Alaska State Legislature

News From The House Majority

Ken Freeman, Press Secretary
State Capitol
Juneau, AK 99801
Phone: (907) 465-3804
Actuality line: 1-800-478-6540
web site: http://www.akrepublicans.org

House Measure Brings Efficiencies/Certainty to State Mining Law

For Immediate Release: February 7, 1997 Contact: Rep. Pete Kelly (907) 465-2327

JUNEAU - Legislation to bring efficiencies to state mining law passed the House of Representative Friday. Representative Pete Kelly, sponsor of HB 46, said the bill evolved from the permitting process undergone by Fort Knox, Illinois Creek and other large operations on State land.

"In the intensive review undergone by those mines, several flaws and inconsistencies were discovered in Title 38 of state law," said Kelly.

"This is a housekeeping measure to provide several technical corrections and some efficiencies for Department of Natural Resources mining development practices," said Kelly.

Kelly said HB 46 is supported by the state administration and industry.

"This legislation seeks to decrease some of the uncertainty in current mining law," said Kelly. "This is also one more way the State Legislature is showing its support for resource development in Alaska."

Specific changes to Title 38 of State Law include:

• Section 2. Clarifies that the millsite lease (sect. 7) is exempt from the best interest findings requirement of Title 38.05.035, just like all other mining leases and claims.

• Section 4. Recognizes that a mineral closure closes an area of state land to location of a mining claim, and not to mining.

• Section 5. Updates the mining definition of a corporation to reflect the modernization of the US and State codes.

• Section 6. Streamlines the inflation indexing for claim rentals. The rental will be rounded to the nearest $5, every ten years.

• Section 7. Lease v. Permit. Provides for the state to lease a mill site and charge an annual rental, rather than a permit fee.

• Section 8. Recognizes the new mill site leases are not subject to the Title 38 competitive bid requirements.

• Section 9. Clean-up abandonment procedures. Conforming language.

• Section 10. Renumbering references.

• Section 11. Repeals the production license paperwork.

• Sections 12, 13, and 14. Authority to begin regulation changes. Effective Dates.

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