reglab/statecodes huggingface dataset:
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 25 - Royalty Election Under Alaska Gasline Inducement Act › 11 AAC 25.070 - Allocation of gas and costs upstream of the Alaska mainline

Current through May 31, 2024
(a) Unless
				otherwise provided in this chapter, a lessee calculating the monthly value of
				the state's royalty share of qualified gas under this chapter shall allocate
				gas and costs upstream of the inlet to the Alaska mainline as provided in this
				section.
(b) Qualified gas must be
				allocated to each North Slope lease producing royalty-bearing gas that has
				pipeline transportation access to the Alaska mainline. Qualified gas and
				nonqualified gas must be allocated among leases held by a lessee on the basis
				of a percentage for each lease represented by a ratio, the numerator of which
				is the lessee's quantity of royalty-bearing gas produced from a North Slope
				lease with pipeline transportation access to the Alaska mainline and the
				denominator of which is the lessee's quantity of royalty-bearing gas produced
				from all North Slope leases with pipeline transportation access to the Alaska
				mainline. For purposes of this subsection, quantities must be measured in
				MMBtus.
(c) Unless prohibited under
				(d) of this section or
				11 AAC 25.160 -
				11 AAC 25.220, a lessee may deduct
				costs of pipeline transportation allowed under this chapter for a pipeline
				upstream of the inlet to the Alaska mainline. The deduction will be allowed for
				pipeline transportation from the boundary of the unit of production to a gas
				treatment plant located outside the unit of production, or, if the lease of
				production is not within a unit, the lessee may deduct the costs of pipeline
				transportation from the boundary of the lease of production to a gas treatment
				plant located off the lease of production.
(d) If carbon dioxide exceeding the
				percentage of carbon dioxide allowed into the Alaska mainline is transported in
				a pipeline upstream of the Alaska mainline, the lessee shall allocate
				transportation costs between the excess carbon dioxide and all other gas based
				on their relative volumes. A deduction may not be taken in calculating the
				monthly value of the state's royalty share of qualified gas for costs allocated
				to excess carbon dioxide under this subsection.
(e) Except for a cost that may be deducted
				under 11 AAC 25.060(a) (4) or (5), a lessee in calculating royalty on
				qualified gas under this chapter may not deduct a cost of the lease or unit of
				production, a cost to meet the specifications for acceptance into the Alaska
				mainline, or a cost of putting gas and associated substances in marketable
				condition, including the cost of a gas treatment plant upstream of the inlet to
				the Alaska mainline.
Authority:
AS
					 38.05.020
AS 38.05.180
AS
					 43.90.310
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 25 - Royalty Election Under Alaska Gasline Inducement Act › 11 AAC 25.080 - Allocation of gas and costs downstream of inlet to the Alaska mainline

Current through May 31, 2024
(a)
				Unless otherwise provided in this chapter, a lessee calculating the monthly
				value of the state's royalty share of qualified gas under this chapter shall
				allocate gas and costs at and downstream of the inlet to the Alaska mainline as
				provided in this section.
(b) Based
				on its characteristics at destination, as destination is determined under this
				section and
				11 AAC 25.100(b),
				qualified gas shall be characterized as one of the following:
(1) unprocessed gas;
(2) residue gas;
(3) one of the following gas plant products:
(A) NGL mix;
(B) fractionated gas plant
				products.
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 25 - Royalty Election Under Alaska Gasline Inducement Act › 11 AAC 25.090 - Adjustments to royalty volumes for pipeline, plant, and tanker in-kind fuel requirements, gains, and losses

Current through May 31, 2024
(a) A lessee
				calculating the monthly value of the state's royalty share of qualified gas
				under this chapter may adjust its royalty volumes only to the extent allowed by
				this section.
(b) If the costs of a
				pipeline, plant, or tanker are deductible under this chapter, and the pipeline,
				plant, or tanker has an in-kind fuel requirement rather than a monetary charge
				for fuel use directly attributable to transporting, processing, liquefying, or
				regasifying qualified gas, the lessee may reduce the quantity of qualified gas
				on which it pays royalty in value by the quantity of the in-kind fuel
				requirement assessed against that qualified gas, except as provided in this
				section, 11 AAC 25.080(g),
				or 11 AAC 25.200.
(c) If a lessee or its affiliate transports,
				processes, liquefies, or regasifies qualified gas under an arm's length
				contract and the charge under that contract for those purposes is deductible
				under this chapter, losses experienced under the contract of no more than two
				percent of the total volume of gas delivered under the contract that are
				assessed against the qualified gas under the terms of the contract may be used
				to reduce the quantity of qualified gas on which the lessee pays royalty to the
				state. However, a reduction in quantity is allowed under this subsection only
				if the lessee also reports increases in the quantity of qualified gas on which
				it pays royalties to the state if gains in volume of qualified gas are realized
				under the terms of the arm's length contract.
(d) If a lessee or its affiliate transports,
				processes, liquefies, or regasifies qualified gas under a contract or agreement
				other than an arm's length contract, a loss in volume is not allowed in
				calculating the monthly value of the state's share of royalty gas under this
				chapter.
(e) Each in-kind fuel
				requirement, loss, and gain allowed or required under this section must be
				reported separately by lease and destination and must be allocated between
				unprocessed gas, residue gas, gas plant products, and LNG. Allocation must be
				according to the method set out in the applicable transportation services
				agreement or processing agreement. If the transportation services agreement or
				processing agreement does not set out an allocation method, allocation must be
				based on
(1) MMBtus, for a processing
				agreement; and
(2) MMBtus and
				mileage of haul, for a transportation agreement.
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 25 - Royalty Election Under Alaska Gasline Inducement Act › 11 AAC 25.100 - Destination and destination value

