Oil and Gas Royalty Payments 11 AAC 04.010-199

For a copy of the regulations dealing with the method and instructions for payment of oil and gas royalties, rents, and bonuses, please contact Jim Stouffer at Division of Oil and Gas, 550 W. 7th Ave, Suite 800, Anchorage, Alaska 99501, 907-269-8796, or by e-mail: jim.stouffer@alaska.gov.

Current Royalty Reporting Regulations are available online in HTML format here. Search for 11 AAC 04. PDF versions are available below.

Updates to Royalty Reporting Instructions referenced by regulation
Royalty Reporting Instructions referenced by regulation

The new Royalty Report filing standardizes oil and gas royalty reporting and payments for all lessees. A complete "Oil Royalty Report " and "Gas Royalty Report" filing consists of the following parts: Current-Production-Month Reporting: Royalty Operator Report: Schedule O1 Royalty Valuation Report: Schedule A1 Royalty Payment Summary Report: S1 Royalty Supplemental Reports Prior Production Month Revisions: Revisions may be made to any of the above reports if necessary to correct previously filed reports or supplemental reports. Royalty Payment(s): Payment may be made as a lump sum for all "Oil Report" and "Gas Report" royalties, or as segregated payments by Product Groups, or segregated payments by Accounting Units. According to 11 AAC 04.030 each lessee must file, monthly, all schedules required for the Current-Production-Month for each active Accounting Unit in which they have lease ownership. An Accounting Unit is any Operation, Lease, Unit, or Participating Area that constitutes a single production, financial and reporting entity. A single lessee may file and pay for all lessees in an Accounting Unit. However, all lessees in the Accounting Unit must formally agree in writing to this reporting and payment arrangement. This arrangement must be approved, in writing, by the Commissioner of Natural Resources. NOTE: According to all lease agreements, it is the ultimate responsibility of each lessee to ensure that their royalty obligation on each of their leases has been met, regardless of any operating or payment agreements in effect. "Oil Royalty Report" and "Gas Royalty Report" will be filed electronically and consist of real numbers and not formulas. Electronically filed reports must follow the royalty report instructions and provisions as set out in an approved Trading Partner Agreement . All original hard copy reports, being filed as of November 1, 1997, must continue to be filed in hard copy UNTIL SPECIFIED OTHERWISE IN A SIGNED Trading Partner Agreement. These hard copy reports must be filed with the Division of Oil and Gas. All payments must be submitted electronically using Automated Clearing House (ACH) payment procedures. An Administrative Fee of $75.00 per day will be assessed for each Accounting Unit with inaccurate, incomplete or missing reports according to regulation 11 AAC 04.080.