This bill amends Alaska's existing laws regarding royalty rates and payments for oil and gas production. It introduces new subsections to AS 38.05.180, establishing specific royalty rates for leases issued for land south of 68 degrees North latitude, where commercial production of oil or gas begins between July 1, 2025, and January 1, 2036. The lessee will pay a royalty of three percent for qualified new gas and 6.25 percent for qualified new oil, with these rates applicable for a period of ten years or until a commercial quantity of oil or gas is shipped out of the state. Definitions for "qualified new gas" and "qualified new oil" are also provided, detailing the conditions under which these classifications apply.

Additionally, the bill sets a one percent royalty rate for gas produced from leases north of 68 degrees North latitude that is liquefied or used in the liquefaction process, contingent upon the lessee selling the gas to a publicly owned utility or a regulated utility at a discounted rate. This royalty rate will also apply for a period of ten years or until a commercial quantity of liquefied natural gas is shipped out of the state. The bill repeals certain existing provisions and establishes a sunset clause for the new subsections, which will be repealed on January 1, 2046. The Act is set to take effect immediately.

Statutes affected:
HB0015A, AM HB 15, introduced 01/10/2025: 38.05.180