Current through May 31, 2024
(a) The destination
				value for qualified gas is the fair market value at destination as determined
				under this section.
(b) For
				purposes of this chapter, the destination for a lessee's unprocessed gas,
				residue gas, gas plant products, or LNG is the point at which the gas exits a
				pipeline, without then entering an interconnecting pipeline, processing plant,
				liquefaction facility, LNG tanker, or regasification facility, except that
(1) the destination for qualified gas that
				enters a first destination market must be within that first destination market
				and may not be downstream of that first destination market; if qualified gas
				enters an interconnecting pipeline for transportation downstream of a first
				destination market, its destination for purposes of this chapter is the point
				of interconnection;
(2) qualified
				gas that has been processed to extract residue gas or a fractionated gas plant
				product is at its destination; and
(3) the destination for qualified gas may not
				be downstream of the point of an arm's length sale of the qualified
				gas.
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 25 - Royalty Election Under Alaska Gasline Inducement Act › 11 AAC 25.110 - Alternative destination value for residue gas and methane in unprocessed gas

Current through May 31, 2024
(a) If, for a royalty reporting period, the
				published price designated by the commissioner for residue gas and methane in
				unprocessed gas reaching destination after entry into a first destination
				market serviced by the Canada mainline is less than 95 percent of the
				alternative value calculated under this section, the destination value for that
				royalty reporting period is the alternative value calculated under this
				section.
(b) The alternative
				destination value calculated under this section is based on a market basket of
				published prices for residue gas. The market basket includes published prices
				designated by the commissioner for each market center designated by the
				commissioner.
(c) For purposes of
				calculating alternative destination value under this section, the commissioner
				will designate market centers where
(1) the
				published price identified under (j)(1)(B) of this section is reported for the
				same date or period as the published price for other market centers to be used
				in the market basket; and
(2) the
				market center is either
(A) a first
				destination market; or
(B) a first
				market center under (i) of this section.
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 25 - Royalty Election Under Alaska Gasline Inducement Act › 11 AAC 25.120 - Destination value in absence of reliable published prices

Current through May 31, 2024
(a) If the
				destination for qualified gas is not a first destination market, and the
				commissioner has not designated an applicable location differential for that
				destination under
				11 AAC 25.130 for purposes of
				adjusting a published price from a first destination market to the destination,
				destination value is determined under (b) or (c) of this section, as
				applicable.
(b) The destination
				value of qualified gas sold by a lessee or an affiliate under an arm's length
				contract is the gross proceeds accruing to the lessee or affiliate, except as
				provided in this subsection. To claim the benefit of this section, the lessee
				shall demonstrate that its contract is arm's length. The commissioner may
				require a lessee to certify in writing that its arm's length contract
				provisions include all of the consideration to be paid by the buyer, either
				directly or indirectly. If an arm's length contract does not set out the
				consideration actually transferred either directly or indirectly from the buyer
				to the seller, the commissioner may require that the qualified gas sold under
				that contract be valued at destination under (c) of this section. If the
				commissioner determines that the gross proceeds accruing under an arm's length
				contract to the lessee or an affiliate of the lessee do not represent the
				reasonable value of the qualified gas because of misconduct by the contracting
				parties, or because the lessee breached its duty to the state to market the
				qualified gas for the mutual benefit of the lessee and the state, the
				commissioner may require the lessee to value the qualified gas under (c) of
				this section.
(c) If qualified gas
				is not sold under an arm's length contract, or if the lessee is required under
				(b) of this section to determine destination value under this subsection, the
				destination value of qualified gas is the fair market value for the qualified
				gas as determined by the commissioner based on prices received in arm's length
				spot sales, other reliable sources of price or market information, and
				comparable arm's length contracts for purchases, sales, or other dispositions
				of like-quality gas. In evaluating the comparability of an arm's length
				contract for purposes of this subsection, the commissioner will consider
(1) price;
(2) the time of execution;
(3) the contract's duration;
(4) each market served;
(5) the contract's terms;
(6) the quality and volume of the gas;
				and
(7) other factors appropriate
				to reflect the value of the qualified gas.
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 25 - Royalty Election Under Alaska Gasline Inducement Act › 11 AAC 25.130 - Location differentials

