SB 62: "An Act relating to surface use restrictions for oil and gas leases; relating to gas leases in Kachemak Bay; relating to the renewable energy grant fund; and providing for an effective date."
00 SENATE BILL NO. 62 01 "An Act relating to surface use restrictions for oil and gas leases; relating to gas leases in 02 Kachemak Bay; relating to the renewable energy grant fund; and providing for an 03 effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 38.05 is amended by adding a new section to read: 06 Sec. 38.05.176. Effect of surface use restrictions in specified acreage. 07 Unless specifically provided, a statute that restricts the surface use of an oil and gas 08 lease or a gas only lease in specified acreage does not also restrict subsurface use for 09 oil and gas resource development that can be accomplished by drilling from acreage 10 that does not have surface use restrictions. 11 * Sec. 2. AS 38.05.184(b) is amended to read: 12 (b) Except as provided in (h) of this section, no [NO] additional oil or gas 13 leases may be issued by the department or any other state agency for the exploration 14 for or the development or production of oil and gas on state-owned land and waters
01 seaward of the mean higher high water line, beginning at Anchor Point; then around 02 the perimeter of Kachemak Bay, to Point Pogibshi; then west to the three mile limit of 03 state land and waters; then north to a point three miles west of Anchor Point; then east 04 to the mean higher high water line of Anchor Point, the point of beginning. 05 * Sec. 3. AS 38.05.184 is amended by adding a new subsection to read: 06 (h) The director may offer gas only leases within Township 5 South, Range 15 07 West, Seward Meridian, Alaska. A lessee shall 08 (1) have no right to surface use; and 09 (2) be limited to drilling from onshore leased lands for all exploration 10 for or development or production of gas. 11 * Sec. 4. AS 42.45.045(b) is amended to read: 12 (b) The authority shall administer the fund as a fund distinct from other funds 13 of the authority. The fund consists of 14 (1) money appropriated to the fund by the legislature to provide grants 15 for certain energy projects determined by the legislature; 16 (2) gifts, bequests, contributions from other sources, and federal 17 money; 18 (3) interest earned on the fund balance; and 19 (4) money appropriated to the fund by the legislature from the 20 state's rentals, royalties, lease sale proceeds, and net profit shares under 21 AS 38.05.180(f) and (g) from gas only leases under AS 38.05.184(h); an 22 appropriation under this paragraph may be made after deposits to the Alaska 23 permanent fund of amounts required under art. IX, sec. 15, Constitution of the 24 State of Alaska [INVESTMENTS TO BE MANAGED BY THE DEPARTMENT OF 25 REVENUE, WHICH SHALL BE THE FIDUCIARY OF THE FUND UNDER 26 AS 37.10.071]. 27 * Sec. 5. AS 42.45.045(c) is amended to read: 28 (c) The fund is not a dedicated fund. Investments of the fund shall be 29 managed by the Department of Revenue, which shall be the fiduciary of the fund 30 under AS 37.10.071. 31 * Sec. 6. This Act takes effect immediately under AS 01.10.070(c).