SB 155: "An Act relating to exploration and mining rights; relating to annual labor requirements with respect to mining claims and related leases; relating to statements of annual labor; defining 'labor'; and providing for an effective date."
00 SENATE BILL NO. 155 01 "An Act relating to exploration and mining rights; relating to annual labor 02 requirements with respect to mining claims and related leases; relating to statements of 03 annual labor; defining 'labor'; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 38.05.190(a) is amended to read: 06 (a) Except as provided in (b) of this section, [THE RIGHT TO ACQUIRE] 07 exploration and mining rights under AS 38.05.185 - 38.05.275 may be acquired or 08 held only by 09 (1) citizens of the United States at least 18 years of age; 10 (2) legal guardians [OR TRUSTEES] of citizens of the United States 11 under 18 years of age on behalf of the citizens; 12 (3) individuals [PERSONS] at least 18 years of age who have 13 declared their intention to become citizens of the United States; 14 (4) aliens at least 18 years of age if the laws of their country grant like
01 privileges to citizens of the United States; 02 (5) corporations, limited liability companies, or other entities that 03 are organized under the laws of the United States or of any state or territory of the 04 United States and qualified to do business in this state; 05 (6) trusts for which at least one trustee is a person described in (1) 06 - (5) of this subsection; or 07 (7) [(6)] associations of persons described in (1) - (6) [(1) - (5)] of this 08 subsection. 09 * Sec. 2. AS 38.05.190(b) is repealed and reenacted to read: 10 (b) An unqualified person who acquires an interest in exploration or mining 11 rights by conveyance or operation of law, or a person who was qualified under (a) of 12 this section at the time of acquisition and later becomes unqualified, may either 13 become qualified or transfer the interest to a qualified person within 90 days from the 14 date the department sends written notice under (c) of this section. If the unqualified 15 person does not cure the defect or transfer the interest to a qualified person, the 16 department may declare the interest void under (d) of this section. 17 * Sec. 3. AS 38.05.190 is amended by adding new subsections to read: 18 (c) If the department learns that an unqualified person has acquired an interest 19 in exploration or mining rights through conveyance or operation of law, the 20 department shall send written notice to the owner and address listed in the most recent 21 statement of annual labor filed under AS 38.05.210(b) or to the address in the deed or 22 assignment of the claim, stating that the interest will be void if the unqualified person 23 does not cure the defect or transfer the interest. 24 (d) The department may declare void the exploration or mining interest of a 25 person who fails to comply with (b) of this section but may not declare the interest 26 void if the person becomes qualified under (e) of this section. 27 (e) An unqualified person may cure a defect in qualification, before or after 28 receiving notice under (c) of this section, by becoming qualified or transferring the 29 person's interest to a qualified person. A person may not cure a defect in qualification 30 for an exploration or mining interest that has been declared void under (d) of this 31 section.
01 (f) In this section, "qualified to do business in this state" means holding a 02 certificate issued by the commissioner of commerce, community, and economic 03 development necessary to conduct business in the state. 04 * Sec. 4. AS 38.05.195(b) is amended to read: 05 (b) The locator may locate a claim using one of the following methods: 06 (1) a locator may locate a claim based on the ground location of a 07 [COMPLETE] quarter section or quarter-quarter section of a township on a 08 rectangular survey system approved by the commissioner; a claim established in this 09 manner may be known as a [THE] meridian, township, range, section, and claim 10 system location, or MTRSC location; a locator using the MTRSC system to locate a 11 claim shall in good faith mark the corners of a location as closely as practical to the 12 existing quarter section or quarter-quarter section of the rectangular survey system 13 approved by the commissioner; the corners marked on the ground of a claim 14 established in accordance with this paragraph and regulations of the commissioner 15 control in the event of a conflict over boundaries for the quarter section or quarter- 16 quarter section on the protracted or actual survey approved by the commissioner; a 17 valid MTRSC location establishes rights to deposits of minerals in or on all state 18 lands within the quarter section or quarter-quarter section that are open to claim 19 staking at the time of location; or 20 (2) a locator may locate a claim based on the staking of a ground 21 location in which the claim may not exceed 1,320 feet in its longest dimension; the 22 boundaries of a claim based on staking and located after January 1, 1985, shall run in 23 the four cardinal directions unless the claim is a fractional claim or the commissioner 24 determines that staking in compliance with this paragraph is impractical because of 25 local topography or because of the location of other claims; a claim established in this 26 manner may be known as a non-MTRSC location. 27 * Sec. 5. AS 38.05.195(d) is amended to read: 28 (d) Locations may be amended in the manner and with the effect prescribed in 29 AS 38.05.200. [ANNUAL LABOR SHALL BE PERFORMED AND STATEMENTS 30 OF ANNUAL LABOR RECORDED AS PRESCRIBED IN AS 38.05.210 - 31 38.05.235.]
