HB 29: "An Act reducing the amount for which proof of financial responsibility must be provided to the Department of Environmental Conservation in conjunction with the operation of certain onshore oil and gas exploration and production facilities."
00HOUSE BILL NO. 29 01 "An Act reducing the amount for which proof of financial responsibility must be 02 provided to the Department of Environmental Conservation in conjunction with the 03 operation of certain onshore oil and gas exploration and production facilities." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 46.04.040(b) is amended to read: 06 (b) A person may not cause or permit the operation of a pipeline or an 07 exploration or production facility in the state unless the person has furnished to the 08 department, and the department has approved, proof of financial ability to respond in 09 damages. Proof of financial responsibility required for 10 (1) a pipeline or an offshore exploration or production facility is 11 $50,000,000 per incident; 12 (2) an onshore production facility is 13 (A) $10,000,000 [$20,000,000] per incident if the facility 14 produces over 10,000 barrels per day of oil;
01 (B) $5,000,000 [$10,000,000] per incident if the facility 02 produces over 5,000 barrels per day but not more than 10,000 barrels per day 03 of oil; 04 (C) $2,500,000 [$5,000,000] per incident if the facility produces 05 over 2,500 barrels per day but not more than 5,000 barrels per day of oil; 06 (D) $250,000 [$1,000,000] per incident if the facility produces 07 2,500 barrels per day or less of oil; 08 (3) an onshore exploration facility is 09 (A) $25,000 per incident for a facility used solely to explore for 10 shallow natural gas by means of drilling a well to explore for gas, whether 11 methane associated with and derived from coal deposits or otherwise, from a 12 source that is within 3,000 feet of the surface; and 13 (B) except as provided by (A) of this paragraph, $250,000 14 [$1,000,000] per incident.