reglab/statecodes huggingface dataset:
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 84 - Other Leasable Minerals › Article 8 - Geothermal Unitization › 11 AAC 84.865 - Unit plan of development

Current through May 31, 2024
(a) A unit plan of
				  development must be filed for approval as an exhibit to the unit agreement if a
				  participating area is proposed for the unit area in accordance with
				  11 AAC 84.875, or when a
				  geothermal system has become sufficiently delineated so that a prudent operator
				  would initiate development activities in that geothermal system. All
				  development operations must be conducted under an approved unit plan of
				  development. A unit plan of development must contain sufficient information for
				  the commissioner to determine whether the plan is consistent with the
				  provisions of
				  11 AAC 84.815. The plan must
				  include a description of the proposed development activities based on data
				  reasonably available at the time the plan is submitted for approval as well as
				  plans for the exploration or delineation of any land in the unit not included
				  in a participating area. The plan must include, to the extent available
				  information exists,
(1) long-range proposed
				  development activities for the unit, including plans to delineate all
				  underlying geothermal systems, bring the geothermal systems into production,
				  and maintain and enhance production once established;
(2) plans for the exploration or delineation
				  of any land in the unit not included in a participating area;
(3) details of the proposed operations for at
				  least one year following submission of the plan;
(4) the surface location of proposed
				  facilities, drill pads, roads, docks, causeways, material sites, base camps,
				  waste disposal sites, water supplies, airstrips, power generating facilities,
				  pipelines, power lines, and any other operations or facilities necessary for
				  unit operations; and
(5) a
				  description of plans to prevent or control the release of combustible liquids
				  and gases, and toxic or noxious liquids or gases.
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 84 - Other Leasable Minerals › Article 8 - Geothermal Unitization › 11 AAC 84.870 - Unit plan of operations

Current through May 31, 2024
(a) Except as
				  provided in (b) of this section, a unit plan of operations for all or part of
				  the unit area must be approved by the commissioner before any operations may be
				  undertaken on the unit area if
(1) the state
				  owns all or part of the surface estate of the unit area;
(2) the unit includes a lease that reserves a
				  net profit share to the state; or
(3) the state owns all or part of the mineral
				  estate, but the entire surface estate of the unit area is owned by a party
				  other than the state, and a surface owner requests that a unit plan of
				  operations be required by the commissioner for the portion of the unit area
				  owned by that surface owner.
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 84 - Other Leasable Minerals › Article 8 - Geothermal Unitization › 11 AAC 84.875 - Participating area

Current through May 31, 2024
(a) At least 90 days before sustained unit
				  production from a geothermal system, the unit operator shall submit to the
				  commissioner for approval a description, based on subdivisions of the public
				  land survey or its aliquot parts, of the proposed participating area. The
				  participating area may include only the land reasonably known to be underlain
				  by geothermal resources and known or reasonably estimated through use of
				  geological, geophysical, and engineering data to be capable of producing or
				  contributing to production of geothermal resources in paying quantities. Under
				  11 AAC 84.905(a),
				  the unit operator shall also submit to the commissioner for approval a proposed
				  division of interest or formula setting out the percentage of production and
				  costs to be allocated to each lease and portion of a lease within the
				  participating area. Upon approval by the commissioner, the area of productivity
				  constitutes the participating area.
(b) A separate participating area must be
				  established as provided in (a) of this section for each geothermal system
				  delineated, except that with the consent of the commissioner and all working
				  interest owners, any two or more reservoirs or participating areas within the
				  unit may be combined into one participating area.
(c) A participating area must be expanded to
				  include acreage reasonably estimated through use of geological, geophysical,
				  and engineering data to be capable of producing or contributing to the
				  production of geothermal resources in paying quantities or contracted to
				  exclude acreage reasonably proven through use of geological, geophysical, and
				  engineering data to be incapable of producing geothermal resources in paying
				  quantities, subject to approval by the commissioner. A revised division of
				  interest or formula allocating production and costs must be submitted for
				  approval under
				  11 AAC 84.905 at the time of
				  expansion or contraction of a participating area. A revision of a participating
				  area becomes effective the first day of the month in which the revision is
				  approved by the commissioner.
Authority:
AS
						38.05.020
AS 38.05.145
AS 38.05.181
AS 41.06.020
AS
						41.06.030
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 84 - Other Leasable Minerals › Article 8 - Geothermal Unitization › 11 AAC 84.880 - Unit area; contraction and expansion

