SB 182: "An Act relating to determining the total acreage of oil and gas leases that may be taken or held by one person, and setting out procedures to be followed to reduce holdings when the total acreage of oil and gas leases taken or held by a person exceeds the amount that may, by law, be taken or held by one person; and providing for an effective date."
00SENATE BILL NO. 182 01 "An Act relating to determining the total acreage of oil and gas leases that may 02 be taken or held by one person, and setting out procedures to be followed to 03 reduce holdings when the total acreage of oil and gas leases taken or held by 04 a person exceeds the amount that may, by law, be taken or held by one person; 05 and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 38.05.140 is amended by adding a new subsection to read: 08 (g) If the acreage taken or held by a person under the person's oil or gas leases 09 exceeds the maximum acreage that, under (c) of this section, may be taken or held at 10 one time by a person, the commissioner shall require the person to relinquish the 11 excess acreage 12 (1) by identifying all the person's nonproducing leases; and 13 (2) as to the tracts in the leases described in (1) of this subsection, by 14 determining by lot the tracts in excess of the maximum acreage that shall be
01 relinquished by the person to the state; the commissioner shall thereafter reoffer the 02 relinquished tracts for lease. 03 * Sec. 2. AS 38.05.180(q) is amended to read: 04 (q) A plan authorized by (p) of this section, which includes land owned by the 05 state, may contain a provision vesting the commissioner, or a person, committee, or 06 state agency, with authority to modify from time to time the rate of prospecting and 07 development and the quantity and rate of production under the plan. Leases [ALL 08 LEASES] operated under a plan approved or prescribed by the commissioner are 09 excepted in determining holdings or control under AS 38.05.140 , this exception does 10 not apply, however, if a leaseholder obtains leases that would exceed the 11 maximum acreage that, under AS 38.05.140, may be held by one person by an 12 acquisition, consolidation, merger, or similar combination of business form or 13 venture involving another leaseholder and the principal purpose of the business 14 combination does not involve the conservation of the oil or gas resources of the 15 leases that is necessary or advisable in the public interest . The provisions of this 16 section concerning cooperative or unit plans are in addition to and do not affect 17 AS 31.05. 18 * Sec. 3. This Act takes effect immediately under AS 01.10.070(c).