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(a) Leases, oil and gas exploration licenses, permits, or interests in leases, oil and gas exploration licenses, or permits, may, with the approval of the commissioner, be assigned or subleased as provided in this section to a person or persons qualified to hold a lease.
(b) No transfer of an interest in a lease, oil and gas exploration license, or permit, including assignments of working or royalty interest, operating agreements, and subleases, is binding upon the state unless approved by the commissioner. The transferor is liable for all obligations under the lease or oil and gas exploration license accruing before the approval of the transfer. When transfers of overriding royalty are made after the initial separation from the working interest of the lease, executed or image copies of these transfers must be transmitted to the department without charge for filing in the appropriate case file. However, the commissioner will take no action and official status records will not be posted to reflect these transfers.
(c) The commissioner will approve a transfer of an undivided interest in a lease, oil and gas exploration license, or permit unless the commissioner makes a written finding that the transfer would adversely affect the interests of the state or the application does not comply with applicable regulations. The commissioner will state the reasons for denial of an application in the finding.
(d) The commissioner will disapprove a transfer of a divided interest in a lease, oil and gas exploration license, or permit if the transfer covers only a portion of the lease, oil and gas exploration license, or permit or a separate and distinct zone or geological horizon, unless the transfer would not adversely affect the interests of the state, the transfer complies with applicable regulations, and the
(1) applicant demonstrates to the commissioner's satisfaction that the proposed transfer of a divided interest is reasonably necessary to accomplish exploration of the area subject to an oil and gas exploration license and exploration or development of the lease or permit;
(2) lease is committed to a unit agreement approved by the commissioner;
(3) lease is allocated production within a participating area approved by the commissioner; or
(4) lease or area subject to an oil and gas exploration license has an oil, gas, or geothermal well certified as capable of production in paying quantities.
(e) The commissioner will make a written finding stating the reasons for disapproval of a transfer of a divided interest under (d) of this section.
(f) When a corporate merger or consolidation occurs, transferring all of the interests of one corporation to another, the surviving or new corporation shall submit to the department
(1) a signed, notarized statement by an officer of the surviving or new corporation describing the transfer of interests;
(2) a certificate of merger or certificate of consolidation issued by the State of Alaska, Department of Commerce;
(3) applications for approval of assignments transferring all interests to the surviving or new corporation, in compliance with
11 AAC 82.615;
(4) if not filed on a form provided by the department, the request for approval must contain the same information for each interest transferred as is required on the assignment application form;
(5) a filing fee is required for each affected lease or oil and gas exploration license; and
(6) the surviving or new corporation must comply with the statement of qualifications required by
11 AAC 82.205.
11 AAC 82.605
Eff. 9/5/74, Register 51; am 7/22/79, Register 71; am 3/30/84, Register 89; am 7/1/89, Register 110; am 9/22/95, Register 135