01 * Sec. 6. AS 38.05.210(a) is amended to read: 02 (a) Labor shall be performed or improvements made annually on or for the 03 benefit or development of each mining claim, leasehold location, and mining lease on 04 state land except that, where adjacent claims, leasehold locations, or mining leases are 05 held in common and are being developed or operated under a common plan of 06 development, either alone or with adjacent mineral interests, the expenditure may 07 be made on or for the benefit of any one claim, leasehold location, or mining lease. 08 The commissioner shall establish the date of the commencement of the year during 09 which the labor or improvements are to be performed. Labor shall be performed at the 10 following annual rates: (1) $100 for each [PER] claim, leasehold location, or lease if 11 the claim, leasehold location, or lease is a quarter-quarter section MTRSC claim, 12 leasehold location, or lease; (2) $400 for each quarter section MTRSC claim, 13 leasehold location, or lease; and (3) $100 for each partial or whole 40 acres of each 14 mining claim, leasehold location, or lease not established using the MTRSC system. If 15 more work is performed than is required by this section to be performed in any one 16 year, the excess value may be applied against labor required to be done during the 17 subsequent year or years, for as many as four years. For not more than five 18 consecutive years, instead [INSTEAD] of performing annual labor, the holder of a 19 claim, leasehold location, or mining lease may make a cash payment to the state equal 20 to the value of the labor required by this subsection. 21 * Sec. 7. AS 38.05.210(b) is amended to read: 22 (b) During the year in which annual labor is required or within 90 days after 23 the close of that year, the owner of the mining claim, leasehold location, or mining 24 lease, or some other person having knowledge of the facts, shall record with the 25 recorder of the district in which the claim, leasehold location, or mining lease is 26 located a signed statement of annual labor. The individual who signs the statement 27 shall certify that, to the best of the individual's knowledge, the information 28 contained in the statement is true and correct. The statement must include 29 [SETTING OUT] the following information: 30 (1) the assessment work year for which the statement is being 31 recorded;
01 (2) the name of and land administration number assigned by the 02 department for each mining claim, leasehold location, or mining lease benefited 03 by the labor; 04 (3) each meridian, township, range, and section in which a mining 05 claim, leasehold location, or mining lease is located; 06 (4) the recording district in which the mining claim, leasehold 07 location, or mining lease is located; 08 (5) the total amount of work required for the assessment work 09 year for a mining claim, leasehold location, or mining lease described in the 10 statement; 11 (6) a description of the labor performed during the assessment 12 work year; 13 (7) the value of the labor performed during the assessment work 14 year; 15 (8) the name and mailing address of an owner designated to 16 receive notices regarding a mining claim, leasehold location, or mining lease [, AS 17 MAY BE REQUIRED BY THE COMMISSIONER, CONCERNING THE ANNUAL 18 LABOR OF THE PRECEDING YEAR, ANY LABOR IN EXCESS OF THAT 19 REQUIRED FOR THE PRECEDING YEAR, AND ANY PAYMENT OF CASH 20 INSTEAD OF ANNUAL LABOR. THE STATEMENT, PROPERLY RECORDED, 21 IS PRIMA FACIE EVIDENCE OF THE PERFORMANCE OF THE LABOR. THE 22 FAILURE OF ONE OF SEVERAL CO-OWNERS TO CONTRIBUTE THE 23 PROPORTION OF THE EXPENDITURES REQUIRED FOR ANNUAL LABOR 24 FROM THE CO-OWNER SHALL BE TREATED IN ACCORDANCE WITH 25 AS 38.05.215 - 38.05.235]. 26 * Sec. 8. AS 38.05.210(c) is amended to read: 27 (c) The statement of annual labor required in (b) of this section, whether 28 recorded before or after the effective date of this Act, may be corrected or 29 amended at any time, regardless of when the statement of annual labor was 30 recorded. A corrected or [WITHIN TWO YEARS OF THE DATE BY WHICH 31 THE ANNUAL LABOR STATEMENT WAS REQUIRED TO BE RECORDED.
