HB 234: "An Act relating to the due date for the payment of oil and gas royalty and net profit shares and amending the rate of interest payable on royalties or net profit shares."
00 HOUSE BILL NO. 234 01 "An Act relating to the due date for the payment of oil and gas royalty and net profit 02 shares and amending the rate of interest payable on royalties or net profit shares." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 38.05.135(c) is amended to read: 05 (c) Payment of a royalty or a net profit share payment to the state under a lease 06 issued under AS 38.05.135 - 38.05.181 becomes due on the date and in the manner 07 specified in the lease or in a regulation adopted by the commissioner. However, if, as 08 a result of an inspection of records or an audit, the commissioner determines that 09 there is an error in the oil or gas royalty or net profit share payment due the 10 state, the commissioner shall redetermine and recalculate the royalty or net 11 profit and notify the lessee of the redetermination and recalculation, and, if 12 under that recalculation, the lessee has underpaid the amount due, the payment 13 of the redetermined oil or gas royalty or net profit share payment becomes due 14 and payable 60 days after the date of the commissioner's transmittal of the
01 notification of the redetermination. 02 * Sec. 2. AS 38.05.135(d) is amended to read: 03 (d) If a royalty or net profit share payment to which the state is entitled under 04 AS 38.05.135 - 38.05.181 is not paid or is underpaid when it becomes due under (c) of 05 this section, the unpaid amount of the royalty or net profit share payment bears interest 06 in a calendar quarter at the rate of two [FIVE] percentage points above the annual rate 07 charged member banks for advances by the 12th Federal Reserve District as of the 08 first day of that calendar quarter [, OR AT THE ANNUAL RATE OF 11 PERCENT, 09 WHICHEVER IS GREATER, COMPOUNDED QUARTERLY AS OF THE LAST 10 DAY OF THAT QUARTER].