00                             HOUSE BILL NO. 60                                                                          
01 "An Act relating to the Right-of-Way Leasing Act; and providing for an effective date."                                 
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1.  AS 38.35.020(a) is amended to read:                                                                
04            (a)  Rights-of-way on state land including rights-of-way [OVER, UNDER,                                       
05       ALONG, ACROSS, OR UPON THE RIGHT-OF-WAY OF A PUBLIC ROAD OR                                                       
06       HIGHWAY OR THE RIGHT-OF-WAY OF A RAILROAD OR OTHER PUBLIC                                                         
07       UTILITY, OR] across, upon, over, or under a river or other body of water or land                                  
08       belonging to or administered by the state may be granted by noncompetitive lease by                               
09       the commissioner for pipeline purposes for the transportation of oil, products, or                            
10       natural gas under those conditions prescribed by statute [LAW] or by                                          
11       [ADMINISTRATIVE] regulation.  Except to the extent authorized by an oil and gas                                   
12       lease or unit agreement approved by the state, a [NO] person may not engage in any                        
13       construction or operation of any part of an oil, products, or natural gas pipeline, which                         
14       in whole or in part is or is proposed to be on state land unless that person has obtained                         
15       from the commissioner a right-of-way lease of the land under this chapter.                                      

01    * Sec. 2.  AS 38.35.110 is amended to read:                                                                        
02            Sec. 38.35.110.  Term of lease.  Each lease of state land for pipeline right-of-                           
03       way purposes must contain a provision that the lease shall run for a specified term of                            
04       not greater than 30 years, and shall be renewable for additional periods of up to 30                          
05       [10] years each, so long as the lessee is in commercial operation and is in full                                  
06       compliance with all state law, including [BUT NOT LIMITED TO] state law                                           
07       pertaining to regulation and taxation of the pipeline facility, and is in compliance will                         
08       all terms of the lease.  In making this determination the commissioner shall take into                            
09       consideration the cost of the proposed pipeline, its useful life, and the probable                                
10       financing requirement for the proposed pipeline.                                                                  
11    * Sec. 3.  AS 38.35.140(b) is amended to read:                                                                     
12            (b)  The lessee shall reimburse the state for all reasonable costs incurred in                               
13       processing an application filed under AS 38.35.050 and in monitoring the                                          
14       construction, operation, maintenance, and termination of the pipeline on the right-                           
15       of-way.                                                                                                           
16    * Sec. 4.  AS 38.35.230(9) is amended to read:                                                                     
17                 (9)  "state land" means                                                                                 
18                      (A)  "state land" as defined in AS 38.05.965;                                                      
19                      (B)  public land of the United States selected by the state under                                  
20            sec. 6 [§ 6] of the Alaska Statehood Act of 1958 (PL 85-508; 72 Stat. 399), as                           
21            amended, and real property of the United States transferred to the state under                               
22            secs. 21, 35, and 45 [§§ 21, 35 and 45] of the Alaska Omnibus Act of 1959                                
23            (PL 86-70; 73 Stat. 141), as amended;                                                                        
24                      (C)  any interest owned by the state in land, if the interest is                               
25            sufficient to permit the state to lease it under the authority of this chapter;                          
26    * Sec. 5.  The uncodified law of the State of Alaska is amended by adding a new section to                         
27 read:                                                                                                                   
28       APPLICABILITY.  This Act applies to all new right-of-way leases, and amendments                                   
29 and renewals of existing leases, issued under AS 38.35 and entered into on or after the                                 
30 effective date of this Act.                                                                                             
31    * Sec. 6.  This Act takes effect immediately under AS 01.10.070(c).