11 AAC 86.313. Annual rental

(a) The provisions of this section apply to rental payments for mining leases other than for leases under AS 38.05.250 .

(b) A rental payment for a mining lease must be made in accordance with 11 AAC 86.107 and must be accompanied by a rental form provided by the department, a photocopy of that form, or a form approved by the director. The form must contain the name and address of the owner of record and the ADL number of the mining lease.

(c) The annual rental amount is based on the number of acres included in the lease and the number of years since the predecessor claim or leasehold location of the mining lease was first located, as follows:

Number of Years Since Rental Amount Per Acre First Located For Mining Lease 0-5 $ .66 6-10 $ 1.32 11 or more $ 3.30

Before survey under 11 AAC 86.311, the rent will be based on the number of acres estimated in the lease document.

(d) If a mining lease contains more than one claim or leasehold location, the predecessor claim or leasehold location for determining the rental amount is the claim or leasehold location that was located first.

(e) For purposes of determining the amount of annual rental, a claim or leasehold location located on state land on or before August 31, 1989, is considered to have been first located on August 31, 1989, and the first rental year for such a claim or leasehold location is considered to have begun at noon on September 1, 1989. The first rental year for a claim or leasehold location located on or after September 1, 1989, begins on the date of posting location and ends at noon on the following September 1.

(f) The first annual rental payment for a mining lease that becomes effective after August 31, 1989 will be applied to the period from the effective date of the lease to the next September 1.

(g) A rental payment that was paid for a predecessor mining claim or leasehold location during the rental year in which a lease is issued will be credited toward the first annual rental payment under the lease.

(h) The rental payment for each subsequent rental year is due on September 1 and must be paid on or before November 30.

(i) If the lessee fails in whole or in part to make a timely rental payment, the mining lease will be considered in default and the department will supply the lessee a deficiency notice in accordance with 11 AAC 86.108, describing the lease in default by the lease's ADL number. In the notice, the department will advise the lessee that the lease will be terminated without further notice if the department does not receive the required payment in full within 30 days after the lessee's receipt of the notice.

History: Eff. 5/18/90, Register 114; am 8/26/98, Register 147; am 4/24/99, Register 150; am 1/19/2002, Register 161

Authority: AS 38.05.020

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