1. (a) If a licensee fails to comply with a provision of the carbon storage exploration license, the department will send the licensee a notice of default. If the licensee's noncompliance continues for 60 days after the notice of default is issued by the department, the commissioner will terminate the license by issuing a notice of termination to the licensee. Termination is effective upon giving notice.
2. (b) Notwithstanding (a) of this section, the commissioner may postpone termination of a license for not longer than 12 months if, before expiration of the 60-day default period, the licensee provides the commissioner with a good faith explanation for the delay and an acceptable timeline for compliance.
3. (c) If a licensee does not apply for a storage facility permit under AS 41.06.105 - 41.06.210 or a licensee's application for a permit under AS 41.06.105 - 41.06.210 is denied by the Alaska Oil and Gas Conservation Commission after the expiration of the initial five-year term of the license, the commissioner will revoke the carbon storage exploration license by issuing notice of revocation to the licensee. Revocation is effective upon giving notice.
4. (d) A licensee may apply to the commissioner for approval of a voluntary surrender of rights in the land held under a carbon storage exploration license, including a subdivision of the land subject to the license. A surrender is not effective unless approved by the commissioner. A surrender takes effect on the date of approval. A surrender must be filed in accordance with 11 AAC 88.105, but a filing fee is not required.
5. (e) After a termination or surrender of a carbon storage exploration license under this section, a licensee remains obligated to make all accrued payments and to place the surrendered land in a condition satisfactory to the commissioner.

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

Authority: AS 38.05.700, AS 38.05.705