11 AAC 89.020. Grant of maximum credit

(a) The commissioner will, in the commissioner's discretion, grant, in writing, a credit under this chapter, if

(1) the application meets the requirements of this chapter and AS 41.09;

(2) the proposed activity is for an exploratory well, a stratigraphic test well, or geophysical work;

(3) the land is not subject to credit under AS 38.05.180 (i); and

(4) drilling or geophysical work on the land commences only after the commissioner grants the credit under this chapter.

(b) The commissioner will calculate the maximum amount of the credit under this chapter to be granted to the applicant and the credit

(1) must be at least 10 percent of eligible costs approved by the commissioner as necessary for the project;

(2) is subject to the limitations specified in AS 41.09.010 (e) and (f); and

(3) must be stated as a percentage expressed in dollars per foot drilled or per mile of data gathered.

(c) The maximum amount of the credit determined under (c) of this section may vary for each application, but must be predetermined in advance of the applicant commencing drilling or geophysical work on the land. The commissioner will notify the applicant in writing of the decision on the application and the maximum amount of the credit, if any.

(d) The commissioner will, in the commissioner's discretion, condition the approval of the maximum credit granted under this section on the applicant's submitting an amended plan to meet objections raised by the department and obtaining approval for the amended plan.

(e) Within 30 days after receipt of the notice of a grant of credit under this chapter, the applicant must notify the commissioner, in writing, of its acceptance or rejection of the credit. The deputy commissioner will consider the failure to timely respond in writing as the applicant's rejection of the credit. If the applicant accepts the credit, the applicant shall timely comply with AS 41.09.010 (c)(3) and the requirements of this chapter and AS 41.09.

History: Eff. 9/22/95, Register 135

Authority: AS 41.09.010

AS 41.09.020

AS 41.09.090

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