Forms posted to apply for lease extension

The Alaska Division of Oil and Gas has posted a special application packet for lease extensions.

The downloadable packet supports a new law that allows for a one-time extension of state oil and gas leases. It’s on the division’s website at dog.dnr.alaska.gov.

The Alaska Legislature, in its 2013 session, passed House Bill 198 authorizing an extension of the primary term of a lease if deemed in the state’s best interests. Gov. Sean Parnell signed the bill into law on May 28.

The law is aimed at allowing companies to hang onto expiring leases, provided they can show they’ve already spent significantly on exploration and development. The law also allows the state to demand work commitments going forward.

The lease extension application packet has two forms, one for applying lease-by-lease and one for applying for a block of leases.

“An application for a one-time lease extension must be received at least 180 days before the expiration date of the primary term,” the packet says.

Leaseholders are advised to set up a pre-application meeting with the division to discuss a “concrete proposal” to explore leases and bring them into production.

—Wesley Loy