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CSHB 380(O&G): "An Act relating to a temporary reduction of royalty on oil and gas produced for sale from fields within the Cook Inlet sedimentary basin where production is commenced in fields that have been discovered and undeveloped or that have been shut in." 

00CS FOR HOUSE BILL NO. 380(O&G)                                                                                        
01 "An Act relating to a temporary reduction of royalty on oil and gas produced                                            
02 for sale from fields within the Cook Inlet sedimentary basin where production is                                        
03 commenced in fields that have been discovered and undeveloped or that have been                                         
04 shut in."                                                                                                               
05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
06    * Section 1.  AS 38.05.180(f) is amended by adding a new paragraph to read:                                        
07   (5)  notwithstanding and in lieu of a requirement in the leasing method                                              
08 chosen of a minimum fixed royalty share, or the royalty provision of a lease, for leases                                
09 unitized as described in (p) of this section, leases subject to an agreement described                                  
10 in (s) or (t) of this section, or interests unitized under AS 31.05, the lessee of all or                               
11 part of an oil or gas field  identified in this section  [IN THE COOK INLET                                           
12 SEDIMENTARY BASIN DISCOVERED BEFORE JANUARY 1, 1988, THAT HAS                                                           
13 BEEN UNDEVELOPED OR SHUT IN FROM JANUARY 1, 1988, THROUGH                                                               
14 DECEMBER 31, 1997, AND THAT, BEFORE JANUARY 1, 2004, BEGINS                                                             



01 PRODUCING FOR SALE PREVIOUSLY UNDEVELOPED OR SHUT-IN OIL OR                                                             
02 GAS,] shall , provided production for sale begins before January 1, 2004,  pay a                                      
03 royalty of five percent on  the first 35,000,000 barrels of oil and the first                                          
04 35,000,000,000 cubic feet of gas produced  [ALL PRODUCTION OF OIL OR GAS]                                              
05 for sale from that oil or gas field that occurs in the 10 years following the date on                                   
06 which the production for sale [OF PREVIOUSLY UNDEVELOPED OR SHUT-IN                                                     
07 OIL OR GAS] commences .  The fields eligible for royalty reduction under this                                          
08 section, all of which are located within the Cook Inlet sedimentary basin, were                                         
09 discovered before January 1, 1988, and have been undeveloped or shut in from                                            
10 at least January 1, 1988, through December 31, 1997, are:                                                               
11   (1)  Falls Creek;                                                                                                    
12   (2)  Nicolai Creek;                                                                                                  
13   (3)  North Fork;                                                                                                     
14   (4)  Point Starichkof;                                                                                               
15   (5)  Redoubt Shoal; and                                                                                              
16   (6)  West Foreland  [FROM THAT FIELD].