CSSSSB 155(RES): "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 CS FOR SPONSOR SUBSTITUTE FOR SENATE BILL NO. 155(RES) 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, conservators, or trustees of citizens of the United 11 States under 18 years of age or citizens of the United States that are incapacitated 12 adults under AS 13.26 on behalf of the citizens; 13 (3) individuals [PERSONS] at least 18 years of age who have 14 declared their intention to become citizens of the United States;
01 (4) aliens at least 18 years of age if the laws of their country grant like 02 privileges to citizens of the United States; 03 (5) corporations, limited liability companies, or other entities that 04 are organized under the laws of the United States or of any state or territory of the 05 United States and qualified to do business in this state; 06 (6) trusts that are registered in this state under AS 13.36 and for 07 which at least one trustee is a person described in (1) - (5) of this subsection; or 08 (7) [(6)] associations of persons described in (1) - (6) [(1) - (5)] of this 09 subsection. 10 * Sec. 2. AS 38.05.190(b) is repealed and reenacted to read: 11 (b) An unqualified person who acquires an interest in exploration or mining 12 rights by conveyance or operation of law, or a person who was qualified under (a) of 13 this section at the time of location or acquisition of exploration and mining rights and 14 later becomes unqualified, may either become qualified or transfer the interest to a 15 qualified person within 90 days from the date the department sends written notice 16 under (c) of this section. If the unqualified person does not cure the defect or transfer 17 the interest to a qualified person, the department may declare the interest void under 18 (d) of this section. 19 * Sec. 3. AS 38.05.190 is amended by adding new subsections to read: 20 (c) If the department learns that an unqualified person has acquired an interest 21 in exploration or mining rights through conveyance or operation of law, the 22 department shall send written notice to the owner by certified mail, return receipt 23 requested, to the most recent address on file with the department, stating that the 24 interest will be void if the unqualified person does not cure the defect or transfer the 25 interest within 90 days. The department may send an additional copy of the notice by 26 regular mail. 27 (d) The department may declare void the exploration or mining interest of a 28 person who fails to comply with (b) of this section but may not declare the interest 29 void if the person becomes qualified under (e) of this section. 30 (e) An unqualified person may cure a defect in qualification, before or after 31 receiving notice under (c) of this section, by becoming qualified or transferring the
01 person's interest to a qualified person. A person may not cure a defect in qualification 02 for an exploration or mining interest that has been declared void under (d) of this 03 section. 04 (f) If an unqualified person fails to cure a defect in qualification within 90 05 days after the department sends written notice under (b) of this section, the department 06 may declare the exploration or mining interest void and the affected land becomes 07 open to location. A third party may not locate on the affected land or file a judicial 08 action to declare the exploration or mining interest invalid within those 90 days. 09 (g) In this section, "qualified to do business in this state" means holding a 10 certificate issued by the commissioner of commerce, community, and economic 11 development necessary to conduct business in the state. 12 * Sec. 4. AS 38.05.195(b) is amended to read: 13 (b) The locator may locate a claim using one of the following methods: 14 (1) a locator may locate a claim based on the ground location of a 15 [COMPLETE] quarter section or quarter-quarter section of a township on a 16 rectangular survey system approved by the commissioner; a claim established in this 17 manner may be known as a [THE] meridian, township, range, section, and claim 18 system location, or MTRSC location; a locator using the MTRSC system to locate a 19 claim shall in good faith mark the corners of a location as closely as practical to the 20 existing quarter section or quarter-quarter section of the rectangular survey system 21 approved by the commissioner; the corners marked on the ground of a claim 22 established in accordance with this paragraph and regulations of the commissioner 23 control in the event of a conflict over boundaries for the quarter section or quarter- 24 quarter section on the protracted or actual survey approved by the commissioner; a 25 valid MTRSC location establishes rights to deposits of minerals in or on all state 26 lands within the quarter section or quarter-quarter section that are open to claim 27 staking at the time of location; or 28 (2) a locator may locate a claim based on the staking of a ground 29 location in which the claim may not exceed 1,320 feet in its longest dimension; the 30 boundaries of a claim based on staking and located after January 1, 1985, shall run in 31 the four cardinal directions unless the claim is a fractional claim or the commissioner
