CSHB 380(O&G): "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."
00CS FOR HOUSE BILL NO. 380(O&G) 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 identified in this section [IN THE COOK INLET 12 SEDIMENTARY BASIN DISCOVERED BEFORE JANUARY 1, 1988, THAT HAS 13 BEEN UNDEVELOPED OR SHUT IN FROM JANUARY 1, 1988, THROUGH 14 DECEMBER 31, 1997, AND THAT, BEFORE JANUARY 1, 2004, BEGINS
01 PRODUCING FOR SALE PREVIOUSLY UNDEVELOPED OR SHUT-IN OIL OR 02 GAS,] shall , provided production for sale begins before January 1, 2004, pay a 03 royalty of five percent on the first 35,000,000 barrels of oil and the first 04 35,000,000,000 cubic feet of gas produced [ALL PRODUCTION OF OIL OR GAS] 05 for sale from that oil or gas field that occurs in the 10 years following the date on 06 which the production for sale [OF PREVIOUSLY UNDEVELOPED OR SHUT-IN 07 OIL OR GAS] commences . The fields eligible for royalty reduction under this 08 section, all of which are located within the Cook Inlet sedimentary basin, were 09 discovered before January 1, 1988, and have been undeveloped or shut in from 10 at least January 1, 1988, through December 31, 1997, are: 11 (1) Falls Creek; 12 (2) Nicolai Creek; 13 (3) North Fork; 14 (4) Point Starichkof; 15 (5) Redoubt Shoal; and 16 (6) West Foreland [FROM THAT FIELD].