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(a) Every oil and gas lease or exploration license must reserve to Alaska the right to dispose of to others the surface of the leased land subject to the lease or the licensed land subject to the license, and the right to authorize others by grant, lease, or permit, subject to the lease or oil and gas exploration license and under such conditions as will prevent unnecessary or unreasonable interference with the rights and operations under the lease or oil and gas exploration license, to enter upon and use the leased or licensed land
(1) to explore for oil or gas by geological or geophysical means including the drilling of shallow core holes or stratigraphic tests to a depth of not more than 1,000 feet;
(2) to explore for, develop, and remove natural resources other than oil, gas, and associated substances on or from the leased or licensed land;
(3) for non-exclusive easements and rights-of-way for any lawful purpose, including shafts and tunnels necessary or appropriate for working of the leased or licensed land or other land for natural resources other than oil, gas, or associated substances;
(4) for well sites and well bores of wells drilled from or through the leased or licensed land to explore for or produce oil, gas, and associated substances in and from other land; and
(5) for any other purpose now or after September 4, 1974 authorized by law and not inconsistent with the rights under the lease or oil and gas exploration license.
(b) The subsurface storage of oil or gas is not authorized except as a necessary incident to recycling, pressure maintenance, repressuring, or other similar operations designed to increase the ultimate recovery of oil or gas or prevent the waste of oil or gas produced from the leased or licensed land or from any unit area of which the leased land is a part. Every lease or oil and gas exploration license must reserve to Alaska the right to authorize the subsurface storage of oil, gas, or associated hydrocarbons in the leased land by the lessee or by others in order to avoid waste or to promote conservation of natural resources in accordance with 11 AAC 83.500 - 11 AAC 83.520, and upon conditions that will prevent unnecessary or unreasonable interference with the rights and operations under the lease or oil and gas exploration license, including conditions prohibiting the storage of oil or gas in any reservoir capable of producing oil and gas in paying quantities without the consent of the holder of any lease or oil and gas exploration license covering the reservoir.
History: Eff. 9/5/74, Register 51; am 7/22/79, Register 71; am 9/22/95, Register 135
Authority: AS 38.05.020
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Last modified 7/05/2006