Alaska Statutes Title 43. Revenue and Taxation § 43.70.025. Bond or cash deposit required for an oil or gas business

(a) At the time of applying for a license under this chapter, an applicant engaged in the business of oil or gas exploration, development, or production shall file a surety bond in the amount of $250,000 running to the state, conditioned upon the applicant's promise to pay all

(b) In lieu of the surety bond required under this section, the applicant may file with the commissioner a cash deposit or other negotiable security acceptable to the commissioner in the amount of $250,000.

(c) The bond required by this section remains in effect until cancelled by action of the surety, the principal, or if the commissioner finds that the business is producing oil or gas in commercial quantities, by the commissioner.