00                      CS FOR HOUSE BILL NO. 344(RES)                                                                    
01 "An Act relating to annual rental fees, statements of annual labor, and production                                      
02 royalty for mining claims; and providing a cure for abandonment."                                                       
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 38.05.265 is amended to read:                                                                     
05            Sec. 38.05.265.  Abandonment.  Failure to properly record a certificate of                                 
06       location or a statement of annual labor, pay any required annual rental, or pay any                               
07       required production royalty as required by AS 38.05.185 - 38.05.200, 38.05.210 -                                  
08       38.05.245, 38.05.252 - 38.05.275, and by regulations adopted under these sections                                 
09       constitutes abandonment of all rights acquired under the mining claim, leasehold                                  
10       location, or prospecting site involved, and the claim, leasehold location, or prospecting                         
11       site is subject to relocation by others, unless the failure constituting the                                  
12       abandonment is cured under (b) of this section.  A locator or claimant of an                                  
13       abandoned location or a successor in interest may not relocate the claim, leasehold                               
14       location, or prospecting site until one year after abandonment.  The locator of an                                

01       abandoned prospecting site may locate a claim or leasehold location on that site at any                           
02       time.  A statement of annual labor that does not accurately set out the essential facts is                        
03       void and of no effect.  If an annual rental or a royalty payment is deficient but is                              
04       otherwise timely paid, abandonment does not result if full payment is made within                                 
05                 (1)  the period prescribed by a deficiency notice from the                                              
06       commissioner; or                                                                                                  
07                 (2)  30 days after a final judgment establishing the amount due if the                                  
08       deficiency amount due was contested.                                                                              
09    * Sec. 2.  AS 38.05.265 is amended by adding a new subsection to read:                                             
10            (b)  Unless another person has located a mining claim, leasehold location, or                                
11       prospecting site that includes all or part of the mining claim, leasehold location, or                            
12       prospecting site abandoned under (a) of this section, a person may cure the failure to                            
13       record or pay that constituted the abandonment and cure the abandonment by                                        
14                 (1)  properly recording a certificate of location or a statement of annual                              
15       labor, paying any required annual rental, and paying any required production royalty;                             
16       and                                                                                                               
17                 (2)  paying a penalty equal to the annual rent for the mining claim,                                    
18       leasehold location, or prospecting site that was abandoned under (a) of this section.