11 AAC 85.260. Limitation on overriding royalties

(a) No overriding royalty, net profit interest or other right to payment out of production or revenues from a lease may be created which exceeds the rate of royalty first payable to the state under the lease unless the lessee shows to the satisfaction of the commissioner that the royalty is justified by substantial improvements made or to be made to the leasehold.

(b) The term "payment out of production" as used in this section is defined as a share of the coal produced from the lease, free of the costs of production.

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

The Alaska Administrative Code was automatically converted to HTML from a plain text format. Every effort has been made to ensure its accuracy, but neither Touch N' Go Systems nor the Law Offices of James B. Gottstein can be held responsible for any possible errors. This version of the Alaska Administrative Code is current through June, 2006.

If it is critical that the precise terms of the Alaska Administrative Code be known, it is recommended that more formal sources be consulted. Recent editions of the Alaska Administrative Journal may be obtained from the Alaska Lieutenant Governor's Office on the world wide web. If any errors are found, please e-mail Touch N' Go systems at E-mail. We hope you find this information useful. Copyright 2006. Touch N' Go Systems, Inc. All Rights Reserved.