11 AAC 25.030 - Qualified gas eligible for royalty inducements

(a) Only qualified gas is eligible for a royalty inducement under AS 43.90.310. Qualified gas is royalty-bearing gas that is produced from a North Slope lease and shipped

(1) on the Alaska mainline in the firm transportation capacity acquired through the bid, precedent agreement, and transportation agreement required to qualify under 11 AAC 25.020(a) (1) - (3);

(2) in an amount no greater than that specified in the bid required to qualify under 11 AAC 25.020(a) (1); and

(3) for a term of years no longer than specified in the bid required to qualify under 11 AAC 25.020(a) (1), excluding any option for extension of the term of years.

(b) In addition to unprocessed gas that is qualified gas under (a) of this section, qualified gas includes

(1) condensate recovered from qualified gas; and

(2) the following, if extracted from qualified gas:

(A) residue gas;

(B) gas plant products;

(C) LNG.

Notes

11 AAC 25.030

Eff. 5/29/2010, Register 194

Authority:AS 38.05.020

AS 38.05.180

AS 43.90.300

AS 43.90.310

AS 43.90.330

AS 43.90.410