11 AAC 84.950. Definitions

Unless the context clearly requires a different meaning, in 11 AAC 84.810 - 11 AAC 84.950 and in the applicable unit agreements,

(1) "conservation of the natural resources of all or part of a geothermal system" means maximizing the efficient recovery of geothermal resources and minimizing the adverse impacts on surface and other resources;

(2) "commissioner" means the commissioner of the state Department of Natural Resources or his designee;

(3) "force majeure" means war, riots, acts of God, unusually severe weather, or any other cause beyond the unit operator's reasonable ability to foresee or control, and includes operational failure of existing transportation facilities and delays caused by judicial decisions or lack of them;

(4) "paying quantities" means quantities sufficient to yield a return in excess of operating costs, even if drilling and equipment costs may never be repaid and the undertaking considered as a whole may ultimately result in a loss; quantities are insufficient to yield a return in excess of operating costs unless those quantities, not considering the costs of transportation and marketing, will produce sufficient revenue to induce a prudent operator to produce those quantities;

(5) "unit" means a group of leases covering all or part of one or more geothermal systems subject to a unit agreement; and

(6) "unit agreement" means the agreement executed by the working interest owners and royalty owners creating the unit.

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

Authority: AS 38.05.020

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