01 determines that staking in compliance with this paragraph is impractical because of 02 local topography or because of the location of other claims; a claim established in this 03 manner may be known as a non-MTRSC location. 04 * Sec. 5. AS 38.05.195(d) is amended to read: 05 (d) Locations may be amended in the manner and with the effect prescribed in 06 AS 38.05.200. [ANNUAL LABOR SHALL BE PERFORMED AND STATEMENTS 07 OF ANNUAL LABOR RECORDED AS PRESCRIBED IN AS 38.05.210 - 08 38.05.235.] 09 * Sec. 6. AS 38.05.210(a) is amended to read: 10 (a) Labor shall be performed or improvements made annually on or for the 11 benefit or development of each mining claim, leasehold location, and mining lease on 12 state land, except that, where adjacent claims, leasehold locations, or mining leases are 13 held in common, including adjacent federal or private mineral interests held in 14 common, the expenditure may be made on or for the benefit of any one claim, 15 leasehold location, [OR] mining lease, or mineral interest. The commissioner shall 16 establish the date of the commencement of the year during which the labor or 17 improvements are to be performed. Labor shall be performed at the following annual 18 rates: (1) $100 for each [PER] claim, leasehold location, or lease if the claim, 19 leasehold location, or lease is a quarter-quarter section MTRSC claim, leasehold 20 location, or lease; (2) $400 for each quarter section MTRSC claim, leasehold location, 21 or lease; and (3) $100 for each partial or whole 40 acres of each mining claim, 22 leasehold location, or lease not established using the MTRSC system. If more work is 23 performed than is required by this section to be performed in any one year, the excess 24 value may be applied against labor required to be done during the subsequent year or 25 years, for as many as four years. For not more than five consecutive years, instead 26 [INSTEAD] of performing annual labor, the holder of a claim, leasehold location, or 27 mining lease may make a cash payment to the state equal to the value of the labor 28 required by this subsection. 29 * Sec. 7. AS 38.05.210(b) is amended to read: 30 (b) During the year in which annual labor is required or within 90 days after 31 the close of that year, the owner of the mining claim, leasehold location, or mining
01 lease, or some other person having knowledge of the facts, shall record with the 02 recorder of the district in which the claim, leasehold location, or mining lease is 03 located a signed statement of annual labor. The individual who signs the statement 04 shall certify that, to the best of the individual's knowledge, the information 05 contained in the statement is true and correct. The statement must include 06 [SETTING OUT] the following information: 07 (1) the assessment work year for which the statement is being 08 recorded; 09 (2) the name of and land administration number assigned by the 10 department for each mining claim, leasehold location, or mining lease benefited 11 by the labor; 12 (3) each meridian, township, range, and section in which a mining 13 claim, leasehold location, or mining lease is located; 14 (4) the recording district in which the mining claim, leasehold 15 location, or mining lease is located; 16 (5) the total amount of work required for the assessment work 17 year for a mining claim, leasehold location, or mining lease described in the 18 statement; 19 (6) a description of the labor performed during the assessment 20 work year; 21 (7) the value of 22 (A) the labor performed during the assessment work year; 23 (B) any excess labor value from a previous year applied 24 against the labor required; or 25 (C) any cash payment to the state applied toward the value 26 of the annual labor required under (a) of this section; 27 (8) the name and mailing address of an owner designated to 28 receive notices regarding a mining claim, leasehold location, or mining lease [, AS 29 MAY BE REQUIRED BY THE COMMISSIONER, CONCERNING THE ANNUAL 30 LABOR OF THE PRECEDING YEAR, ANY LABOR IN EXCESS OF THAT 31 REQUIRED FOR THE PRECEDING YEAR, AND ANY PAYMENT OF CASH
01 INSTEAD OF ANNUAL LABOR. THE STATEMENT, PROPERLY RECORDED, 02 IS PRIMA FACIE EVIDENCE OF THE PERFORMANCE OF THE LABOR. THE 03 FAILURE OF ONE OF SEVERAL CO-OWNERS TO CONTRIBUTE THE 04 PROPORTION OF THE EXPENDITURES REQUIRED FOR ANNUAL LABOR 05 FROM THE CO-OWNER SHALL BE TREATED IN ACCORDANCE WITH 06 AS 38.05.215 - 38.05.235]. 07 * Sec. 8. AS 38.05.210(c) is amended to read: 08 (c) The statement of annual labor required in (b) of this section, whether 09 recorded before or after the effective date of this Act, may be corrected or 10 amended before the 90 day period under (g) of this section has passed or in 11 accordance with AS 38.05.265(b). A corrected or [WITHIN TWO YEARS OF THE 12 DATE BY WHICH THE ANNUAL LABOR STATEMENT WAS REQUIRED TO 13 BE RECORDED. AN] amended statement of annual labor shall be recorded [FOR 14 RECORD] in the same manner as the original statement. Additional labor claimed in a 15 corrected or [AN] amended statement may not be applied against labor required to be 16 done during a subsequent year. 17 * Sec. 9. AS 38.05.210 is amended by adding new subsections to read: 18 (e) A single statement of annual labor may be recorded for labor performed on 19 or for the benefit of more than one mining claim, leasehold location, or mining lease. 