11 AAC 83.175. Reinstatement

(a) The commissioner will reinstate a lease automatically terminated under 11 AAC 83.170 if he finds that the failure to pay rental was justifiable and not due to lack of reasonable diligence by the lessee and the rental is paid within 15 days after receipt of notice of the termination, along with a statement and supporting evidence of the reasons for the failure. The burden of showing that he qualifies for reinstatement under this subsection is on the lessee and only those cases will be considered where the circumstances can be verified by independent evidence other than lessee's statements. The failure to pay rental will not be considered justifiable unless payment was prevented or delayed by unforeseen circumstances beyond the lessee's reasonable control. Situations such as ignorance of the lease, law, or regulations, inability to pay, error or oversight of the lessee's employees or agents, forgetfulness, and failure to receive a billing are not grounds for reinstatement. Situations caused by major sickness, accidents, death, acts of God, and errors of departmental employees, the U.S. Postal Service, or a commercial delivery service may be considered as grounds for reinstatement.

(b) If the rental payment due under a lease is timely paid but the amount of the payment is deficient, and the commissioner believes the payment was determined in accordance with the rental or acreage figure stated in the lease or in a bill, decision, notice, or letter by the department and the figure is found to be in error, or if the commissioner finds that the deficiency was otherwise justifiable and not due to a lack of reasonable diligence on the part of the lessee, the lease will be reinstated if the lessee corrects the deficiency within 15 days after receipt of notice of the deficiency.

History: Eff. 9/5/74, Register 51; am 7/22/79, Register 71; am 6/28/81, Register 78

Authority: AS 38.05.020

AS 38.05.145

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