Current through May 31, 2024
(a) A unit must
				  encompass the minimum area required to include all or part of one or more
				  geothermal systems, or all or part of one or more potential geothermal
				  systems.
(b) Ten years after
				  sustained unit production begins, the unit area must be contracted to include
				  only those lands then included in an approved participating area and lands that
				  facilitate production including the immediately adjacent lands necessary for
				  secondary or tertiary recovery, pressure maintenance, reinjection, or cycling
				  operations. The commissioner will, in his discretion, after considering
				  provisions of
				  11 AAC 84.815, delay contraction
				  of the unit area if the circumstances of a particular unit warrant. If any
				  portion of a lease in included in the participating area, the entire lease will
				  remain committed to the unit.
(c)
				  Any expansion or contraction of the unit area must be based on legal
				  subdivisions of land as defined in
				  11 AAC 88.185.
(d) No land will be excluded from a unit area
				  due to the depletion of geothermal resources.
(e) Not sooner than 10 years from the
				  effective date of the unit agreement, the commissioner will, in his discretion,
				  contract the unit area to include only that land covered by an approved unit
				  plan of exploration or development, or that land underlain by one or more
				  potential geothermal systems and lands that facilitate production as set out in
				  (b) of this section. Before any contraction of the unit area under this
				  subsection, the commissioner will give the unit operator, the working interest
				  owners, and royalty owners of the leases or portions of leases being excluded,
				  reasonable notice and an opportunity to be heard.
Authority:
AS
						38.05.020
AS 38.05.145
AS 38.05.181
AS 41.06.020
AS
						41.06.030
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 84 - Other Leasable Minerals › Article 8 - Geothermal Unitization › 11 AAC 84.885 - Certification of well test results

Current through May 31, 2024
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 will require the submission of data necessary to make the
					 certification, including all results of the flow test or tests, supporting
					 geological data, and cost data reasonably necessary to show that the production
					 capability of the well satisfies the economic requirements of the paying
					 quantities definition.
Authority:
AS
						38.05.020
AS 38.05.145
AS 38.05.181
AS
						41.06.020
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 84 - Other Leasable Minerals › Article 8 - Geothermal Unitization › 11 AAC 84.890 - Hydrocarbon notification

Current through May 31, 2024
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.
Authority:
AS
						38.05.020
AS 38.04.145
AS 38.05.181
AS 41.06.020
AS
						41.06.040
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 84 - Other Leasable Minerals › Article 8 - Geothermal Unitization › 11 AAC 84.895 - Water rights

Current through May 31, 2024
(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 whether the operation of any well will interfere with or impair a
				  prior water right. The commissioner will approve construction and operation of
				  any well upon the conditions he considers necessary to protect the public
				  interest if
(1) the proposed geothermal
				  operation will not significantly interfere with or substantially impair a prior
				  water right;
(2) the geothermal
				  owner has acquired through purchase or condemnation adequate water rights to
				  offset the potential interference or impairment; or
(3) the geothermal owner has obtained and
				  dedicated to all affected parties an equivalent amount of replacement water of
				  comparable quality.
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 84 - Other Leasable Minerals › Article 8 - Geothermal Unitization › 11 AAC 84.900 - Unit operating agreement

Current through May 31, 2024
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
					 than the State of Alaska in case of conflict between the unit agreement and the
					 unit operating agreement. Where conflicts exist solely between working interest
					 owners, the unit operating agreement shall control.
Authority:
AS
						38.05.020
AS 38.05.145
AS 38.05.181
AS
						41.06.020
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 84 - Other Leasable Minerals › Article 8 - Geothermal Unitization › 11 AAC 84.905 - Allocation of production and costs

