SB 32: "An Act relating to the Right-of-Way Leasing Act; and providing for an effective date."

00 SENATE BILL NO. 32 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).