1. (a) The lessee shall make royalty payments to the credit of the state by an automated clearing house transaction, by a wire transfer through the Federal Reserve System, or by another method as approved by the commissioner, to the address specified in writing by the department.
2. (b) The lessee shall make payments of amounts other than royalties, including payments of interest or administrative fees, in accordance with (a) of this section.
3. (c) The lessee shall make minimum royalty payments in accordance with the minimum royalty provisions of the lease, when applicable. Otherwise, the lessee shall make minimum royalty payments in accordance with (a) of this section.

4. (d) The division will

   1. (1) apply a payment described in (a) - (b) of this section in the following order

      1. (A) first to pay administrative fees;
      2. (B) second to pay interest;
      3. (C) third to pay past principal;
      4. (D) fourth to reduce current principal; and
   2. (2) apply the payment first to the accounting unit with the smallest produced volume for the production month being paid by the lessee.

(Eff. 2/21/98, Register 145; am 12/27/2002, Register 164; am 12/26/2019, Register 232)

Authority: AS 38.05.020, AS 38.05.135, AS 38.05.180