HB 32: "An Act relating to oil and gas and gas only leasing."
00 HOUSE BILL NO. 32 01 "An Act relating to oil and gas and gas only leasing." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 31.05.030(k) is amended to read: 04 (k) The commission shall certify to the Department of Natural Resources the 05 volume of oil production from a field or platform for the purposes of 06 AS 38.05.180(f)(6)(A) and (B) [, (C), (E), AND (G)]. 07 * Sec. 2. AS 38.05.180(f) is amended to read: 08 (f) Except as provided by AS 38.05.131 - 38.05.134, the commissioner shall 09 [MAY] issue oil and gas leases or leases for gas only on state land to the highest 10 responsible qualified bidder as follows: 11 (1) the commissioner shall issue an oil and gas lease or a gas only 12 lease, as appropriate, to the successful bidder determined by competitive bidding 13 under regulations adopted by the commissioner; bidding may be by sealed bid or 14 according to any other bidding procedure the commissioner determines is in the best 15 interests of the state; the commissioner shall issue an oil and gas lease or a gas only
01 lease to the successful bidder on the first day of the calendar month that begins 02 more than 180 days after the close of bidding, or at an earlier date at the 03 discretion of the commissioner if requested by the successful bidder; 04 (2) whenever, under any of the leasing methods listed in this 05 subsection, a royalty share is reserved to the state, it shall be delivered in pipeline 06 quality and free of all lease or unit expenses, including but not limited to separation, 07 cleaning, dehydration, gathering, salt water disposal, and preparation for transportation 08 off the lease or unit area; 09 (3) following a pre-sale analysis, the commissioner may choose at least 10 one of the following leasing methods: 11 (A) a cash bonus bid with a fixed royalty share reserved to the 12 state of not less than 12.5 percent in amount or value of the production 13 removed or sold from the lease; 14 (B) a cash bonus bid with a fixed royalty share reserved to the 15 state of not less than 12.5 percent in amount or value of the production 16 removed or sold from the lease and a fixed share of the net profit derived from 17 the lease of not less than 30 percent reserved to the state; 18 (C) a fixed cash bonus with a royalty share reserved to the state 19 as the bid variable but no less than 12.5 percent in amount or value of the 20 production removed or sold from the lease; 21 (D) a fixed cash bonus with the share of the net profit derived 22 from the lease reserved to the state as the bid variable; 23 (E) a fixed cash bonus with a fixed royalty share reserved to the 24 state of not less than 12.5 percent in amount or value of the production 25 removed or sold from the lease with the share of the net profit derived from the 26 lease reserved to the state as the bid variable; 27 (F) a cash bonus bid with a fixed royalty share reserved to the 28 state based on a sliding scale according to the volume of production or other 29 factor but in no event less than 12.5 percent in amount or value of the 30 production removed or sold from the lease; 31 (G) a fixed cash bonus with a royalty share reserved to the state