Current through May 31, 2024
(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 lessees or unit operator shall promptly file with the
				  commissioner all data that relates to the proposed or revised division of
				  interest or the allocation formula for all leases in the participating area.
				  Before any disapproval of the proposed or revised division of interest or the
				  allocation formula, the commissioner will give the working interest and royalty
				  owners reasonable notice and an opportunity to be heard. After the hearing, the
				  commissioner will approve the proposed or revised division of interest or
				  allocation formula as submitted unless he finds in writing that the formula
				  does not equitably allocate production and costs among the leases.
(b) If there is a separate division of
				  interest or allocation formula among any of the parties holding an interest in
				  the unit that is different from the division of interest or allocation formula
				  approved by the commissioner, the parties to the separate division of interest
				  or allocation formula not approved by the commissioner shall submit a copy of
				  that formula to the commissioner with a statement explaining the reasons for
				  the difference.
Authority:
AS
						38.05.020
AS 38.05.145
AS 38.05.181
AS
						41.06.020
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 84 - Other Leasable Minerals › Article 8 - Geothermal Unitization › 11 AAC 84.910 - Severance

Current through May 31, 2024
(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 the lease. The portion of the lease
				  not committed to the unit will be treated as a separate and distinct lease
				  having the same effective date and term of the original lease and may be
				  maintained after that only in accordance with the terms and conditions of the
				  original lease, statutes, and regulations. Any portion of the lease not
				  committed to the unit agreement will not be affected by the unitization or
				  pooling of any other portion of the lease by operations in the unit, or by
				  suspension approved or ordered by the commissioner for the unit under
				  11 AAC 84.855(b).
(b) The commissioner will, in his discretion,
				  grant up to a two-year extension of the lease term for that portion of a lease
				  not committed to the unit agreement under this section.
(c) A lease having a well certified as
				  capable of production of geothermal resources in paying quantities before
				  commitment to the unit agreement will not be severed.
Authority:
AS
						38.05.020
AS 38.05.145
AS 38.05.181
AS
						41.06.020
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 84 - Other Leasable Minerals › Article 8 - Geothermal Unitization › 11 AAC 84.915 - Default

Current through May 31, 2024
(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 operator and the
				  defaulting party, if other than the unit operator. The notice will state the
				  nature of the default and include a demand to cure the default by a specific
				  date, which, in the case of failure to pay rentals or royalties, will be a date
				  not less than 90 days after the date of the commissioner's notice of
				  default.
(c) If a default occurs
				  with respect to a unit in which there is no well capable of producing
				  geothermal resources in paying quantities and the default is not cured by the
				  date indicated in the demand, the commissioner will, in his discretion, and
				  after giving the unit operator and defaulting party, if other than the unit
				  operator, reasonable notice and opportunity to be heard, terminate the unit
				  agreement by mailing notice of the termination to the unit operator and
				  defaulting party. Termination is effective upon mailing the notice.
(d) If a default occurs with respect to a
				  unit in which there is a well capable of producing geothermal resources in
				  paying quantities and the default is not cured by the date indicated in the
				  demand, the commissioner will, in his discretion, seek to terminate the unit
				  agreement by judicial proceedings.
Authority:
AS
						38.05.020
AS 38.05.145
AS 38.05.181
AS
						41.06.020
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 84 - Other Leasable Minerals › Article 8 - Geothermal Unitization › 11 AAC 84.920 - Signatures

Current through May 31, 2024
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 such evidence
					 previously filed. The printed or typed name and address of each signatory to
					 the unit agreement must be set out below the signature.
Authority:
AS
						38.05.020
AS 38.05.145
AS 38.05.181
AS
						41.06.020
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 84 - Other Leasable Minerals › Article 8 - Geothermal Unitization › 11 AAC 84.925 - Counterparts

Current through May 31, 2024
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.
Authority:
AS
						38.05.020
AS 38.05.145
AS 38.05.181
AS
						41.06.020
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 84 - Other Leasable Minerals › Article 8 - Geothermal Unitization › 11 AAC 84.930 - Notation of approval

Current through May 31, 2024
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.
Authority:
AS
						38.05.020
AS 38.05.145
AS 38.05.181
AS
						41.06.020
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 84 - Other Leasable Minerals › Article 8 - Geothermal Unitization › 11 AAC 84.935 - Modification of unit agreement