Current through May 31, 2024
(a) The commissioner will establish location
				differentials to
(1) calculate the destination
				value of qualified gas at a destination upstream of a first destination market;
				or
(2) calculate the destination
				value of a gas plant product or component other than methane in a first
				destination market if a published price for that gas plant product or component
				is not available or is not reliable.
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 25 - Royalty Election Under Alaska Gasline Inducement Act › 11 AAC 25.140 - Quality differentials for unprocessed gas

Current through May 31, 2024
(a) The
				commissioner will establish a quality differential to be used in valuing
				unprocessed gas.
(b) The
				commissioner will establish a quality differential to allow a lessee that
				elects not to take a processing allowance for qualified gas to deduct a quality
				differential that is representative of processing costs.
(c) In establishing a quality differential,
				the commissioner will consider
(1) the cost
				of gas processing;
(2) standard
				deductions allowed or used by other governments or royalty owners to reflect
				quality differences or processing costs, including the fractionation allowance
				allowed by the Alberta government for fractionating propane, butane, and
				pentane plus;
(3) the composition
				of a lessee's gas or gas from a North Slope lease, unit, participating area, or
				reservoir; and
(4) other factors
				relevant to whether a quality differential is representative of processing
				costs.
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 25 - Royalty Election Under Alaska Gasline Inducement Act › 11 AAC 25.150 - Quality bank

Current through May 31, 2024
If a quality bank, NGL bank, or other mechanism is
				  established to compensate or charge persons transporting gas on a pipeline for
				  differences in the relative quality of gas tendered or received, a lessee shall
				  adjust royalty volume or royalty payments to the state based on the same
				  principles used by the quality bank, NGL bank, or other mechanism to compensate
				  or charge a person transporting gas for differences in the relative quality of
				  gas tendered or received.
Authority:
AS
					 38.05.020
AS 38.05.180
AS
					 43.90.310
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 25 - Royalty Election Under Alaska Gasline Inducement Act › 11 AAC 25.160 - Transportation costs

Current through May 31, 2024
(a) In calculating the monthly value of the
				state's royalty share of qualified gas, a lessee may deduct transportation
				costs as provided in
				11 AAC 25.060 -
				11 AAC 25.090 and
				11 AAC 25.160 -
				11 AAC 25.220. Only actual and
				reasonable transportation costs are allowed under this section that are
				incurred and paid by the lessee or its affiliate and not refunded to the lessee
				or its affiliate for transporting qualified gas between the boundary of the
				unit of production and destination, or, if the lease of production is not
				within a unit, between the lease of production and destination.
(b) If a lessee, its marketing affiliate, or
				any affiliate other than a transportation affiliate transports qualified gas on
				a transportation affiliate, transportation costs for the lessee must be
				reported on the basis of the actual and reasonable costs of the transportation
				affiliate, unless the lessee, its marketing affiliate, or affiliate other than
				the transportation affiliate pays the transportation affiliate a lower amount
				or has an agreement or contract with the transportation affiliate for a lower
				amount, in which case the lower amount must be used.
(c) For purposes of
				11 AAC 25.060 -
				11 AAC 25.090 and
				11 AAC 25.160 -
				11 AAC 25.220, a marketing entity,
				pipeline entity, LNG transportation entity, or other entity is an affiliate of
				the lessee if the lessee and the other entity are affiliated during the royalty
				reporting period, or were affiliated when the contract for sale, marketing,
				transportation, or other service was executed or an agreement for sale,
				marketing, transportation, or other service was made.
(d) If a lessee or an affiliate receives a
				payment or credit from a transportation entity, the lessee shall reduce the
				cost or deduction claimed in reporting and paying royalties on qualified gas by
				the amount of the payment or credit attributable to that gas.
Authority:
AS
					 38.05.020
AS 38.05.180
AS
					 43.90.310
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 25 - Royalty Election Under Alaska Gasline Inducement Act › 11 AAC 25.170 - Transportation contracts at arm's length

Current through May 31, 2024
(a) If a lessee or
				an affiliate transports qualified gas under an arm's length contract, the
				transportation allowance used to determine the monthly value of the lessee's
				qualified gas must be the actual and reasonable costs incurred and paid by the
				lessee or an affiliate and not refunded to the lessee or the affiliate for
				transportation, less any costs disallowed under
				11 AAC 25.060 -
				11 AAC 25.090 or
				11 AAC 25.160 -
				11 AAC 25.220. To claim a
				transportation allowance under this section, the lessee shall demonstrate that
				the contract is arm's length.
(b)
				If the commissioner determines that the consideration set out in an arm's
				length contract exceeds the consideration actually transferred either directly
				or indirectly from the lessee or an affiliate to the transportation entity for
				the transportation, the commissioner may require that the transportation
				allowance be reduced or redetermined under
				11 AAC 25.180 -
				11 AAC 25.200.
(c) If the commissioner determines that the
				consideration paid under an arm's length transportation contract exceeds the
				reasonable value of the transportation because of misconduct by the contracting
				parties, or because the lessee breached a duty to the state to market the
				production for the mutual benefit of the lessee and the state, the commissioner
				may require that the transportation allowance be reduced or redetermined under
				11 AAC 25.180 -
				11 AAC 25.200.
Authority:
AS
					 38.05.020
AS 38.05.180
AS
					 43.90.310
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 25 - Royalty Election Under Alaska Gasline Inducement Act › 11 AAC 25.200 - Transportation contracts not at arm's length - LNG transportation

