Alaska2026Passed Legislature

HB15

Oil and Gas Royalty Rate Changes for Alaska

Last scannedSep 10, 2026, 12:32 AM

In one sentence

This law sets specific royalty rates that oil and gas companies must pay to the state of Alaska based on where production occurs, whether it is new or existing, and if natural gas is liquefied for public utilities.

Sets a 3% royalty rate on qualified new natural gas produced from leases south of 68 degrees North latitude between July 1, 2025, and January 1, 2036.
Sets a 6.25% royalty rate on qualified new oil produced in the same southern area during that time period.
Limits these lower rates to end after 10 years or when production is shipped out of state, whichever happens first.
Creates a 1% royalty rate for gas from leases north of 68 degrees North latitude if it is liquefied and sold to public utilities at discounted prices.
Removes older sections of law that set different rules for these specific oil and gas payments.

Companies holding leases south of 68 degrees North latitude producing new oil or gas as defined by the commissioner.
Companies holding leases north of 68 degrees North latitude who liquefy natural gas for public utilities.
The Alaska Department of Natural Resources commissioner, who decides if production qualifies as 'new'.
Publicly owned utilities and regulated utilities that buy discounted gas.

The law takes effect immediately upon passage, but the specific calendar date of enactment depends on when it was signed.
Whether production qualifies as 'new' depends entirely on the commissioner's determination based on past sales or well existence.

Plain language

Royalty rate: The percentage of oil or gas value a company must pay to the state for using public land.
Qualified new gas or oil: Resources from fields that have not produced commercially since before January 1, 2025; fields with no production in the last six months (gas) or one year (oil); or wells built after January 1, 2026.
Liquefied natural gas: Natural gas that is cooled into a liquid form for storage and transport.

Official record

Validated

OIL/GAS ROYALTY RATES An Act relating to royalty rates and payments for certain oil and gas; and providing for an effective date.

Official activity