Section 31.05.032. Certification of gas storage capacity.

   (a) An owner of a gas storage facility that seeks an exemption under AS 38.05.180(u) or a credit under AS 43.20.046 shall apply to the commission for certification of the facility's working gas storage capacity and certification of the facility's gas withdrawal capability. The application shall be on a form prescribed by the commission.
   (b) Within six months after receiving an application under (a) of this section, the commission shall determine and certify
        (1) the working gas storage capacity of the facility on the date the facility commences commercial operation rounded to the nearest 500,000,000 cubic feet;
        (2) whether the gas storage facility is capable of withdrawing a minimum of 10,000,000 cubic feet of gas a day; and
        (3) that the facility qualifies as a gas storage facility for the purposes of this section.
   (c) The commission shall provide a copy of the certifications required by (b) of this section to the owner of the gas storage facility that requested the certification, the commissioner of natural resources, and the commissioner of revenue.
   (d) If a gas storage facility ceases commercial operation, an owner of the gas storage facility shall give written notice to the commission that commercial operation has ceased. The notice must be filed with the commission before April 1 of the year immediately following the year in which the gas storage facility ceases commercial operation.
   (e) In this section,
        (1) "ceases commercial operation" means that the gas storage facility fails to inject or withdraw more than 100,000,000 cubic feet of gas during a calendar year following the year in which a gas storage facility commences commercial operation;
        (2) "commences commercial operation" means the first injection of non-native gas into a gas storage facility for purposes other than testing;
        (3) "cushion gas" means native and non-native gas in a gas storage facility that is needed to pressurize the facility and that allows the facility to function;
        (4) "gas storage facility" means a tank or a depleted or nearly depleted reservoir or pool in the state that is available for the storage of gas;
        (5) "native gas" means gas in a gas storage facility that was not injected;
        (6) "non-native gas" means gas that is produced elsewhere and injected into a gas storage facility;
        (7) "pool" has the meaning given in AS 31.05.170;
        (8) "working gas storage capacity" means the maximum volume of non-native gas a gas storage facility may safely contain without creating or causing waste; the maximum volume of non-native gas does not include the volume of cushion gas present or the volume required for proper functioning of the gas storage facility at the working gas storage capacity certified under (b) of this section.

Authorities

38.05.035;38.05.096;38.05.180;42.05.381;43.20.046;43.55.020

Notes

References

AS 38.05.035 Powers and duties of the director.
AS 38.05.096 Exemption from rental payments on land leased for certain liquefied natural gas storage facilities.
AS 38.05.180 Oil and gas and gas only leasing.
AS 42.05.381 Rates to be just and reasonable.
AS 43.20.046 Gas storage facility tax credit.
AS 43.55.020 Payment of tax.

History

(Sec. 2 ch 16 SLA 2010)