Section 11 AAC 86.541 - Offshore mining lease rental(a) A rental payment for a tide or submerged land mining lease must be made in accordance with 11 AAC 86.107. Each payment must be accompanied by a rental form provided by the department, a photocopy of that form, or a rental form approved by the director. The rental form must contain the name and address of the owner of record and the ADL number of the lease. The department will, in its discretion, refuse to accept a payment submitted without the required information.(b) The amount of the annual rental payment is $1.03 per acre during the first five years of the lease, $2.06 per acre during the next five years of the lease, and $5.16 per acre after that. Payments made for an offshore prospecting permit will not be applied against the rent that becomes due after the permit is converted to a lease.(c) The first rental year for a tide or submerged land mining lease that was issued on or before August 31, 1989 began at noon on September 1, 1989 and payment for that rental year must be made on or before June 29, 1990. The rental payment for each subsequent rental year is due on September 1 and must be paid on or before November 30.(d) The first annual rental payment for a tide or submerged land mining lease issued after August 31, 1989 must be paid within 90 days after the effective date of the lease and will be applied to the period from the effective date of the lease to the following September 1. The rental payment for each subsequent rental year is due on September 1 and must be paid on or before November 30.(e) If the lessee fails to make a timely rental payment, the lease will be considered abandoned under AS 38.05.265. If a rental payment is timely submitted to the department, but the director determines that the payment is less than the amount due, the lessee will be granted 30 days after a deficiency notice is delivered under 11 AAC 86.108 to submit the additional rental due. The deficiency notice will specify the ADL number of the lease that will be considered abandoned without further notice if full payment is not received within the 30-day period.Eff. 5/18/90, Register 114; am 4/24/99, Register 150; am 8/23/2009, Register 191; am 8/30/2019, Register 231, August 2019 Authority:AS 38.05.020
AS 38.05.035
AS 38.05.185
AS 38.05.211
AS 38.05.250
AS 38.05.265