01 based on a sliding scale according to the volume of production or other factor 02 as the bid variable but not less than 12.5 percent in amount or value of the 03 production removed or sold from the lease; 04 (4) notwithstanding a requirement in the leasing method chosen of a 05 minimum fixed royalty share, on and after March 3, 1997, the lessee under a lease 06 issued in the Cook Inlet sedimentary basin who is the first to file with the 07 commissioner a nonconfidential sworn statement claiming to be the first to have 08 drilled a well discovering oil or gas in a previously undiscovered oil or gas pool and 09 who is certified by the commissioner within one year of completion of that discovery 10 well to have drilled a well in that pool that is capable of producing in paying quantities 11 shall pay a royalty of five percent on all production of oil or gas from that pool 12 attributable to that lease for a period of 10 years following the date of discovery of that 13 pool, and thereafter the royalty payable on all production of oil or gas from the pool 14 attributable to that lease shall be determined and payable as specified in the lease; for 15 purposes of this paragraph, the reduced royalty authorized by this paragraph is subject 16 to the following: 17 (A) only one reduction of royalty authorized by this paragraph 18 may be allowed on each lease that qualifies for reduction of royalty under this 19 paragraph; 20 (B) if, under this paragraph, application is made for a royalty 21 reduction for a lease that was entered into before March 3, 1997, the 22 commissioner may approve the application only if, on that date, the lease was a 23 nonproducing lease that was not committed to a unit approved by the 24 commissioner under (m) of this section, that is not part of a unit under (p) or 25 (q) of this section, and that has not been made part of a unit under AS 31.05; 26 (C) if application for a royalty reduction is made under this 27 paragraph for a lease on which a discovery royalty was claimed or may be 28 claimed under the discovery royalty provisions of former AS 38.05.180(a) in 29 effect before May 6, 1969, the commissioner shall disallow the application 30 under this paragraph unless the applicant waives the right to claim the right to 31 a reduced royalty under the discovery royalty provisions of former
01 AS 38.05.180(a) in effect before May 6, 1969; and 02 (D) the commissioner shall adopt regulations setting out the 03 standards, criteria, and definitions of terms that apply to implement the filing 04 of applications for, and the review and certification of, discovery certifications 05 under this paragraph; 06 (5) notwithstanding and in lieu of a requirement in the leasing method 07 chosen of a minimum fixed royalty share, or the royalty provision of a lease, for leases 08 held by a well certified capable of production, fields with oil or gas wells drilled 09 but not produced before December 31, 1997, leases unitized as described in (p) of 10 this section, leases subject to an agreement described in (s) or (t) of this section, or 11 interests unitized under AS 31.05, the lessee of all or part of an oil or gas field 12 identified in this section that has been granted approval of a written plan submitted to 13 the Alaska Oil and Gas Conservation Commission under AS 31.05.030(i) shall, 14 subject to (dd) of this section, pay a royalty of five percent on the first 25,000,000 15 barrels of oil and the first 35,000,000,000 cubic feet of gas produced for sale from that 16 field that occurs after [IN THE 10 YEARS FOLLOWING THE DATE ON WHICH 17 THE] production for sale commences; the fields eligible for royalty reduction under 18 this paragraph [, ALL OF WHICH] are located within the Cook Inlet sedimentary 19 basin [, WERE DISCOVERED BEFORE JANUARY 1, 1988,] and have been 20 abandoned, undeveloped, or shut in from at least January 1, 1988, through 21 December 31, 1997 [, ARE 22 (A) FALLS CREEK; 23 (B) NICOLAI CREEK; 24 (C) NORTH FORK; 25 (D) POINT STARICHKOF; 26 (E) REDOUBT SHOAL; AND 27 (F) WEST FORELAND]; 28 (6) notwithstanding and in lieu of a requirement in the leasing method 29 chosen of a minimum fixed royalty share [,] or the royalty provision of a lease, for 30 leases unitized as described in (p) of this section, leases subject to an agreement 31 described in (s) or (t) of this section, or interests unitized under AS 31.05, the lessee of
