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HB 381: "An Act relating to oil and gas conservation and recovery."

00 HOUSE BILL NO. 381                                                                                                      
01 "An Act relating to oil and gas conservation and recovery."                                                             
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1.  AS 31.05.030 is amended by adding a new subsection to read:                                            
04  (i)  The commission may modify a determination or action of the commissioner                                          
05 of natural resources authorized by                                                                                      
06   (1)  AS 38.05.180(p), (q), or (u); or                                                                                
07   (2)  another subsection of AS 38.05.180, if the purpose of the                                                       
08 determination or action is to prevent waste of oil or gas, to insure a greater ultimate                                 
09 recovery of oil or gas, or to protect correlative rights of persons owning interests in                                 
10 tracts of land affected.                                                                                                
11    * Sec. 2.  AS 31.05 is amended by adding a new section to read:                                                      
12  Sec. 31.05.115.  COMMISSION ORDER TO PREVAIL OVER CONTRARY                                                            
13 DETERMINATION OF COMMISSIONER OF NATURAL RESOURCES.  An order                                                           
14 of the commission made under AS 31.05.100 - 31.05.110 or otherwise made under                                           
01 AS 31.05 in order to prevent waste, to insure a greater ultimate recovery of oil or gas,                                
02 or to protect the correlative rights of persons owning interests in the tracts of land                                  
03 affected prevails over a determination or action of the commissioner of natural                                         
04 resources authorized by                                                                                                 
05   (1)  AS 38.05.180(p), (q), or (u); or                                                                                
06   (2)  another subsection of AS 38.05.180 if the purpose of the                                                        
07 determination or action is to prevent waste of oil or gas, to insure a greater ultimate                                 
08 recovery of oil or gas, or to protect correlative rights of persons owning interests in                                 
09 tracts of land affected.                                                                                                
10    * Sec. 3.  AS 38.05.180(q) is amended to read:                                                                       
11  (q)  A plan authorized by (p) of this section, which includes land owned by the                                       
12 state, may contain a provision vesting the commissioner, or a person, committee, or                                     
13 state agency, with authority to modify from time to time the rate of prospecting and                                    
14 development and the quantity and rate of production under the plan.  All leases                                         
15 operated under a plan approved or prescribed by the commissioner are excepted in                                        
16 determining holdings or control under AS 38.05.140.  The provisions of (p) of this                                    
17 section and this subsection concerning cooperative or unit plans are in addition to and                               
18 do not affect AS 31.05, but the provisions of (p) of this section and this subsection                                  
19 may be modified by the Alaska Oil and Gas Conservation Commission by an                                                 
20 order entered under AS 31.05.100 - 31.05.110.