Alaska Administrative Code
Title 11 - Natural Resources
Part 6 - Lands
Chapter 84 - Other Leasable Minerals
Article 8 - Geothermal Unitization
11 AAC 84.915 - Default

(a) Failure to comply with any of the terms of an approved unit agreement, including any plans of exploration, development or operations which are a part of the unit agreement, is a default under the unit agreement.

(b) The commissioner will give notice of the default to the unit operator and the defaulting party, if other than the unit operator. The notice will state the nature of the default and include a demand to cure the default by a specific date, which, in the case of failure to pay rentals or royalties, will be a date not less than 90 days after the date of the commissioner's notice of default.

(c) If a default occurs with respect to a unit in which there is no well capable of producing geothermal resources in paying quantities and the default is not cured by the date indicated in the demand, the commissioner will, in his discretion, and after giving the unit operator and defaulting party, if other than the unit operator, reasonable notice and opportunity to be heard, terminate the unit agreement by mailing notice of the termination to the unit operator and defaulting party. Termination is effective upon mailing the notice.

(d) If a default occurs with respect to a unit in which there is a well capable of producing geothermal resources in paying quantities and the default is not cured by the date indicated in the demand, the commissioner will, in his discretion, seek to terminate the unit agreement by judicial proceedings.