11 AAC 86.772. Interest on unpaid royalties; deficient payments

(a) Interest accrues from the due date set in 11 AAC 86.769(c) on the outstanding balance of any production royalty not paid in full when due. This interest accrues at the legal rate of interest in the State of Alaska, as specified in AS 45.45.010 (a), until the outstanding balance is paid in full.

(b) If the division discovers that a production royalty payment is deficient, the division shall send the holder of a mining claim, leasehold location, or mining lease a deficiency notice by certified mail, return receipt requested. The deficiency notice must comply with 11 AAC 88.140, and must

(1) state the amount of the deficiency, if known;

(2) state the rate at which interest accrues on the deficiency;

(3) inform the holder that it has 60 days after the date on the notice to pay in full the total of the deficiency plus interest; and

(4) inform the holder that failure to pay the total of the deficiency plus interest within 60 days is an abandonment of the holder's claim, leasehold location, or mining lease unless the holder, under 11 AAC 86.778, contests the deficiency notice before expiration of the 60-day period.

History: Eff. 7/26/91, Register 119

Authority: AS 38.05.212

AS 38.05.265

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