Aquatic Farm Leasing
Fees and Bonding

Application Fees

Application fees are defined in the Mariculture Authorization Fee Examples and DNR Director's Orders Regarding Fees PDF .

Annual Rent

The first year's annual rent must be paid as a deliverable before the lease is issued. The cost of an aquatic farmsite leases annual rent is based on a fee schedule developed by DMLW's Appraisal Unit; this fee schedule is used as the basis for annual rent in leasing tide, submerged, and shore land suitable for aquatic farmsites under 38.05.083. To qualify for the fee schedule, a proposed site must meet certain conditions:

1. The aquatic farmsite must be located in a remote area; and
2. Must be accessible only by light aircraft and/or boat; and
3. Public utilities systems are not available; and
4. There is no apparent competition for the site.

The aquatic farm lease may also authorize associated facilities for housing personnel or storing equipment at the farmsite or on uplands that would incur additional fees. See 11 AAC 63.040. The fee schedule describes the per acre fee for these uses.

Bonding

For any aquatic farmsite lease, a bond, cash deposit, or certificate of deposit, is required to be posted by the applicant as a deliverable for lease authorization and maintained during the lease term. The bond amount is determined by such factors as acreage, projected site cleanup and restoration, any associated cleanup costs after termination of lease, including unpaid rentals, or other obligations accruing until site restoration is complete, 11 AAC 63.080. Required security.

The minimum-security amount for an aquatic farm lease is $2,500; however, the bond could be higher depending on the project. The bond may be adjusted upon approval of any amendments to the lease, assignments, re-appraisals, changes in the development plan, approval of a reclamation plan, any change in the activities conducted or performance of operations conducted on the farm site.

Bond Associations

Per 11 AAC 63.080(b), aquatic farmers may choose to participate in an “association bond,” which allows three or more lessees to meet bonding requirements for lease authorization by sharing a single bond that covers their leaseholds. For a bond association, each lessee is required to secure 50% of the amount normally calculated for an individual lease. The bond amount could change based on changes to the existing operation, new information, or other appropriate factors. The State may garnish the entire bond for financial defaults or to complete site restoration for a single lease if required. Leases in good standing can be removed from the association bond with 60 days' notice, while leases in default or with pending restoration cannot be removed.

Insurance

Applicants are required to submit and maintain a comprehensive general liability insurance policy with the State of Alaska named as an additional insured party per the stipulations of the authorization.

Workers' Compensation insurance is required for all employees hired to work on the aquatic farm. Applicants will be responsible for maintaining such insurance throughout the term of the lease.