Bill > HB15

This bill modifies oil and gas royalty rates in Alaska for new production, offering reduced rates to incentivize resource development. Specifically, for leases south of 68 degrees North latitude with commercial production between July 1, 2025, and January 1, 2036, the bill establishes a 3% royalty rate for "qualified new gas" and a 6.25% royalty rate for "qualified new oil". Qualified new gas and oil are defined as production from fields or wells that have not recently produced commercially, either never before or after a specific period of inactivity. For gas produced north of 68 degrees North latitude that is liquefied, the bill introduces a special 1% royalty rate if the gas is sold to a public or regulated utility at a discounted rate. These reduced royalty rates will apply either for a set number of years after first commercial production or until the first shipment of oil or liquefied natural gas out of the state. The bill also repeals some existing royalty-related statutes and includes a provision that these new royalty rates will themselves be repealed on January 1, 2046, effectively making them a time-limited incentive for new oil and gas development in Alaska.

Agriculture and Natural Resources

https://www.akleg.gov/basis/Bill/Detail/34?Root=HB15