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Alaska Department of Natural Resources
Division of Mining, Land and Water

Material Sales

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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.

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
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 $80 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 $80 Varies Varies depending on circumstances
*Based on applicant timely providing all material sale application forms and all requested deliverables
Limited Material Sale Contract (LMSC) Application PDF Material Sale (MS) Application PDF Print-Friendly Version PDF Submerged Lands Supplemental Questionnaire PDF Print-Friendly Version PDF Explosives Supplemental Questionnaire PDF Print-Friendly Version PDF Development Plan PDF Environmental Risk Questionnaire PDF Material Site Reclamation Plan PDF

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

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

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.
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