Current through May 31, 2024
(a) If a
				lessee, its marketing affiliate, or any affiliate other than a transportation
				affiliate transports qualified gas using an LNG transportation affiliate,
				transportation costs must be the LNG transportation affiliate's allowable
				actual and reasonable costs incurred between the outlet of a liquefaction plant
				and the inlet of a regasification plant, as those costs are determined under
				(b) - (
l
) of this section,
				11 AAC 25.160, and
				11 AAC 25.210. However, if
				11 AAC 25.160(b)
				applies, the amount determined under
				11 AAC 25.160(b)
				must be used for transportation costs.
(b) For purposes of (a) of this section, the
				applicable costs of transportation are
(1) an
				allowance for operating and maintenance expense;
(2) annual depreciation on capital
				investment;
(3) a return on capital
				investment; and
(4) positioning
				costs, amortized over 36 months.
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 25 - Royalty Election Under Alaska Gasline Inducement Act › 11 AAC 25.220 - Unused capacity deduction

Current through May 31, 2024
(a) A qualified
				person that elects under
				11 AAC 25.040(b)
				to calculate royalties under this chapter may deduct a share of its actual and
				reasonable costs of unused capacity on the Alaska mainline and Canada mainline,
				if in the royalty reporting period the qualified person's total shipments on a
				mainline are less than the total of its firm transportation capacity held that
				month on that mainline. Any deduction for unused capacity may be allowed only
				as provided in this section.
(b) In
				calculating unused capacity for purposes of this section, a qualified person
				shall combine quantities specific to that qualified person and any affiliates.
				A qualified person shall base calculations under this section on amounts
				specific to the qualified person and its affiliates, and may not base a
				calculation on the total amount of
(1) all
				shippers' firm transportation capacity for a mainline; or
(2) all shippers' production from leases, all
				shippers' gas from other sources, or all shippers' gas from all
				sources.
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 25 - Royalty Election Under Alaska Gasline Inducement Act › 11 AAC 25.230 - Processing costs

Current through May 31, 2024
(a) In calculating the monthly value of the
				state's royalty share of qualified gas, a lessee may deduct processing costs
				only to the extent authorized by
				11 AAC 25.060 -
				11 AAC 25.090 and
				11 AAC 25.230 -
				11 AAC 25.260. Processing costs
				will be allowed only if they are the actual and reasonable processing costs
				incurred and paid by the lessee or its affiliate and not refunded to the lessee
				or its affiliate for processing qualified gas between the inlet to the Alaska
				mainline and destination.
(b) A
				processing allowance may not be deducted from the value of unprocessed gas,
				residue gas, methane, or condensate in calculating the monthly value of the
				state's royalty share of qualified gas.
(c) If the commissioner establishes a quality
				differential under
				11 AAC 25.140(b)
				that a lessee may elect to take in lieu of a processing allowance, a lessee may
				not take both the quality differential and a processing allowance in
				calculating the monthly value of the state's royalty share of qualified
				gas.
(d) For purposes of
				11 AAC 25.230 -
				11 AAC 25.260, a processing plant
				is an affiliate of a lessee if the lessee and the processing plant are
				affiliated at any time during the royalty reporting period, or were affiliated
				when the contract for processing was executed or an agreement for processing
				was made.
Authority:
AS
					 38.05.020
AS 38.05.180
AS
					 43.90.310
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 25 - Royalty Election Under Alaska Gasline Inducement Act › 11 AAC 25.240 - Processing contracts at arm's length

Current through May 31, 2024
(a) If a lessee or
				its affiliate processes qualified gas under an arm's length contract, the
				processing allowance used to determine the monthly value of that lessee's
				qualified gas must be the actual and reasonable costs incurred and paid by the
				lessee or its affiliate for processing, less any costs not allowed under
				11 AAC 25.060 -
				11 AAC 25.090 or
				11 AAC 25.230 -
				11 AAC 25.260. The lessee shall
				demonstrate that a contract is arm's length.
(b) If the commissioner determines that the
				consideration set out in an arm's length contract exceeds the consideration
				actually transferred either directly or indirectly from the lessee or its
				affiliate to the processor for the processing, the commissioner may require
				that the processing allowance be reduced or redetermined under
				11 AAC 25.250.
(c) If the commissioner determines that the
				consideration paid under an arm's length processing contract exceeds the
				reasonable value of the processing because of misconduct by the contracting
				parties, or because the lessee has by other means breached a duty to the state
				to market the production for the mutual benefit of the lessee and the state,
				the commissioner may require that the processing allowance be reduced or
				redetermined under
				11 AAC 25.250.
(d) An allowance may not be taken for the
				cost of processing a component for which a royalty share is not reserved to the
				state.
Authority:
AS
					 38.05.020
AS 38.05.180
AS
					 43.90.310
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 25 - Royalty Election Under Alaska Gasline Inducement Act › 11 AAC 25.260 - Non-allowable processing costs

