As the name indicates,
this section in the division maintains the records for mineral property
rights established under state laws and regulations. The timely maintenance
of property right records is fundamental to the mineral industry operating.
Property right records must be current and up-to-date for title purposes
so that the mining industry can operate. Financing and permitting
of mining operations is dependent upon having active locations in
the records to the area of interest. No mining activity can be permitted
without this. In maintaining the records, the section maintains and
administers an annual average of about 50,000 mining claims and leasehold
locations, 6,000 prospecting sites, 75 upland mining leases, 44 coal
leases (same as FY '99), and 32 offshore mining leases. The section
also issues courtesy billings and performs audits to assure 6(i) revenues
are paid to the State. The revenue collection is over $2.1 million
for locatable mineral properties and is approximately $1.5 million
for coal.
Establishing Mineral Rights Under State Laws and Regulations
About 92 percent of the 91 million acres that the state has received
title to so far is open to mineral entry and the acquiring of mineral
rights by staking mining locations. Upon discovery, mining rights on these
state-owned lands are acquired by locating or staking a mining location
in a similar way to staking a mining claim on federal lands. Like federal
mining law, Alaska mining laws provide for nonexclusive access to State-owned
lands for prospecting, an exclusive right to develop a discovery, and
security of tenure. A mining location may be staked for any locatable
mineral (all metallic and most nonmetallic industrial minerals) under
Alaska mining law.
Under Alaska mining laws (AS 38.05.185-275) and regulations (11 AAC
86.100-600) (link:http://www.legis.state.ak.us/folhome.htm),
there are three general kinds of mining locations: mining claims,
leasehold location and prospecting sites.
Mining claims may be located by what is know as aliquot part legal description,
which is meridian, township, range, section, quarter section, and if applicable
quarter-quarter section. These claims are known as MTRSC locations, and
they are generally located using GPS latitude and longitude coordinates.
A quarter section location is typically about 160 acres in size, and a
quarter-quarter section location is typically 40 acres in size. Rent for
the larger size is always four times greater.
You may download the MTRSC location certificate here.
In addition, traditional on non-MTRSC locations may be located. These
are not restricted to precise aliquot part quarter or quarter-quarter
section areas, and generally overlap these dividing lines on the maps.
These locations may be any size up to 1,320 feet by 1,320 feet (40 acres)
with the claim lines running in the cardinal directions. You may download
the traditional or non-MTRSC location certificate here.
Traditional or non-MTRSC locations may be converted to MTRSC locations
at any time using a conversion location. You may download this certificate
here.
Upon processing a new location, the state may classify the location as
a leasehold location (explained below). Prior to discovery, a locator
may also locate a prospecting site which grants exclusive prospecting
rights for a term of two years, and exclusive right to convert to a claim
upon discovery (explained below). You may download a prospecting site
certificate here. A discovery
is required in order to stake a valid mining claim or leasehold location.
A discovery means that locatable minerals have been found and the evidence
is of such a character that an ordinarily prudent person would be justified
in expending further time, labor and money upon the property with a reasonable
expectation of developing a paying mine.
The primary difference between a mining claim and a leasehold location
is that a mining claim gives an owner an immediate property right to mine
a mineral deposit whereas a leasehold location must be converted into
an upland mining lease before mining operations can begin. State lands
are designated for leasehold location only if there may be other valuable
resources present or if the surface has already been leased or sold for
other uses. Converting a leasehold location to a lease is done to mitigate
other resource use conflicts that may exist, and to provide for exclusive
mineral title from other competing mineral locators. A mining lease will
likely contain stipulations to reduce or resolve potential conflicts between
mining and competing resource uses. The fee to apply for a lease is $250,
and processing takes about three months. Further information about converting
a claim or claims to an upland mining lease is available from the factsheet.
Processing
New Mining Claim and Prospecting Site Locations
One of the main duties of the section is to establish case file and database
records for new locations and convert some existing mining claims where
mining production is getting ready to occur to upland leases. Leases are
becoming more important for the large mineral developments because of
more secure mineral title tenure needed for financing development. The
processing of new mining claims and prospecting sites varies with metal
prices and the announcement of discoveries. Staking ranges from a low
of around 6,000/year to a high of around 15,000+/year.
Updating
Existing Claim and Lease Case File Records with Annual Rental and Labor
Requirements
Another main duty of the section is to perform billing and tracking of
rental payments and recorded annual labor affidavits for updating records
for claims and leases which are required by state laws and regulations.
The form for filing an affidavit of annual labor may be downloaded here.
Incorrect or untimely payment of rental, or untimely recording of an affidavit
of annual labor causes automatic abandonment of claims by operation of
law. As a result, this task also involves several dozen appeals resulting
from location abandonment and preparing director/commissioner level appeal
decisions and certificates of substantial compliance for locations reinstated
as a result of the process, or in some instances court records for appeals
beyond the administrative level. With increased claim staking, the number
of billable claims has increased from less than 20,000 in FY'96 to an
estimated 50,000 in FY'00. This and escalating rentals have boosted 6(i)
revenue over $1.5 million/annually.
Updating
Location Case File Records with Ownership Transfers and Changes
Another duty performed by this section is to process quit claim deeds,
leases, operating agreements and address changes for holders of mineral
property as required under state law. This task keeps mineral property
records up to date with "current holder" information so that
notice of regulatory or law changes, official bills and correspondence
are sent to correct mineral property owner. The form for transferring
ownership for locations, other than leases, is the Quit-Claim form (QCD)
which can be downloaded here.
Processing
Production Royalty Filings Required for Producing Mining Operations
Another duty performed by this section is to process royalty filings
from producing metal mining operations on state-owned land after notifying
base and precious metal mineral property owners/operators that production
royalty payments are due by sending royalty return forms to producers
on state land, processing returns, and performing audits of the large
lode mines and spot audits of some of the smaller placer mines.
Track
Rent, Royalty and Bonding Requirements for Administration of Coal Leases
Another duty is to review the annual requirements and process the correct
rental and bonding for 40 coal leases, and process the filings for coal
mining on state coal leases along with performing audits for payment of
correct royalty.
Process
Exploration Incentive Credit Applications
Another duty is to process applications received from mining companies
conducting exploration in the state with costs in excess of $250,000/annually
and required to be filed due to property transfer, technology approval,
or a decision to develop a mine. In addition, section tracks 113 certified
applications with a total certified tax and royalty credit of $30 million+.
Accelerate
Mineral Land Transfer From BLM to the State
Another duty is to work with the federal mining claim holders and the
mineral industry in accelerating the transfer of federal claim blocks
deemed valuable and significant to the state. Priority transfer requests
give special attention where mineral exploration, development and production
opportunities can be enhanced when the state is the landlord.
Conduct
Mineral Disposal Lease Sales
Work with the metal and coal industry in conducting lease disposals in
mineralized areas of interest for coal and offshore locatable minerals
by conducting best interest findings. With the high metal prices for PGM
metals and rare earths, the next disposal will likely be will likely be
for these minerals.
Conduct
Mineral Law and Regulation revision
Work with the mining industry and legislature in revisions to the mining
laws and regulations to meet the need of the changing industry.