Current through May 31, 2024
Any modification of an approved unit agreement is subject
					 to the commissioner's approval.
Authority:
AS
						38.05.020
AS 38.05.035
AS 38.05.181
AS
						41.06.020
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 84 - Other Leasable Minerals › Article 8 - Geothermal Unitization › 11 AAC 84.940 - Unit bonds

Current through May 31, 2024
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.
Authority:
AS
						38.05.020
AS 38.05.035
AS 38.05.145
AS
						38.05.181
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 84 - Other Leasable Minerals › Article 8 - Geothermal Unitization › 11 AAC 84.945 - Approval of federal units

Current through May 31, 2024
(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 agreement will be considered to have been approved by
				  the commissioner for all of the purposes of
				  11 AAC 84.810 -
				  11 AAC 84.950.
(b) The commissioner will, in his discretion,
				  enter into agreements with the federal government to provide for unitization of
				  state and federal geothermal resource leases overlying a common reservoir or
				  geothermal system. If the agreement permits or requires the commissioner to
				  take any action or enter into any unit agreement which is contrary to or
				  inconsistent with
				  11 AAC 84.810 -
				  11 AAC 84.950, the commissioner
				  will, in his discretion, do so after making a written finding that his action
				  or the unit agreement is necessary or advisable to protect the public interest,
				  and will, in all cases, comply with the requirements of AS 38.05, AS 41.06,
				  11 AAC 84.815 and
				  11 AAC 84.825.
Authority:
AS
						38.05.020
AS 38.05.145
AS 38.05.181
AS
						41.06.020
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 84 - Other Leasable Minerals › Article 8 - Geothermal Unitization › 11 AAC 84.950 - Definitions

Current through May 31, 2024
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 minimizing
				  the adverse impacts on surface and other resources;
(2) "commissioner" means the commissioner of
				  the state Department of Natural Resources or his designee;
(3) "force majeure" means war, riots, acts of
				  God, unusually severe weather, or any other cause beyond the unit operator's
				  reasonable ability to foresee or control, and includes operational failure of
				  existing transportation facilities and delays caused by judicial decisions or
				  lack of them;
(4) "paying
				  quantities" means quantities sufficient to yield a return in excess of
				  operating costs, even if drilling and equipment costs may never be repaid and
				  the undertaking considered as a whole may ultimately result in a loss;
				  quantities are insufficient to yield a return in excess of operating costs
				  unless those quantities, not considering the costs of transportation and
				  marketing, will produce sufficient revenue to induce a prudent operator to
				  produce those quantities;
(5)
				  "unit" means a group of leases covering all or part of one or more geothermal
				  systems subject to a unit agreement; and
(6) "unit agreement" means the agreement
				  executed by the working interest owners and royalty owners creating the
				  unit.
Authority:
AS
						38.05.020
AS 38.05.145
AS 38.05.180
AS 41.06.020
AS
						41.06.060
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 85 - Coal › Article 1 - Competitive Leasing › 11 AAC 85.005 - Leasing procedures in general

Current through May 31, 2024
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.
Authority:
AS
						38.05.020
AS 38.05.145
AS
						38.05.150
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 85 - Coal › Article 1 - Competitive Leasing › 11 AAC 85.010 - Competitive designation

Current through May 31, 2024
(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 after reviewing all available data. Land
				  will be ranked as high potential if potentially commercial reserves are proven
				  by drilling or field investigation. Land will be ranked as moderate potential
				  if the probable existence of potentially commercial reserves is indicated by
				  proximity to coal outcrops or drill holes.
(b) Land may not be designated as competitive
				  for coal leasing purposes if the commissioner determines that there exists an
				  irreconcilable conflict with surface use, and that coal development is not the
				  highest and best use of the land.
Authority:
AS
						38.05.020
AS 38.05.145
AS
						38.05.150
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 85 - Coal › Article 1 - Competitive Leasing › 11 AAC 85.015 - Bidding terms

Current through May 31, 2024
(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 based.
(b) Notwithstanding
				  11 AAC 82.465, the commissioner
				  will, in his discretion, defer up to 50 percent of any cash bonus payments,
				  provided that notice of the deferred bonus payment and method of payment is
				  published before the sale.
Authority:
AS
						38.05.020
AS 38.05.145
AS
						38.05.150
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 85 - Coal › Article 1 - Competitive Leasing › 11 AAC 85.020 - Right to reject bids

