State proposes changes to material sales regulations

The Department of Natural Resources is proposing changes to regulations related to material sales and conveyances to state agencies.

The Department of Natural Resources is proposing changes to regulations in Alaska Administrative Code Title 11 relating to material sales and conveyances to state agencies, particularly to the pricing for sale of materials such as sand and gravel.

According to a Nov. 26 press release, the proposed changes would enable DNR to transfer material to state agencies and public corporations “for public purpose at no cost, allowing for maximum use of state land consistent with the public interest.” The revisions would also define what constitutes the use or disposal of state land for a “public purpose.”

The changes would impact AAC Title 11, Part 6, Chapter 71 — which addresses timber and material sales — and AAC Title 11, Part 6, Chapter 98, for which no regulations are currently filed.

DNR proposes to repeal and readopt 11 AAC 71.090 to include new language relating to conveyances of materials to state agencies and public corporations, removing discretion to sell up to 25,000 cubic yards of materials for representative sales price without an appraisal, allowing for appraisals establishing fair market value of materials conveyed to private parties, and defining “personal use” of materials.

The department also proposes to add 11 AAC 98.010 as a new section to define “public purpose” for the use and disposal of state land and resources as use or disposal that “contributes a substantial benefit to the general public,” including furthering the delivery of governmental services or functions by a federal or state agency or a political subdivision; promoting the general health, safety, or welfare; facilitating access to and enjoyment of the natural resources of the state; supporting private commerce or industry that contributes to the economic development of the state or any part of the state, including the creation, retention, or expansion of employment opportunities; or if the use or disposal is otherwise determined by the DNR commissioner to be in the interest of the state.

On Dec. 3, the department released a supplemental notice proposing additional regulation changes relating to transfers of timber and materials to other state agencies. This change would include an amendment to 11 AAC 71.015 to eliminate the restriction on transfers of materials to third parties by state agencies. Currently, state agencies are disallowed from conveying timber or materials transferred by the state Division of Mining, Land and Water to a third party.

A written comment period is currently open through 5 p.m. on Dec. 26.

A copy of the proposed regulation changes is available on the Alaska Online Public Notice System and by contacting DNR Division of Mining, Land and Water Natural Resource Specialist Molly Benson.

The public may submit comments by mail, email or phone on the proposed regulation changes, including the potential costs to private persons of complying with the changes, should they go into effect. According to additional regulation notice information provided with the Dec. 3 supplemental notice, the proposed action is intended to “reduce costs for state agencies and public corporations” and there is currently no estimated annual cost for compliance for private persons, other state agencies, municipalities or school districts.

Comments can be mailed to Benson at 550 West Seventh Avenue, Suite 1070, Anchorage, 99501. According to the release, DNR is also accepting comments “by facsimile” via email to dnr.materialsales.regulation@alaska.gov or via phone at 907-269-8604.

Questions relevant to the proposed changes may also be submitted to Benson at the above mail and email addresses. Questions must be received at least 10 days before the end of the public comment period — no later than 5 p.m. on Dec. 16. According to the release, DNR will aggregate their response to “substantially similar” questions and make both the questions and their responses available on the Alaska Online Public Notice System and the department’s website.

After the public comment period ends, DNR will either adopt the proposed regulation changes or other provisions dealing with the same subject, without further notice, or decide to take no action. The language of the final regulation may be different from that of the proposed regulation.