Alaska Administrative Code

For the purposes of 11 AAC 84.810 - 11 AAC 84.950, a well will be considered capable of producing geothermal resources in paying quantities, as defined in 11 AAC 84.950, when so certified by the commissioner following application by the lessee or unit operator. The commissioner w…

If quantities of hydrocarbons, helium, or fissionable materials are discovered during exploration or development of a geothermal system, the unit operator shall notify the commissioner within 30 days after discovery. Notes 11 AAC 84.890 Eff. 5/8/83, Register 86 Authority:AS 38.05…

(a) Before drilling or constructing a geothermal well or group of wells to be operated in concert, the unit operator shall file an application with the commissioner for approval to drill. The application must contain sufficient information to enable the commissioner to determine …

Any revision of the unit operating agreement must be submitted to the commissioner before it takes effect. The unit agreement controls the respective rights and obligations of the unit operator, the working interest owners, the State of Alaska, and royalty interest owners other t…

(a) The proposed or revised division of interest or the formula allocating geothermal resource production and unit operating costs among the leases within the unit area may not take effect until approved by the commissioner in writing. When requested by the commissioner, the less…

(a) Except as otherwise provided in this section and in 11 AAC 84.880, where only a portion of a lease is committed to a unit agreement approved or prescribed by the commissioner, that commitment constitutes a severance of the lease as to the unitized and nonunitized portions of …

(a) Failure to comply with any of the terms of an approved unit agreement, including any plans of exploration, development or operations which are a part of the unit agreement, is a default under the unit agreement. (b) The commissioner will give notice of the default to the unit…

Each signature on the unit agreement must be notarized or attested by at least two witnesses. Corporate or other signatures made in a representative capacity must be accompanied by evidence of the authority of the signatory to act on behalf of the principal or by a reference to s…

The parties may execute any number of counterparts of a unit agreement or may execute a ratification, joinder or consent in a separate instrument. The documents have the same effect as if all parties signed the same instrument. Notes 11 AAC 84.925 Eff. 5/8/83, Register 86 Authori…

If approved by the commissioner, the counterparts of each instrument or document submitted for approval will be returned to the applicant with the commissioner's approval noted on the approved instrument. Notes 11 AAC 84.930 Eff. 5/8/83, Register 86 Authority:AS 38.05.020 AS 38.0…

Any modification of an approved unit agreement is subject to the commissioner's approval. Notes 11 AAC 84.935 Eff. 5/8/83, Register 86 Authority:AS 38.05.020 AS 38.05.035 AS 38.05.181 AS 41.06.020 State regulations are updated quarterly; we currently have two versions available. …

In place of separate bonds required for each lease committed to a unit agreement, the unit operator shall furnish and maintain a statewide geothermal bond under 11 AAC 84.790. Notes 11 AAC 84.940 Eff. 5/8/83, Register 86 Authority:AS 38.05.020 AS 38.05.035 AS 38.05.145 AS 38.05.1…

(a) If the State of Alaska selects or otherwise acquires any federal land which, at the effective date of selection or acquisition, is subject to a federal geothermal resources lease committed to a unit agreement approved in accordance with federal laws and regulations, the unit …

Unless the context clearly requires a different meaning, in 11 AAC 84.810 - 11 AAC 84.950 and in the applicable unit agreements, (1) "conservation of the natural resources of all or part of a geothermal system" means maximizing the efficient recovery of geothermal resources and m…

Land designated as competitive for coal leasing purposes will be leased under the procedures provided in this chapter and in 11 AAC 82.400 - 11 AAC 82.475. Notes 11 AAC 85.005 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 State…

(a) Except as provided in (b) of this section, state land will be designated as competitive for coal leasing purposes if the coal potential of the land for commercial development has been determined to be high or moderate by the division of geological and geophysical surveys afte…

(a) The commissioner will choose an appropriate leasing method and bid variable, including but not limited to, cash bonus, royalty share, or net profit share. The written finding prepared under AS 38.05.035(e) must contain the rationale on which the leasing method decision was ba…

The commissioner will, in his discretion, reject any or all bids, and offer the lease to the next highest qualified bidder if the successful bidder fails to obtain the lease for any reason. The commissioner will not accept any bid that is less than the minimum bid established bef…

Land designated as noncompetitive for coal leasing purposes will be leased under the procedures provided in this chapter and in 11 AAC 82.500 - 11 AAC 82.540. Notes 11 AAC 85.100 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 St…

(a) Except as provided in (b) of this section, state land may be designated as noncompetitive for coal leasing purposes if the commissioner determines that (1) the land does not qualify for competitive leasing under 11 AAC 85.010; or (2) the land was offered at a competitive sale…

(a) This section applies to land included within or underlying a shallow natural gas lease issued under AS 38.05.177. (b) If land within or underlying a gas lease is available under a first-come, first-served noncompetitive disposal under 11 AAC 83.100 for the purpose of issuing …

(a) The commissioner will issue a coal prospecting permit only for land designated as noncompetitive. A coal prospecting permit application is subject to the preference for existing shallow natural gas leases under 11 AAC 85.106. (b) A coal prospecting permit issued under this se…

(a) A permittee may apply for an extension of the term of a coal prospecting permit under AS 38.05.150(c). An application for extension must include(1) an affidavit stating that the permittee spent an average of at least five dollars per acre per year during the permit period on …

(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, …

Alaska Administrative Code Title 1 - General Provisions Title 2 - Administration Title 3 - Commerce, Community, and Economic Development Title 4 - Education and Early Development Title 5 - Fish and Game Title 6 - Governor's Office Title 7 - Health and Social Services Title 8 - La…

