Material Sales
What are Material Sales?
Materials are aggregate, riprap, railroad ballast, road ballast, road metal, peat, silt, loam, sand, gravel, stone, pumice, common clay, limestone, slate, peat and any other substances from the ground that are not applied for through the location system for mining claims (e.g., gold, silver, and other metals). Materials are measured and sold in cubic yards (cy). The authority to sell these materials from state land is found under AS 38.05.550-565 and AS 38.05.810.
Designated State Material Sites
Material sales are usually issued from Designated Material Sites that have been established by a best interest finding. Most of these sites can be viewed on the state mapping website, Alaska Mapper. DNR also considers requests to designate and develop new material sites on state land. The process for designating a new material site is described below. The typical time frame goal for issuing decisions to establish new sites is 9 to 12 months. The application cost for designating a new material site is $1,600. The application fee to amend or expand an existing designated material site is $400. Material sales from sites already designated do not require a new best interest finding.
Types of Sales
Personal Use of Materials
Each person may remove and make personal use of up to two cy of material per calendar year without charge for the material. Personal use materials must be approved by DNR and may only be removed from designated material sites.
Limited Material Sale
The smallest type of material sale is a Limited Material Sale Contract which can be issued for no more than 200 cy from a designated material site. To estimate the quantity of material you require from the site you have identified:
- Full-size pickup bed = one cubic yard (approx.)
- Standard dump truck = 10-12 cubic yards (approx.)
- One cubic yard = 1.5 tons (approx.)
Negotiated Material Sale
The second type is a negotiated material sale, which must also be issued from a designated material site. A negotiated contract can be issued for up to five years.
Competitive Material Sale
The third type is the competitive material sale. If multiple bidders express interest in the same location, if there is a limited quantity of material, or if DNR determines it is in the best interest of the State, DNR may decide that a competitive sale is the appropriate method for selling materials. A competitive material sale contract can be issued for up to five years.
Special Purposes Material Sale
The fourth type is a negotiated sale of materials for special purposes. Holders of state land use authorizations such as a permit, lease, easement, or mining plan of operations may be allowed to purchase material from the area encompassed by their authorization without requiring a material site designation.
How much does it cost?
Cost of Materials
The price charged for limited and negotiated sales is set by DNR, typically established by the representative regional sale prices established by DNR. The representative regional sale price is based on the market costs of material in the area. Alternatively, the buyer may pay the fair market value of the material, determined by an appraisal, acceptable to DNR that has been completed and approved within two years before the date of sale.
In addition to the cost of the material, there may be an application fee and additional requirements such as (but not limited to) an initial deposit, bonding, insurance, reclamation plan, or surveying. You may want to discuss these costs with DMLW staff before applying as they can be substantial.
Current Material Prices can be found here:
- Northern Regional Office Pricing
What is the process?
We encourage you to begin the material sale process by contacting your regional office to discuss the scope and use of the desired material. This provides an opportunity for staff to briefly assess your project and determine the best type of authorization for it.
After determining the amount and location, submit the appropriate application and supporting materials.
| Type of Sale |
Contract Term |
Material Limit |
Application Fee |
Estimated Adjudication Timeframe* |
Forms Needed |
|---|---|---|---|---|---|
| Personal Use | Once every calendar year | Up to two (2) cubic yards | Free | 1 Week | LMSC Application |
| Limited | Once per 12-month period | Up to 200 cubic yards | Free | 1 Week | LMSC Application |
| Negotiated | Up to 5 years | $80 | 30 days | MS Application Development Plan Env. Risk Questionnaire Reclamation Plan TBD |
|
| Competitive | Up to 5 years | $80 | Varies | MS Application Development Plan Env. Risk Questionnaire Reclamation Plan TBD |
|
| Special Purpose Sales | Up to 5 years | $200 | Varies | Varies depending on circumstances |
Site Reclamation
In accordance with AS 27.19, reclamation is required of all mining operations, including sand and gravel extraction. A reclamation plan is required if the operation will disturb five or more acres per year, or 50,000 cy, or a cumulative disturbed area of five or more acres.
Other Authorizations
If you are applying for a material site within a wetland or water body, permits from the U.S. Army Corps of Engineers; Alaska Department of Fish and Game, Habitat Division; and the Alaska Department of Environmental Conservation may be required. Also, local governments may have specific permitting requirements.
Designating a New Material Site
What's the process?
Application submitted with application fee
- Material Site Designation Application PDF
- Material Sale (MS) Application PDF
- Material Site Reclamation Plan PDF
- Environmental Risk Supplemental Questionnaire PDF
- Development Plan PDF
- The application cost for designating a new material site is $1,600. The application fee to amend or expand an existing designated material site is $400.
Application reviewed for completeness
- Additional / missing information may be requested from the applicant
Agency Review
- Project information distributed to relevant state agencies
- Comment period varies, typically between 14 and 30 days
Preliminary Decision (PD) Issued
- The PD provides a summary of DMLW’s research and recommendations in response to agency comments and the applicant's request to designate the site for continued material extraction, and the applicant’s mining and reclamation plan.
- The PD is shared with the applicant and with the public through the public notice process described below.
Public Notice
- The PD is posted online and shared by one or more other methods
- State Online Public Notices Website
- State statutes require a minimum 30-day public comment period
Final Finding and Decision (FFD) Issued
- The FFD addresses comments received during the public comment period and identifies any changes to the PD resulting from the public comment or other additional information received during the comment period.
- The PD and FFD together constitutes the best interest finding of DMLW. The FFD is sent to the applicant and those who commented during the public notice period.
- State statutes require a 20-day appeal period for the applicant and previous commenters, which is followed by a 10-day reconsideration period for the DNR Commissioner. The FFD does not become effective until the appeal and reconsideration period has closed and any appeals are resolved. View Appeal Regulations.