.145 AS 38.05.180 State regulations are updated quarterly; we cu…

In place of separate bonds required for each lease committed to a unit agreement, the unit operator shall furnish and maintain a statewide oil and gas lease bond under 11 AAC 83.160. Notes 11 AAC 83.390 Eff. 9/5/74, Register 51; am 7/22/79, Register 71; am 6/28/81, Register 78 Au…

(a) If the State of Alaska selects or otherwise acquires any federal land which, at the effective date of selection or acquisition, is subject to a federal oil and gas lease which is committed to a unit agreement that has been approved in accordance with federal laws and regulati…

Unless the context clearly requires a different meaning, in 11 AAC 83.301 - 11 AAC 83.395 and in the applicable unit agreements (1) "conservation of the natural resources of all or part of an oil or gas pool, field or like area" means maximizing the efficient recovery of oil and …

Applications for approval of a communitization or drilling agreement under AS 38.05.180(s) or drilling or development contracts under AS 38.05.180(t) must comply with 11 AAC 88.105 and must be accompanied by three signed copies of the proposed agreement if necessary. Notes 11 AAC…

A storage lease authorized by AS 38.05.180(u) may be issued to any person qualified to hold an oil and gas lease, whether or not the person holds an oil and gas lease on all or part of the land covered by the storage lease. Notes 11 AAC 83.500 Eff. 9/5/74, Register 51; am 7/22/79…

A storage lease issued under AS 38.05.180(u) (1) does not give the storage lessee any right to drill for, develop, produce, extract, remove, or market oil, gas or other natural resources in and from the land covered by the storage lease other than oil or gas or both in an amount …

In cases where the storage lessee also holds the right to produce oil or gas not previously produced in conjunction with stored oil or gas, the storage lease may, in place of the fee or rental provided for under sec. 505(5) of this chapter, provide for a royalty upon stored oil o…

Where the storage lessee also holds the right to produce oil or gas not previously produced in conjunction with stored oil or gas, any lease covering the oil or gas not previously produced shall be extended for the period of storage and so long thereafter as oil or gas is produce…

Applications for storage leases must comply with 11 AAC 88.105 and be accompanied by (1) three copies of a proposed form of storage lease if necessary; and (2) supporting data demonstrating the feasibility of the proposed storage project. Notes 11 AAC 83.520 Eff. 9/5/74, Register…

The effective date of the transfer of the lessor's interest under leases transferred from the United States to Alaska is the effective date of patent, or the date on which the land subject to the leases is transferred from the United States to Alaska, whichever is applicable. Not…

Promptly upon receipt of a lease from the federal government, the commissioner will mail notice to the lessee of record and to any operator whose operating agreement has been approved, stating the effective date of the patent and that all payments accruing after that effective da…

Notes 11 AAC 83.610 Repealed 7/22/79. 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…

Upon the transfer of a federal lease to the state, Alaska succeeds as the lessor, and all obligations accruing after that date are owed to Alaska, and all payments, reports, notices, applications, and similar matters required or permitted under the lease must, after that date, be…

The failure to timely pay rental to Alaska for the first and second lease years commencing after the effective date of the transfer of the lease to Alaska does not terminate the lease if the rental payment was made to the United States within the time allowed, and either the paym…

For the purposes of AS 38.05, "shorelands" means that land belonging to the State of Alaska which is covered by nontidal waters that are navigable under the laws of the United States up to the ordinary high water mark, as modified by accretion, erosion, or reliction before Septem…

(a) After determination of navigability, the holder of a federal or private upland lease, on his own motion or within 30 days from receipt of notice from the commissioner, may apply for and will be issued a State of Alaska lease covering any land within the exterior boundaries of…

(a) If a work commitment is a condition of a lease, the terms of the work commitment will be specified in the notice of sale. The work commitment will state the minimum requirement for exploration and development on each lease. The lessee shall file reports with the commissioner …

Application for modification of a work commitment under AS 38.05.180(h) must comply with 11 AAC 88.105 and must (1) state all the facts that may entitle the applicant to a modification of the work commitment; (2) state the location and status of all past and present activities on…

(a) If the commissioner receives a request for exploration incentive credit, the commissioner will, in his discretion, allow credits for expenditures for both exploratory wells and geophysical work against (1) oil and gas royalty payable in-value and rental payments payable to th…

Credits may be earned only for one well per sale tract as that tract is defined on the day of a competitive oil and gas lease sale. Actual footage drilled in exploratory wells may earn exploration incentive credits at a rate established by the commissioner. In place of credit for…

(a) Geophysical exploration costs may be credited at a rate approved by the commissioner in the following manner: (1) If the applicant desires credits for geophysical work, copies of the geophysical data obtained during the credit time period must be submitted to the commissioner…

(a) Applications for determinations of total exploration incentive credits must be signed and notarized by the lessee or its authorized representative and contain a statement attesting to the truth and accuracy of the information submitted. Applications must be submitted in tripl…

Unless the context clearly requires a different meaning, as used in 11 AAC 83.800 - 11 AAC 83.820 (1) "commissioner" means the commissioner of the Department of Natural Resources, State of Alaska; (2) "exploratory well" means a well drilled for the purpose of oil and gas explorat…

The commissioner will adopt a leasing method under AS 38.05.180(f) for exempt lease sales of land previously offered for oil and gas lease. Notes 11 AAC 83.900 Eff. 7/22/79, Register 71; am 6/28/81, Register 78 Authority:AS 38.05.020 AS 38.05.145 AS 38.05.180(w) State regulations…

An "exempt lease sale" or "exempt sale" is a lease sale excepted from the five-year oil and gas lease program requirement by AS 38.05.180(d)(1) - (d)(4) or (w). Notes 11 AAC 83.901 Eff. 6/28/81, Register 78 Authority:AS 38.05.020 AS 38.05.145 AS 38.05.180 State regulations are up…

As used in AS 38.05.190(d)(2), and notwithstanding 11 AAC 88.185(1), "contiguous" means sharing a common boundary or a common corner. Notes 11 AAC 83.910 Eff. 3/26/81, Register 77 As of Register 209 (April 2014), and acting under AS 44.62.125(b)(6), the regulations attorney made …

(a) To meet minimum qualifications for a carbon storage exploration license or carbon storage lease, an applicant must(1) be a person or entity qualified under AS 38.05.190(a); (2) prove to the satisfaction of the commissioner that the applicant has sufficient technical backgroun…

(a) An applicant, including an oil and gas lessee under AS 38.05.180, may apply for a carbon storage exploration license(1) by submitting a proposal to the commissioner as described in AS 38.05.710(a); (2) in response to a solicitation for competing proposals under AS 38.05.710(b…

(a) If the commissioner does not reject a carbon storage exploration license proposal submitted under AS 38.05.710(a) and 11 AAC 84.1005(a)(1), the commissioner will publish notice of the proposal and solicit competing proposals in compliance with AS 38.05.710(b). (b) A competing…

(a) If the commissioner does not reject a proposal received under 11 AAC 84.1005, the commissioner will issue a written finding under AS 38.05.710(c), 38.05.035(e), and this section to determine whether issuance of a carbon storage exploration license is in the state's best inter…