HB 238: "An Act relating to the payment of rents and royalties from oil shale leases; and relating to royalties for certain areas in the Cook Inlet sedimentary basin."
00 HOUSE BILL NO. 238 01 "An Act relating to the payment of rents and royalties from oil shale leases; and relating 02 to royalties for certain areas in the Cook Inlet sedimentary basin." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 38.05.160(b) is amended to read: 05 (b) For the privilege of mining, extracting, and disposing of the oil or other 06 minerals covered by the lease, the lessee shall pay to the state the royalties specified in 07 the lease and an annual rental at the rate of 50 cents an acre for the land included in the 08 lease. The rental paid for any one year shall be credited against the royalties accruing 09 for that year. [FOR THE PURPOSE OF ENCOURAGING THE PRODUCTION OF 10 PETROLEUM PRODUCTS FROM SHALES, THE COMMISSIONER MAY 11 WAIVE THE PAYMENT OF ROYALTY AND RENTAL DURING THE FIRST 12 FIVE YEARS OF THE LEASE.] 13 * Sec. 2. AS 31.05.030(i), 31.05.030(k); AS 38.05.180(f)(5), 38.05.180(f)(6), and 14 38.05.180(dd) are repealed.
01 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 02 read: 03 TRANSITION. AS 38.05.160(b), as amended by sec. 1 of this Act, and the repeal of 04 AS 31.05.030(i), 31.05.030(k), AS 38.05.180(f)(5), 38.05.180(f)(6), and 38.05.180(dd) by 05 sec. 2 of this Act, apply to a lease entered into on or after the effective date of this Act.