Current through May 31, 2024
(a) A lessee may
				not include the following costs in determining an arm's length processing
				allowance under
				11 AAC 25.240 or a non-arm's
				length processing allowance under
				11 AAC 25.250:
(1) a cost not directly related to processing
				of qualified gas;
(2) a cost for
				processing qualified gas downstream of destination;
(3) a cost greater than the consideration
				transferred, either directly or indirectly, from the lessee or its affiliate to
				the processor, regardless of the cost or fee identified in a processing
				contract;
(4) a cost incidental to
				marketing;
(5) a cost for a
				processes that normally take place on or near the lease or unit of production,
				including natural pressure reduction, mechanical separation, heating, cooling,
				dehydration, compression, and other acts undertaken to put gas in marketable
				condition.
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 25 - Royalty Election Under Alaska Gasline Inducement Act › 11 AAC 25.270 - Plant costs for LNG

Current through May 31, 2024
(a) In calculating the monthly value of the
				state's royalty share of qualified gas, a lessee may deduct plant costs for
				liquefaction and regasification using the same rules for the deduction of plant
				costs for processing set out in
				11 AAC 25.060 -
				11 AAC 25.090 and
				11 AAC 25.230 -
				11 AAC 25.260, except as provided
				in this section. LNG plant costs will be allowed only if they are the actual
				and reasonable plant costs incurred and paid by the lessee or its affiliate and
				not refunded to the lessee or its affiliate for liquefaction or regasification
				of qualified gas between the inlet to the Alaska mainline and
				destination.
(b) With respect to
				storage, the prohibition set out in
				11 AAC 25.260(b) (3) applies in the case of LNG only after
				regasification is complete.
(c) For
				purposes of this section, an LNG plant is an affiliate of a lessee if the
				lessee and the LNG plant are affiliated at any time during the royalty
				reporting period, or were affiliated when the contract with the plant was
				executed or an agreement with the plant was made.
(d) In this section, in addition to having
				the meaning given in
				11 AAC 25.900, "processing"
				includes liquefaction and regasification.
Authority:
AS
					 38.05.020
AS 38.05.180
AS
					 43.90.310
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 25 - Royalty Election Under Alaska Gasline Inducement Act › 11 AAC 25.280 - Lease amendment for switching between royalty-in-value and royalty-in-kind gas

Current through May 31, 2024
(a) A qualified person that has elected under
				AS
				43.90.310(b)(2) and
				11 AAC 25.040 to enter into a
				contract with the state to amend the existing lease terms that apply to the
				state's exercise of the state's right to switch between taking the state's
				royalty share of qualified gas in value or in kind must submit a contract
				amendment form provided by the department.
(b) While the Federal Energy Regulatory
				Commission's (FERC) Order on Petition for Waiver, 130 FERC Para. 61,070 (Docket
				no. RP10-145-000, January 28, 2010) is in effect, an amended contract under
				AS
				43.90.310(b)(2) and this
				section will require
(1) the lessee or its
				affiliate to provide, and the state or the state's royalty-in-kind purchaser to
				obtain, firm transportation capacity on the Alaska mainline and, if required
				under (f) of this section, the Canada mainline by temporary release of capacity
				from the lessee or its affiliate to the state or the state's royalty-in-kind
				purchaser when royalty gas that is qualified gas is shipped on the Alaska
				mainline in kind rather than in value;
(2) the state or the state's royalty-in-kind
				purchaser to pay the same transportation rate to the same delivery point that
				the lessee or its affiliate would pay the Alaska mainline and, if required
				under (f) of this section, the Canada mainline for the firm transportation
				capacity released, notwithstanding higher or lower recourse rates, and
				notwithstanding a decision by the state or the state's royalty-in-kind
				purchaser to ship the royalty-in-kind gas to a delivery point other than the
				delivery point for the capacity that is to be released; and
(3) the state to increase the notice period
				for switching between royalty in value and royalty in kind from the period
				specified in the existing lease to
(A) 120
				days if the estimated quantity that is the subject of a notice of switching
				exceeds 100,000 MMBtus per day but is less than 200,000 MMBtus per day;
				and
(B) 180 days if the estimated
				quantity that is the subject of a notice of switching is 200,000 MMBtus per day
				or greater.
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 25 - Royalty Election Under Alaska Gasline Inducement Act › 11 AAC 25.290 - Request to amend lease, unit agreement, or royalty settlement agreement under AS 43.90.310 (b)

