11 AAC 83.374 - Default
(a) Failure to comply with any of the terms
of an approved unit agreement, including any plans of exploration, development,
or operations which are a part of the unit agreement, is a default under the
unit agreement.
(b) The
commissioner will give notice to the unit operator and defaulting party (if
other than the unit operator) of the default. The notice will state the nature
of the default and include a demand to cure the default by a specific date,
which in the case of failure to pay rentals or royalties will be a date
determined by the commissioner and in the case of any other default will be a
date not less than 90 days after the date of the commissioner's notice of
default.
(c) If a default occurs
with respect to a unit in which there is no well capable of producing oil or
gas in paying quantities and the default is not cured by the date indicated in
the demand, the commissioner will, in his discretion, and after giving the unit
operator and defaulting party (if other than the unit operator) reasonable
notice and opportunity to be heard, terminate the unit agreement by mailing
notice of the termination to the unit operator and defaulting party.
Termination is effective upon mailing the notice.
(d) If a default occurs with respect to a
unit in which there is a well capable of producing oil or gas in paying
quantities and the default is not cured by the date indicated in the demand,
the commissioner will, in his discretion, seek to terminate the unit agreement
by judicial proceedings.
Notes
Authority:AS 38.05.020
AS 38.05.145
AS 38.05.180
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.