Section 11.85.260. Limitation on overriding royalties.

Latest version.

	(a)  No overriding royalty, net profit interest or other right to payment out of production or revenues from a lease may be created which exceeds the rate of royalty first payable to the state under the lease unless the lessee shows to the satisfaction of the commissioner that the royalty is justified by substantial improvements made or to be made to the leasehold.  
	(b)  The term "payment out of production" as used in this section is defined as a share of the coal produced from the lease, free of the costs of production.

Authorities

38.05.020;38.05.145;38.05.150

Notes

Authority
 AS 38.05.020  
AS 38.05.145  
AS 38.05.150  
History Eff. 9/5/74, Register 51; am 6/18/82, Register 82

                    
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