Current through May 31, 2024
(a) A qualified
				person that has elected a royalty inducement under
				AS
				43.90.310 and
				11 AAC 25.040 may request, on a
				request form provided by the commissioner, that the commissioner contractually
				amend an existing lease. The request form must be signed by a representative of
				the applicant that is authorized to enter into an agreement to amend the
				lease.
(b) A request to amend a
				lease must be submitted at the same time that the qualified person submits the
				election form for a resource inducement under
				11 AAC 25.040. The commissioner
				will not approve a request to amend a lease until after the commissioner has
				approved the qualified person's election of resource inducement under
				11 AAC 25.040.
(c) An amendment to a lease under
				AS
				43.90.310(b) and this
				chapter affects only the provisions or parts of a provision of the lease that
				are amended and shall not be construed as an amendment to any other provision
				of the lease, unit agreement, or royalty settlement agreement.
Authority:
AS
					 38.05.020
AS 38.05.180
AS
					 43.90.310
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 25 - Royalty Election Under Alaska Gasline Inducement Act › 11 AAC 25.300 - Information and audits

Current through May 31, 2024
(a) The commissioner may require a person
				that has elected under
				AS
				43.90.310(b)(1) and
				11 AAC 25.040 to calculate the
				monthly value of the state's royalty share of qualified gas under the royalty
				value methodology set out in
				11 AAC 25.060 -
				11 AAC 25.270 to submit reports
				and other information to the state, including information relating to value of
				the state's royalty share of gas under this chapter and
(1) the lease terms in effect before the
				lease was amended under
				AS
				43.90.310(a); and
(2) the lessee's royalty obligations for
				non-qualified royalty gas.
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 25 - Royalty Election Under Alaska Gasline Inducement Act › 11 AAC 25.310 - No retroactive effect

Current through May 31, 2024
A retroactive change will not be made to
(1) the designation of a first destination
				market under
				11 AAC 25.100;
(2) the designation of a source of a
				published price under
				11 AAC 25.100 or
				11 AAC 25.110;
(3) the designation of a market center under
				11 AAC 25.110;
(4) the designation of a location
				differential under
				11 AAC 25.130, other than a
				retroactive adjustment to destination value and location differentials under
				11 AAC 25.130(e);
				or
(5) the designation of a quality
				differential under
				11 AAC 25.140.
Authority:
AS
					 38.05.020
AS 38.05.180
AS
					 43.90.310
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 25 - Royalty Election Under Alaska Gasline Inducement Act › 11 AAC 25.320 - Conversion of foreign currency and units of measurement

Current through May 31, 2024
(a) If a dollar
				amount is in Canadian dollars, it must be converted to United States dollars
				based on the
(1) exchange rate from the Bank
				of Canada on the date of the transaction, if the transaction pertains only to
				that date;
(2) relevant month's
				average exchange rate from the Bank of Canada, if the transaction is not one
				described in (1) of this subsection.
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 25 - Royalty Election Under Alaska Gasline Inducement Act › 11 AAC 25.900 - Definitions

Current through May 31, 2024
In this chapter, unless the context requires
				  otherwise,
(1) "actual cost" means the
				full consideration paid;
(2)
				"affiliate" has the meaning given in
				AS
				43.90.900;
(3) "AFUDC" means allowance for funds used
				during construction;
(4) "Alaska
				mainline"
(A) means, with respect to the
				pipeline system licensed under AS 43.90, the section of the pipeline system
				that is within this state, that originates at a point in or near Prudhoe Bay,
				and that terminates at one or more of the following locations:
(i) the Alaska/Yukon border near Beaver
				Creek;
(ii) Valdez; and
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 26 - Alaska Royalty Oil and Gas Development Advisory Board › Article 1 - Administrative Matters › 11 AAC 26.010 - Executive director

Current through May 31, 2024
The board will, in its discretion, hire or appoint an
					 executive director and set the terms of his or her employment by majority vote
					 of the board. The executive director shall perform duties assigned by the
					 board.
Authority:
AS
						38.06.040
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 26 - Alaska Royalty Oil and Gas Development Advisory Board › Article 1 - Administrative Matters › 11 AAC 26.020 - Officers

Current through May 31, 2024
The officers of the board are a chairman and vice-chairman.
					 The chairman shall preside over meetings of the board. The vice-chairman shall
					 assist the chairman and shall assume the chairman's duties when the chairman is
					 absent. The chairman and vice-chairman will be elected annually from among the
					 public members at the first regular meetings after July 1 of each year. They
					 shall serve until the first meeting after July 1 of the following year or until
					 their successors are elected.
Authority:
AS
						38.06.025
AS
						38.06.040
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 26 - Alaska Royalty Oil and Gas Development Advisory Board › Article 1 - Administrative Matters › 11 AAC 26.021 - Substitute attendance

Current through May 31, 2024
Only the commissioners of commerce, community, and economic
					 development, revenue, and natural resources may designate a substitute for
					 attendance for them at the board meetings. Substitutes must be designated, in
					 writing, before each board meeting. Substitutes for the commissioners of
					 commerce, community, and economic development and revenue have full voting
					 power and their presence counts toward a quorum.
As of Register 171 (October 2004), the regulations
						attorney made technical revisions under
						AS
						44.62.125(b)(6) to reflect
						the name change of the Department of Community and Economic Development to the
						Department of Commerce, Community, and Economic Development made by ch. 47, SLA
						2004 and the corresponding title change of the commissioner of community and
						economic development.
Authority:
AS
						38.06.035
AS
						38.06.040
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 26 - Alaska Royalty Oil and Gas Development Advisory Board › Article 1 - Administrative Matters › 11 AAC 26.030 - Public meetings