01 all or part of an oil or gas field located offshore in Cook Inlet [ON WHICH AN OIL 02 PRODUCTION PLATFORM SPECIFIED IN (A), (C), OR (E) OF THIS 03 PARAGRAPH OPERATES, OR THE LESSEE OF ALL OR PART OF THE FIELD 04 LOCATED OFFSHORE IN COOK INLET AND DESCRIBED IN (G) OF THIS 05 PARAGRAPH], 06 (A) shall pay a royalty based on the previous month's 07 production from a facility [OF FIVE PERCENT ON OIL PRODUCED 08 FROM THE PLATFORM IF OIL PRODUCTION THAT EQUALED OR 09 EXCEEDED A VOLUME OF 1,200 BARRELS A DAY DECLINES TO 10 LESS THAN THAT AMOUNT FOR A PERIOD OF AT LEAST ONE 11 CALENDAR QUARTER], as certified by the Alaska Oil and Gas 12 Conservation Commission as follows: 13 (i) for oil production less than or equal to 750 14 barrels a day, zero percent; 15 (ii) for oil production greater than 750 barrels a day 16 but not more than 1,500 barrels a day, five percent; 17 (iii) for oil production greater than 1,500 barrels a 18 day but not more than 1,750 barrels a day, six percent; 19 (iv) for oil production greater than 1,750 barrels a 20 day but not more than 2,000 barrels a day, 7.5 percent; 21 (v) for oil production greater than 2,000 barrels a 22 day but not more than 2,500 barrels a day, 10 percent; 23 (vi) for oil production greater than 2,500 barrels a 24 day, 12.5 percent; 25 (vii) for gas production less than or equal to 26 15,000,000 cubic feet a day, zero percent; 27 (viii) for gas production greater than 15,000,000 28 cubic feet a day but not more than 30,000,000 cubic feet a day, five 29 percent; 30 (ix) for gas production greater than 30,000,000 cubic 31 feet a day but not more than 35,000,000 cubic feet a day, six
01 percent; 02 (x) for gas production greater than 35,000,000 cubic 03 feet a day but not more than 40,000,000 cubic feet a day, 7.5 04 percent; 05 (xi) for gas production greater than 40,000,000 cubic 06 feet a day but not more than 50,000,000 cubic feet a day, 10 07 percent; 08 (xii) for gas production greater than 50,000,000 09 cubic feet a day, 12.5 percent [, FOR AS LONG AS THE VOLUME 10 OF OIL PRODUCED FROM THE PLATFORM REMAINS LESS 11 THAN 1,200 BARRELS A DAY; THE PROVISIONS OF THIS 12 SUBPARAGRAPH APPLY TO 13 (i) DOLLY; 14 (ii) GRAYLING; 15 (iii) KING SALMON; 16 (iv) STEELHEAD; AND 17 (v) MONOPOD]; 18 (B) shall, [PAY A ROYALTY CALCULATED UNDER THIS 19 SUBPARAGRAPH IF THE VOLUME OF OIL PRODUCED FROM THE 20 PLATFORM THAT WAS CERTIFIED BY THE ALASKA OIL AND GAS 21 CONSERVATION COMMISSION UNDER (A) OF THIS PARAGRAPH 22 LATER INCREASES TO 1,200 OR MORE BARRELS A DAY AND 23 REMAINS AT 1,200 OR MORE BARRELS A DAY FOR A PERIOD OF AT 24 LEAST ONE CALENDAR QUARTER; UNTIL THE ROYALTY RATE 25 DETERMINED UNDER THIS SUBPARAGRAPH APPLIES, THE 26 ROYALTY CONTINUES TO BE CALCULATED UNDER (A) OF THIS 27 PARAGRAPH; ON AND AFTER THE FIRST DAY OF THE MONTH 28 FOLLOWING THE MONTH THE INCREASED PRODUCTION EXCEEDS 29 THE PERIOD SPECIFIED IN THIS SUBPARAGRAPH, THE ROYALTY 30 PAYABLE UNDER THIS SUBPARAGRAPH IS 31 (i) FOR PRODUCTION OF AT LEAST 1,200
