Lease Administration

  • Lease Administration

    Following an oil and gas lease sale or geothermal lease sale, the Lease Administration Unit is responsible for issuing leases and assuring that the financial terms of the lease agreement are met.

    Lease Administration Responsibilities

    The Unit also maintains a list of all noncompetitive and competitive lease sales held, indicating the sale number, the sale location, lease effective dates, and lease forms used.

    Oil and Gas regulations to which Lease Administration refers are mostly contained in Title 11 of the Adminstrative Code, Chapters 3, 5, 82, 83, and 88.

    Oil and Gas Definitions

    Lease Issuance

    The Lease Administration Unit collects the bonus bids and first year's lease rentals and sets up the lease terms in the department's Revenue and Billing system, ensuring that all payments are properly accounted for and that the lessees are billed for their rental amounts accordingly. The lease is then issued with an effective date. The current lease forms are: (sample lease) (sample geothermal lease) (sample gas storage lease)

    Each lease is assigned an ADL (Alaska Division of Land) number. A case file is then established. To research information about a particular lease, the legal description or the ADL number will be needed. Case files are located in Suite 800 of the Atwood Building, 550 West 7th Ave. Access to lease information is also available via the Web at Lease Adminstration System (ADNR).

    Lease Administration Reports

    Lease Administration compiles reports of activities that occur on its leases. Each month the information is updated. The following reports are available:


    Maintain lease ownership records

    The Lease Administration Unit maintains ownership records for each lease. The state tracks two kinds of ownership: working interest (WI) and royalty interest (RI). A lease may have one or more working interest and royalty interest owners in varying percentages. The total of both WI and total RI percentages must equal 100 percent. The "RI" includes overriding interest, royalty separated from the associated working interest, and the state's royalty interest. The unit also maintains and tracks the notification lessee for each lease, which is the entity designated by the lessee(s) to receive official notices from the state on behalf of all the parties.

    One-Time Lease Extensions

    Under provisions of AS 38.05.180(m), state oil and gas leases may receive a one-time lease extension under certain circumstances. Application forms for applying for a one-time lease extension and instructions are provided on this page.

    Process Assignments of Interest

    When an individual or company wants to transfer or receive an interest in an existing oil and gas lease, an "assignment of interest" application must be completedin triplicate and submitted to the division with the $150 filing fee (11 AAC 82.605)). Each application must specify only one assignor,one assignee, and one lease. To expedite processing of assignment applications, the Division is making assignment application packets available to lessees and licensees. Download the complete packets here:

    Please read the assignment application instructions in the assignment packet carefully before filling out an assignment application. Filling out the application incorrectly may result in the application being returned for corrections.

    Maintain Qualification Files

    Any person or entity wishing to acquire an oil and gas lease must be qualified with the Division of Oil and Gas. There are separate qualification requirements for individuals, companies or corporations, and partnerships (frequently asked questions). The Lease Administration Unit maintains a list of all qualified lease holders, plus an historical record of all prior qualified entities.

    Gas Storage Information