SB 256: "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."
00SENATE BILL NO. 256 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 in the Cook Inlet sedimentary basin discovered before 12 January 1, 1988, that has been undeveloped or shut in from January 1, 1988, through 13 December 31, 1997, and that, before January 1, 2004, begins producing for sale 14 previously undeveloped or shut-in oil or gas, shall pay a royalty of five percent on all
01 production of oil or gas for sale from that oil or gas field that occurs in the 10 years 02 following the date on which the production for sale of previously undeveloped or shut- 03 in oil or gas commences from that field.