Current through May 31, 2024
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 before
					 the sale. The commissioner will notify any bidder whose bid has been rejected
					 and include in the notice a statement of the reason for the rejection.
Authority:
AS
						38.05.020
AS 38.05.145
AS
						38.05.150
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 85 - Coal › Article 2 - Noncompetitive Leasing › 11 AAC 85.100 - Leasing procedures in general

Current through May 31, 2024
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.
Authority:
AS
						38.05.020
AS 38.05.145
AS
						38.05.150
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 85 - Coal › Article 2 - Noncompetitive Leasing › 11 AAC 85.105 - Noncompetitive designation

Current through May 31, 2024
(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 and no acceptable bids were received.
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 85 - Coal › Article 2 - Noncompetitive Leasing › 11 AAC 85.106 - Leasing of land within or underlying a shallow natural gas lease

Current through May 31, 2024
(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 coal lease, any coal lease applied for and offered for any land
				  within or underlying the gas lease, without regard to depth from surface, will
				  be offered first to the gas lessee. The commissioner will notify the gas lessee
				  of record by certified mail at least 60 days before the issuance of a coal
				  lease that includes land within or underlying a gas lease and will include with
				  the notice a copy of the proposed coal lease and a statement of what the gas
				  lessee must submit to the commissioner if the gas lessee wishes to obtain the
				  proposed coal lease. Any other land included in a coal lease application that
				  is not included within or does not underlie the gas lease will be considered to
				  be applied for separately from the land within or underlying the gas lease and
				  will not be subject to this section. The gas lessee will be awarded the coal
				  lease for the land included within or underlying the gas lease upon receipt by
				  the commissioner, within 30 days of the delivery by certified mail to the
				  lessee of notice of the proposed coal lease disposal, of the following:
(1) a statement of qualifications required
				  under 11 AAC 82.205;
(2) a statement of conformity to acreage
				  limitations required under
				  11 AAC 85.210;
(3) the coal lease executed by the gas
				  lessee;
(4) funds sufficient to pay
				  any application fee and rentals required to be paid upon execution under the
				  terms of the coal lease in the amount and form specified in the notice from the
				  commissioner; and
(5) any other
				  requirements listed by the commissioner in the notice.
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 85 - Coal › Article 2 - Noncompetitive Leasing › 11 AAC 85.110 - Coal prospecting permits

Current through May 31, 2024
(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 section is a disposal of an interest in land and is subject to the
				  requirements of
				  AS
				  38.05.035(e),
				  38.05.830,
				  38.05.945, and
				  38.05.946.
(c) A permit for noncompetitive land on which
				  all or part of a permit or lease is expired, relinquished, or otherwise
				  terminated will be issued under the noncompetitive drawing procedure described
				  in 11 AAC 82.515 -
				  11 AAC 82.540.
(d) An application for a coal prospecting
				  permit will be handled in an expeditious manner and a decision to deny an
				  application or to initiate the disposal process will be issued within 65 days
				  after the receipt of a completed application.
(e) The filing of an application for a coal
				  prospecting permit does not vest a property right but merely creates a
				  preference right to any permit that may be issued.
(f) Before beginning exploration, a coal
				  prospecting permittee shall file a written notice of intent to explore or
				  obtain an exploration permit, as appropriate, under 11 AAC 90.161 - 11 AAC
				  90.167 before beginning exploration. No separate prospecting plan of operations
				  is required.
(g) No coal may be
				  removed and marketed or used from lands under prospecting permit except for
				  that amount necessary for sampling and testing.
(h) A copy of all data obtained from the land
				  reflecting all pertinent tests, reports, surveys, and analyses conducted on or
				  pertaining to the permit area must be submitted to the commissioner either upon
				  application for conversion to lease under
				  11 AAC 85.120 or not more than 90
				  days after the expiration or termination of the permit. Data submitted under
				  this section will be held confidential in accordance with
				  AS
				  38.05.035(a)(9) or as
				  otherwise required by law and will only be used for the administration of the
				  functions, responsibilities and duties vested by law in the
				  commissioner.
Authority:
AS
						38.05.020
AS 38.05.145
AS 38.05.150
AS
						38.05.177
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 85 - Coal › Article 2 - Noncompetitive Leasing › 11 AAC 85.115 - Permit extensions

