(a) The commissioner may convert a carbon storage exploration license to a carbon storage lease if the licensee complies with (b) of this section.
(b) To convert a carbon storage exploration license to a carbon storage lease, a licensee shall provide to the commissioner a copy of the permit obtained under AS 41.06.120. After receiving a copy of the permit, the commissioner may issue a carbon storage lease for those areas of the exploration license approved for carbon storage by the permit if the licensee has (1) fulfilled the work commitments set out in the license;
(2) demonstrated the ability to meet the commercial terms for the lease as set out in the license.
(c) Notwithstanding (b) of this section, if the commissioner determines that a carbon storage project is in the best interests of the state and would not be economically feasible under the commercial terms set by the license, the commissioner may issue the carbon storage lease under alternative commercial terms. A lease issued under this subsection must be supported by a written finding that contains specific factual details justifying the decision, an explanation of the commissioner's reasons for issuing the lease, and a description of the original terms and the alternative terms of the lease. The finding must be published on the commissioner's publicly available Internet website.
(d) A lease issued under this section must include (1) commercial terms for the lease;
(2) the agreements required under AS 38.05.710(h); and
(3) any other condition or obligation the commissioner considers necessary or that is required by regulation.