Current through May 31, 2024
Subject to the exceptions of this chapter and
					 AS
					 44.62.310, the meetings of the board are
					 public. Reasonable public notice will be given for all public meetings of the
					 board. The notice will include the date, time, and place, of the meetings;
					 general topics to be discussed or considered; and the location of any
					 teleconferencing facilities that will be used.
Authority:
AS
						38.06.035
AS 38.06.040
AS
						44.62.310
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 26 - Alaska Royalty Oil and Gas Development Advisory Board › Article 1 - Administrative Matters › 11 AAC 26.040 - Regular meetings

Current through May 31, 2024
The chairman shall set a time for regular meetings. The
					 place of a regular meeting must be set by the chairman at the preceding regular
					 meeting. No separate notice of a regular board meeting need be given to board
					 members. The chairman or his or her designee shall notify absent board members
					 of the place designated for the next regular meeting.
Authority:
AS
						38.06.035
AS 38.06.040
AS
						44.62.310
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 26 - Alaska Royalty Oil and Gas Development Advisory Board › Article 1 - Administrative Matters › 11 AAC 26.050 - Special meetings

Current through May 31, 2024
A special meeting of the board may be called at any time by
					 the chairman or a majority of the voting members of the board. At least 14
					 days' advance notice of a special meeting must be given to members of the board
					 unless the board waives this requirement.
Authority:
AS
						38.06.035
AS 38.06.040
AS
						44.62.310
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 26 - Alaska Royalty Oil and Gas Development Advisory Board › Article 1 - Administrative Matters › 11 AAC 26.051 - Public hearings

Current through May 31, 2024
The board shall hold public hearings on proposed sales,
					 exchanges, or other disposals of royalty oil or gas to determine whether the
					 proposals comply with
					 AS
					 38.06.070. The board shall give at least 14
					 days' notice before all public hearings. At least one board member must be
					 present at all public hearings. All public hearings must be recorded and made
					 part of the public record. Written testimony may be received and entered into
					 the public record at the public hearing.
Authority:
AS
						38.06.035
AS 38.06.040
AS
						38.06.070
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 26 - Alaska Royalty Oil and Gas Development Advisory Board › Article 1 - Administrative Matters › 11 AAC 26.060 - Executive sessions

Current through May 31, 2024
The board may hold meetings, a part of which are executive
					 sessions closed to the public in accordance with
					 AS
					 44.62.310(b) and (c). The
					 board, in its discretion, will hold an executive session if it is necessary for
					 the board to discuss or otherwise reveal information which the board has voted
					 to accept as confidential information under 3 AAC 56.090.
Authority:
AS
						38.06.035
AS 38.06.040
AS 38.06.060
AS
						44.62.310
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 26 - Alaska Royalty Oil and Gas Development Advisory Board › Article 1 - Administrative Matters › 11 AAC 26.070 - Conference calls

Current through May 31, 2024
The board will, in its discretion, meet and carry out the
					 business of the board through the use of a telephone conference call.
					 Attendance and participation at meetings by members of the public or members of
					 the board may be by teleconferencing. Agency materials that will be considered
					 at the meeting will be made available at the teleconference
					 locations.
Authority:
AS
						38.06.035
AS 38.06.040
AS
						44.62.310
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 26 - Alaska Royalty Oil and Gas Development Advisory Board › Article 1 - Administrative Matters › 11 AAC 26.080 - Documents available to public

Current through May 31, 2024
The votes of board members will be recorded and made
					 available to the public. Minutes compiled by the board at open sessions of
					 meetings of the board which are used by the board as an official record of what
					 transpired during those sessions are public records and are open to reasonable
					 inspection by the public and are reasonably available for
					 copying.
Authority:
AS
						38.06.010
AS 38.06.035
AS 38.06.040
AS 40.25.110
AS
						40.25.120
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 26 - Alaska Royalty Oil and Gas Development Advisory Board › Article 1 - Administrative Matters › 11 AAC 26.100 - Official communications with the board

Current through May 31, 2024
All official communication with the board must be in
					 writing and addressed to the chairman, c/o the Alaska Department of Natural
					 Resources, Division of Oil and Gas, P.O. Box 7034, Anchorage, Alaska
					 99510-7034, unless otherwise directed by the board.
Authority:
AS
						38.06.040
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 26 - Alaska Royalty Oil and Gas Development Advisory Board › Article 1 - Administrative Matters › 11 AAC 26.110 - Ex parte discussions with prospective purchasers

