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HB0015a -1- HB 15
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HOUSE BILL NO. 15
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - FIRST SESSION
BY REPRESENTATIVES RAUSCHER, Costello, Prax
Introduced: 1/22/25
Referred: Resources, Finance
A BILL
FOR AN ACT ENTITLED
"An Act relating to royalty rates and payments for certain oil and gas; and providing 1
for an effective date." 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
* Section 1. AS 38.05.180 is amended by adding new subsections to read: 4
(mm) Notwithstanding and in lieu of a requirement in the leasi ng method 5
chosen of a minimum fixed royalty share or the royalty provisio n of a lease, for leases 6
issued for land south of 68 degr ees North latitude from which c ommercial production 7
of oil or gas begins after July 1, 2025, and before January 1, 2036, the lessee shall pay 8
a royalty of three percent for qualified new gas and 6.25 perce nt for qualified new oil, 9
unless payment is lower under another subsection of this section. A royalty rate in this 10
subsection applies until the earlier of 11
(1) 10 years following the commencement of commercial producti on; 12
or 13
(2) the date on which a commercial quantity of oil or gas prod uced by 14
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HB 15 -2- HB0015a
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the lessee from land south of 68 degrees North latitude is shipped out of the state. 1
(nn) In (mm) of this section, 2
(1) "qualified new gas" means gas produced from 3
(A) a field or pool that the commissioner determines has not 4
previously produced gas for commercial sale before January 1, 2025; 5
(B) a field or pool that the co mmissioner determines has not 6
produced gas during the preceding six months but that has previously produced 7
gas; or 8
(C) a well that did not exist on January 1, 2026, if the 9
commissioner determines that pr oduction of that gas from the fi eld or pool 10
from an existing well was not feasible; 11
(2) "qualified new oil" means oil produced from 12
(A) a field or pool that the commissioner determines has not 13
previously produced oil for commercial sale before January 1, 2025; 14
(B) a field or pool that the co mmissioner determines has not 15
produced oil during the preceding one year but that has previou sly produced 16
oil; or 17
(C) a well that did not exist on January 1, 2026, if the 18
commissioner determines that production of that oil from the field or pool from 19
an existing well was not feasible. 20
(oo) Notwithstanding and in lieu of a requirement in the leasi ng method 21
chosen of a minimum fixed royalty share, or the royalty provisi o n o f a l e a s e o r a n 22
existing royalty settlement agreement, for gas that is produced from leases that include 23
land north of 68 degrees North latitude and that is later lique fied or used in the 24
liquefaction or transportation process, the lessee shall pay a royalty rate of one percent 25
if the lessee agrees to sell the gas to a publicly owned utilit y or a utility regulated 26
under AS 42.05 at a rate that refl ects the discounted royalty r ate provided under this 27
subsection. The royalty rate under this subsection applies until the earlier of either 28
(1) 10 years following the first commercial use of liquefied n atural gas 29
receiving the royalty rate under this subsection; or 30
(2) the date on which a commercial quantity of liquefied natur al gas 31
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HB0015a -3- HB 15
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produced from the lease receiving the royalty rate under this s ubsection is shipped out 1
of the state. 2
* Sec. 2. AS 31.05.030(i); AS 38.05.180(f)(5), and 38.05.180(dd) are repealed. 3
* Sec. 3. AS 38.05.180(mm) and 38.05.180(nn) are repealed January 1, 2046. 4
* Sec. 4. This Act takes effect immediately under AS 01.10.070(c). 5