AK HB32

Changes commissioner authority from discretionary ("may") to mandatory ("shall") to issue oil and gas or gas-only leases to highest responsible qualified bidders through competitive bidding.

Establishes sliding-scale royalty rates for offshore Cook Inlet oil and gas production based on production volume, ranging from 0% (for low production) to 12.5% (for high production).

Extends oil and gas lease primary terms from maximum 10 years to allow for additional extensions up to 2 years and synchronization with exploration block leases upon written request.

Increases drilling extension period from 90 days to 180 days after drilling ceases, and increases production cessation deadline for reworking/drilling operations from 60 days to 180 days.

Extends royalty reduction eligibility deadline for certain Cook Inlet fields from January 1, 2004 to December 31, 2020, with automatic extension for days state is party to related lawsuits.