Current through May 31, 2024
No member of the board other than the commissioner of
					 natural resources may engage in substantive ex parte discussions with a
					 prospective purchaser of royalty oil or gas.
Authority:
AS
						38.06.040
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 26 - Alaska Royalty Oil and Gas Development Advisory Board › Article 1 - Administrative Matters › 11 AAC 26.120 - Board actions

Current through May 31, 2024
The votes by the board shall be recorded and made part of
					 the public record. A vote shall be taken regarding
(1) receipt of confidential
				  information;
(2) approval of the
				  royalty oil and gas development plan;
(3) resolutions pertaining to recommendations
				  and directions to the commissioner of natural resources;
(4) resolutions pertaining to recommendations
				  relating to proposed sale, exchange, encumbrance, or other disposition of
				  royalty oil and gas;
(5) calling of
				  public hearing.
Authority:
AS
						38.06.010
AS 38.06.035
AS 38.06.040
AS 38.06.050
AS
						38.06.070
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 26 - Alaska Royalty Oil and Gas Development Advisory Board › Article 2 - Duties of the Board › 11 AAC 26.200 - Development plans for royalty oil and gas

Current through May 31, 2024
(a) The board will,
				  in accordance with the criteria set out in
				  AS
				  38.06.070, develop a plan for the wise
				  development of the state's oil and gas royalty interests which is consistent
				  with growth of the private sector of the economy, environmental standards
				  required by law, and public fiscal stability.
(b) The plan shall be prepared and submitted
				  to the governor, Department of Natural Resources, Department of Commerce,
				  Community, and Economic Development, and the legislature annually. The board
				  shall solicit comments from these agencies and include the comments received in
				  the plan.
(c) The plan shall
				  include a statement of state policy relating to disposals, royalty board policy
				  guidelines, recommended contract terms and conditions, recommended procedures
				  for sale of royalty oil and gas which includes
(1) qualifications of purchasers;
(2) procedures for competitive
				  bidding;
(3) procedures for sales
				  by negotiated contract; and
(4)
				  procedures for solicitations of bids or applications.
The plan shall include specific goals and objectives and
					 appropriate strategies for accomplishment. There will be a short-term (five
					 years) and a long-term plan (10 years).
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 26 - Alaska Royalty Oil and Gas Development Advisory Board › Article 2 - Duties of the Board › 11 AAC 26.210 - Recommendations and directions to commissioner of natural resources

Current through May 31, 2024
(a)
				  The board shall obtain updated lists from the Department of Natural Resources
				  of royalty oil and gas that is available for disposal. The board will, in its
				  discretion, recommend to the commissioner of natural resources the conditions
				  relating to the sale, delivery, transportation, refining or processing of oil
				  or gas which he may include in the offer and sale of oil or gas obtained by the
				  state as royalty under
				  AS
				  38.05.182.
(b) Recommendations and directions to the
				  commissioner of natural resources from the board will be made by
				  resolution.
(c) Recommendations for
				  each sale may include price guidelines, quantity to be sold, instate use
				  requirements, term of sale, and preferential purchasers.
(d) Recommendations for each sale may include
				  procedures for solicitations of bids and applications, qualifications of
				  purchasers, competitive bidding, and contract negotiations.
Authority:
AS
						38.06.040
AS 38.06.050
AS 38.06.055
AS
						38.06.070
Alaska Administrative Code › Title 11 - Natural Resources › Part 3 - Oil and Gas › Chapter 26 - Alaska Royalty Oil and Gas Development Advisory Board › Article 2 - Duties of the Board › 11 AAC 26.220 - Review and recommendations of proposed sales

Current through May 31, 2024
(a) If legislative
				  approval is required in accordance with
				  AS
				  38.06.055(a), proposed
				  contracts or agreements must be received by the board at least 14 days before
				  execution by the commissioner of natural resources and submission to the
				  legislature.
(b) In accordance with
				  AS
				  38.06.050(a), "prior review"
				  means that the majority of the board members in attendance at a meeting of at
				  least a quorum voted on the action proposed by the commissioner of natural
				  resources and the final tally of votes of members of the board for and against
				  the proposed action is recorded at the end of a document signed by the chairman
				  setting out the recommendations to the legislature by the board.
(c) In accordance with
				  AS
				  38.06.050(b), the notice of
				  rejection of any bid or application must include any proposals received and
				  correspondence from the rejected bidders.
(d) In accordance with
				  AS
				  38.06.050(c), a written
				  notice of waiver of competitive bidding must be received by the board. The
				  board will, in its discretion, provide the commissioner of natural resources
				  with its written comments and recommendations relating to the waiver.
(e) Repealed 5/11/86.
(f) The board will, after the receipt of
				  sales contracts or agreements relating to proposed sales, exchanges, or other
				  disposals of royalty oil and gas, recommend to the legislature that the sale be
				  approved or disapproved. The report may include the recommendations and
				  analysis of the majority of the board, a minority report if necessary, a legal
				  report, a record of the public hearing, and a technical or staff
				  report.
Authority:
AS
						38.06.040
AS 38.06.050
AS 38.06.055
AS
						38.06.070