- Alaska Statutes.
- Title 38. Public Land
- Chapter 5. Alaska Land Act
- Section 177. Nonconventional Gas Leases.
previous: Section 175
next: Section 180
. Oil and Gas and Gas Only Leasing.
AS 38.05.177. Nonconventional Gas Leases.
- (a) The provisions of this section apply to nonconventional gas.
- (b) [Repealed, Sec. 58 ch 49 SLA 2004].
- (c) [Repealed, Sec. 58 ch 49 SLA 2004].
- (d) A lease
- (1) shall be automatically extended if and for so long thereafter as gas is produced in paying quantities from the lease
and the lessee continues to meet all requirements of the lease; a lease issued under this section covering land on
which there is a well capable of producing gas in paying quantities does not expire because the lessee fails to produce
gas unless the lessee is allowed reasonable time to place the well on a producing status; if drilling has commenced on
the expiration date of the primary term of the lease and is continued with reasonable diligence, including such
operations as redrilling, sidetracking, or other means necessary to reach the originally proposed bottom hole location,
the lease is extended for one year and for so long thereafter as gas is produced in paying quantities; a gas lease
issued under this section that is subject to termination by reason of cessation of production does not terminate if,
within 90 days after production ceases or a longer period determined at the discretion of the director, reworking or
drilling operations are commenced on the land under lease and are thereafter conducted with reasonable diligence during
the period of nonproduction; on application by the lessee, the director may extend the lease issued under this section
for a period of not more than 10 years if the gas produced from the lease is to be used by the lessee solely for its
- (2) issued under former (c) of this section before January 1, 2004, may be extended at the discretion of the director; a
lease may be extended under this paragraph upon application by the lessee; the director may once extend the lease for a
period of not more than three years; in exercising discretion to extend a lease under this paragraph, the director may
not extend the lease unless the director considers
- (A) the extent of the shallow natural gas exploration activity already conducted on the lease and on adjacent areas;
- (B) the probability that further shallow natural gas exploration activity will occur on the lease and will lead to shallow
natural gas development and production; and
- (C) whether extension of the lease's primary term will accelerate the eventual production of shallow natural gas from the
- (e) [Repealed, Sec. 58 ch 49 SLA 2004].
- (f) [Repealed, Sec. 58 ch 49 SLA 2004].
- (g) [Repealed, Sec. 58 ch 49 SLA 2004].
- (h) [Repealed, Sec. 58 ch 49 SLA 2004].
- (i) [Repealed, Sec. 58 ch 49 SLA 2004].
- (j) [Repealed, Sec. 58 ch 49 SLA 2004].
- (k) [Repealed, Sec. 58 ch 49 SLA 2004].
- (l) A lessee holding a lease modified under AS 38.05.180(n)(2)(A) may exercise the rights authorized by
this section and the lease. The rights granted by the lease must be exercised in a manner that does not unreasonably
interfere with eventual development of other mineral deposits on the land leased. However, in a lease entered into
under AS 38.05.150
for land that is already subject to a lease covered under this section, coal may not be mined or extracted by the coal
lessee from the coal lease without prior agreement with the lessee holding the lease covered under this section.
- (m) [Repealed, Sec. 58 ch 49 SLA 2004].
- (n) [Repealed, Sec. 58 ch 49 SLA 2004].
- (o) [Repealed, Sec. 58 ch 49 SLA 2004].
All content © 2008 by Touch
N' Go/Bright Solutions, Inc.
Note to HTML Version:
This version of the Alaska Statutes is current through December, 2007. The Alaska Statutes were automatically converted to HTML from a plain text format. Every effort has been made to ensure their accuracy, but this can not be guaranteed. If it is critical that the precise terms of the Alaska Statutes be known, it is recommended that more formal sources be consulted. For statutes adopted after the effective date of these statutes, see, Alaska State Legislature
If any errors are found, please e-mail Touch N' Go systems at E-mail. We
hope you find this information useful.