Section 38.35.110. Term of lease; continuation.

   (a) Each lease of state land for pipeline right-of-way purposes must contain a provision that the lease shall run for a specified term of not greater than 30 years, and shall be renewable for additional periods of up to 30 years each, so long as the lessee is in commercial operation and is in full compliance with all state law, including but not limited to state law pertaining to regulation and taxation of the pipeline facility, and is in compliance with all terms of the lease. In making this determination, the commissioner shall take into consideration the cost of the proposed pipeline, its useful life, and the probable financing requirement for the proposed pipeline.
   (b) If the lessee has timely requested and is pursuing renewal and the determination on the renewal has not been issued before expiration of the existing lease term, the commissioner shall continue the lease subject to the terms and conditions that were applicable to the lease in effect at the time of expiration of the lease's term until the commissioner issues a final determination on the renewal.

Authorities

38.35.120

Notes

Implemented As

11 AAC 80.005
11 AAC 80.065
11 AAC 80.075
11 AAC 80.085

References

11 AAC 80.075
AS 38.35.120 Covenants required to be included in lease to a pipeline that is not a natural gas pipeline contract carrier.

History

(Sec. 1 ch 72 SLA 1972; am Sec. 10 ch 3 FSSLA 1973; am Sec. 1, 2 ch 18 SLA 2001)