Establishes lower royalty rates for oil and gas produced in Alaska north of 68 degrees North latitude and for new oil and gas fields south of 68.

This bill modifies royalty rates for oil and gas produced in Alaska. For gas produced north of 68 degrees North latitude, a royalty rate of one percent applies if sold to a publicly owned utility or a regulated utility at a discounted rate. For new oil and gas fields south of 68 degrees North latitude, a royalty rate of three percent for gas and 6.25 percent for oil applies if production begins between July 1, 2025, and January 1, 2036. These lower rates apply until the earlier of 10 years from the start of commercial production or the date a commercial quantity is shipped out of the state.

Establishes lower royalty rates for oil and gas produced in Alaska north of 68 degrees North latitude and for new oil and gas fields south of 68.

This bill modifies royalty rates for oil and gas produced in Alaska. For gas produced north of 68 degrees North latitude, a royalty rate of one percent applies if sold to a publicly owned utility or a regulated utility at a discounted rate. For new oil and gas fields south of 68 degrees North latitude, a royalty rate of three percent for gas and 6.25 percent for oil applies if production begins between July 1, 2025, and January 1, 2036. These lower rates apply until the earlier of 10 years from the start of commercial production or the date a commercial quantity is shipped out of the state.