Current through May 31, 2024
(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 work which increased the permittee's
				  knowledge of the coal deposit within the area, in accordance with the terms of
				  the permit;
(2) a description of
				  prospecting activities showing, to the commissioner's satisfaction, that the
				  permittee substantially complied with the notice of intent to explore or the
				  exploration permit required under
				  11 AAC 85.110(f)
				  or a statement showing to the commissioner's satisfaction that compliance was
				  delayed or interrupted by force majeure; and
(3) any additional information requested by
				  the commissioner.
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 85 - Coal › Article 2 - Noncompetitive Leasing › 11 AAC 85.120 - Permit conversion to lease

Current through May 31, 2024
(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.
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 85 - Coal › Article 3 - General Leasing Provisions › 11 AAC 85.200 - Best interest determination

Current through May 31, 2024
(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) of this section must be based upon the best available
				  information and must consider
(1) the coal
				  potential of the land as determined by the division of geological and
				  geophysical surveys;
(2) applicable
				  state and local land use plans and classifications;
(3) comments from affected agencies and the
				  public;
(4) significant conflicts
				  with surface use;
(5) significant
				  social and environmental effects of coal exploration, development, and
				  production in the area;
(6)
				  significant impacts on potentially affected communities, including public
				  services, and other public or commercial uses of the land;
(7) economic effects of coal exploration and
				  development, including revenue potential and administrative cost to the state;
				  and
(8) measures which may be
				  required to mitigate identified impacts.
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 85 - Coal › Article 3 - General Leasing Provisions › 11 AAC 85.205 - Reevaluation

Current through May 31, 2024
(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 results of the reevaluation will be announced on
				  the 31st day after that date.
(b) A
				  decision not to reopen an area for noncompetitive leasing rejects any pending
				  coal-prospecting permit application for that land. A rejected applicant will be
				  notified of the reasons for rejection.
(c) Notwithstanding
				  11 AAC 82.110, a coal-prospecting
				  permit will be issued on a first-come-first-served basis in accordance with
				  11 AAC 85.110 if an application
				  was filed before the closing order and if the land is reopened to
				  noncompetitive leasing.
Authority:
AS
						38.05.020
AS 38.05.145
AS
						38.05.150
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 85 - Coal › Article 3 - General Leasing Provisions › 11 AAC 85.210 - Statement of conformity to acreage limitations

Current through May 31, 2024
(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
				  38.05.140(a); or
(2) an application for additional acreage
				  under AS
				  38.05.140(a) has been
				  filed.
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 85 - Coal › Article 3 - General Leasing Provisions › 11 AAC 85.215 - Lease terms

Current through May 31, 2024
(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 every 10 years, the
				  commissioner finds that
(1) the leased area is
				  producing coal in commercial quantities;
(2) the leased area is committed to a CMU as
				  described in
				  11 AAC 85.270 and coal is being
				  produced from the CMU in commercial quantities;
(3) the lessee is proceeding in good faith to
				  develop the leased area by complying with the approved plan of exploration and
				  development in (c) of this section; or
(4) the lessee has shown to the satisfaction
				  of the commissioner that the development of a leased area in accordance with a
				  plan of exploration and development under (c) of this section is delayed or
				  interrupted by force majeure.
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 85 - Coal › Article 3 - General Leasing Provisions › 11 AAC 85.220 - Royalty

Current through May 31, 2024
(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 variable;
(3) no less than five percent nor more than
				  12 percent for competitive leases where royalty is not a bid
				  variable.
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 85 - Coal › Article 3 - General Leasing Provisions › 11 AAC 85.225 - Royalty value computation

Current through May 31, 2024
(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 (e)(1) of this section; and
(2)
				  reasonable transportation costs from the mine mouth to the point of sale, as
				  defined in (e)(2) of this section.
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 85 - Coal › Article 3 - General Leasing Provisions › 11 AAC 85.230 - Royalty in kind

