HB 344: "An Act relating to annual rental fees for mining claims, and providing for reduced royalties during the first three years of production."
00 HOUSE BILL NO. 344 01 "An Act relating to annual rental fees for mining claims, and providing for reduced 02 royalties during the first three years of production." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 38.05.211(a) is amended to read: 05 (a) The holder of each mining claim, leasehold location, prospecting site, and 06 mining lease, including a mining lease under AS 38.05.250, shall pay, in advance, 07 rental for the right to continue to hold the mining claim, leasehold location, 08 prospecting site, and mining lease, including a mining lease under AS 38.05.250. 09 Rental is due and payable as follows: 10 (1) the rental amount for a prospecting site is fixed at $200 for the two- 11 year term of the site; 12 (2) annual rental for a mining claim, leasehold location, or mining 13 lease shall be based on the number of years since a mining claim, a leasehold location, 14 or a mining lease's predecessor claim or leasehold location was first located; except as
01 provided in (f) and (g) of this section, the annual rental amounts for a mining claim, 02 leasehold location, or mining lease are as follows: 03 Rental Amount 04 for Each Mining 05 Claim or Leasehold 06 Location, Including 07 Number of Years Rental Amount Per Each Quarter-Quarter 08 Since Acre for Mining Section MTRSC 09 First Located Leases System 10 0 - 5 $ .50 $ 20 11 6 - 10 $1.00 40 12 11 - or more $2.50 100; 13 (3) the annual rental in any year for each quarter section claim, 14 leasehold location, or lease based on the MTRSC system is four times the rental 15 amount for a quarter-quarter section mining claim, leasehold location, or lease in that 16 year. 17 * Sec. 2. AS 38.05.211 is amended by adding new subsections to read: 18 (f) For a holder of 20 or fewer placer mining claims that, when combined, 19 total fewer than 800 acres, the rental amount for each mining claim or leasehold 20 location, including each quarter-quarter section MTRSC system, is the amount listed 21 in (a) of this section less two and one-half cents an acre for each placer mining claim; 22 the rental amount is payable under this subsection from the time of the claim's location 23 until production begins, or five years following the year in which the claim was first 24 located have elapsed, whichever is earlier. 25 (g) For a holder of 50 or fewer hardrock mining claims that, when combined, 26 total fewer than 2,000 acres, the rental amount for each mining claim or leasehold 27 location, including each quarter-quarter section MTRSC system, is the amount listed 28 in (a) of this section less two and one-half cents an acre for each hardrock mining 29 claim; the rental amount is payable under this subsection from the time of the claim's 30 location until production subject to the production royalty under AS 38.05.212 begins, 31 or five years following the year in which the claim was first located have elapsed,
01 whichever is earlier. 02 * Sec. 3. AS 38.05.212(b) is amended to read: 03 (b) The production royalty 04 (1) is one percent of net income as determined under AS 43.65 for 05 the first three years of production, and three percent of net income as determined 06 under AS 43.65 thereafter; and 07 (2) is subject to 08 (A) the exploration incentive credit authorized by AS 27.30; 09 and 10 (B) a credit equal to the total amount of net losses during 11 the first three years of production; this credit may be applied to the 12 production royalty owed in the first three years during which production 13 yields a net income.