1. (a) A carbon storage exploration license or carbon storage lease may be assigned, in whole or in part, with the approval of the commissioner after submission of an application for assignment under 11 AAC 84.1060. Upon assignment,

   1. (1) the assignor and the assignor's surety are liable for obligations under the carbon storage exploration license or carbon storage lease that accrue before the commissioner's approval of the assignment; and
   2. (2) beginning on the effective date of the assignment, the assignee and the assignee's surety are liable for the performance of all carbon storage exploration license or carbon storage lease obligations, including any obligations made applicable by the commissioner as a condition of assignment.
2. (b) If the commissioner rejects an application for an assignment, the licensee's or lessee's obligations continue as though no application for assignment had been made.

3. (c) When a change of control occurs that would transfer the license or lease interest of one entity to another, the surviving or new entity shall submit to the department

   1. (1) an application under 11 AAC 84.1060;
   2. (2) a signed statement by an officer of the surviving or new entity describing the intended transfer of interests;
   3. (3) a certificate of merger or certificate of consolidation issued by the Department of Commerce, Community, and Economic Development, if applicable;
   4. (4) documentation establishing the entity's compliance with the minimum qualifications required by 11 AAC 84.1000; and
   5. (5) additional information requested under 11 AAC 88.115.
4. (d) The commissioner may grant an applicant's request for severance or require severance as a condition of approval of an assignment of all or part of a licensee or lessee's interest in the licensed or leased area of a carbon storage exploration license or carbon storage lease. If severance is granted or required, the department will issue a separate license or lease to the assignee with the same effective date and terms as the original license or lease.
5. (e) The commissioner will either approve or disapprove the assignment of a carbon storage exploration license or carbon storage lease and prepare a written finding that states the reasons for the decision.

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

Authority: AS 38.05.020, AS 38.05.705, AS 38.05.715, AS 38.05.700, AS 38.05.710, AS 38.05.720