Current through May 31, 2024
(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 have
				  on the lessee, including, but not limited to, the necessity for additional
				  capital equipment, increased costs in production, and the inability to meet
				  existing contractual obligations to customers.
(b) Notwithstanding
				  11 AAC 82.700, nine months'
				  written notice will be given to each lessee of the election to take the royalty
				  in kind.
(c) Notwithstanding
				  11 AAC 82.700, if the commissioner
				  elects to take royalty in kind, the lessee shall deliver the royalty coal on
				  the leased premises free of charge, into trucks or other carriers, slurry
				  pipelines, or onto storage piles designated by the commissioner. The lessee is
				  not required to provide free storage for longer than 30 days or pay slurry
				  pipeline charges for any coal run onto storage piles or into slurry pipelines.
				  The commissioner may elect to receive the royalty coal at point of sale or any
				  other established unloading or transfer point between the lease and the point
				  of sale, but the lessee will not be required to pay delivery and handling
				  costs.
Authority:
AS
						38.05.020
AS 38.05.145
AS 38.05.150
AS
						38.05.182
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 85 - Coal › Article 3 - General Leasing Provisions › 11 AAC 85.235 - Lease rental

Current through May 31, 2024
(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
				  current rental rates for leases in the same or similar areas and all relevant
				  factors affecting the development of a commercial operation. A lease in
				  existence on June 18, 1982, will be adjusted in accordance with the terms of
				  the lease.
(c) The rental payment
				  for the first year of the lease is due on the date that the lease is granted,
				  and the rental for each succeeding year must be paid on or before the beginning
				  of each lease year.
(d) The rental
				  for each lease or coal mining unit for each year will be credited against the
				  royalties as they accrue for that year.
Authority:
AS
						38.05.020
AS 38.05.145
AS
						38.05.150
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 85 - Coal › Article 3 - General Leasing Provisions › 11 AAC 85.240 - Rental and royalty relief

Current through May 31, 2024
(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 share payments.
Authority:
AS
						38.05.020
AS 38.05.140
AS 38.05.145
AS
						38.05.150
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 85 - Coal › Article 3 - General Leasing Provisions › 11 AAC 85.245 - Coal lease bond

Current through May 31, 2024
(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 liability under a coal lease bond unless an acceptable
				  substitute bond has been filed or until all terms and conditions of the lease
				  have been fulfilled.
Authority:
AS
						38.05.020
AS 38.05.145
AS
						38.05.150
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 85 - Coal › Article 3 - General Leasing Provisions › 11 AAC 85.250 - Plan of operations

Current through May 31, 2024
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
					 operations may begin.
Authority:
AS
						38.05.020
AS 38.05.145
AS
						38.05.150
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 85 - Coal › Article 3 - General Leasing Provisions › 11 AAC 85.255 - Transfer of interest

Current through May 31, 2024
(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 due under the lease must be
				  in good standing;
(2) the
				  transferee shall submit a statement of qualifications under
				  11 AAC 82.205 and a statement of
				  conformity to acreage limitations under
				  11 AAC 85.210; and
(3) the transferee shall submit an affidavit
				  stating who is responsible for performing all obligations under the permit or
				  lease.
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 85 - Coal › Article 3 - General Leasing Provisions › 11 AAC 85.260 - Limitation on overriding royalties

Current through May 31, 2024
(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 royalty is justified by substantial
				  improvements made or to be made to the leasehold.
(b) The term "payment out of production" as
				  used in this section is defined as a share of the coal produced from the lease,
				  free of the costs of production.
Authority:
AS
						38.05.020
AS 38.05.145
AS
						38.05.150
Alaska Administrative Code › Title 11 - Natural Resources › Part 6 - Lands › Chapter 85 - Coal › Article 3 - General Leasing Provisions › 11 AAC 85.265 - Suspension and termination

Current through May 31, 2024
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, suspend
					 activity on the permit or lease until compliance is achieved, or terminate the
					 permit or lease after additional notice and an opportunity to be
					 heard.
Authority:
AS
						38.05.020
AS 38.05.145
AS
						38.05.150