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SB 125: "An Act prescribing a definition of 'damages' that a landowner may claim for injury to or interference with the owner's use of property by a person entering upon the land under the state reservation of oil, gas, mineral, material, or related interests, addressing the determination of the form, amount, and security of the surety bond determined by the director of lands to secure the landowner payment for damages, directing preparation of notice to the landowner for subsurface activities on the land, and setting a limitation on actions against a landowner resulting from entry upon land under the state reservation of interests."

00                             SENATE BILL NO. 125                                                                         
01 "An Act prescribing a definition of 'damages' that a landowner may claim for injury to                                  
02 or interference with the owner's use of property by a person entering upon the land                                     
03 under the state reservation of oil, gas, mineral, material, or related interests, addressing                            
04 the determination of the form, amount, and security of the surety bond determined by                                    
05 the director of lands to secure the landowner payment for damages, directing                                            
06 preparation of notice to the landowner for subsurface activities on the land, and setting                               
07 a limitation on actions against a landowner resulting from entry upon land under the                                    
08 state reservation of interests."                                                                                        
09 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
10    * Section 1.  AS 38.05.130 is amended to read:                                                                     
11            Sec. 38.05.130.  Damages and posting of bond.  Rights may not be exercised                                 
12       by the state, its lessees, successors, or assigns under the reservation as set out in                             
01       AS 38.05.125 until the state, its lessees, successors, or assigns make provision to pay                           
02       the owner of the land full payment for all damages sustained by the owner [,] by                                  
03       reason of entering upon the land.  If the owner for any cause refuses or neglects to                              
04       settle the damages, the state, its lessees, successors, or assigns, or an applicant for a                     
05       lease or contract from the state for the purpose of prospecting for valuable minerals, or                         
06       for an option, contract, or lease for mining coal or for a lease for extracting                           
07       geothermal resources, petroleum, or natural gas,                                                                  
08                 (1)  may enter upon the land in the exercise of the reserved rights after                           
09       posting a surety bond determined by the director, after notice and an opportunity to be                           
10       heard, to be sufficient as to form, amount, and security to secure to the owner payment                           
11       for damages; [,] and                                                                                          
12                 (2)  may institute legal proceedings in a court where the land is located,                          
13       as may be necessary to determine the damages that [WHICH] the owner may suffer.                               
14    * Sec. 2.  AS 38.05.130 is amended by adding new subsections to read:                                              
15            (b)  In (a) of this section, "damages" means compensation due the owner for                                  
16       injury to or interference with the owner's use of property, including improvements and                            
17       related personal property, for an entry upon the land in the exercise of a reserved right                         
18       for a purpose described in (a) of this section when the entry gives rise to                                       
19                 (1)  loss of or injury to the value of the owner's property,                                            
20       improvements, or personalty; or                                                                                   
21                 (2)  interference with or interruption of the owner's access to or use of                               
22       the property or improvements.                                                                                     
23            (c)  In (b) of this section, the measure of                                                                  
24                 (1)  the loss of or injury to the value of the owner's property,                                        
25       improvements, or personalty under (b)(1) of this section is the actual cost of repair,                            
26       relocation, replacement, or restoration of the property, improvements, and personalty,                            
27       not to exceed the fair market value;                                                                              
28                 (2)  the interference with or interruption of the owner's access to or use                              
29       of the property or improvements under (b)(2) of this section must be based on the                                 
30       owner's actual use of the property and improvements immediately preceding the entry                               
31       and is, for the period or duration of the interference or interruption, the greater of                            
01                      (A)  the loss of income to the owner; or                                                           
02                      (B)  the loss of the value of the use by the owner.                                                
03            (d)  For damages sustained by an owner for an entry upon the land in the                                     
04       exercise of a reserved right for an activity described in (a) of this section, the                                
05       provisions of (b) and (c) of this section do not prevent the owner from recovering                                
06       against a state lessee, successor, or assign, or an applicant described in (a) of this                            
07       section                                                                                                           
08                 (1)  damages under                                                                                      
09                      (A)  AS 09.45.730 for cutting, injuring, or removing timber; or                                    