01 AN] amended statement of annual labor shall be recorded [FOR RECORD] in the 02 same manner as the original statement. Additional labor claimed in a corrected or 03 [AN] amended statement may not be applied against labor required to be done during 04 a subsequent year. 05 * Sec. 9. AS 38.05.210 is amended by adding new subsections to read: 06 (e) A statement of annual labor, timely recorded, is prima facie evidence of 07 the performance of the labor. 08 (f) The department may not declare a mining claim or leasehold location 09 invalid based on a deficiency in a statement of annual labor until 90 days after the date 10 the department sends written notice to the owner of the mining claim or leasehold 11 location at the address provided in the most recent statement of annual labor recorded 12 under (b) of this section. The department is not required to review whether a statement 13 of annual labor meets the requirements in (b) of this section or regulations adopted by 14 the department to implement this chapter. 15 (g) A decision by the department or an action brought by a third party to 16 declare a mining claim, leasehold location, or mining lease invalid based on a 17 deficiency in a statement of annual labor must be issued or commenced not later than 18 five years after the date the statement of annual labor is recorded. 19 (h) The failure of one of several co-owners to contribute the proportion of the 20 expenditures required for annual labor from the co-owner shall be treated in 21 accordance with AS 38.05.215 - 38.05.235. 22 * Sec. 10. AS 38.05.240 is amended to read: 23 Sec. 38.05.240. Labor defined for AS 38.05.210 - 38.05.235. In AS 38.05.210 24 - 38.05.235, "labor" includes 25 (1) work performed or improvements made in good faith on or for 26 the benefit of a mining claim, leasehold location, or mining lease that is directly 27 related to prospecting, developing, or producing minerals; 28 (2) costs of persons, materials, services, and equipment used for 29 activities for the benefit of a mining claim, leasehold location, or mining lease, 30 including 31 (A) prospecting for minerals;
01 (B) excavating, tunneling, drilling, or clearing brush or 02 timber; 03 (C) constructing or maintaining roads, trails, or landing 04 strips; 05 (D) extracting or producing ore; 06 (E) performing a metallurgical analysis, an environmental 07 study, or an economic feasibility study, or conducting engineering or 08 permitting activity; 09 (F) constructing settling ponds, water supplies, or other 10 utilities; 11 (G) providing worker housing; 12 (H) performing reclamation activities under a reclamation 13 plan approved under AS 27.19.030; 14 (I) transporting workers and equipment in the state to or 15 from a mining site; the claimed value of transportation under this 16 subparagraph may not exceed 50 percent of the total value of labor in a 17 statement of annual labor recorded under AS 38.05.210(b) for the 18 assessment year; 19 (J) conducting a geological, geochemical, geophysical, or 20 [AND] airborne survey [SURVEYS CONDUCTED] by a qualified expert 21 [EXPERTS] and verified by a [DETAILED] report filed in the recording 22 district office in which the claim, leasehold location, or mining lease is located 23 that [WHICH] sets out 24 (i) [FULLY (1)] the location of the survey [WORK 25 PERFORMED] in relation to the [POINT OF DISCOVERY AND] 26 boundaries of the claim, leasehold location, or mining lease; 27 (ii) [, (2)] the nature, extent, and cost of the survey; 28 [IT,] and 29 (iii) [(3)] the name, address, and professional 30 background of the person conducting the work; the [. THE] 31 commissioner, by regulation, shall define the nature of acceptable
