SCS CSHB 380(FIN): "An Act relating to a temporary reduction of royalty on oil and gas produced for sale from certain fields described as being located within the Cook Inlet sedimentary basin, as having been discovered before January 1, 1988, and as having been undeveloped or shut in from at least January 1, 1988, through December 31, 1997."
00SENATE CS FOR CS 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 described as being located within the Cook Inlet 03 sedimentary basin, as having been discovered before January 1, 1988, and as 04 having been undeveloped or shut in from at least January 1, 1988, through 05 December 31, 1997." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 38.05.180(f) is amended by adding a new paragraph to read: 08 (5) notwithstanding and in lieu of a requirement in the leasing method 09 chosen of a minimum fixed royalty share, or the royalty provision of a lease, for leases 10 unitized as described in (p) of this section, leases subject to an agreement described 11 in (s) or (t) of this section, or interests unitized under AS 31.05, the lessee of all or 12 part of an oil or gas field identified in this section that voluntarily agrees in a written 13 plan submitted to the Alaska Royalty Oil and Gas Development Advisory Board to use 14 its best efforts to employ residents of this state, consistent with law, and to contract
01 with firms in this state for work in connection with the development of the field, 02 including the fabrication and installation of required facilities, whenever feasible, as 03 determined by the lessee in consideration of commercial, health, safety, and 04 environmental conditions and requirements necessary to ensure maintenance of its 05 operational standards, shall, provided production for sale begins before January 1, 06 2004, pay a royalty of five percent on the first 25,000,000 barrels of oil and the first 07 35,000,000,000 cubic feet of gas produced for sale from that field that occurs in the 08 10 years following the date on which the production for sale commences; the fields 09 eligible for royalty reduction under this paragraph, all of which are located within the 10 Cook Inlet sedimentary basin, were discovered before January 1, 1988, and have been 11 undeveloped or shut in from at least January 1, 1988, through December 31, 1997, are 12 (A) Falls Creek; 13 (B) Nicolai Creek; 14 (C) North Fork; 15 (D) Point Starichkof; 16 (E) Redoubt Shoal; and 17 (F) West Foreland. 18 * Sec. 2. AS 38.06.040(a) is amended to read: 19 (a) The board shall 20 (1) in accordance with the criteria set out in AS 38.06.070, develop a 21 plan for the wise development of the state's oil and gas royalty interests; the plan of 22 development shall be consistent with 23 (A) growth of the private sector of the economy; 24 (B) environmental standards required by law; and 25 (C) public fiscal stability; 26 (2) hold public hearings on proposed sales, exchanges, or other 27 disposals of royalty oil or gas to determine whether the proposals comply with 28 AS 38.06.070; 29 (3) examine proposed sales, exchanges , or other disposal of, and 30 recommend to the legislature that it approve or disapprove a proposed sale, exchange , 31 or other disposal of
01 (A) the oil or gas that is obtained by the state as royalty under 02 AS 38.05.182; or 03 (B) the rights to receive future oil or gas production under state 04 leases; [AND] 05 (4) recommend to the commissioner of natural resources the conditions 06 relating to the sale, delivery, transportation, refining , or processing of oil or gas which 07 the commissioner may include in the offer and sale of oil or gas obtained by the state 08 as royalty under AS 38.05.182 ; and 09 (5) certify receipt of a written plan described in AS 38.05.180(f)(5) 10 and hold a public hearing on the plan within 45 days of receipt .