1. (a) An applicant, including an oil and gas lessee under AS 38.05.180, may apply for a carbon storage exploration license

   1. (1) by submitting a proposal to the commissioner as described in AS 38.05.710(a);
   2. (2) in response to a solicitation for competing proposals under AS 38.05.710(b) and 11 AAC 84.1010; or
   3. (3) in response to a discretionary call for proposals issued by the commissioner.

2. (b) A discretionary call for proposals under (a)(3) of this section will

   1. (1) identify the area offered for licensing;
   2. (2) require that an applicant meet the minimum qualifications for a license required under 11 AAC 84.1000;
   3. (3) propose minimum work commitments;
   4. (4) establish minimum commercial terms that may exceed the requirements of AS 38.05.705(c)(3); and
   5. (5) set the date, time, and manner by which applications responsive to the call for proposals must be submitted.

3. (c) A proposal for a carbon storage exploration license must be submitted on a form provided by the department or a verbatim copy of the department's form, conform with AS 38.05.710(a) and this section, and include

   1. (1) a description of the lands proposed to be subject to licensing by legal subdivision, section, township, range, and meridian, accompanied by a map depicting the same lands at a scale of 1:250,000 or greater;
   2. (2) a description of the geological formations that the carbon storage exploration license will target;
   3. (3) a list identifying the lessees for all active leases issued under AS 38.05.135 - 38.05.181 within one-half mile of the area proposed in (1) of this subsection;
   4. (4) a proposed annual license fee;
   5. (5) proposed commercial terms;

   6. (6) to comply with AS 38.05.710(a)(2), proposed work commitments that

      1. (A) delineate and characterize the geologic formations for selection of carbon dioxide injection sites based on geologic suitability; and
      2. (B) include the proposed sequence and schedule of operations to be conducted on or in the license area;
   7. (7) an attestation describing how the applicant meets the minimum qualifications required under 11 AAC 84.1000;
   8. (8) designation of an individual who is authorized to receive notices on behalf of the applicant; and
   9. (9) any additional information requested by the department under 11 AAC 88.115.
4. (d) A license application must encompass a contiguous area reasonably anticipated to cover the entire storage reservoir or reservoirs identified in (c)(2) of this section.
5. (e) The commissioner may propose modifications to a proposal that, if accepted by the applicant, would qualify the proposal for approval. A proposed modification may include a deadline to submit a revised proposal conforming to (c) of this section.
6. (f) The commissioner will make a determination under 11 AAC 84.1015 that disposal is in the best interest of the state before approving a carbon storage exploration license proposal. The commissioner will reject a proposal that is not in the state's best interest or that lacks sufficient information to determine whether the proposal is in the state's interests.

(Eff. 2/16/2025, Register 253)

Authority: AS 38.05.020, AS 38.05.700, AS 38.05.705, AS 38.05.710