11 AAC 85.120. Permit conversion to lease

(a) At any time during the term of a coal prospecting permit, the permittee is entitled to a noncompetitive coal lease on that portion of the permit area shown to contain coal in commercial quantities or to be needed for mining, reclamation or processing operations of that coal, upon the submission of a satisfactory mining plan.

(b) A plan submitted under (a) of this section may be conceptual and must include

(1) reserve calculations for the coal beds which are classified as to the degree of accuracy using the terms "measured," "indicated," and "inferred" as defined in United States Geological Survey Circular 831 (1980);

(2) qualitative data supported by proximate analyses and calorific values of the coal beds on which the reserve calculations are based;

(3) quantitative data describing coal bed thickness and continuity on which the reserve calculations are based;

(4) topographic and geologic maps of the area of the permit, indicating the locations of sampling and drilling;

(5) a description of the probable mining method;

(6) evidence of commercial quantities of coal, including the estimated revenues from the sale of coal and the estimated costs of development of the mine and of extracting, removing, processing, transporting, and marketing the coal; the costs of development must include the estimated cost of exercising environmental protection measures, suitably reclaiming the land, and complying with all applicable federal, state, and local laws and regulations; and

(7) any documentation or information that the commissioner requires, in addition to or instead of (1) - (6) of this subsection, to assist in understanding and evaluating the conversion of a prospecting permit to a lease.

(c) In this section, a "satisfactory mining plan" is a plan which shows commercial quantities of coal in an amount and quality determined by the commissioner to be sufficient under present and reasonably anticipated conditions to induce a prudent operator to pursue development.

(d) As required in 11 AAC 85.110(h) , an application for conversion to lease must include a copy of all data obtained from the permit land.

(e) Within 21 days after receipt, the commissioner will review the application for completeness and notify the applicant of any deficiency. A decision will be issued within 65 days after receipt of a completed application. The filing of an application for conversion to lease suspends the expiration of the term of the permit until the application is either approved or denied. A decision denying conversion to lease will be accompanied by a detailed description of the grounds or rationale on which the denial is based.

History: Eff. 9/5/74, Register 51; am 6/18/82, Register 82

Authority: AS 38.05.020

AS 38.05.145

AS 38.05.150

Editor's note: Circular 831, described in 11 AAC 85.120(b) (1), is available from the United States Geological Survey, Public Inquiries Office, 508 West 2nd Avenue, Anchorage, Alaska 99501.

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