11 AAC 85.255. Transfer of interest

(a) Before the commissioner approves an assignment, sublease or other transfer of an interest in a permit or lease, including assignments of working or royalty interest and operating agreements and subleases

(1) the account of any royalties, net profit share payments, and rentals due under the lease must be in good standing;

(2) the transferee shall submit a statement of qualifications under 11 AAC 82.205 and a statement of conformity to acreage limitations under 11 AAC 85.210; and

(3) the transferee shall submit an affidavit stating who is responsible for performing all obligations under the permit or lease.

(b) Before any approval under (a) of this section, the consent of the surety to the substitution of the transferee as principal, or a new bond with the transferee as principal, must be submitted in writing to the commissioner if the original lease required the maintenance of a bond. If the transfer is for part of the leased land only, the consent of the surety to the transfer and its agreement to remain bound as to the interest retained by the lessee must be submitted, as well as a new bond with the transferee as principal covering the portion of the leased lands assigned or subleased.

(c) The assignor is liable for all obligations and liabilities accrued before the effective date of the assignment, and the assignee is liable for all obligations and liabilities accrued after the effective date of the assignment. In the case of a sublease or a transfer of an interest other than an assignment, the lessee or permittee continues to remain liable for all obligations under the lease or permit. The commissioner will take any legal action necessary to secure compliance with the terms and conditions of a lease or permit. Action may be taken against either the lessee or permittee or any of their successors or against both the lessee and permittee and their successors.

(d) The approval of an assignment of only a part of the lands in a lease creates a new lease bearing a new serial number and containing the same terms and conditions as the original lease.

History: Eff. 9/5/74, Register 51; am 6/18/82, Register 82

Authority: AS 38.05.020

AS 38.05.145

AS 38.05.150

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