00 HOUSE BILL NO. 15 01 "An Act relating to royalty rates and payments for certain oil and gas; and providing 02 for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04  * Section 1. AS 38.05.180 is amended by adding new subsections to read: 05 (mm) Notwithstanding and in lieu of a requirement in the leasing method 06 chosen of a minimum fixed royalty share or the royalty provision of a lease, for leases 07 issued for land south of 68 degrees North latitude from which commercial production 08 of oil or gas begins after July 1, 2025, and before January 1, 2036, the lessee shall pay 09 a royalty of three percent for qualified new gas and 6.25 percent for qualified new oil, 10 unless payment is lower under another subsection of this section. A royalty rate in this 11 subsection applies until the earlier of 12 (1) 10 years following the commencement of commercial production; 13 or 14 (2) the date on which a commercial quantity of oil or gas produced by 01 the lessee from land south of 68 degrees North latitude is shipped out of the state. 02 (nn) In (mm) of this section, 03 (1) "qualified new gas" means gas produced from 04 (A) a field or pool that the commissioner determines has not 05 previously produced gas for commercial sale before January 1, 2025; 06 (B) a field or pool that the commissioner determines has not 07 produced gas during the preceding six months but that has previously produced 08 gas; or 09 (C) a well that did not exist on January 1, 2026, if the 10 commissioner determines that production of that gas from the field or pool 11 from an existing well was not feasible; 12 (2) "qualified new oil" means oil produced from 13 (A) a field or pool that the commissioner determines has not 14 previously produced oil for commercial sale before January 1, 2025; 15 (B) a field or pool that the commissioner determines has not 16 produced oil during the preceding one year but that has previously produced 17 oil; or 18 (C) a well that did not exist on January 1, 2026, if the 19 commissioner determines that production of that oil from the field or pool from 20 an existing well was not feasible. 21 (oo) Notwithstanding and in lieu of a requirement in the leasing method 22 chosen of a minimum fixed royalty share, or the royalty provision of a lease or an 23 existing royalty settlement agreement, for gas that is produced from leases that include 24 land north of 68 degrees North latitude and that is later liquefied or used in the 25 liquefaction or transportation process, the lessee shall pay a royalty rate of one percent 26 if the lessee agrees to sell the gas to a publicly owned utility or a utility regulated 27 under AS 42.05 at a rate that reflects the discounted royalty rate provided under this 28 subsection. The royalty rate under this subsection applies until the earlier of either 29 (1) 10 years following the first commercial use of liquefied natural gas 30 receiving the royalty rate under this subsection; or 31 (2) the date on which a commercial quantity of liquefied natural gas 01 produced from the lease receiving the royalty rate under this subsection is shipped out 02 of the state. 03  * Sec. 2. AS 31.05.030(i); AS 38.05.180(f)(5), and 38.05.180(dd) are repealed. 04  * Sec. 3. AS 38.05.180(mm) and 38.05.180(nn) are repealed January 1, 2046. 05  * Sec. 4. This Act takes effect immediately under AS 01.10.070(c).