Sec. 38.05.070. Generally.

523 words·~2 min read·/ak/title-38/chapter-5/38-05-070

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(a)Land, including tide, submerged, or shoreland, to which the state holds title or to which the state may become entitled, may be leased, except for the extraction of natural resources and for carbon storage under AS 38.05.700 — 38.05.795, in the manner provided in AS 38.05.070 — 38.05.105.

(b)The director, with the approval of the commissioner, shall determine the land to be leased and the limitations, conditions, and terms of the lease. The director shall preserve reasonable and traditional access to state land and water. If the appraised value of the transaction is $10,000 a year or less, the director may negotiate a lease for a period not to exceed 10 years, and on the limitations, conditions, and terms that the director considers are in the best interests of the state. A lease negotiated under this subsection is not eligible for a preference under AS 38.05.102 .

(c)A lease may be issued for a period up to 55 years, if the commissioner determines it to be in the best interests of the state. The commissioner shall consider the useful life of any improvements proposed and approved under AS 38.05.075 in determining the term of the lease. If the commissioner determines that the land or a part of it which is the subject of a grazing lease is not being used for the purpose issued, the lease may be declared void.

(d)If, after notice under AS 38.05.945 soliciting interest for a competitive auction, the department determines that only one potential bidder has expressed interest in bidding, the director may cancel the competitive auction and negotiate a lease and its conditions and terms that the director determines to be in the best interests of the state.

(e)The director may renew a lease issued under this section, AS 38.05.075 , 38.05.083, or 38.05.810 upon its expiration if the lease is in good standing and the lease renewal is determined to be in the best interests of the state. A renewal issued under this subsection is not subject to AS 38.05.035 (e). A lease under this section, AS 38.05.075 , or 38.05.810 may be renewed only once for a term not longer than the initial term of the lease. The director shall provide notice of the lease renewal decision.

(f)A lease may be extended once for a period up to two years if the director determines the extension to be in the best interests of the state and the extension is necessary to prolong the lease while the department considers

(1)a lessee preference application under AS 38.05.102 ;

(2)an application to renew the lease under

(e)of this section; or

(3)an application to issue a new lease on the same site that, because the new lease substantially changes the purpose or operation of an existing lease, requires a new finding and determination under AS 38.05.035

(e)before the purpose or operation of a lease is changed.

(g)An extension issued under

(f)of this section is not subject to AS 38.05.035 (e). The director shall provide public notice of the decision to extend the lease.