00CS FOR SENATE BILL NO. 239(O&G)                                                                                         
01 "An Act relating to evidence of financial responsibility provided by persons who                                        
02 conduct oil operations; and providing for an effective date."                                                           
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 46.04.040(b) is amended to read:                                                                    
05  (b)  A person may not cause or permit the operation of a pipeline or an                                               
06 exploration or production facility in the state unless the person has furnished to the                                  
07 department, and the department has approved, proof of financial ability to respond in                                   
08 damages.  Proof of financial responsibility required for                                                                
09   (1)  a pipeline or an offshore exploration or production facility is                                               
10 $50,000,000 per incident;                                                                                              
11   (2)  [. PROOF OF FINANCIAL RESPONSIBILITY REQUIRED FOR]                                                             
12 an onshore production facility is                                                                                       
13   (A)  $20,000,000 per incident if the facility produces over                                                      
14 10,000 barrels per day of oil;                                                                                          

01   (B)  $10,000,000 per incident if the facility produces over                                                         
02 5,000 barrels per day but not more than 10,000 barrels per day of oil;                                                  
03   (C)  $5,000,000 per incident if the facility produces over                                                          
04 2,500 barrels per day but not more than 5,000 barrels per day of oil;                                                   
05   (D)  $1,000,000 per incident if the facility produces 2,500                                                         
06 barrels per day or less of oil;                                                                                         
07   (3)  [. PROOF OF FINANCIAL RESPONSIBILITY REQUIRED FOR]                                                             
08 an onshore exploration facility is $1,000,000 [$5,000,000] per incident.                                              
09    * Sec. 2.  Section 6, ch. 102, SLA 1992, is repealed.                                                                
10    * Sec. 3.  If this Act takes effect after June 1, 1994, sec. 2 of this Act is retroactive to                         
11 June 1, 1994.                                                                                                           
12    * Sec. 4.  This Act takes effect immediately under AS 01.10.070(c).