11 AAC 83.393. Approval of federal and private party units

(a) If the State of Alaska selects or otherwise acquires any federal land which, at the effective date of selection or acquisition, is subject to a federal oil and gas lease which is committed to a unit agreement that has been approved in accordance with federal laws and regulations, the unit agreement will be considered to have been approved by the commissioner for all the purposes of AS 38.05 and 11 AAC 83.301 - AAC 83.395.

(b) The commissioner will, in his discretion, enter into agreements with the federal government to provide for unitization of state and federal oil and gas leases overlying a common reservoir. If the agreement permits or requires the commissioner to take any action or enter into any unit agreement which is contrary to or inconsistent with 11 AAC 83.301 - 11 AAC 83.395, the commissioner will, in his discretion, do so after making a written finding that his action or the unit agreement is necessary or advisable to protect the public interest, and will, in all cases, comply with the requirements of 11 AAC 83.303 and 11 AAC 83.311.

(c) Any person owning an interest in a state oil and gas lease who has been asked to join a unit in which all state leases proposed to be committed to the unit constitute not more than 10 percent of the surface acreage of the unit or not more than five percent of the initial participation in the unit may request approval of the commissioner to join the unit as a working interest owner and may also request that the commissioner join the unit as a royalty owner. The commissioner will, in his discretion, approve and join the unit agreement as a royalty owner if, after giving public notice in accordance with 11 AAC 83.311, he makes written finding that the proposed unit is necessary or advisable to protect the public interest considering the criteria in 11 AAC 83.303. A unit agreement entered into under this section need not comply with the requirements of this chapter.

History: Eff. 9/5/74, Register 51; am 7/22/79, Register 71; am 6/28/81, Register 78

Authority: AS 38.05.020

AS 38.05.145

AS 38.05.180

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