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- Alaska Statutes.
- Title 43. Revenue and Taxation
- Chapter 82. Alaska Stranded Gas Development Act
- Section 220. Contract Terms Relating to Royalty.
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Section 230. Contract Terms Relating to Hiring of Alaska Residents and Contracting With Alaska Businesses.
AS 43.82.220. Contract Terms Relating to Royalty.
- (a) Notwithstanding any contrary provisions of AS 38, the commissioner of
natural resources, with the concurrence of the commissioner of revenue and the affected parties holding a state lease
or unit agreement, may develop proposed terms for inclusion in a contract under AS 43.82.020
that modify the timing and notice provisions of the applicable oil and gas leases and unit agreements pertaining to
the state's rights to receive its royalty on gas in kind or in value if
- (1) the viability of the approved qualified project depends on long-term gas purchase and sale agreements;
- (2) certainty over time regarding the quantity of royalty gas that the state may be taking in kind is needed to secure the
long-term purchase and sale agreements;
- (3) the specified period of the state's commitment to take its royalty share in value or in kind does not exceed the term
of the purchase and sale agreements; and
- (4) the modification does not impair the ability of the approved qualified project or the state to meet the reasonably
foreseeable demand in this state for gas within economic proximity of the project during the term of the contract
developed under AS 43.82.020
.
- (b) Notwithstanding any contrary provisions of AS 38, the commissioner of
natural resources, with the concurrence of the commissioner of revenue and the affected parties holding a state lease
or unit agreement, may develop proposed terms for inclusion in a contract under AS 43.82.020
that establish a valuation method for the state's royalty share of the gas production from an approved qualified
project.
- (c) The commissioner of revenue shall include any proposed terms relating to royalty developed in accordance with this
section in the proposed contract under AS 43.82.400
.
- (d) Nothing in this chapter permits modification of the state's rights that relate to timing, notice, and rights to
receive oil royalty in kind or in value under oil and gas leases or unit agreements.
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