00CS FOR HOUSE BILL NO. 380(FIN)                                                                                        
01 "An Act relating to a temporary reduction of royalty on oil and gas produced                                            
02 for sale from certain fields within the Cook Inlet sedimentary basin."                                                  
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
04    * Section 1.  AS 38.05.180(f) is amended by adding a new paragraph to read:                                        
05   (5)  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 unitized as described in (p) of this section, leases subject to an agreement described                                  
08 in (s) or (t) of this section, or interests unitized under AS 31.05, the lessee of all or                               
09 part of an oil or gas field identified in this section shall, provided production for sale                              
10 begins before January 1, 2004, pay a royalty of five percent on the first 25,000,000                                    
11 barrels of oil and the first 35,000,000,000 cubic feet of gas produced for sale from that                               
12 oil or gas field that occurs in the 10 years following the date on which the production                                 
13 for sale commences; the fields eligible for royalty reduction under this paragraph, all                                 
14 of which are located within the Cook Inlet sedimentary basin, were discovered before                                    

01 January 1, 1988, and have been undeveloped or shut in from at least January 1, 1988,                                    
02 through December 31, 1997, are:                                                                                         
03   (A)  Falls Creek;                                                                                                   
04   (B)  Nicolai Creek;                                                                                                 
05   (C)  North Fork;                                                                                                    
06   (D)  Point Starichkof;                                                                                              
07   (E)  Redoubt Shoal; and                                                                                             
08   (F)  West Foreland.