Legislature(1999 - 2000)
02/21/2000 03:12 PM Senate RES
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 175-STATE MINING LAW
MR. STEVE BORELL, Executive Director of the Alaska Miners
Association, said that SB 175 is the result of several years of
work between the mining industry and the Department of Natural
Resources (DNR). The changes in it only affect the process
required to locate and stake mining claims. They do not increase
or decrease the rights that are established by the claims. The
primary catalyst for the review was the on-going state budget
challenge combined with technological advances regarding land
records, Internet access to land records, and global positioning
systems (GPS).
The advances make it easier to post the data in a timely and
efficient manner, which was the primary issue for DNR. Mining
claims will be put into a format that can be electronically
entered on the state land status plats, which should improve
accuracy, accessibility, and timeliness of the data. From the
standpoint of the mining industry, the changes will simplify the
claim staking process and reduce errors. They will also make it
possible to use global positioning systems to establish claim
corners in the field.
SB 175 will also allow the use of a larger size of mining claim,
which will decrease the amount of "pick work" for both the miner
and DNR. The existing claim location system will continue to be
available for situations in which the new positioning method is
not practical. The bill also establishes rent for prospecting
sites which do not have a rental rate on them now. It also adds
some restrictions on using the new system: Meridian, Township,
Range, Section, and Claim, (MTRSC). If that system is used, it
must be done in a way that will facilitate the process for DNR.
Mr. Borell said the mining industry believes SB 175 makes
appropriate changes.
Number 115
CHAIRMAN HALFORD asked if the bill allows for claim locations
that are not posted on the ground.
MR. BORELL answered no, the post in the ground is the essential
starting point according to the state mining law. SB 175 does
not change that.
SENATOR TAYLOR asked, if it doesn't change the requirement to
post on the ground, what savings are involved and how SB 175 will
improve the system.
MR. BORELL explained that an aliquot grid, based on meridian,
township, range and section, covers the entire state. If a miner
goes out and establishes claim corners and tells DNR the location
defined by MTRSC, DNR's cost is significantly less because a
draftsman will no longer have to enter it onto the land status
plats. The claim can be highlighted on the appropriate plat with
a computer cursor. DNR staff would confirm the data and hit the
enter button; the claim would then be on the land status plat and
almost instantaneously available anywhere in the state or world.
SENATOR TAYLOR commented that DNR is willing to use aliquot parts
and GPS with mining claims but it has been totally resistant to
do anything like that when it comes to land sales in the state.
SENATOR LINCOLN requested a fiscal note.
MR. BOB LOEFFLER, Division of Mining, DNR, stated support for SB
175. The Division has a problem providing the services the
mining industry relies upon. This bill is a partial solution to
that problem. In the early '90s, the Division did about 3,000
mining claim stakings per year. In FY99, there were 15,000 and
in the late '90s there have been 10,000 to 11,000. The Division
expects that number to continue. The Division is pleased with
that level but when it receives more than 10,000 applications per
year, the Division can't turn them around fast enough. It has a
four to six month back log in terms of creating a record for each
mining claim. This bill solves the problem in two ways: it
allows for larger mining claims, which will require fewer to be
processed and it allows the miners to stake the claims in a way
that helps the division automate the system.
MR. LOEFFLER said the fiscal note is a bit odd and he doesn't
want to mislead the committee. SB 175 applies rents to
prospecting sites. The Division believes it will generate new
revenue of about $150,000; half would go to the treasury and half
to the Permanent Fund. At the same time, the Division isn't able
to provide the services to make use of this information. To
reduce the backlog, the Division will need approximately $75,000
to process the claims. The Division attempted to demonstrate in
the fiscal note that the bill will create a new revenue source
but it will need to capture some of those funds to provide the
services to generate the funds. He said DNR would support the
bill in any form.
Number 598
SENATOR TAYLOR asked Mr. Loeffler if he ever talked to anyone in
the Division of Lands regarding the sale of land, because the
allowance to stake a claim is a conveyance of an interest in
state real property. He thought there should be some
coordination between the Division of Land and the Division of
Mining. He applauded Mr. Loeffler for the changes he worked out
with the miners and for using technology to locate these points.
He questioned why the Division of Lands couldn't use the same
method of aliquot parts and location by GPS for land sales.
MR. LOEFFLER answered that the Division of Mining, Land, and
Water is now one division. He explained that when a claim is
staked on aliquot parts, the record will reflect aliquot parts;
however, the on-the-ground post prevails. Therefore, if the post
is off the aliquot parts by 100 feet, the location on the ground
may not be the aliquot parts. The mining industry was willing to
say that the record may reflect the aliquot parts, but the actual
on-the-ground location is, in fact, whatever the post says it is.
Therefore, if you want to know exactly where that mining claim is
on the ground, you have to survey it. The aliquot part
reflection is just a paper location. The same is true of land
sales. While the use of GPS is very helpful, the physical
location on-the-ground prevails.
SENATOR TAYLOR said he understands that, but the land sales
section has not been willing to even talk about GPS or aliquot
parts. They are insisting on on-site surveys before anything is
actually noticed. He thought the same system could be applied to
land sales. He encouraged Mr. Loeffler to work with them to
utilize the aliquot parts and GPS to provide notification to the
public of lands available for sale and then require the land to
be surveyed before any transaction takes place.
CHAIRMAN HALFORD said, based on the way DNR handled the
unallocated cuts in its last budget, he isn't sure he would
encourage the Finance Committee to give it any more money, but he
said this does look like a proposal that could work.
CHAIRMAN HALFORD noted one section of the bill deletes the
requirement that boundaries of the claim remain clearly marked.
He asked how sections 7 and 8 work, as well as the prohibition on
the prior locator, and how that applies to both prospecting sites
and claim locations. He said he was wondering how it would apply
to a person who did not submit all of the paperwork and can no
longer locate on that prospecting site, while anyone else can.
MR. LOEFFLER responded if a person does not complete the work
required to keep a prospecting site in good order, he may not
stake the prospecting site for a year but the person can stake a
claim. That is consistent with existing law and was designed to
prevent people from staking prospecting sites or claims on
speculation.
Number 1959
MR. BORELL explained that under current law, a person can stake a
prospecting site and not pay rent and, at the end of one year,
automatically extend it for a second year. At the end of the
second year, if the individual was unable to get the work done
because of extenuating circumstances, the law allows the person
to request another extension from DNR. The fact of the matter is
that every time DNR receives such a request, it involves quite a
bit work of work to decide if an extension appropriate.
During the discussions between DNR and the industry, they decided
to set the life of a prospecting site at two years and to
prohibit any extensions. At the end of the two-year period, the
owner of the prospecting site can stake a mining claim or a lease
hold location on top of that prospecting site and convert the
site into a mining claim. That conversion must occur prior to
the expiration of the prospecting site's two-year life. Anyone
holding a prospecting site who fails to convert to a mining claim
would be prohibited from staking another prospecting site. They
could stake a mining claim, but not a prospecting site. They
could stake a mining claim, however. The idea behind it is that
there is a two-year period in which you have to follow the rules
for a prospecting site and, after that, if you don't convert, you
are out of luck for a year. If no one else has staked it after a
year, the person can come back and stake it.
CHAIRMAN HALFORD asked if they could do anything to provide a
valid discovery on a piece of property on which one doesn't have
a prospecting site.
MR. BORELL answered yes. You can do work on any ground that is
not restricted. The prospecting site provides legal protection
against someone else who would come along and stake the claim,
which does happen.
Number 2198
SENATOR TAYLOR moved to pass SB 175 from committee with
individual recommendations. There were no objections and it was
so ordered.
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