01 BARRELS A DAY BUT NOT MORE THAN 1,300 BARRELS A 02 DAY - SEVEN PERCENT; 03 (ii) FOR PRODUCTION OF MORE THAN 1,300 04 BARRELS A DAY BUT NOT MORE THAN 1,400 BARRELS A 05 DAY - 8.5 PERCENT; 06 (iii) FOR PRODUCTION OF MORE THAN 1,400 07 BARRELS A DAY BUT NOT MORE THAN 1,500 BARRELS A 08 DAY - 10 PERCENT; AND 09 (iv) FOR PRODUCTION OF MORE THAN 1,500 10 BARRELS A DAY - 12.5 PERCENT; 11 (C) SHALL PAY A ROYALTY OF FIVE PERCENT ON OIL 12 PRODUCED FROM THE PLATFORM IF OIL PRODUCTION THAT 13 EQUALED OR EXCEEDED A VOLUME OF 975 BARRELS A DAY 14 DECLINES TO LESS THAN THAT AMOUNT FOR A PERIOD OF AT 15 LEAST ONE CALENDAR QUARTER, AS CERTIFIED BY THE ALASKA 16 OIL AND GAS CONSERVATION COMMISSION, FOR AS LONG AS THE 17 VOLUME OF OIL PRODUCED FROM THE PLATFORM REMAINS LESS 18 THAN 975 BARRELS A DAY; THE PROVISIONS OF THIS 19 SUBPARAGRAPH APPLY TO 20 (i) BAKER; 21 (ii) DILLON; 22 (iii) XTO.A; AND 23 (iv) XTO.C; 24 (D) SHALL PAY A ROYALTY CALCULATED UNDER 25 THIS SUBPARAGRAPH IF THE VOLUME OF OIL PRODUCED FROM 26 THE PLATFORM THAT WAS CERTIFIED BY THE ALASKA OIL AND 27 GAS CONSERVATION COMMISSION UNDER (C) OF THIS 28 PARAGRAPH LATER INCREASES TO 975 OR MORE BARRELS A DAY 29 AND REMAINS AT 975 OR MORE BARRELS A DAY FOR A PERIOD OF 30 AT LEAST ONE CALENDAR QUARTER; UNTIL THE ROYALTY RATE 31 DETERMINED UNDER THIS SUBPARAGRAPH APPLIES, THE
01 ROYALTY CONTINUES TO BE CALCULATED UNDER (C) OF THIS 02 PARAGRAPH; ON AND AFTER THE FIRST DAY OF THE MONTH 03 FOLLOWING THE MONTH THE INCREASED PRODUCTION EXCEEDS 04 THE PERIOD SPECIFIED IN THIS SUBPARAGRAPH, THE ROYALTY 05 PAYABLE UNDER THIS SUBPARAGRAPH IS 06 (i) FOR PRODUCTION OF AT LEAST 975 07 BARRELS A DAY BUT NOT MORE THAN 1,100 BARRELS A 08 DAY - SEVEN PERCENT; 09 (ii) FOR PRODUCTION OF MORE THAN 1,100 10 BARRELS A DAY BUT NOT MORE THAN 1,200 BARRELS A 11 DAY - 8.5 PERCENT; 12 (iii) FOR PRODUCTION OF MORE THAN 1,200 13 BARRELS A DAY BUT NOT MORE THAN 1,350 BARRELS A 14 DAY - 10 PERCENT; AND 15 (iv) FOR PRODUCTION OF MORE THAN 1,350 16 BARRELS A DAY - 12.5 PERCENT; 17 (E) SHALL PAY A ROYALTY OF FIVE PERCENT ON OIL 18 PRODUCED FROM THE PLATFORM IF OIL PRODUCTION THAT 19 EQUALED OR EXCEEDED A VOLUME OF 750 BARRELS A DAY 20 DECLINES TO LESS THAN THAT AMOUNT FOR A PERIOD OF AT 21 LEAST ONE CALENDAR QUARTER, AS CERTIFIED BY THE ALASKA 22 OIL AND GAS CONSERVATION COMMISSION, FOR AS LONG AS THE 23 VOLUME OF OIL PRODUCED FROM THE PLATFORM REMAINS LESS 24 THAN 750 BARRELS A DAY; THE PROVISIONS OF THIS 25 SUBPARAGRAPH APPLY TO 26 (i) GRANITE POINT; 27 (ii) ANNA; AND 28 (iii) BRUCE; 29 (F) SHALL PAY A ROYALTY CALCULATED UNDER 30 THIS SUBPARAGRAPH IF THE VOLUME OF OIL PRODUCED FROM 31 THE PLATFORM THAT WAS CERTIFIED BY THE ALASKA OIL AND
01 GAS CONSERVATION COMMISSION UNDER (E) OF THIS 02 PARAGRAPH LATER INCREASES TO 750 OR MORE BARRELS A DAY 03 AND REMAINS AT 750 OR MORE BARRELS A DAY FOR A PERIOD OF 04 AT LEAST ONE CALENDAR QUARTER; UNTIL THE ROYALTY RATE 05 DETERMINED UNDER THIS SUBPARAGRAPH APPLIES, THE 06 ROYALTY CONTINUES TO BE CALCULATED UNDER (E) OF THIS 07 PARAGRAPH; ON AND AFTER THE FIRST DAY OF THE MONTH 08 FOLLOWING THE MONTH THE INCREASED PRODUCTION EXCEEDS 09 THE PERIOD SPECIFIED IN THIS SUBPARAGRAPH, THE ROYALTY 10 PAYABLE UNDER THIS SUBPARAGRAPH IS 11 (i) FOR PRODUCTION OF AT LEAST 750 12 BARRELS A DAY BUT NOT MORE THAN 850 BARRELS A DAY 13 - SEVEN PERCENT; 14 (ii) FOR PRODUCTION OF MORE THAN 850 15 BARRELS A DAY BUT NOT MORE THAN 1,000 BARRELS A 16 DAY - 8.5 PERCENT; 17 (iii) FOR PRODUCTION OF MORE THAN 1,000 18 BARRELS A DAY BUT NOT MORE THAN 1,200 BARRELS A 19 DAY - 10 PERCENT; AND 20 (iv) FOR PRODUCTION OF MORE THAN 1,200 21 BARRELS A DAY - 12.5 PERCENT; 22 (G) SHALL PAY A ROYALTY OF FIVE PERCENT ON OIL 23 PRODUCED FROM THE FIELD IF OIL PRODUCTION THAT EQUALED 24 OR EXCEEDED A VOLUME OF 750 BARRELS A DAY DECLINES TO 25 LESS THAN THAT AMOUNT FOR A PERIOD OF AT LEAST ONE 26 CALENDAR QUARTER, AS CERTIFIED BY THE ALASKA OIL AND 27 GAS CONSERVATION COMMISSION, FOR AS LONG AS THE 28 VOLUME OF OIL PRODUCED FROM THE FIELD REMAINS LESS 29 THAN 750 BARRELS A DAY; THE PROVISIONS OF THIS 30 SUBPARAGRAPH APPLY TO THE WEST MCARTHUR RIVER FIELD; 31 (H) SHALL PAY A ROYALTY CALCULATED UNDER
