11 AAC 84.910. Severance

(a) Except as otherwise provided in this section and in 11 AAC 84.880, where only a portion of a lease is committed to a unit agreement approved or prescribed by the commissioner, that commitment constitutes a severance of the lease as to the unitized and nonunitized portions of the lease. The portion of the lease not committed to the unit will be treated as a separate and distinct lease having the same effective date and term of the original lease and may be maintained after that only in accordance with the terms and conditions of the original lease, statutes, and regulations. Any portion of the lease not committed to the unit agreement will not be affected by the unitization or pooling of any other portion of the lease by operations in the unit, or by suspension approved or ordered by the commissioner for the unit under 11 AAC 84.855(b) .

(b) The commissioner will, in his discretion, grant up to a two-year extension of the lease term for that portion of a lease not committed to the unit agreement under this section.

(c) A lease having a well certified as capable of production of geothermal resources in paying quantities before commitment to the unit agreement will not be severed.

History: Eff. 5/8/83, Register 86

Authority: AS 38.05.020

AS 38.05.145

AS 38.05.181

AS 41.06.020

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