20 (f) A statement of annual labor, timely recorded, is prima facie evidence of the 21 performance of the labor. 22 (g) The department may not declare a mining claim or leasehold location 23 invalid based on a deficiency in a statement of annual labor until 90 days after the date 24 the department sends written notice regarding a deficiency in the statement to the 25 owner of the mining claim or leasehold location by certified mail, return receipt 26 requested, to the most recent address on file with the department. The department may 27 send an additional copy of the notice by regular mail. 28 (h) If a person fails to correct a deficient statement of annual labor within 90 29 days after notice is sent under (g) of this section, the department may declare the 30 mining claim or leasehold location invalid and the affected land becomes open to 31 location. A third party may not locate on the affected land or file a judicial action to
01 declare the mining claim or leasehold location invalid within those 90 days. 02 (i) The department may not declare a mining claim, leasehold location, or 03 mining lease invalid based on a deficiency in a statement of annual labor, and a third 04 party may not file a judicial action seeking invalidation as the result of a deficiency in 05 a statement of annual labor, later than five years after the date the deficient statement 06 of annual labor is recorded. 07 (j) The failure of one of several co-owners to contribute the proportion of the 08 expenditures required for annual labor from the co-owner shall be treated in 09 accordance with AS 38.05.215 - 38.05.235. 10 * Sec. 10. AS 38.05.240 is amended to read: 11 Sec. 38.05.240. Labor defined for AS 38.05.210 - 38.05.235. In AS 38.05.210 12 - 38.05.235, "labor" includes work performed or improvements made in good faith 13 on or for the benefit of a mining claim, leasehold location, or mining lease that is 14 directly related to exploring for, developing, or producing minerals, including 15 (1) excavating, tunneling, drilling, or clearing land; 16 (2) constructing or maintaining roads, trails, or landing strips; 17 (3) extracting or producing ore; 18 (4) performing a metallurgical analysis, an environmental study, 19 or an economic feasibility study, or conducting engineering or permitting 20 activity; 21 (5) constructing settling ponds, water supplies, or other utilities; 22 (6) providing worker housing; 23 (7) performing reclamation activities under a reclamation plan 24 approved under AS 27.19.030; 25 (8) transporting workers and equipment in the state to or from a 26 mining site; the claimed value of transportation under this subparagraph may 27 not exceed 50 percent of the total value of labor in a statement of annual labor 28 recorded under AS 38.05.210(b) for the assessment year; 29 (9) conducting a geological, geochemical, geophysical, or [AND] 30 airborne survey [SURVEYS CONDUCTED] by a qualified expert [EXPERTS] and 31 verified by a [DETAILED] report filed in the recording district office in which the
01 claim, leasehold location, or mining lease is located that [WHICH] sets out 02 (A) [FULLY (1)] the location of the survey [WORK 03 PERFORMED] in relation to the [POINT OF DISCOVERY AND] boundaries 04 of the claim, leasehold location, or mining lease; 05 (B) [, (2)] the nature, extent, and cost of the survey; [IT,] and 06 (C) [(3)] the name, address, and professional background of the 07 person conducting the work; the [. THE] commissioner, by regulation, shall 08 define the nature of acceptable survey work and the qualifications of a person 09 competent to perform the [THIS] work; an [. THE] airborne survey 10 conducted under this paragraph [SURVEYS, HOWEVER, MAY NOT BE 11 APPLIED AS LABOR FOR MORE THAN TWO CONSECUTIVE YEARS 12 OR FOR MORE THAN A TOTAL OF FIVE YEARS ON ANY ONE 13 MINING CLAIM, LEASEHOLD LOCATION, OR MINING LEASE, AND 14 EACH OF THOSE SURVEYS] shall be nonrepetitive of any previous survey 15 on the same claim, leasehold location, or mining lease. 16 * Sec. 11. AS 38.05.265 is amended to read: 17 Sec. 38.05.265. Abandonment. (a) Failure to perform the labor or make 18 improvements or make a payment in lieu of labor under AS 38.05.210(a), timely 19 [PROPERLY] record a certificate of location or [A] statement of annual labor, timely 20 pay any required annual rental, or timely pay any required production royalty under 21 AS 38.05.212 [AS REQUIRED BY AS 38.05.185 - 38.05.200, 38.05.210 - 38.05.245, 22 38.05.252 - 38.05.275, AND BY REGULATIONS ADOPTED UNDER THESE 23 SECTIONS] constitutes abandonment of all rights acquired under the mining claim, 24 leasehold location, or prospecting site involved, and the claim, leasehold location, or 25 prospecting site is subject to relocation by others, unless the failure constituting the 26 abandonment is cured under (b) of this section. A locator or claimant of an abandoned 27 location or a successor in interest may not relocate the claim, leasehold location, or 28 prospecting site until one year after abandonment. The locator of an abandoned 29 prospecting site may locate a claim or leasehold location on that site at any time. [A 30 STATEMENT OF ANNUAL LABOR THAT DOES NOT ACCURATELY SET 31 OUT THE ESSENTIAL FACTS IS VOID AND OF NO EFFECT.] If an annual rental