01 THIS SUBPARAGRAPH IF THE VOLUME OF OIL PRODUCED FROM 02 THE FIELD THAT WAS CERTIFIED BY THE ALASKA OIL AND GAS 03 CONSERVATION COMMISSION UNDER (G) OF THIS PARAGRAPH 04 LATER INCREASES TO 750 OR MORE BARRELS A DAY AND 05 REMAINS AT 750 OR MORE BARRELS A DAY FOR A PERIOD OF AT 06 LEAST ONE CALENDAR QUARTER; UNTIL THE ROYALTY RATE 07 DETERMINED UNDER THIS SUBPARAGRAPH APPLIES, THE 08 ROYALTY CONTINUES TO BE CALCULATED UNDER (G) OF THIS 09 PARAGRAPH; ON AND AFTER THE FIRST DAY OF THE MONTH 10 FOLLOWING THE MONTH THE INCREASED PRODUCTION EXCEEDS 11 THE PERIOD SPECIFIED IN THIS SUBPARAGRAPH, THE ROYALTY 12 PAYABLE UNDER THIS SUBPARAGRAPH IS 13 (i) FOR PRODUCTION OF AT LEAST 750 14 BARRELS A DAY BUT NOT MORE THAN 850 BARRELS A DAY 15 - SEVEN PERCENT; 16 (ii) FOR PRODUCTION OF MORE THAN 850 17 BARRELS A DAY BUT NOT MORE THAN 1,000 BARRELS A 18 DAY - 8.5 PERCENT; 19 (iii) FOR PRODUCTION OF MORE THAN 1,000 20 BARRELS A DAY BUT NOT MORE THAN 1,200 BARRELS A 21 DAY - 10 PERCENT; AND 22 (iv) FOR PRODUCTION OF MORE THAN 1,200 23 BARRELS A DAY - 12.5 PERCENT; AND 24 (I) MAY OBTAIN THE BENEFITS OF THE ROYALTY 25 ADJUSTMENTS SET OUT IN (A) - (H) OF THIS PARAGRAPH ONLY] if 26 the commissioner determines that the reduction in production is [FROM THE 27 PLATFORM OR THE FIELD IS 28 (i) BASED ON THE AVERAGE DAILY 29 PRODUCTION DURING THE CALENDAR QUARTER BASED ON 30 RESERVOIR CONDITIONS; AND 31 (ii) NOT] the result of short-term production declines
01 due to the voluntary application of mechanical or other choke-back 02 factors, temporary shutdowns, [OR DECREASED PRODUCTION 03 DUE TO] environmental [OR FACILITY] constraints, or market 04 conditions, pay a royalty based on production certified by the 05 Alaska Oil and Gas Conservation Commission for the most recent 06 month in which none of the constraints listed in this subparagraph 07 applied; 08 (C) may not be prohibited by a provision in this paragraph 09 from applying for a royalty rate reduction or modification, nor shall the 10 commissioner be prohibited under this paragraph from approving a 11 royalty rate reduction or modification, under (j) of this section. 12 * Sec. 3. AS 38.05.180(m) is amended to read: 13 (m) An oil and gas lease or a gas only lease must cover a reasonably compact 14 area not exceeding 5,760 acres, and may not be for a primary term of more than 15 [BE FOR A MAXIMUM PERIOD OF] 10 years. The commissioner shall determine 16 the primary term of the lease based on a finding that the term of the lease [, 17 EXCEPT THAT THE COMMISSIONER MAY ISSUE A LEASE FOR A PERIOD 18 NOT LESS THAN FIVE YEARS UPON A FINDING THAT IT] is in the best 19 interests of the state. The primary term of an [AN] oil and gas lease shall be (1) 20 extended at the request of the lessee for a period of not more than two years 21 beyond the original primary term of the lease if the request is made in writing 22 more than 180 days before the expiration of the original primary term and the 23 lessee submits a payment equal to a prorated bonus payment based on the 24 original bonus payment for the original lease; (2) extended at the request of the 25 lessee to the latest expiration date of the primary term of a lease within an 26 exploration block of contiguous leases if the request is made in writing more than 27 180 days before the expiration date of the primary term or automatic extension of 28 the primary term under this subsection for the first lease issued in the 29 exploration block of contiguous leases; and (3) automatically extended if and for so 30 long thereafter as oil or gas is produced in paying quantities from the lease or if the 31 lease is committed to a unit approved by the commissioner. In addition to the
