1. (a) At any time during a calendar year, the commissioner will, in the commissioner's discretion, issue a call for proposals for an oil and gas exploration license that specifies the

   1. (1) area to be offered for licensing;
   2. (2) minimum qualifications for a licensee, as specified under 11 AAC 82.200(a); and
   3. (3) minimum exploration work commitment expressed in dollars.
2. (b) A prospective license must notify the commissioner in writing of the prospective licensee's intent to submit a proposal for an oil and gas exploration license within 30 days after the commissioner has issued a call for proposals under (a) of this section.
3. (c) A proposal for an oil and gas exploration license submitted by a prospective licensee must be received by the department within 60 days after the commissioner has issued a call for proposals under (a) of this section.
4. (d) A proposal for an oil and gas exploration license that is initiated by a prospective licensee, and that is not in response to a call for proposals by the commissioner, must be received by the department during the period beginning April 1 and ending April 30 of a calendar year.

5. (e) A proposal in response to a call for proposals under (a) of this section or a self-initiated proposal under (d) of this section must

   1. (1) describe the lands proposed to be subject to licensing, and provide this information on a map at a scale of 1:250,000 or greater;
   2. (2) state the specific work commitment expressed in dollars;
   3. (3) propose the term of the license;
   4. (4) describe the amount and form of security to be posted, based on the projected cost of the planned exploration work;
   5. (5) state that the prospective licensee meets the minimum qualifications, as specified under 11 AAC 82.200;
   6. (6) designate one person who is authorized to receive notices on behalf of an applicant; and
   7. (7) be submitted on a form provided by the department or a verbatim copy of the department's form.
6. (f) The commissioner will, in the commissioner's discretion, modify any proposal and request that a prospective licensee submit a revised proposal based on the commissioner's modifications. A prospective licensee shall have 30 days to resubmit a revised proposal which must conform to (e) of this section. The commissioner will reject any proposal that the commissioner determines is not in the state's best interest.

(Eff. 9/22/95, Register 135)

Authority: AS 38.05.131, AS 38.05.133