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(a) Except as provided in (b) of this section, a unit plan of operations for all or part of the unit area must be approved by the commissioner before any operations may be undertaken on the unit area if
(1) the state owns all or part of the surface estate of the unit area;
(2) the unit includes a lease that reserves a net profit share to the state; or
(3) the state owns all or part of the mineral estate, but the entire surface estate of the unit area is owned by a party other than the state, and a surface owner requests that a unit plan of operations be required by the commissioner for the portion of the unit area owned by that surface owner.
(b) A unit plan of operations will not be required by the commissioner for activities that would not require a land use permit under this title.
(c) Before undertaking operations on the unit area, the unit operator shall provide for full payment of all damages sustained by the owner of the surface estate as well as by the surface owner's lessees and permittees, by reason of entering the land. If the surface estate is owned by a party other than the state, the unit operator shall also notify the surface owner of his opportunity to request that the commissioner require a plan of operations before allowing operations to be undertaken on the portion of the unit area owned by the requesting surface owner.
(d) An application for approval of a plan of operations must contain sufficient information, based on data reasonably available at the time the plan is submitted for approval, for the commissioner to determine the surface use requirements and impacts directly associated with the proposed operations. An application must include statements, and maps or drawings, setting out the following:
(1) the sequence and schedule of the operations to be conducted in the unit area, including the date operations are proposed to begin and their proposed duration;
(2) projected use requirements directly associated with the proposed operations, including but not limited to the location and design of well sites, material sites, water supplies, solid waste sites, buildings, roads, utilities, airstrips, and all other facilities and equipment necessary to conduct the proposed operations;
(3) plans for rehabilitation of the affected unit area after completion of operations or phases of those operations; and
(4) a description of operating procedures designed to prevent or minimize adverse effects on other natural resources and other uses of the unit area and adjacent areas, including fish and wildlife habitats, historic and archeological sites, and public use areas.
(e) In approving a unit plan of operations or an amendment of a plan, the commissioner will require amendments he determines necessary to protect the state's interest. The commissioner will not require any amendment that would be inconsistent with the terms of sale under which the lease was obtained, or with the terms of the lease itself, or which would deprive the lessee of reasonable use of the leasehold interest.
(f) The unit operator may, with approval of the commissioner, amend an approved plan of operations.
(g) Upon completion of operations, the unit operator shall inspect the area of operations and submit a report indicating the completion date of operations and stating any known noncompliance of which the unit operator knows, or should reasonably know, with requirements imposed as a condition of approval of the plan.
History: Eff. 5/8/83, Register 86
Authority: AS 38.05.020
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Last modified 7/05/2006