11 AAC 83.1030. Discovery well certification

(a) Within 10 days after receipt of a complete application for discovery well certification, the commissioner will publish notice of the application in a newspaper of general statewide circulation and the division's world wide web page on the Internet. The notice must state that any interested party who objects to the application shall submit written comments to the commissioner within 30 days of the date of the notice. If an interested party objects to the application, the commissioner will, in the commissioner's discretion, conduct an adjudicative hearing on the application, at which time the commissioner will take testimony from the lessee and any interested party. At least 15 days in advance of the hearing, the commissioner will publish a notice of the hearing in a newspaper of general statewide circulation and the division's world wide web page on the Internet, and notify the lessee and any interested party by certified letter. Within 120 days after the hearing or after the notice of the completed application, if there is no hearing, the commissioner will either deny or grant the application for a discovery well certification.

(b) If the application for discovery well certification is granted, the commissioner will certify:

(1) the lessee discovered a previously undiscovered pool and shall pay a royalty of five percent on all production from that pool, allocated to the discovery lease under an allocation schedule approved by the commissioner, for the 10 years from the date of discovery, and thereafter shall pay a royalty as provided in the discovery lease;

(2) the lessee has established that the pool has a well capable of producing in paying quantities;

(3) another lessee is not eligible for a discovery well certification of that pool;

(4) the lessee shall pay royalty on any other pool under or within the boundaries of the discovery lease as provided in the discovery lease;

(5) the lessee is not entitled to another discovery well certification on the discovery lease; and

(6) the time and date of discovery.

(c) The discovery well certification will be effective as of the date the commissioner determines that the application for discovery well certification submitted under 11 AAC 83.1020 was complete.

History: Eff. 2/21/98, Register 145

Authority: AS 38.05.020

AS 38.05.134

AS 38.05.135

AS 38.05.145

AS 38.05.180 (f)

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