10                      (B)  AS 09.45.735 for trespass; or                                                                 
11                 (2)  subject to AS 09.50.280, punitive damages for the wilful                                           
12       noncompliance by the lessee, successor, assign, or applicant                                                      
13                      (A)  entering on the land in the exercise of a reserved right for a                                
14            purpose described in (a) of this section without first complying with (a)(1) of                              
15            this section; or                                                                                             
16                      (B)  with a material term or condition that governs the                                            
17            concurrent use of land under the reservation of entry to the land for a purpose                              
18            described in (a) of this section that is set out in an approved plan under which                             
19            the lessee, successor, assign, or applicant is required to operate, however the                              
20            plan is denominated under this chapter or in a regulation adopted under this                                 
21            chapter.                                                                                                     
22            (e)  The owner of land subject to the reservation described in AS 38.05.125                                  
23       and the state, the state's lessee, successor, or assign, or an applicant described in (a) of                      
24       this section may agree on a different measure of damages than that set out in (c) of this                         
25       section.                                                                                                          
26            (f)  When, under (a)(1) of this section, the director acts to determine the form,                            
27       amount, and security of the surety bond to secure the owner payment for damages, the                              
28       director may                                                                                                      
29                 (1)  initiate a calculation of the amount of the bond by reference to the                               
30       assessed value of the property determined by an assessor under AS 29.45.110; if the                               
31       director initiates a calculation of the amount of the bond by reference to the assessed                           
01       value of the property, the director shall determine the amount of the bond to be the                              
02       greater of                                                                                                        
03                      (A)  the assessed value of the entire parcel; or                                                   
04                      (B)  $100,000;                                                                                     
05                 (2)  in making the determination under this subsection, take into                                       
06       consideration factors and attributes apart from the property's assessed value                                     
07       determined by the assessor under AS 29.45.110.                                                                    
08            (g)  Notwithstanding any other provision of law, a person may not bring an                                   
09       action against the owner of land for an injury or damages resulting from the entry onto                           
10       that land by a state lessee, successor, assign, or applicant described in (a) of this                             
11       section in the exercise of the right described in that subsection.  However, this                                 
12       exemption does not apply if the owner of the land                                                                 
13                 (1)  is also the lessee, successor, assign, or applicant described in (a) of                            
14       this section who enters onto the land; or                                                                         
15                 (2)  acts in a manner that is grossly negligent or that constitutes                                     
16       intentional misconduct with respect to an activity of the state lessee, successor, assign,                        
17       or applicant described in (a) of this section in the exercise of the right described in that                      
18       subsection, and the owner's act contributes to the injury or damages.                                             
19    * Sec. 3.  AS 38.05 is amended by adding a new section to read:                                                    
20            Sec. 38.05.955.  Notice to landowner by reason of entry upon land under                                    
21       state's reservation of interest.  (a)  This section establishes the requirements for                            
22       notice given by the department to the owner of land subject to the reservation set out                            
23       in AS 38.05.125 when rights are to be exercised by the state, its lessee, successor,                              
24       assign, or an applicant described in AS 38.05.130(a).                                                             
25            (b)  If a state lessee, successor, assign, or applicant described in                                         
26       AS 38.05.130(a) has authority to enter on to land not owned by the state for a purpose                            
27       described in AS 38.05.130(a) and, under this chapter, the lessee, successor, assign, or                           
28       applicant is required to operate under a plan approved by the commissioner under                                  
29       AS 38.05.020 or the director under AS 38.05.035 setting out terms governing                                       
30       concurrent uses of the land, however the plan is denominated under this chapter or in a                           
31       regulation adopted under this chapter, before entry on to the land the commissioner                               
01       shall provide to the landowner                                                                                    
02                 (1)  a copy of the approved plan, together with a brief summary of the                                  
03       activity that, under the approved plan, the lessee, successor, assign, or applicant may                           
04       exercise on the land under the reservation; and                                                                   
05                 (2)  a brief description in writing of the legal rights of the owner,                                   
06       including rights of the owner set out in AS 38.05.130.