(a) Before holding a competitive lease sale or issuing a coal prospecting permit, the department will prepare a written finding under AS 38.05.035(e) which shows that the lease sale or permit issuance serves the best interests of the state. (b) The written finding required by (a)…

(a) Land designated as competitive or noncompetitive for coal leasing purposes will, in the commissioner's discretion, be closed for 30 days, by order of the commissioner, for reevaluation of the designation of the land. A closing order will state its effective date and that the …

(a) An applicant for a prospecting permit or for a lease shall submit an affidavit which states that(1) the total acreage of coal-prospecting permits, coal leases, and applications for either, in which the applicant holds an interest, does not exceed the acreage limitations of AS…

(a) In accordance with AS 38.05.150, a lease is issued for an indeterminate period of time, subject to the conditions of diligent development and continued operation of the mine. (b) The condition of diligent development is met if, upon review of the lease operations at least eve…

(a) The royalty rate must be set as follows, based on the adjusted gross value of coal from the leased area that is sold, disposed of, or consumed by the lessee:(1) five percent for noncompetitive leases; (2) no less than five percent for competitive leases where royalty is a bid…

(a) If the coal is sold in a bona fide arm's-length transaction between independent parties, adjusted gross value is the full consideration received by the lessee minus the following costs if those costs were borne by the lessee: (1) reasonable beneficiation costs as defined in (…

(a) Royalty from a coal lease may be taken in kind under the provisions of 11 AAC 82.700 - 11 AAC 82.715, if the commissioner determines that taking in kind would be in the best interest of the state. The commissioner will consider the financial or legal hardships the taking may …

(a) The annual rental for all coal leases is $3 per acre or fraction of an acre. (b) For leases issued after June 18, 1982, the annual rental payment is subject to adjustment by the commissioner not more frequently than every 10 years. The adjustment will take into account the cu…

(a) An application under AS 38.05.140(d) for reduction of the lease royalty, or for a waiver, suspension, refund, or reduction of the rental, must be filed in accordance with 11 AAC 82.665. (b) For the purposes of this section and AS 38.05.140(d), "royalty" includes net profit sh…

(a) A coal lease bond is required before a lease is issued, and in no case may the amount be less than $5 per acre or $5,000, whichever is greater. (b) A coal lease bond must be filed in accordance with 11 AAC 82.600. (c) The commissioner will not consent to termination of liabil…

For any mining operation which is exempt from the provisions of the federal Surface Mining Control and Reclamation Act of 1977, the commissioner will require the lessee to submit a plan of operations consistent with the principles of that Act, for his approval before mining opera…

(a) Before the commissioner approves an assignment, sublease or other transfer of an interest in a permit or lease, including assignments of working or royalty interest and operating agreements and subleases(1) the account of any royalties, net profit share payments, and rentals …

(a) No overriding royalty, net profit interest or other right to payment out of production or revenues from a lease may be created which exceeds the rate of royalty first payable to the state under the lease unless the lessee shows to the satisfaction of the commissioner that the…

If the lessee substantially breaches a significant provision of a permit or lease, or fails to comply with the applicable statutes and regulations, and the failure continues for 30 days after service of written notice by the commissioner, the commissioner will, in his discretion,…

(a) For the purpose of achieving more economic operations or more efficient and orderly recovery of coal, leases may, with the approval of the commissioner, be united and the lessees may adopt a cooperative or unit plan of development and operation of their leases. As a condition…

The commissioner will, in his discretion, enter into agreements with other owners of coal deposits for joint lease sales or to offer state leases on terms compatible with leases on lands owned by the other party that could be united with the state leases in a CMU as described in …

All coal mining leases and operations must conform to the approved state program under the Surface Mining Control and Reclamation Act of 1977 or to the federal program if a state program is not approved. Notes 11 AAC 85.280 Eff. 6/18/82, Register 82 Authority:AS 38.05.020 AS 38.0…

Notes 11 AAC 85.285 Repealed 9/28/86. State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compa…

The provisions of this chapter apply to the acquisition of mineral rights under AS 38.05.185 - 38.05.275 and 38.05.880. Notes 11 AAC 86.100 Eff. 9/15/74, Register 51; am 10/28/2022, Register 244, January 2023 Authority:AS 27.05.010 Authority:AS 38.05.020 State regulations are upd…

"Discovery" means a finding of valuable mineral as would justify an ordinarily prudent person in expending further time, labor, and money upon the property with a reasonable expectation of developing a paying mine. Notes 11 AAC 86.105 Eff. 9/5/74, Register 51 Authority:AS 38.05.0…

Notes 11 AAC 86.106 Eff. 5/18/90, Register 114; repealed 8/26/98, Register 147 State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will b…

(a) All payments required under this chapter, except for production royalty payments described in 11 AAC 86.769, may be made either by mail or in person as provided in this section. (b) The proper office for payment made by mail is the financial office of the department. However,…

(a) Any decision or deficiency notice given to a locator under the provisions of this chapter will be made in writing and delivered in person or mailed by certified mail, return receipt requested, to the address of the current owner of the location as shown on the records of the …

Nothing in 11 AAC 86 and 11 AAC 88 adversely affects the continued validity of any lease, permit, license, location, or contract, or any rights arising thereunder, granted or issued by the United States, or any rights acquired or being exercised pursuant to the mining laws of the…

(a) A location made on state-selected land that has not been conveyed to the state by the federal government through tentative approval or patent is made at the locator's risk. Because the state does not have management authority over the land unless the selection has been convey…