01 extensions authorized by (1) - (3) of this subsection, a [, AND A GAS ONLY 02 LEASE SHALL BE AUTOMATICALLY EXTENDED IF AND FOR SO LONG 03 THEREAFTER AS GAS IS PRODUCED IN PAYING QUANTITIES FROM THE 04 LEASE OR IF THE LEASE IS COMMITTED TO A UNIT APPROVED BY THE 05 COMMISSIONER. A] lease issued under this section covering land on which there is 06 a well capable of producing oil or gas in paying quantities does not expire because the 07 lessee fails to produce oil or gas unless the lessee is allowed reasonable time to place 08 the well on a producing status. Upon extension, the commissioner may increase lease 09 rentals so long as the increased rental rate does not exceed 150 percent of the rate for 10 the preceding year. If drilling has commenced on the expiration date of the primary 11 term of the lease and is continued with reasonable diligence, including such operations 12 as redrilling, sidetracking, or other means necessary to reach the originally proposed 13 bottom hole location, the lease continues in effect until 180 [90] days after drilling has 14 ceased and for so long thereafter as oil or gas is produced in paying quantities. An oil 15 and gas lease or a gas only lease issued under this section that [WHICH] is subject to 16 termination by reason of cessation of production does not terminate if, within 180 [60] 17 days after production ceases, reworking or drilling operations are commenced on the 18 land under lease and are thereafter conducted with reasonable diligence during the 19 period of nonproduction. 20 * Sec. 4. AS 38.05.180(w) is amended to read: 21 (w) Notwithstanding any other provisions of this section, land that was subject 22 to a best interest finding issued within the previous 10 years may be, at the discretion 23 of the commissioner, immediately offered for lease, under regulations adopted by the 24 commissioner, upon terms appearing most advantageous to the state; however, 25 noncompetitive leasing is prohibited. The commissioner shall establish a royalty 26 determined to be in the public interest but not less than 12 1/2 percent. A lease must 27 provide for payment to the state of rental but need not adhere to the rental schedule in 28 (n) of this section nor to the 5,760-acres-per-lease limitation in (m) of this section. The 29 primary lease term may not exceed 10 years, except as provided in (m) and (o) of 30 this section. 31 * Sec. 5. AS 38.05.180(dd) is amended to read:
01 (dd) A lessee is entitled to [ELIGIBLE FOR] the royalty in (f)(5) of this 02 section only if production of oil or gas for sale begins from the eligible field before 03 December 31, 2020 [JANUARY 1, 2004]. However, if the state or an agency of the 04 state is a party to a suit, other than a suit brought by the lessee or agent of the lessee, 05 and if the suit challenges (f)(5) of this section or AS 31.05.030(i) or an act under (f)(5) 06 of this section or AS 31.05.030(i), the December 31, 2020 [JANUARY 1, 2004], 07 deadline is extended by the number of days the state or agency of the state is a party to 08 the suit, including any appeals. 09 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 10 read: 11 APPLICABILITY. (a) The amendments to AS 38.05.180(f), made in sec. 2 of this Act 12 are applicable to a lease entered into, renewed, or amended on or after the effective date of 13 this Act. 14 (b) The extensions to a lease authorized by the amendments to AS 38.05.180(m), 15 made in by sec. 3 of this Act, are applicable to a lease entered into on or after the effective 16 date of this Act and to a lease the primary term of which has not expired before the effective 17 date of this Act.