If production occurs in paying quantities during the primary term of any lease, and if at the end of the primary term or at any time prior to the end of the primary term that production has ceased, or if production ceases at any time after the expiration of the primary term, then the lease does not terminate if the lessee commences drilling or reworking operations (either in a well from which the production has ceased or in a new well) within 60 days after the cessation of production; and the lease remains in full force and effect so long as operations are prosecuted with reasonable diligence; and, if the drilling or reworking operations result in the production of oil or gas, the lease remains in full force and effect so long as oil or gas is produced from it in paying quantities.
11 AAC 83.130
Authority:AS 38.05.020
AS 38.05.145(a)
AS 38.05.180(b)