00                 SPONSOR SUBSTITUTE FOR SENATE BILL NO. 76                                                              
01 "An Act relating to the Alaska Right-of-Way Leasing Act; and providing for an effective                                 
02 date."                                                                                                                  
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 38.35.110 is amended to read:                                                                     
05            Sec. 38.35.110.  Term of lease.  Each lease of state land for pipeline right-of-                           
06       way purposes must contain a provision that the lease shall run for a specified term of                            
07       not greater than 30 years, and shall be renewable for additional periods of up to 30                          
08       [10] years each, so long as the lessee is in commercial operation and is in full                                  
09       compliance with all state law, including but not limited to state law pertaining to                               
10       regulation and taxation of the pipeline facility, and is in compliance with all terms of                          
11       the lease.  In making this determination, the commissioner shall take into                                    
12       consideration the cost of the proposed pipeline, its useful life, and the probable                                
13       financing requirement for the proposed pipeline.                                                                  
14    * Sec. 2.  AS 38.35.110 is amended by adding a new subsection to read:                                             

01            (b)  If the lessee has timely requested and is pursuing renewal and the                                      
02       determination on the renewal has not been issued before expiration of the existing                                
03       lease term, the commissioner shall continue the lease subject to the terms and                                    
04       conditions that were applicable to the lease in effect at the time of expiration of the                           
05       lease's term until the commissioner issues a final determination on the renewal.                                  
06    * Sec. 3.  AS 38.35.140(b) is amended to read:                                                                     
07            (b)  The lessee shall reimburse the state for all reasonable costs incurred in                               
08       processing an application filed under AS 38.35.050 and in monitoring the                                          
09       construction, operation, maintenance, and termination of the pipeline on the right-                           
10       of-way.  The commissioner shall use best efforts to reach agreement with the                                  
11       lessee addressing the details of cost reimbursement under this subsection and                                 
12       shall provide the lessee with an annual estimate of the projected costs and scope                             
13       of the work.                                                                                                  
14    * Sec. 4.  AS 38.35.230(9) is amended to read:                                                                     
15                 (9)  "state land" means                                                                                 
16                      (A)  "state land" as defined in AS 38.05.965;                                                      
17                      (B)  public land of the United States selected by the state under                                  
18            sec. 6 of the Alaska Statehood Act of 1958 (P.L. 85-508; 72 Stat. 399), as                                   
19            amended, and real property of the United States transferred to the state under                               
20            secs. 21, 35, and 45 of the Alaska Omnibus Act of 1959 (P.L. 86-70; 73 Stat.                             
21            141), as amended;                                                                                            
22                      (C)  any interest owned by the state in land if the interest is                                
23            sufficient to permit the state to lease it under the authority of this chapter;                          
24    * Sec. 5.  The uncodified law of the State of Alaska is amended by adding a new section to                         
25 read:                                                                                                                   
26       COMMISSIONER OF NATURAL RESOURCES TO AMEND CERTAIN                                                                
27 EXISTING LEASES UNDER ALASKA RIGHT-OF-WAY LEASING ACT TO                                                                
28 INCORPORATE PROVISION FOR RENEWAL PERIODS OF UP TO 30 YEARS.  If,                                                       
29 before expiration of the term of the original specified term of a lease first entered into under                        
30 AS 38.35 that is in effect on the effective date of this Act, the lessee makes a written request,                       
31 the commissioner of natural resources shall amend the lease to amend the terms under which                              

01 the lease is renewable to conform to AS 38.35.110(a), amended by sec. 1 of this Act.                                    
02    * Sec. 6.  This Act takes effect immediately under AS 01.10.070(c).