State DNR sets new rental rates for claims, leases, prospects
SPECIAL TO THE ALASKA MINER The Alaska Department of Natural Resources has announced YPb]PY_LW]L_P^LʬPN_TYR,WL^VL 8TYP]^PʬPN_TaP>P[_ 3P]PT^L summary of the information pro- vided to AMA: ?SP:ʯNPZQ_SP7_2ZaP]YZ] approved a change to 11 AAC 86, setting forth new rental rates for mining claims, prospecting sites, and mining leases for the 2020 mining year that began Sept. 1. These increases to mining rental rates were conducted in accordance with State of Alaska 7Lb,> # bSTNS]P\`T]P^ an adjustment to the rental rates based on the change on the Bu- reau of Labor Statistics Consumer Price Index (CPI) for Alaska every 10 years to account for the change in the cost of living over the 10 year period between adjustments. The last adjustment was com- pleted in 2009. Here are answers to some fre- \`PY_Wd L^VPO \`P^_TZY^ ]PRL]O - ing rental rates: How are the new rental rates cal- culated? In 1989, the State of Alaska Legislature set the rental rates for mining claims, leasehold lo- cations, and mining leases. In addition, the legislature directed the Department of Natural Re- sources (DNR) to adjust the rent- al rates every 10 years based on a change in the CPI for Alaska using the following simple formula in which the denominator is the CPI QZ]_SPʭ]^_SLWQZQ $#$L^OP_P] - mined by the Federal Government Bureau of Labor Statistics, and the nominator is the CPI for the ʭ]^_SLWQZQ_SPdPL]TYbSTNS_SP adjustment was made. The for-
mula resulted a correction factor. The correction factor is multiplied by the rental rates set in 1989 to produce the new rental rates. Why is the rental rate for Quarter Section mining claims not exactly four times the rate for the Quarter-Quarter Section mining claim? ?SP 7PRT^WL_`]P ]P\`T]PO /9= _Z]Z`YOZʬ_SP]PY_LW]L_P_Z_SP nearest $5.00. For example; the calculated rental rate for a 40 acre claim of less than 5 years is $41.27 and when rounded to the near- est $5.00 is $40.00. Multiplying $41.27 by 4 results in the actual rental rate for a 160 acre claim to MP ! #LYO]Z`YOTYRZʬ_Z the nearest $5.00 is $165.00.
I have already paid my claim rental for the coming year at the previous year rate. Will I automatically lose my claim because I didn’t pay the total amount due for this year? No. By regulation, if it is de- termined that a miner fails to make a full payment for rent on a XTYTYRNWLTX/9=T^]P\`T]PO_Z YZ_TQd _SP XTYP] ZQ _SP OPʭNTPY_ [LdXPY_ Md NP]_TʭPO XLTW ?SP XTYP] T^ _SPY ]P\`T]PO _Z XLVP full payment on or before Decem- ber 2 or 30 days after the receipt of the letter, whichever is later. ,OOT_TZYLW \`P^_TZY^ NLY MP answered by DNR representative 7Z]L 0OOd L_ $" !$#! # Z] Kristen Shake at 907-269-8652, or by email to kristen.shake@ alaska.gov.
October 2019
The Alaska Miner
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