01 or a royalty payment is deficient but is otherwise timely paid, abandonment does not 02 result if full payment is made within 03 (1) the period prescribed by a deficiency notice from the department 04 [COMMISSIONER]; or 05 (2) 30 days after a final judgment establishing the amount due if the 06 deficiency amount due was contested. 07 (b) Unless another person has located a mining claim or leasehold location 08 that includes all or part of the mining claim or leasehold location abandoned under (a) 09 of this section or the area is closed to mineral location under AS 38.05.185 - 10 38.05.275, a person may cure the failure to record or pay rents or royalties that 11 constituted the abandonment and cure the abandonment by 12 (1) properly recording a certificate of location or a statement of annual 13 labor, paying any required annual rental, and paying any required production royalty; 14 and 15 (2) paying a penalty equal to the annual rent for the mining claim or 16 leasehold location that was abandoned under (a) of this section. 17 * Sec. 12. AS 38.05.270 is amended to read: 18 Sec. 38.05.270. Transfers. Evidence of a [THE] sale, lease, or other transfer 19 of mining property or interest in mining property shall be recorded [OR SHALL BE 20 APPROVED BY THE DIRECTOR IN COMPLIANCE WITH SUCH 21 REGULATIONS AS THE COMMISSIONER MAY ADOPT. THE HEIRS AND 22 ASSIGNS OF MINING PROPERTY OR INTEREST IN MINING PROPERTY 23 HAVE THE SAME RIGHTS AND DUTIES AS THEIR PREDECESSORS]. 24 * Sec. 13. AS 38.05.275(a) is amended to read: 25 (a) Mining locations made on state land, including shoreland, tideland, or 26 submerged land, or state selected land, under AS 38.05.185 - 38.05.275 or in the 27 manner described in AS 27.10, acquire for the locator mining rights under 28 AS 38.05.185 - 38.05.275, subject to existing claims and to any denial of or restriction 29 in the tentative approval of state selection or patent of the land to the state. If 30 shoreland, tideland, or submerged land is included in a mining location or within the 31 projected boundaries of a mining location made in accordance with this section, the
01 locator shall record a certificate of location under AS 38.05.195. The certificate of 02 location must identify the position of the mining location in the system of rectangular 03 or protracted surveys. If the mining location is made in the manner described in 04 AS 27.10, the commissioner may require that the locator amend the mining location to 05 conform with AS 38.05.185 - 38.05.275 and thereafter to comply with the 06 requirements of AS 38.05.185 - 38.05.275. A mining location on state selected land 07 located within an active unpatented federal mining claim may be located only by 08 or with the written and recorded permission of the holder of the unpatented 09 federal mining claim. 10 * Sec. 14. AS 38.05 is amended by adding a new section to read: 11 Sec. 38.05.283. Departmental review. The department is not required to 12 determine whether an owner of a mining claim, leasehold location, or mining lease is 13 in compliance with this chapter or the regulations adopted under this chapter. 14 * Sec. 15. The uncodified law of the State of Alaska is amended by adding a new section to 15 read: 16 APPLICABILITY. (a) AS 38.05.210(c), as amended by sec. 8 of this Act, and 17 AS 38.05.210(e) - (i), enacted by sec. 9 of this Act, apply to statements of annual labor filed 18 before, on, or after the effective date of this Act, if, before the effective date of this Act, a 19 final decision or judgment has not been entered invalidating the mineral interest and, after the 20 final decision or judgment, a claim has not been located or a leasehold granted on the affected 21 land. 22 (b) AS 38.05.275(a), as amended by sec. 13 of this Act, applies to mining locations 23 made on state selected land on or after the effective date of this Act. 24 * Sec. 16. The uncodified law of the State of Alaska is amended by adding a new section to 25 read: 26 TRANSITION. Until the Department of Natural Resources adopts regulations 27 consistent with the changes made in this Act, the Department of Natural Resources may not 28 declare a mining claim, leasehold location, or prospecting site abandoned under 29 AS 38.05.265, as amended by sec. 11 of this Act, on the basis that a statement of annual labor 30 fails to include the information required by AS 38.05.210, as amended by secs. 6 - 9 of this 31 Act.
01 * Sec. 17. This Act takes effect immediately under AS 01.10.070(c).