01 survey work and the qualifications of a person competent to perform 02 the [THIS] work; an [. THE] airborne survey conducted under this 03 subparagraph [SURVEYS, HOWEVER, MAY NOT BE APPLIED 04 AS LABOR FOR MORE THAN TWO CONSECUTIVE YEARS OR 05 FOR MORE THAN A TOTAL OF FIVE YEARS ON ANY ONE 06 MINING CLAIM, LEASEHOLD LOCATION, OR MINING LEASE, 07 AND EACH OF THOSE SURVEYS] shall be nonrepetitive of any 08 previous survey on the same claim, leasehold location, or mining lease. 09 * Sec. 11. AS 38.05.265(a) is amended to read: 10 (a) Failure to perform the labor or make improvements or make a 11 payment in lieu of labor under AS 38.05.210(a), timely [PROPERLY] record a 12 certificate of location or [A] statement of annual labor, timely pay any required annual 13 rental, or timely pay any required production royalty under AS 38.05.212 [AS 14 REQUIRED BY AS 38.05.185 - 38.05.200, 38.05.210 - 38.05.245, 38.05.252 - 15 38.05.275, AND BY REGULATIONS ADOPTED UNDER THESE SECTIONS] 16 constitutes abandonment of all rights acquired under the mining claim, leasehold 17 location, or prospecting site involved, and the claim, leasehold location, or prospecting 18 site is subject to relocation by others, unless the failure constituting the abandonment 19 is cured under (b) of this section. A locator or claimant of an abandoned location or a 20 successor in interest may not relocate the claim, leasehold location, or prospecting site 21 until one year after abandonment. The locator of an abandoned prospecting site may 22 locate a claim or leasehold location on that site at any time. [A STATEMENT OF 23 ANNUAL LABOR THAT DOES NOT ACCURATELY SET OUT THE 24 ESSENTIAL FACTS IS VOID AND OF NO EFFECT.] If an annual rental or a 25 royalty payment is deficient but is otherwise timely paid, abandonment does not result 26 if full payment is made within 27 (1) the period prescribed by a deficiency notice from the department 28 [COMMISSIONER]; or 29 (2) 30 days after a final judgment establishing the amount due if the 30 deficiency amount due was contested. 31 * Sec. 12. AS 38.05.275(a) is amended to read:
01 (a) Mining locations made on state land, including shoreland, tideland, or 02 submerged land, or state selected land, under AS 38.05.185 - 38.05.275 or in the 03 manner described in AS 27.10, acquire for the locator mining rights under 04 AS 38.05.185 - 38.05.275, subject to existing claims and to any denial of or restriction 05 in the tentative approval of state selection or patent of the land to the state. If 06 shoreland, tideland, or submerged land is included in a mining location or within the 07 projected boundaries of a mining location made in accordance with this section, the 08 locator shall record a certificate of location under AS 38.05.195. The certificate of 09 location must identify the position of the mining location in the system of rectangular 10 or protracted surveys. If the mining location is made in the manner described in 11 AS 27.10, the commissioner may require that the locator amend the mining location to 12 conform with AS 38.05.185 - 38.05.275 and thereafter to comply with the 13 requirements of AS 38.05.185 - 38.05.275. A mining location on state selected land 14 located within an active unpatented federal mining claim may be located only by 15 or with the written and recorded permission of the holder of the unpatented 16 federal mining claim. 17 * Sec. 13. The uncodified law of the State of Alaska is amended by adding a new section to 18 read: 19 APPLICABILITY. (a) AS 38.05.210(c), as amended by sec. 8 of this Act, applies to 20 statements of annual labor filed before, on, or after the effective date of this Act. 21 (b) AS 38.05.210(e) - (g), enacted by sec. 9 of this Act, apply to all pending claims or 22 actions filed before, on, or after the effective date of this Act. 23 (c) AS 38.05.275(a), as amended by sec. 12 of this Act, applies to mining locations 24 made on state selected land on or after July 1, 2020. 25 * Sec. 14. The uncodified law of the State of Alaska is amended by adding a new section to 26 read: 27 TRANSITION. Until the Department of Natural Resources adopts regulations 28 consistent with the changes made in this Act, the Department of Natural Resources may not 29 declare a mining claim, leasehold location, or prospecting site abandoned under 30 AS 38.05.265, as amended by sec. 11 of this Act, on the basis that a statement of annual labor 31 fails to include the information required by AS 38.05.210, as amended by secs. 6 - 9 of this
01 Act. 02 * Sec. 15. This Act takes effect immediately under AS 01.10.070(c).