State takes surety bond comments

In the wake of the passage of House Bill 247, the Alaska Division of Corporations, Business, and Professional Licensing is taking public comment on its requirement of surety bonds with oil or gas exploration, development, or production business licenses.

The version of the bill passed earlier this year requires any company “engaged in the business of oil or gas exploration, development, or production” to file a surety bond, cash deposit or “other negotiable security” of $250,000 when it applies for a business license.

The purpose of the surety bond is to ensure that exploration companies are paying taxes to the state and other taxing bodies, and also paying their workers and contractors.

As part of its effort to create regulations in line with the new law the Division of Corporations, Business, and Professional Licensing is seeking comments from the public and the industry about the licensing process. “The division is not currently proposing any specific changes at this time,” the state wrote in a recent public notice. “There are no draft regulations to review. The division is in the information gathering stage and seeks comments from the public for suggestions and proposals on regulations related to the requirement of surety bonds with oil or gas exploration, development, or production business licenses, before the formal process of drafting any proposed changes begin.”

The division is taking comments through Jan. 20.

- ERIC LIDJI